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Circular No. 04/2022-Customs
F.No. 450/28/2016-Cus-IV
Government of India
Department of Revenue
Ministry of Finance
(Central Board of Indirect Taxes & Customs)
North Block, New Delhi.
Dated: 27th of Feb, 2022
To,
All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs (Preventive),
All Principal Chief Commissioners/ Chief Commissioners of Customs & Central tax,
All Principal Commissioners/ Commissioners of Customs/ Customs (Preventive),
All Principal Commissioners/ Commissioners of Customs & Central tax,
Madam/Sir,
Subject: Implementation of automation in the Customs (Import of Goods at
Concessional Rate of Duty) Rules, 2017 with effect from 01.03.2022- regarding
Reference is drawn to the Customs (Import of Goods at Concessional Rate of Duty)
Amendment Rules, 2022 notified vide Notification No. 07/2022-Customs (N.T.) dated
01.02.2022 so as to make certain amendments in existing Customs (Import of Goods at
Concessional Rate of Duty) Rules, 2017 (hereinafter referred to as “IGCR Rules, 2017”). These
changes come into effect from 1
st
March, 2022.
2. The amendments are aimed at simplifying the procedures with a focus on automation
and making the entire process contact-less.
3. These include:
a) The process is being automated. The Rules prescribe the submission of the
necessary details electronically, through the common portal. (The common portal
is the one notified vide notification 33/2021 dated 29-03-2021 and accessible at the
URL www.icegate.gov.in).
b) The various forms have been standardized and notified for the purpose of electronic
submission of details.
c) Individual transaction based permissions and intimations, such as - intimation of
the intent to import goods at a concessional rate of duty, intimation of the receipt
of goods, permission to re-export or clear goods domestically etc, are all being done
away with.
d) A monthly statement would to be submitted by the importer on the common portal
e) A procedure for inter-unit transfer of the imported goods has been provided for.
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f) An electronic option for voluntary payment through the common portal, as
specified in the Rules, is also being developed for implementation.
4. Procedure to be followed by an importer
For ease of understanding, the procedure set out in the IGCR Rules, 2017 and the
clarifications for smooth implementation are summarized below:
One-time prior intimation of intent to avail IGCR Benefit:
4.1 An importer who intends to import goods at a concessional rate of duty shall
give a one-time prior information of such goods being imported. This information
shall be provided on the common portal in form IGCR-1. (refer rule 4).
4.2 Subsequently, upon acceptance of such information on the common portal, a
unique IGCR Identification Number (IIN) shall be generated. This information is
also made available through the common portal to the jurisdictional customs
officer as well as the officers at the respective port of import. The importer also
has an option to update the form IGCR-1 in case of any change in the details.
4.3 It is clarified that in the case of units already covered under the existing provisions
of IGCR Rules, 2017, the importers shall record electronically such details of
intimation given in form IGCR-1 on the common portal and generate an IIN
against the same.
4.4 The importer is required to furnish a one-time continuity bond, in a format
provided in annexure-I to this Circular, to cover all the imports undertaken under
this procedure. The bond details such as amount of the bond etc. shall be filled up by
the importer on the common portal in part B of the form IGCR-1.
4.5 Subsequently, the physical copy of the bond and bank guarantee, wherever applicable,
shall be submitted by the importer to the jurisdictional officer. Upon acceptance, the
jurisdictional customs officer shall approve the bond request on the Customs
Automated System.
4.6 The details of the bond number and bank guarantees will then be available for the
importer to see on the common portal. 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 and by providing bond addendum to the bond for adding bank
guarantee as per the format given in Annexure-II.
4.7 It is clarified that if the bond/bank guarantee has already been furnished to the
jurisdictional officer, there is no requirement to give a fresh bond/bank guarantee.
The jurisdictional officer shall enter the details of such bond/bank guarantee in the
customs automated system and generate the bond number.
