Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.

 

In exercise of the powers conferred by section 156 of the Customs Act, 1962 (52 of 1962),and in supersession of the Customs(Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,2016 except as things done or omitted to be done before such supersession, the Central Government hereby makes the following, namely: ?

Rule - 1. Short title and commencement.

(1)     These rules may be called the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.

(2)     They shall come into force on the 1st day of July, 2017.

Rule - 2. Application.

(1)     These rules shall apply to an importer, who intends to avail the benefit of an exemption notification issued under sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and where the benefit of such exemption is dependent upon the use of imported goods covered by that notification for the manufacture of any commodity or provision of output service.

(2)     These rules shall apply only in respect of such exemption notifications which provide for the observance of these rules.

Rule - 3. Definition.

In these rules, unless the context otherwise requires, ?

(a)      ?Act? means the Customs Act, 1962 (52 of 1962);

[1][?(aa) ?capital goods? means goods, the value of which is capitalised in the books of account of the importer;?;]

 

(b)      ??exemption notification? means a notification issued under sub-section (1) of section 25 of the Act;

(c)      ??information? means the information provided by the manufacturer who intends to avail the benefit of an exemption notification;

[2][?(ca) ?job work? means any treatment, process or manufacture, consistent with the exemption notification undertaken by a person on goods belonging to the importer except gold, jewellery and articles thereof, and other precious metals or stones; and the term ?job worker? shall be construed accordingly; ?;]

(d)      ??Jurisdictional Custom Officer? means an officer of Customs of a rank equivalent to the rank of Superintendent or an Appraiser exercising jurisdiction over the premises where either the imported goods shall be put to use for manufacture or for rendering output services;

(e)      [3][?manufacture? means the processing of raw materials or inputs by the importer in any manner that results in emergence of a new product having a distinct nature or character or use or name; and the term ?manufacturer? shall be construed accordingly; ?; (SUBSTITUTED VIDE Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.)

(f)       output service? means supply of service excluding after-sales service, utilizing imported goods.?. ]

[4][Rule - 4. Importer to give prior information.

The importer shall provide information to the Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service except after-sales service, about the following particulars, namely: ?

(i)       the name and address of the importer and his job worker, if any;

 

(ii)      the goods produced or process undertaken at the manufacturing facility of the importer and/or his job worker, if any, or both;

 

(iii)     the nature and description of imported goods used in the manufacture of goods at the premises of the importer or the job worker, if any;

 

(iv)    nature of output service rendered utilising imported goods.?.]

Rule - 5. Procedure to be followed.

(1)     The importer who intends to avail the benefit of an exemption notification shall provide information ?

(a)      in duplicate, to the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, the estimated quantity and value of the goods to be imported, particulars of the exemption notification applicable on such import and the port of import in respect of a particular consignment for a period not exceeding one year; and

(b)      in one set, to the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs at the Custom Station of importation.

(2)     The importer who intends to avail the benefit of an exemption notification shall submit a continuity bond with such surety or security as deemed appropriate by the Deputy Commissioner of Customs or Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, with an undertaking to pay the amount equal to the difference between the duty leviable on inputs but for the exemption and that already paid, if any, at the time of importation, along with interest, at the rate fixed by notification issued under section 28AA of the Act, for the period starting from the date of importation of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that he is liable to pay.

(3)     The Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, shall forward one copy of information received from the importer to the Deputy Commissioner of Customs, or as the case may be, Assistant Commissioner of Customs at the Custom Station of importation.

(4)     On receipt of the copy of the information under clause (b) of sub-rule (1), the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs at the Custom Station of importation shall allow the benefit of the exemption notification to the importer who intends to avail the benefit of exemption notification.

[5][Rule - 6.Importer to give information regarding receipt of imported goods and maintain records.

 

(1)     The importer shall provide information of the receipt of the imported goods in the premises, where the imported goods shall be put to use for manufacture of goods or job work or for rendering output service within two days (excluding holidays, if any) of such receipt to the Jurisdictional Customs Officer.

 

(2)     The importer shall maintain an account in such manner to clearly indicate the quantity,-

 

i.         and value of goods imported;

 

ii.        of imported goods consumed;

 

iii.       of goods sent for job work, nature of job work carried out;

 

iv.       of goods received after job work;

 

v.        of goods re-exported, if any, under rule 7; and

 

vi.       remaining in stock, according to bills of entry, and shall produce the said account as and when required by the Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs having jurisdiction over the premises or where the imported goods shall be put to use for manufacture of goods or for rendering output service.

 

(3)     The importer shall submit a quarterly return, in the form appended to these rules to the Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, by the tenth day of the following quarter.?;]

[6][Rule - 6A.Procedure for allowing imported goods for job work.

