Export-oriented units struggle, unhappy with new IGCRS e-process

Throughout last week, export-oriented units (EOUs) were struggling through various processes involved in importing their goods under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (IGCRS Rules). Some of them complained of delays in clearance of their goods through Customs that resulted in demurrage and container detention charges.  

The EOUs import their requirements without any duty payment, under the notification 52/2003-Customs dated March 31, 2003, which requires them to follow the IGCRS Rules. Last month, the Central Board of Indirect Taxes and Customs (CBIC) asked EOUs to adopt the new processes to electronically obtain new unique IGCRS identification number (IIN), upload the bond details, furnish intimation of imports to be made, and file the bill of entry quoting the IIN and other details from the beginning of this month. The online functionality in the Indian Customs Electronic Gateway (ICEGATE), however, did not work properly and so, the CBIC postponed the implementation of the processes to the 17th and then again to the 25th of this month.

As each deadline approached, the EOUs flagged several issues in complying with the requirements and some of them were resolved by the officials at the ICEGATE but many remained unresolved. Last Tuesday, the Export Promotion Council for EOUs and Special Economic Zones (EPCES) conducted an online survey and found that most EOUs are finding difficulties in adopting the new system and asked for further postponement in implementing the system. However, the CBIC refused to do that but released a new set of frequently asked questions (FAQs) and the implementing officials conducted a webinar on the new processes and answered many of the questions of the EOUs. They were also trying to respond to individual queries raised on the ICEGATE helpdesk. Still, very few EOUs had adopted the new processes and many questions still remained unanswered by Thursday and so, the EPCES took up the matter with higher functionaries in the commerce and finance ministries. 

Towards the weekend, some EOUs were reporting successful adoption of the new processes and many others were still struggling to do so.

The officials at the ICEGATE are quite clear that their system is working properly and that answers to all doubts and difficulties are being given promptly. Yet, the EOUs still struggling with the new processes have their own tales of woes with the new system. Most EOUs feel that the CBIC could have easily agreed to postpone the implementation of the new system by some more time, let the old and new systems run simultaneously for some time, held some more webinars to train executives of the EOUs and put out videos demonstrating the new processes and how certain types of difficulties could be overcome. The EPCES has been as helpful as possible by forming a WhatsApp group where the EOUs could share their difficulties and the implementing officials could give the solutions.

Most of the EOUs are unhappy with the way the CBIC has tried to push through the new processes without adequate preparation. Almost all of them have lost lots of man-hours trying to adopt. Some of them have also lost money due to delays in clearance of their imported goods. Hopefully, all the EOUs will soon be able to adopt the new processes. 

Email : tncrajagopalan@gmail.com