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Import of goods at concessional rate
4.8 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 notification. Once a bill of entry
is cleared for home consumption, the bond submitted by the importer gets debited
automatically in the customs automated system. These details shall be available
to the jurisdictional customs officer through the common portal. (refer rule 5)
Receipt of goods
4.9 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
In all such cases, the requirement of intimating the receipt of the goods has been
done away with. However, 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. (refer rule 6)
Goods sent for job work from importer’s premises:
4.10 In cases where the goods are first received at the premises of the importer and are
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. It is clarified that the requirement of an
intimation when sending goods for job work, has been done away with. The
importer shall maintain a record and mention such details in the monthly
statement.
4.11 The maximum period for which the goods can remain with the job worker shall
be six months from the date of invoice or e-way bill.
Receipt of goods from the job worker:
4.12 After the completion of job work, there can be three scenarios -
(a) the goods are received back in the premises of the importer, or,
(b) the goods are cleared directly from the premises of the job
worker, or
(c) the goods are sent by the job worker to another job worker.
In all such cases, the goods shall be sent under an invoice or wherever applicable,
e-way bill. The importer shall maintain a record of such movement of goods and
mention the details in the monthly statement.
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Inter-Unit transfer of goods
4.13 A separate provision has been included for unit transfer of goods, where goods are
sent to a different unit of the same importer. The goods, in such cases shall be sent
under an invoice or wherever applicable, e-way bill, mentioning the description
and quality of goods.
Utilization of goods for intended purpose
4.14 It is clarified that the importer who has availed the benefit of an exemption
notification shall use the goods imported in accordance with the conditions
specified in the exemption notification within six months from the date of import.
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.
4.15 Further, in all cases where the import at concessional rate is governed by condition
no. 108 of the notification 50/2017-Customs, the export of manufactured goods
should be completed within six months from the date of import.
Re-Export or clearance for home consumption:
4.16 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. These details shall be specified against the bill of entry, invoice and item
details of the goods imported.
4.17 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 but for the exemption availed
and that already paid, if any, at the time of importation, along with interest a rate
as fixed by notification under section 28AA. The period for calculation of interest
would start from the date of import of such goods and end with the date of actual
payment.
4.18 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.
4.19 The particulars of such clearances and duty payments shall be recorded by the
importer in the monthly statement. The importer shall pay such duties and interest
using manual challan at the port of import. An option for voluntary payment
through the common portal, as specified in the Rules, is under development for
being enabled shortly.
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Monthly statement and maintenance of account
4.20 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. (refer rule 6). It is clarified that the first monthly
statement under the changed procedures shall be submitted by the importers in the
month of April 2022.
4.21 The importer shall, with respect to the goods imported, maintain an account as
prescribed in rule 6. Further, with respect to inter-unit transfer of goods, the
importer shall maintain an account as prescribed in rule 6B. These accounts shall
be produced by the importer to the jurisdictional Deputy /Assistant Commissioner
of Customs as and when required by the said officer
4.22 The job-worker shall also maintain an account as prescribed in rule 6A which shall
be produced to the jurisdictional customs officer, as and when required by the said
officer.
5. An importer or the job worker who contravenes the provisions of these rules shall
be liable to a penalty as prescribed in the said rules (refer rule 8A). It is clarified that, this is
in addition to any other action taken under the Customs Act, 1962 for recovery of duties.
6. Transitional measures
6.1 In order to account for the stock of goods imported under IGCR that are already
existing in the premises of the importer or job worker on the date of transition to
the new procedure, an option is being provided to the importer to record the details
of all such goods according to the bills of entry, invoice and item, in the monthly
statement by linking their past bills of entry in the common portal.
6.2 The details of the existing bonds under IGCR shall be entered into the customs
automated system by the jurisdictional officers and the amount of surety/bank
guarantee shall be determined in accordance with the Customs circular 48/2017
dated 08.12.2017.
6.3 While the system architecture to provide information in the forms prescribed shall
be in place from 01-03-2022 , to enable a smooth transition, importers shall have
an option to submit procurement certificates for import of goods at the port of
import for availing the exemption benefit till 13-03-2022.
6.4 Currently there is a requirement for EOUs to follow Rule 5 of Customs (IGCR)
Rules, 2017 to be eligible for claiming exemption of duties/ taxes on the import
of goods. The system architecture with respect to above rule in respect of EoUs is
under development. The same shall be implemented in due course. Till such date,
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procurement certificates can continue to be submitted by the EOUs for import of
goods in lieu of generating IIN in the system.
