IGCR Regarding Customs Notification No: 050/2017

[Mathi]

Regarding Customs Notification No: 050/2017- S.No: 535 (Sub S.No "b") condition No: 9, shall we avail for IGCR Scheme and we need to supply to with in India only not Exports. Our supply will be used for make in India concepts by producing by our customer plant which will supply to Defence-Army from our customer.

For local supply shall we avail for IGCR and file the returns accordingly?

Kindly advice

[YAGAY and SUN]

With reference to Customs Notification No. 50/2017-Customs dated 30.06.2017, Serial No. 535 (Sub-serial No. "b") read with Condition No. 9, the concessional rate of duty is generally subject to compliance with the Import of Goods at Concessional Rate of Duty Rules, 2017 (IGCR Rules). The benefit under the said entry is ordinarily linked to end-use conditions, and where Condition No. 9 specifically mandates compliance with IGCR, the importer is required to follow the prescribed procedure, including prior intimation, maintenance of records, proper accountal of imported goods, and filing of prescribed returns.

The IGCR scheme is not restricted only to exports unless the specific notification entry expressly imposes an export obligation. If the imported goods are used in the manufacture of specified goods within India, and the notification does not mandate export as a condition, the concessional benefit may be availed even where the finished goods are supplied domestically - including supplies to a customer whose final products are ultimately supplied to the Defence/Army sector under the "Make in India" initiative. However, strict compliance with the end-use condition, proper documentation, and filing of monthly/quarterly returns under IGCR are mandatory. It is advisable to examine the exact wording of Serial No. 535 (Sub S. No. "b") and Condition No. 9 to confirm that no specific export or project authority certification requirement applies in your case.

AI Summary

Concessional duty under IGCR requires strict end-use compliance and prescribed records before claiming the benefit.
Where Condition No. 9 links the concession to IGCR, the importer must follow IGCR procedures - prior intimation, maintenance of records, proper accountal of imported goods, and filing prescribed returns. The IGCR benefit is tied to end-use and documentation rather than being restricted to exports unless the notification expressly requires export or project-specific certification; domestic manufacture and supply may qualify if the notification permits and procedural conditions are fully complied with.