What Is IGCR?
IGCR stands for Import of Goods at Concessional Rate of Duty Rules, 2017, a framework established under the Customs Act, 1962 in India. It allows eligible importers to bring in goods at reduced customs duty rates, provided those goods are used for specific purposes like manufacturing or providing output services.
📦 Key Features of IGCR
- Duty Concession: Importers can avail exemptions or reduced duty rates under Section 25(1) of the Customs Act.
- End-Use Condition: The imported goods must be used for the intended purpose (e.g., manufacturing, job work, or service delivery).
- Bond Requirement: Importers must furnish a continuity bond to cover potential duty liability if goods are misused or diverted.
- Record Keeping: Self-maintained records and quarterly returns are mandatory to track utilization.
- Re-export or Duty Payment: If goods are not used as intended, they must be re-exported or duty paid with interest.
🛠️ Step-by-Step: How to Apply Under IGCR Rules
1. Assess Eligibility
Ensure your business qualifies:
- You must be using the goods for manufacturing, job work, or providing output services
- You should have a valid GST registration and IEC (Importer Exporter Code)
2. Register on ICEGATE
- Visit ICEGATE Portal
- Create an account and link your IEC
- This portal is used for filing all IGCR-related documents electronically
3. Submit Prior Intimation
Before importing, file a Prior Intimation electronically:
- Specify the goods, quantity, intended use, and job worker details (if applicable)
- Upload supporting documents like purchase orders, manufacturing license, etc.
4. Execute a Continuity Bond
- Submit a bond to the jurisdictional customs officer covering the duty amount
- This ensures accountability if goods are misused or not used as declared
5. Import the Goods
- Mention the IGCR reference in your Bill of Entry
6. Maintain Records & Submit Returns
- Keep detailed records of how the goods were used
- File quarterly returns electronically via ICEGATE to report utilization
7. Handle Unused Goods
If goods are not used:
- Re-export them, or
- Pay the differential duty + interest to customs
📞 Need Help?
You can reach out to Horizon Business Solutions or consult a licensed customs broker for hands-on support.
🛠️ Recent Enhancements
- Job Work Inclusion: Even businesses without full manufacturing setups can import under IGCR and outsource production.
- Capital Goods Provision: Capital goods imported at concessional rates can be cleared domestically at depreciated duty values.
- Contactless Filing: All documentation is submitted electronically to the jurisdictional customs officer.
📚 Learn More
You can explore official guidance and FAQs on: