What Are the Conditions Under IGCR Rules, 2017?

The IGCR (Import of Goods at Concessional Rate of Duty) Rules, 2017 lay down specific conditions that importers must comply with to avail concessional duty benefits. These conditions are designed to ensure that the imported goods are used strictly for the declared purpose and prevent misuse of duty concessions.

Valid Registration:
The importer must obtain IGCR registration with Customs before availing any concessional duty.

Bond Execution:
The importer has to furnish a bond with bank guarantee/security to cover the differential duty liability, assuring that goods will be used only for the declared end use.

Intended Use Declaration:
Imported goods must be utilized strictly for the manufacture of specified goods, provision of output services, or job work, as declared in the registration.

No Unauthorized Transfer:
The importer cannot sell, transfer, or dispose of the imported goods as such, without prior approval from Customs.

Record Maintenance:
Detailed accounts of the imported goods, their consumption, and resultant finished products must be maintained for inspection.

Periodic Returns:
Importers must file quarterly or periodic returns with Customs to report utilization of goods.

Timely Intimation:
Any changes in manufacturing process, job worker details, or factory premises must be promptly informed to Customs.

In short, compliance with registration, bond execution, proper use, record-keeping, and reporting are the key conditions under IGCR Rules, 2017.

Learn more about IGCR at https://www.jparks.co/services/apply-for-igcr-clearance/.