Question : CBIC has recently (May 2021) informed trade about enhancement of facilities under Import of goods at concession rate. Which year’s budget stated that the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR, 2017) would be amended to boost trade facilitation ?
(a)Budget 2021-22 (b) Budget2020-21
(c) Budget2019-20
(d)Budget2018-19
Answer : (a)
Related facts
- The Finance Minister had in her Budget Speech this year announced that the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR, 2017) would be amended to boost trade facilitation.
- Accordingly, the Central Board of Customs and Indirect Taxes( CBIC) had immediately enhanced the scope of these rules on 2nd February 2021.
- The CBIC has now issued a Circular No.10/2021-Customs, dated 17th May 2021 in order to assist the trade in understanding the improvements in the IGCR, 2017 so that they may make full use of the new facilities.
- The changes are aimed at facilitating the trade, particularly MSME, who have limited options to manufacture and trade but have entrepreneurial abilities to make and sell goods and services.
- 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’.
- Another major incentive now provided is to allow those who import capital goods at a concessional Customs duty to clear them in the domestic market on payment of duty and interest, at a depreciated value.