Custom Duty & Import-Export Tax

Customs duty is a tax levied on goods imported into or exported from India. For any business engaged in cross-border trade, understanding customs duty rates, exemptions, and compliance obligations is critical to controlling costs and avoiding penalties at the port.

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Service Overview

Navigate Cross-Border Trade With Confidence

India's customs duty framework is governed by the Customs Act, 1962 and the Customs Tariff Act, 1975. The duty rate on any import depends on the HS (Harmonized System) tariff classification, the country of origin, and applicable exemption notifications. Beyond basic duty, imports also attract IGST (for GST purposes), Social Welfare Surcharge, and occasionally Anti-Dumping Duty. Exporters benefit from duty drawback, RODTEP scheme credits, and export incentive schemes. Our team assists importers and exporters with customs classification, IEC registration, duty computation, and complete import-export compliance.

Critical: IEC must be updated annually on the DGFT portal — even if no changes have occurred. Failure to update within the prescribed period results in automatic deactivation of IEC. An inactive IEC means all import and export customs clearances are blocked until the IEC is reactivated, causing shipment demurrage and detention charges.

IEC Registration

Importer Exporter Code

The Import Export Code (IEC) is a 10-digit code mandatory for anyone importing or exporting goods from India. It is issued by DGFT (Directorate General of Foreign Trade) and is a lifetime registration — no renewal needed.

Customs Duty Classification

Correct HS code = correct duty

Every import/export is classified under a Customs Tariff heading (HS code) that determines the duty rate. Incorrect classification leads to wrong duty payment, clearance delays, and penalties. We advise on the correct tariff classification.

Duty Drawback

Recover duties paid on export inputs

Exporters who import raw materials and process them into export goods can claim Duty Drawback — a refund of customs duties and IGST paid on inputs embedded in exported goods. We file and track drawback claims.

IGST on Imports

Claim as ITC in GST returns

IGST paid on imports through the Bill of Entry is available as Input Tax Credit in your GSTR-3B returns — reducing your net GST liability. We ensure this credit is properly captured and claimed.

Eligibility Criteria

Who Needs Customs & IEC Compliance?

Any business or individual engaged in international trade needs to understand customs obligations.

Importers of Goods

Any business importing raw materials, machinery, finished goods, or equipment from abroad is liable for customs duty. IEC is mandatory unless exempted (personal use imports, defense imports, etc.).

Exporters of Goods & Services

Exporters need IEC to receive foreign exchange and claim export incentives. Service exporters also need IEC for FEMA compliance on inward remittances and SEIS/ROSCTS scheme benefits.

E-Commerce Exporters

Businesses selling on international e-commerce platforms (Amazon Global, eBay international) export goods and require IEC for customs clearance and incentive claims.

Special Economic Zone Units

SEZ units have unique customs duty exemptions on imported inputs. Compliance with SEZ customs procedures is mandatory to protect these exemptions and avoid regularization demands.

Key Benefits

Benefits of Professional Customs Advisory

Customs errors at the port of entry can cause costly delays and incorrect duty payments.

Correct Duty Calculation

Customs duty rates vary from 0% to over 150% depending on the product and country of origin. Getting the classification and duty right from the start avoids underpayment (penalty) and overpayment (working capital loss).

Exemption Notifications

Hundreds of exemption notifications reduce or eliminate basic customs duty for specific goods, sectors, or end uses. We identify applicable exemptions to legally minimize your import duty cost.

Free Trade Agreement Benefits

India has FTAs with ASEAN, Japan, South Korea, UAE, Australia, and others — offering preferential duty rates on goods from these countries. FTA benefits require proper origin certificates (Form AI, Certificate of Origin).

Drawback & Incentive Recovery

Duty Drawback, RODTEP credits, and advance authorization entitlements are real cash benefits for exporters. Our team ensures every eligible rupee is claimed and received.

ITC on Import IGST

IGST paid on imports is fully creditable against GST liability — but only if the Bill of Entry is correctly linked to your GSTIN and reflected in GSTR-2B. We manage this process end-to-end.

Audit & Investigation Support

Customs authorities conduct post-clearance audits and special investigations. Our team represents businesses during these proceedings with complete documentation and legal arguments.

Step-by-Step Process

IEC Registration & Customs Compliance Process

IEC registration is quick and online. Customs compliance is ongoing.