(1)     The importer shall send the imported goods except gold, jewellery and articles thereof; and other precious metals or stones for job work, for manufacture of goods, after giving an intimation in duplicate to the Jurisdictional Customs Officer of his intention to do so.

 

(2)     The importer shall also specify the following particulars, namely: ?

 

i.         name and address of the job worker;

 

ii.        nature and description of the job work to be carried on the imported goods in the manufacturing process;

 

iii.       quantity and description of the goods intended to be sent to the job worker.

 

(3)     The Jurisdictional Customs Officer shall forward a copy of the intimation along with the particulars specified in sub-rules (1) and (2) to the concerned Customs Officer under whose jurisdiction the premises of the job worker is situated.

 

(4)     The importer shall send the goods to the premises of the job worker enclosing a challan, specifying the description and quantity of the goods.

 

(5)     The maximum period for which the goods can be sent to the job worker shall be six months from the date of issue of challan specified in sub-rule (4).

 

(6)     In case the importer is unable to establish that the goods sent for job work have been used as per the particulars of job work referred in sub-rule (2), the Jurisdictional Customs Officer shall take necessary action against the importer under rules 8 and 8A.

 

(7)     The job worker shall

 

i.         maintain an account of receipt of goods, manufacturing process undertaken thereon and the waste generated, if any, during such process;

 

ii.        produce the account details before the Jurisdictional Customs Officer as and when required by the said officer;

 

iii.       after completion of the job work send the processed goods to the importer or to another job worker as directed by the Importer for carrying out the remaining processes, if any, under the cover of a challan or the challan of the principal manufacturer duly endorsed by him.]

Rule - 7. Re-export or clearance of unutilised or defective goods. ?

(1)     The importer who has availed benefit of an exemption notification, prescribing observance of these rules may reexport the unutilised or defective imported goods, within six months from the date of import, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service:

Provided that the value of such goods for re-export shall not be less than the value of the said goods at the time of import.

(2)     The importer who has availed benefit of an exemption notification, prescribing observance of these rules may also clear the unutilised or defective imported goods, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, within a period of six months from the date of import on payment of import duty equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid, if any, at the time of importation, along with interest, at the rate fixed by notification issued under section 28AA of the Act, for the period starting from the date of importation of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that he is liable to pay.

[7][(3) The importer, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, may clear the imported capital goods, after having been used for the specified purpose, on payment of duty equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid, if any, at the time of importation, along with interest, at the rate fixed by the notification issued under section 28AA of the Act, on the depreciated value allowed in straight line method, as specified below, namely : ?

(i)       for every quarter in the first year @ 4%;

 

(ii)      for every quarter in the second year @ 3%;

 

(iii)     for every quarter in the third year @ 3%;

 

(iv)    for every quarter in the fourth and fifth year @ 2.5%;

 

(v)      and thereafter for every quarter @ 2%.

Explanation. ? (1) For the purpose of computing rate of depreciation for any part of a quarter, a full quarter shall be taken into account.

(2) There shall be no upper limit for such depreciation.

(3) The depreciation shall be allowed from the date when the imported capital goods have come into use for the purpose as specified in the exemption notification upto the date of its clearance.?. ]

[8][Rule ? 8 Recovery of duty in certain case. ?

(1)     The importer who has availed the benefit of an exemption notification shall use the goods imported in accordance with the conditions mentioned in the concerned exemption notification or take action by re-export or clearance of unutilized or defective goods under rule 7 and in the event of any failure, the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service shall take action by invoking the Bond to initiate the recovery proceedings of the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of importation, along with interest, at the rate fixed by notification issued under section 28AA of the Act, for the period starting from the date of importation of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that he is liable to pay.]

[9][(2) Notwithstanding anything specified in these rules in relation to removal and processing of imported goods for job work, the importer shall be responsible for ensuring that the said goods are used in accordance with the purposes provided in the exemption notification and in the event of failure to do so, the Jurisdictional Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, shall take action under these rules, without prejudice to any other action which may be taken under the Act, rules or regulations made thereunder or under any other law for the time being in force.?.]

[10][Rule - 8A.Penalty.

The importer or a job worker who contravenes any of the provisions of these rules or abets such contravention, shall be liable to a penalty to an extent of the amount specified under clause (ii) of sub-section (2) of section 158 of the Act without prejudice to any other action which may be taken under the Act, rules or regulations made thereunder or under any other law for the time being in force.?.]

References in any rule, notification, circular, instruction, standing order, trade notice or other order pursuance to the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,1996 and any provision thereof or to the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016 and any corresponding provisions thereof shall, be construed as reference to the Customs(Import of Goods at Concessional Rate of Duty) Rules, 2017.

 

[11][Form

[See rule 6(3)]

QUARTERLY RETURN

Return for the quarter ending