Implementation of Automation in the Customs

The amendments have simplified the procedures mentioned in existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR Rules, 2017) with a focus on automation and making the entire process contact-less.

• The process is being automated through the common portal.
• The various forms have been standardized and notified for the purpose of electronic submission of details.
• The various forms have been standardized and notified for the purpose.
• A monthly statement would to be submitted by the importer on the common portal.
• A procedure for inter-unit transfer of the imported goods has been provided for.
• An electronic option for voluntary payment through the common portal.

Procedure:

One-time prior intimation of intent to avail IGCR Benefit:

Importer who intends to import goods at a concessional rate of duty shall give a one-time prior information. This information shall be provided on the common portal in form IGCR-1. Upon acceptance, a unique IGCR Identification Number (IIN) shall be generated. The importer also has an option to update the form IGCR-1 in case of any change in the details. The importer is required to furnish these details in a prescribed format. The details of the bond shall be filled up by the importer in part B of the form IGCR-1.

The physical copy of the bond and bank guarantee shall be submitted by the importer to the jurisdictional officer. The importer shall also have an option of topping up the amount of the bond and adding the details of the bank guarantee on the common portal by providing bond addendum.

Import of goods at concessional rate

The importer shall mention the IIN and the continuity bond number and details while filing the bill of entry at the port of import. On the basis of the same, the Deputy Commissioner or Assistant Commissioner of Customs at the port of importation shall allow the benefit of exemption.

Receipt of goods

These Rules cover the receipt of goods in three scenarios:

(a) Goods are received in the premises of the importer;

(b) Goods are directly received at the premises of the job -worker; or

(c) Goods are partly received at the importer’s and partly sent to the job worker’s premises

Any non-receipt or short-receipt of the goods shall be intimated by the importer immediately on the common portal through form IGCR-2. This intimation shall be on the basis of the IIN and details shall be provided against each bill of entry, invoice and item

Goods sent for job work from importer’s premises/ Receipt of goods from the job worker/ Inter-Unit transfer of goods

In cases where the goods are first received at the premises of the importer and then to be sent for job work therefrom, the importer shall send the goods under the cover of an invoice or wherever applicable, through an e-way bill specifying the description and quantity of goods. Importer should mention such details in the monthly statement. The maximum period for which the goods can remain in the premises is six months from the date of invoice or e-way bill.

Utilization of goods for intended purpose

In case of goods that have not been utilized or defective goods, the importer has an option to either re export such goods or clear the same for home consumption within the said period of six months.

Re-Export or clearance for home consumption

In case an importer opts to re-export such goods, he shall record the details of export documents such as shipping bill number, shipping bill date and the port of export.

In case the importer intends to clear the un-utilized or defective goods on payment of requisite duty and interest, the import duty payable would be equal to the difference between the duty leviable on such goods. An option is available to the importer to clear the capital goods imported, on payment of duty along with interest, at a depreciated value, after they have been put to use. The particulars of such clearances and duty payments shall be recorded by the importer in the monthly statement.

Monthly statement and maintenance of account

Instead of the quarterly return prescribed earlier, the importer shall submit a monthly statement by the tenth day of the following month, on the common portal in the form IGCR-3 prescribed.

Key Clarifications:

• In case the importer is already covered under the existing provisions of IGCR Rules, it shall record the details of goods being imported in Form IGCR-1 and generate IGCR Identification Number (IIN) against the same.
• In case the bond/ bank guarantee has already been furnished to the jurisdictional officer, there is no requirement to give fresh bond/ guarantee. The officer shall enter the details of such bond in the customs automated system and generate bond number.
• The requirement of an intimation for sending imported goods for job work has been done away with.
• In case where importer intends to clear capital goods or unutilized/ defective imported goods for home consumption, payment of requisite duties and interest should be made using manual challan at the port of import. An option for payment through common portal is under development and will be enabled shortly
• Instead of quarterly return, the importer shall submit monthly statement. The first monthly statement shall be submitted in Form IGCR-3 in April 2022.
• Penalty prescribed in rule 8A of IGCR Rules for contravention of provisions is in addition to any other action taken under Customs Act, 1962 for recovery of duties.

Tansitional measures have also been prescribed for migrating into new procedures.

Aditi Mittal, Audit Associate, SW India