CBIC issues Detailed Clarifications on Concessional Duty under IGCR Rules, 2022

The Central Board of Indirect Taxes and Customs (CBIC) has issued detailed clarifications on the applicability of concessional duty under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2022 (IGCR Rules). The clarifications address issues related to the simultaneous availment of IGCR benefits with the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme. Units operating under Section 65 of the Customs Act can avail benefits under both schemes if allowed by the respective schemes. Importers must comply with additional conditions prescribed under the concessional notification, IGCR Rules, and MOOWR stipulations. The CBIC also clarified the eligibility for IGCR benefits when MOOWR units import specific goods for manufacturing and supply value-added products to manufacturers of cellular mobile phones. The term “for use in the manufacture of cellular mobile phones” includes components used in the production process, allowing intermediate goods manufacturers to avail concessional duty under the IGCR Rules.