Indian importers intending to import goods at a concessional rate of duty need to give a one-time prior intimation about the same to the customs officers along with the estimated value and quantity of the goods, the Central Board of Indirect Taxes & Customs (CBIC) has said. It also said that the imported goods will now be allowed to be sent out for job work.

“The amendment rules have been introduced in view of the demands from the trade and industry and the changing needs as per prevalent global practices. The amendments are also an effort towards creating an enabling environment for promoting manufacturing by domestic industry to make them competitive globally and also make them self-reliant,” the CBIC said in a circular.

The CBIC has provided information on the procedure to be followed by importers to avail concessional duty on imports, which includes furnishing the name and address of the premises of the importer and his job worker; the customs tariff heading (CTH), nature and description of imported goods used in manufacturing; the CTH and description of goods produced or process undertaken at the manufacturing facility; and the nature of output service rendered utilising imported goods.

The scope of the job work facility has also been extended to an importer who is a manufacturer but without complete manufacturing facility. Also, 100 per cent outsourcing for manufacture of goods on job-work basis has been permitted for importers who do not have any manufacturing facility, the circular said.

The amendments also include an option for importers of capital goods at a concessional rate of duty to clear them in the domestic market after payment of the differential duty and interest at a depreciated value, it added.

An importer needs to utilise the imported goods for the intended purpose or re-export the same, within a period of six months from the date of import, failing which the importer is liable to payment of duty with interest.

Fibre2Fashion News Desk (KD)

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