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CBIC introduces job work under IGCR rules, to facilitate local industry

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The rule changes come at a time when the government is focusing on encouraging manufacturing opportunities in IndiaThe Central Board of Indirect Taxes and Customs (CBIC) has brought job work under the ambit of import of goods at concessional rate of duty or IGCR rules, allowing importers who rely on contract manufacturers to pay duty at concessional rates on goods imported for domestic production of goods or providing services.

“The absence of this facility had earlier constrained the industry especially those in the MSME sector which did not have the complete manufacturing capability in-house,” the Board said in a statement.

“Importantly, even 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,” it added.

Sensitive sectors such as gold, articles of jewellery and other precious metals or stones have been excluded from this facility.

In another change, importers bringing in capital goods at a concessional customs duty can clear them in the domestic market on payment of duty and interest, at a depreciated value. This, the Board said, would provide an incentive to manufacturers as they would be able to re-export capital goods after end of use.

The rule changes come at a time when the government is focusing on encouraging manufacturing opportunities in India

Source: indiatimes.com

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