Why was the IGCR scheme introduced?

Why Was the IGCR Scheme Introduced?

The Import of Goods at Concessional Rate of Duty (IGCR) Scheme was introduced by the Government of India under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. Its primary aim is to promote domestic manufacturing and ease of doing business while ensuring compliance in the use of duty concessions.

Key Reasons for Introducing IGCR:

1. Support Domestic Manufacturing:
   By allowing manufacturers to import raw materials, components, and capital goods at a concessional customs duty, the scheme lowers input costs. This helps Indian businesses remain globally competitive.
2. Promote “Make in India”:
   The scheme encourages industries to produce value-added goods within India instead of relying on costly imports of finished products.
3. Ease of Doing Business:
   IGCR simplifies earlier procedures by providing a clear framework for availing duty concessions. Digital filing, prior intimation, and self-declaration mechanisms reduce bureaucratic hurdles.
4. Ensure Compliance and Accountability:
   While offering duty benefits, the rules require importers to maintain proper records of goods imported, consumed, and used for the declared purpose. This balances facilitation with regulatory control.
5. Encourage Job Creation and Industrial Growth:
   By incentivizing local production through cost-effective inputs, IGCR indirectly supports industrial growth, investment, and employment generation.

In summary, IGCR was introduced to make imports more affordable for legitimate industrial use, strengthen Indian manufacturing, and align trade facilitation with compliance.

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