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CBIC takes step to boost manufacturing, MSMEs
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SME Times News Bureau | 18 May, 2021
In order to facilitate domestic manufacturing, particularly by the MSME
sector, the Central Board of Customs and Indirect Taxes (CBIC) has
allowed importers the benefit of a concessional customs duty on import
of goods even if such goods are sent out for job work in the absence of
complete in-house manufacturing capabilities.
It has also
permitted import of capital goods at a concessional customs duty even if
such goods are cleared in the domestic market on payment of duty and
interest, at a depreciated value later.
The changes are aimed at
facilitating the trade, particularly MSME, who have limited options to
manufacture and trade but have entrepreneurial abilities to make and
sell goods and services.
The new facilitation measures have are
now being promoted through a new circular issued on Monday. Finance
minister Nirmala Sitharaman had in her Budget that IGCR, 2017 would be
amended to boost trade facilitation. Accordingly, the Central Board of
Customs and Indirect Taxes had immediately enhanced the scope of these
rules on February 2, 2021. The new circular only highlights the new
measures so that trade becomes aware of the changes.
The IGCR,
2017 lay down the procedures and manner in which an importer can avail
the benefit of a concessional Customs duty on import of goods required
for domestic production of goods or providing services. One major change
that accommodates the needs of trade and industry is that the imported
goods have been permitted to be sent out for 'job work'. The absence of
this facility had earlier constrained the industry especially those in
the MSME sector which did not have the complete manufacturing capability
in-house, a CBIC statement said.
Importantly, even importers
who do not have any manufacturing facility can now avail the IGCR, 2017
to import goods at concessional Customs duty and get the final goods
manufactured entirely on job work basis. However, some sectors such as
gold, jewellery, precious stones and metals have been excluded.
Another
major incentive now provided is to allow those who import capital goods
at a concessional Customs duty to clear them in the domestic market on
payment of duty and interest, at a depreciated value. This was not
allowed earlier and manufacturers were stuck with the imported capital
goods after having used them as they could not be easily re-exported.
Further,
the procedure for availing the concessional Customs duty under these
rules have been reviewed and rationalised. The required intimations and
records can be sent by email to the jurisdictional Customs officer
thereby obviating any physical interface.
The CBIC Circular also mentions that the list of Customs officers overseeing the IGCR, 2017 is available at its web site.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
| Japanese
Yen |
58.85 |
56.85 |
| As on 13 Aug, 2022 |
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