Syllabus Section: Economy

Why in News?

• The Government has brought changes in the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, IGCR 2017 to boost trade facilitation.

About:

• 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.

Changes:

• 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 Micro, Small and Medium Enterprises sector which did not have the complete manufacturing capability in-house.  
• 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.
• Some sectors such as jewellery, gold, precious stones, and metals have been excluded.
• Another significant incentive now provided is allowing those who import capital goods at a concessional Customs duty to clear them in the domestic market on the payment of duty and interest, at a depreciated value.

Source: All India Radio