7. For ease of reference of the importers, the district wise list of jurisdictional customs
officers, their contact details and their jurisdictions have been mapped and published on the
CBIC website. The same can be accessed at https://www.cbic.gov.in/htdocs-
cbec/home_links/enquiry-points-home.
8. The Board Circulars Nos. 25/2017- Cus (N.T.) dated 30.06.2017, 29/2017 -Cus (N.T.)
dated 17.07.2017 and 10/2021 – Cus (N.T.) dated 17.05.2021 may be considered modified to
that extent. The DG Systems is also requested to issue system advisory to the Trade and
Officers on the system implementation aspects.
9. Suitable Public Notices may please be issued to guide the trade/industry. The trade
should be proactively assisted during the transition period keeping in view the resolve to
provide an enabling environment for manufacturing. Standing Orders may be issued for the
officers and staff. Difficulty, if any, faced in the implementation may be brought to the notice
of Board immediately at the email id dircus@nic.in.
10. Hindi version follows.
Yours faithfully,
(Varun Koundinya)
Senior Technical Officer,
Customs Policy Wing
Copy to:
Pr. Director General
Directorate General of Systems and Data Management
CBIC, New Delhi.
With request as mentioned in para 8 of the circular
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Annexure-I
BOND FORMAT FOR IMPORT OF GOODS AT CONCESSIONAL RATE OF DUTY
KNOW ALL MEN BY THESE PRESENTS THAT I/We,
M/s…………………………having registered office located
at………………………..and holding Import -Export Code No……….....hereinafter
called the "obligor(s)" (which expression shall include my/our successors/heirs,
executors, administrators and legal representatives) are held and firmly bound unto
the President of India hereinafter called the "President" (which expression shall
include his successors and assigns) in the sum of Rs………..(Rs…………………) to
be paid to the President for which payment well and truly to be made, I/we bind
ourselves, my/our successors, heirs, executors, administrators and legal
representatives firmly by these presents.
KNOW ALL MEN BY THESE PRESENTS THAT I/We,
M/s…………………………having registered office located
at………………………..and holding Import -Export Code No……….....hereinafter
called the "obligor(s)" (which expression shall include my/our successors/heirs,
executors, administrators and legal representatives) and …………….................
of………................hereinafter called "the surety(ies)" are held and firmly bound unto
the President of India hereinafter called the "President" (which expression shall
include his successors and assigns) in the sum of Rs………..(Rs…………………) to
be paid to the President for which payment well and truly to be made, I/we bind
ourselves, my/our successors, heirs, executors, administrators and legal
representatives firmly by these presents.
Sealed with my/our seal(s) this ………….day of 20……..
WHEREAS the obligor desires from time to time to import or export goods in
accordance with notifications under section 25 of the Customs Act, 1962 read with the
Customs (Import of Goods at Concessional Rate) Rules, 2017.
AND WHEREAS the Commissioner has required the obligor to deposit security for
the amount of this bond/ the sum of ...................... ... in cash (the securities as
hereinafter mentioned of a total of ............................................ rupees endorsed in
favour of the For President and accepted on his behalf by the Assistant Commissioner
of Customs,..................................................................... and whereas the obligor has
furnished securities amounting to Rs........................by depositing with the officer
aforementioned. The obligor undertakes to deposit the balance security as and when
he intends to avail the benefit of duty exemption on goods imported under the said
notifications.
For surety
bond only
For bond
with
security
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NOW THE CONDITION of this written bond is such that —
The Obligor undertakes to fulfill obligations as applicable from time to time in the
event of import and export without payment of duty or on payment of
concessional duty in terms of the notifications issued section 25 of the Customs
Act, 1962 read with the Customs (Import of Goods at Concessional Rate) Rules,
2017, the obligor shall fulfill the following obligations:
a. observe all the terms and conditions of the said notification(s) in respect of
imports and exports from time to time; and
b. in the event of failure to fulfil full or part of the conditions as specified in the said
notification(s), undertake to pay the customs duty but for the exemption and also
interest at the applicable rates per annum thereon forthwith and without any demur, to
the Government.
