IGCR – Amendment Rules 2021- A Boost to Trade facilitation for MSME’s without having manufacturing facility

MSME Importers who do not have any manufacturing facility can now avail IGCR2017 to Import goods at a concessional customs duty and get the final goods manufactured entirely on Job work basis. (Gold/ Jewellery / Precious metals have been excluded )
In view of demands from trade and Industry and having regard to their changing needs as per prevalent global practices customs has introduced an amendment to existing IGCR rules 2017 with amendment rules 2021 through circular No 10/2021 Dated 17th May 2021 .

Key Highlights of the said Amended Rules 2021

• The facility of carrying out job work under the ambit of IGCR has been introduced
• The scope of the job work facility has been extended to an importer who is a manufacturer but without complete manufacturing facility. Also, 100% out-sourcing for manufacture of goods on job-work basis has been permitted for importers who do not have any manufacturing facility at all.

• An option has been given to the importers to import capital goods for a specified purpose at a concessional rate of duty and after having put such capital goods to use for the said purpose, clear the same after payment of the differential duty and interest, at a depreciated value, with permission from the jurisdictional Customs

Procedures to be followed by Importer

• One time – Prior Intimation of intent to avail IGCR Benefit:
• The importer is required to submit a one-time continuity bond, to cover all the imports undertaken under this procedure
• Intimation before import: (estimated quantity and value of goods to be imported, to be furnished with jurisdictional Customs Officer)
• Quarterly return and maintenance of account