Step 1: File One-Time Prior Intimation on ICEGATE
Before importing goods, the importer must file a one-time prior intimation with the jurisdictional Customs officer through the ICEGATE portal.
This includes:
- Company details
- Premises address
- Nature of manufacturing or service activity
- List of goods intended for concessional duty import
- GSTIN and IEC details
Once acknowledged, imports can begin.
✔ Step 2: Provide Job Worker Details (If Applicable)
If production or processing will be outsourced, furnish:
- Job worker’s GSTIN
- Factory address
- Nature of job work
Customs must be informed before sending goods to the job worker.
✔ Step 3: Import Goods and File Bill of Entry
At the time of import:
- Select IGCRD Rules in the declaration
- File Bill of Entry
- Provide manufacturer/service provider information
- Maintain import documentation
Customs verifies eligibility and assesses concessional duty.
✔ Step 4: Maintain Receipt & Consumption Records
The importer must track the following:
- Quantity imported
- Quantity used in production
- Quantity sent to job workers
- Balance stock
Proper documentation is essential for audits and verification.
✔ Step 5: Use the Goods for Permitted Purposes Only
Goods imported under IGCRD must be used for:
- Manufacturing
- Service provision
- Production of goods
- Job work processing
- Repair and maintenance
They cannot be sold as-is without processing.
✔ Step 6: Fulfill Quarterly Return Filing (Now Annual Return in Updated Rules)
Importers must file a return with Customs, detailing:
- Quantity imported
- Duty paid
- Purpose and consumption
- Goods sent to job workers
- Stock details
Recent amendments allow annual return filing, reducing compliance burden.
✔ Step 7: Maintain Compliance Records for Customs Verification
During inspections, importers must produce:
- Stock registers
- Job worker challans
- Consumption records
- Manufacturing or service data
Maintaining clean and accurate records ensures smooth compliance.
Advantages of IGCRD Over Other Import Schemes
| Feature | IGCRD | Advance Authorization | EPCG |
|---|---|---|---|
| Export Obligation | ❌ No | ✔ Yes | ✔ Yes |
| For Services | ✔ Yes | ❌ No | ❌ No |
| For Job Work | ✔ Allowed | ❌ Limited | ❌ Limited |
| Compliance | Easy | Moderate | High |
| Duty Savings | Moderate–High | Very High | Very High |
IGCRD is ideal for businesses that want duty savings without export commitments.
Common Mistakes to Avoid
- Not filing prior intimation before import
- Sending goods to job workers without informing customs
- Failing to maintain stock registers
- Wrong declaration in Bill of Entry
- Missing annual return filing
SavingMantra recommends completing all customs declarations carefully.
Frequently Asked Questions (FAQ)
1. Is export required under IGCRD?
No, IGCRD does not have export obligations.
2. Can service providers import capital goods under IGCRD?
Yes — IGCRD is available to both manufacturers and service providers.
3. Are job workers allowed?
Yes, after notifying customs with job-worker details.
4. Can imported goods be sold as-is?
No, they must be used for the declared manufacturing or service purpose.
5. Is there an online portal for IGCRD filings?
Yes, all filings are done through ICEGATE.
Conclusion
The Import of Goods at Concessional Rate of Duty (IGCRD) Scheme is a valuable incentive for manufacturers and service providers seeking to reduce costs and enhance productivity. With simple compliance requirements and freedom from export obligations, IGCRD is one of the most flexible import incentive schemes available.
At SavingMantra, we help businesses with:
✔ IGCRD Registrations & Intimations
✔ Customs Compliance
✔ DGFT Incentive Guidance
✔ Job Worker Documentation
✔ Annual Return Filing and Audit Support
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Disclaimer: This blog is for informational purposes only. The IGCRD Scheme is governed by Customs Rules and Government notifications, which may change periodically. Readers should consult a qualified customs or DGFT professional or refer to the latest official notifications before taking action. SavingMantra is not responsible for any errors, omissions, or regulatory changes affecting the information provided.