AND if the obligor has duly imported or exported goods subject to the above
provisions and if the obligor has satisfied the above conditions, in respect of the said
goods imported or exported from time to time, this obligation to that extent shall be
void.
AND IT IS HEREBY AGREED AND DECLARED by the obligor as follows:-
A) This bond is given under the orders of the Central Government for the performance
of an act which is in public interest.
B) The President through Commissioner or Customs or any other officer of Customs
shall recover the said sums due from the obligor(s) in the manner laid down in sub-
section (1) of Section 142 of the Customs Act, 1962 without prejudice to any other
mode of recovery.
Provided always that the liability of the surety hereunder shall not be impaired or
discharged by reason of any time being granted or any forbearance, act or omission of
the Government (whether with or without the knowledge or the consent of the surety)
in respect of or in relation to the obligation and condition to be performed or
discharged by the obligor(s) nor shall it be necessary to sue the obligor(s) before suing
the surety for amounts hereunder;
AND the President shall, at his option, be competent to make good all the loss and
damages from the amount of the security deposit or by endorsing his rights under the
above-written bond or the both;
And the President of India shall, at his option, be competent to make good all the loss
and damage by endorsing his rights under the above written bond.
For surety
bond only
For bond
with
security
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In these presents the words imposing singular only shall also include the plural and
vice versa where the context so requires;
C) This bond shall remain in force from the date hereof and the obligation and liability
of the obligor shall be a continuing one in respect of all goods imported or exported
from time to time by the obligor.
IN WITNESS WHEREOF these presents have been signed this day ______________
of ___________20 _______ herein before written by the obligor(s) and the surety(ies).
Place:
Date:
(Signature of the Obligor)
(Signature of the surety(ies))
Witnesses:
1.
2.
Accepted for and on behalf of the President of India on ___________________day of
____________ 20 ______________.
Signature and date
Name _________________________________
Designation ____________________________
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Annexure-II
BOND ADDENDUM WITH PROVISION FOR ADDITION OF SECURITY
KNOW ALL MEN BY THESE PRESENTS THAT the Proper Officer of Customs has been
pleased to accept on behalf of the President of India the bond for the purposes of import or
export goods in accordance with notifications under section 25 of the Customs Act, 1962 read
with the Customs (Import of Goods at Concessional Rate) Rules, 2017, executed by us vide
request dated...........and assigned the Bond Number ..........
And
WHEREAS
I/We, the importer/exporter, [hereinafter called the obligor(s)], has/have deposited with the
Principal Commissioner of Customs or Commissioner of Customs, as the case may be,
at……… (location), a security/bank guarantee of amount Rs............. for IEC No................
with reference No....... issued by ................ in favour of O/O Commissioner of
Customs............ for the due observance of and performance of the terms and undertakings on
my part and for being applied in part or full towards the indemnity hereby given in terms of the
Bond aforementioned, or otherwise according to law. Further, the obligor undertakes to deposit
the balance security, if required, as and when he desires to import or export under the above
provisions.
.
NOW, IT IS HEREBY AGREED AND DECLARED that -
i. The President or the Proper Officer, without prejudice to any other mode of recovery
may, inter alia, adjust the security deposit / securities in part or full towards the dues
arising out of non-compliance of conditions in afore stated bond.
ii. In case the proceedings are not final, the obligor(s)…………..agree to renew the
security/bank guarantee before 15 days of expiry of the security/bank guarantee,
failing which, the bank guarantee shall be encashed by the department.
The Schedule of Securities above referred to
[Particulars of the amount deposited, along with consignments, if any]
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IN WITNESS WHEREOF these presents have been signed this day ______________
of ___________20 _______ herein before written by the obligor(s) and the surety(ies).
Place: Date:
(Signature of the Obligor)
Name of Obligor…………………………
Designation………………………………
Accepted for and on behalf of the President of India on ___________________day of
____________ 20 ______________.
Signature and date
Name _________________________________
Designation ____________________________
