Can Traders (Not Manufacturers) Avail IGCR?

The IGCR (Import of Goods at Concessional Rate of Duty) Rules, 2017 were primarily designed to support manufacturers who import inputs for use in their own production. However, recent amendments have expanded the scope of IGCR to benefit traders in certain situations.

Key Points:

1. Earlier Restriction:
   Initially, only manufacturers could avail IGCR, as the rules required goods to be imported and used within their factory for manufacturing.
2. Post-2021 Amendments:
   The Government amended IGCR Rules in 2021, allowing importers who supply goods to eligible end-use manufacturers (on job work basis) to also claim concessional duty.
3. Trader Eligibility:
   • Traders who import goods exclusively for supplying to end-user manufacturers (registered under IGCR) can avail benefits.
   • They must ensure proper documentation, intimation, and reporting to Customs, confirming that goods are used only for the notified purpose.
4. Conditions to Follow:
   • Bond/undertaking must be filed with jurisdictional Customs.
   • End-use verification and monthly/quarterly returns must be submitted.
   • Misuse by supplying goods to ineligible buyers will lead to duty recovery and penalties.

In short: Yes, traders can avail IGCR, but only when they supply imported goods to approved manufacturers under strict compliance conditions.

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