IGCR stands for Import of Goods at Concessional Rate of Duty. The relaxation in the rate of duty is provided by the CBIC in the form of IGCR. IGCR Rules govern the provisions for the same, that is, the Import of Goods at Concessional Rate of Duty or for Specified Use.
Notified goods alone are eligible for this scheme. The importers of such goods may apply online through the portal of CBIC and claim concessional duty rates for their imported goods.
IGCR in Customs supports the importers financially if they are important for some specific goods for some specific purposes. Let’s investigate the details of the regime of IGCR and understand the procedures specified in the IGCR Rules for the Importers of notified goods.
IGCR Rules
The IGCR Rules are implemented by the CBIC. The CBIC stands for Central Board of Indirect Taxes and Customs. It gives definitions for various terms relevant for the implementation of Import of Goods at Concessional Duty Rate Rules. Imports of notified goods in the schedule are eligible to avail concessional duty rates. However, this concession is applicable only to goods used for the purpose outlined in the IGCR rules.
They must take care that the imported goods are used for the declared purpose. To convey this to the CBIC, the importers also must give an advance intimation of claiming relaxation under the IGCR rules and further monthly filings of the returns for the utilization of the goods. These returns are filed through the ICEGATE portal.
The goods are also to be used by the importers within six months of the date of import. In case of no use for a month, the importers can file the NIL return, but it must be filed compulsorily.
If, subsequently, the importer fails to use the goods so imported for the intended purpose within the utilization period, he cannot claim concession under the IGCR Rules and shall be liable to repay the excess duty to the CBIC along with applicable interest.
Role of ICEGATE in IGCR Implementation
To use such rules in IGCR and other customs-related management, CBIC has developed an online portal known as ICEGATE. CBIC belongs to the Revenue Department of the Government of India under the Ministry of Finance.
Indian Customs Electronic Data Interchange Gateway is the full form of ICEGATE. This provides support to the customs authorities in maintaining information regarding customs formalities electronically. It acts as a medium of communication between the trade user and the customs department.
It offers e-filing services through the portal, helping traders file requests efficiently and effectively through electronic means. The Importers willing to claim the concession shall give prior intimation through the IGCR module of the ICEGATE portal by submitting the details of imported goods and their intended purpose of use in the prescribed manner.
Procedure to Claim Relaxation under IGCR Rules
Importers must follow the prescribed procedure to claim relaxation under IGCR rules. This procedure has been given in IGCR rules and updated sometimes through circulars issued by CBIC. Following is the procedure an importer needs to go through:
Prior Intimation of Intent
The importer must give prior intimation about the IGCR benefit’s use. He may log into the portal of ICEGATE, go to the IGCR section and give the prior intention with details of all imported goods. After submitting the information and on its acceptance, this would generate a Unique IGCR Identification Number abbreviated as IIN.
Bond Bank Guarantee
The importer also needs to furnish a one-time continuity bond. It should be according to the prescribed format and should cover all the goods being imported under this procedure. Later, the physical copy of the Bond and Bank Guarantee is submitted to the jurisdictional officer who approves the bond request on the ICEGATE portal.
Bill of Entry at the Port
The importer must declare the details of IIN, that is, IGCR Identification Number and Bond Number along with other details on the bill of entry. The Deputy Commissioner or the Assistant Commissioner of Customs allows the benefit of exemption and import is executed at concessional rates based on these details.
Utilization of Bond
After the bill of entry is cleared for home consumption, the bond amount is debited through the automated IGCR system.
Intimation of Goods Received
The receipt of goods at the premises of the importer and the worker is recognised by IGCR rules. However, if the goods are received at any other place or if there is a short receipt of a portion of the goods, then it shall be intimated by the importer through the common IGCR portal.
Conditions for the Usage of Goods
The same goods shall, therefore, be used for the same purpose if the importer has claimed the benefit under the IGCR exemption. The period of utilization of such goods is six months. Utilization shall, however, be done in accordance with the conditions specified only. If there is any defect in the goods, the same shall be re-exported or cleared for home consumption within six months.
How to Re-Export or Clear Goods for Home Consumption?
The unused or defective goods shall be reported and re-exported to the origin. The importer also has an option to clear goods for home consumption. In both cases, the applicable duty shall be paid by the importer. This duty payment is calculated based on the exemption claimed and the actual duty chargeable on such goods without exemption.
The goods are cleared after due payment of the duty with interest. At present, importers must make necessary payments through challan. The interest is calculated from the date of import to the date of actual payment of the total duty applicable on such goods.
The importer also needs to put the information regarding such clearances and duty payments in the monthly statement.
Reporting Compliance for the IGCR Goods
The Importer needs to file the monthly return of the utilization of the goods imported under the IGCR (Import of Goods at Concessional Rate of Duty) Rules. These returns shall be filed in accordance with the following procedure-
- Importers must submit a monthly statement by the 10th of the following month, using the form IGCR-3 on the common IGCR portal.
- Importers are required to maintain accounts including separate accounts for inter-unit transfers of IGCR goods. These accounts should be presented to the Deputy Commissioner or Assistant Commissioner of Customs upon request.
- Job Workers must maintain accounts which should be presented to the customs officer as and when required.
- Importers or job-workers who violate these rules will face penalties as specified in rule 8A of the IGCR rules. This penalty is separate from any actions taken under the Customs Act, 1962 for duty recovery.”
Conclusion
The IGCR Rules are implemented by the Central Board of Indirect Taxes and Customs. In a nutshell, these rules are the most important way that an importer can seek duty concession for certain goods. It has been laid down that intimation in advance, a continuity bond, and detailed documentation on the bill of entry insisted upon on the ICEGATE portal make the procedure clear and more streamlined.
This makes it imperative for the importer to ensure that the goods are used for the declared purpose within the stipulated time; otherwise, he will have to face penalties. This becomes very important in terms of compliance under the framework. If these regulations set the tone for the import of goods, adherence to the laid-down procedure becomes necessary and properly uses and manages the goods under the regime of IGCR.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not Curated Exim, and have not been evaluated by Curated Exim for accuracy, completeness, or changes in the law.”
