Clarifications on the applicability of concessional duty under IGCR Rules, 2022 in certain instances-reg. - Customs - PUBLIC NOTICE No. 19 / 2024

Government of India Ministry of Finance Department of Revenue Telephone: 2561429 Fax : 22561445 Email:pcommr7acccuschn@ gov.in OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO) NEW CUSTOM HOUSE, CHENNAI-VII COMMISSIONERATE, AIR CARGO COMPLEX, MEENAMBAKKAM, CHENNAI 600 027. Date : 04-12-2024 PUBLIC NOTICE No. 19 / 2024 Subject : Clarifications on the applicability of concessional duty under IGCR Rules, 2022 in certain instances-reg. Attention of all Importers, Exporters, Customs Brokers, General Trade and all other stake holders under the jurisdiction of Chennai Air Customs is invited to the Notification No. 74/2022-Customs (N.T)dated 09.09.2022 and Circular No. 18/2022-Customs dated 10.09.2022 regarding Customs(Imports of Goods at Concessional Rate of Duty) Rules, 2022 as amended. 2. Representations have been received in the Board regarding the issues related to the applicability of concessional duty under IGCR Rules, 2022 for MOOWR Scheme. The issues have been examined and the same are clarified as below: Simultaneous availment of IGCR along with MOOWR: 3.1 Doubts have been raised on the availment of IGCR benefit for the warehoused goods taken for manufacturing simultaneously with the duty deferment under MOOWR and being cleared to DTA or removed to SEZ or to another MOOWR unit. 3.2 In this regard, this aspect has already been clarified under Question 17 of FAQs [1] on MOOWR which is reproduced as follows: The eligibility to export benefits under FTP or IGCR would depend upon the respective scheme. If the scheme allows, units operating under Section 65 has no impact on the eligibility. In other words, a unit operating under Section 65 can avail any other benefit, if the scheme allows. 3.3 It is once again re-iterated that, the MOOWR unit may avail IGCR exemption along with duty deferment under MOOWR simultaneously, provided that the importer undertakes to comply with the additional conditions prescribed in the Concessional Notification and IGCR Rules therein including time-limit etc., in addition to MOOWR stipulations for those goods while supplying goods from its premises. Applicability of IGCR benefit in certain cases: 4.1 Doubt has been raised about the availability of IGCR benefit for the MOOWR unit involving in import certain goods specified in the notification for valueaddition by way of manufacturing under MOOWR and further supplies the valueadded goods to the final manufacturer of cellular mobile phones. This doubt has arisen especially in reference to the Notification No. 57/2017-Cus dated 30.06.2017, as amended wherein, at a few entries/serial numbers such as 5C to 5E, description of goods is mentioned including the expression for use in manufacture of cellular mobile phones . 4.2 It may be noted that, CBIC Instruction 16/2024-Customs dt. 25.06.2024 already clarifies the procedure to be adopted for import of goods by a unit in compliance with the provisions of MOOWR and transfer of resultant goods to another unit. Further, there is a clear documentation involving transfer and periodical accountal by the MOOWR units. 4.3 Accordingly, it is clarified that the expression for use in manufacture of cellular mobile phones is intended to convey that the component should be used in manufacturing process for cellular mobile phones. This does not mean that the components should be imported by manufacturer of cellular mobile phones. Therefore, the goods being imported by the intermediate goods manufacturer who is MOOWR unit for further supplying after some manufacturing/ value addition to the final manufacturer of Cellular mobile phones are duly eligible for the benefit of concessional rate of duty under IGCR Rules, 2022, as long as all other conditions are met. 5. This Public Notice shall be considered as a Standing Order for the purpose of officers and staff of the Department. 6. Difficulties faced, if any, may be brought to the notice of Assistant Commissioner of Customs (Appraising Main), Air Cargo Commissionerate for necessary action. ( M Mathew Jolly ) Principal Commissioner of Customs ChennaiVII(Air Cargo)Commissionerate To All Concerned. Copy to: 1. The Chief Commissioner of Customs, Chennai Customs Zone. 2. All the Pr. Commissioner / Commissioners in Chennai Customs Zone. 3. All the ADC/JC/DC/Assistant Commissioners of Customs, Chennai-VII (ACC). 4. EDI Section, for uploading on Chennai Customs website. 5. CHS- for displaying on Notice Board. 6. Office Copy.