Your journey Step 1 of 6

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Step 1 of 6

Apply for IEC (DGFT Portal)

File IEC application online on the DGFT portal using PAN and Aadhaar/business registration. Provide bank account details linked to the business PAN. IEC is typically issued within 1–2 working days.

Step 2 of 6

Link IEC with GSTIN

Link your IEC with your GSTIN on the DGFT portal — this enables IGST paid on imports to auto-populate in GSTR-2B as ITC and simplifies export refund claims.

Step 3 of 6

Tariff Classification Advisory

For new products being imported/exported, obtain a tariff classification opinion — identifying the correct HS code, applicable duty rate, and relevant exemption notifications.

Step 4 of 6

Customs Clearance Support

Work with a licensed customs broker for Bill of Entry filing. We coordinate on HS code, duty calculation, exemption claims, and advance authorization utilization.

Step 5 of 6

Export Incentive Claims

File duty drawback claims with Customs after export. Apply for RODTEP credits on the ICEGATE portal. Track advance authorization fulfillment timelines and export obligation discharge.

Step 6 of 6 Final Step

Annual Compliance Review

Review all import and export transactions annually — validate ITC claimed from Bill of Entry, reconcile drawback received, and assess any outstanding obligations or audit risks.

Document Checklist

Documents for Customs & IEC Compliance

Documentation requirements differ for IEC registration and individual import/export shipments.

IEC Registration Documents

PAN of Entity

PAN card of the company, LLP, firm, or individual applying for IEC.

Aadhaar / Passport

Aadhaar of the proprietor/director (for individuals and proprietorships) or passport for foreign nationals.

Bank Account Details

Cancelled cheque or bank certificate with account number and IFSC — linked to the entity's PAN.

IEC is a permanent registration but must be updated whenever the entity's name, address, bank details, or directors change. Failure to update IEC can cause customs clearance rejections.

Post Registration

Ongoing Customs Compliance

IEC is lifetime — customs compliance is per-shipment and per-scheme.

Annual

Update IEC Annually

DGFT mandates annual updating of IEC details (even if no changes) on the portal. Dormant IECs that are not updated may be deactivated — causing customs clearance failures.

Per authorization

Track Advance Authorization Obligations

If you import raw materials under Advance Authorization (duty-free), you must export the specified finished goods within the obligation period. Failure attracts duty with 15% interest.

Post-export

File RoDTEP Claims

RODTEP (Remission of Duties and Taxes on Exported Products) credits are available to all exporters. Claims are filed on the ICEGATE portal post-shipment — track and file before the expiry period.

Why Finace India?

Your Trusted Customs & Trade Compliance Partner

An IEC that isn't updated annually on DGFT gets deactivated automatically, blocking every import and export clearance until it's reactivated. We keep your IEC active and your shipments moving.

Annual IEC Update Tracking

DGFT portal updates filed every year, even with no changes, so your IEC never lapses into deactivation.

Accurate Duty & Exemption Claims

Correct duty calculation and applicable exemption notifications applied to every shipment.

FTA Benefit Optimization

Free Trade Agreement provisions checked so you don't pay duty you're legally exempt from.

Drawback & ITC Recovery

Duty drawback claims and import IGST credit tracked and recovered on your behalf.

1,500+

Import-Export Clients

100%

IEC Uptime

4.8 ★

Client Rating

0

Clearance Blockages

4.9 / 5from 2,400+ verified reviews

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FAQ

Frequently Asked Questions

IEC (Importer Exporter Code) is a 10-digit code issued by DGFT, mandatory for any person or entity importing or exporting goods from India. It is not required for imports/exports by government departments, for personal-use imports, or for exports below ₹25,000 without a bank payment.

Customs duty on imports has multiple components: Basic Customs Duty (BCD), Social Welfare Surcharge (10% of BCD), IGST (at the applicable GST rate), and sometimes Countervailing Duty or Anti-Dumping Duty. The total effective import duty is the sum of all applicable components.

Yes. IGST paid on imports (through the Bill of Entry) is fully available as Input Tax Credit in your GSTR-3B returns — provided the Bill of Entry is linked to your GSTIN and reflected in GSTR-2B. This effectively means most GST-registered importers bear zero net IGST on business imports.

Duty drawback is a refund of customs duties and IGST paid on imported inputs that are used in manufactured goods which are subsequently exported. The All Industry Rate (AIR) drawback is a fixed percentage of the export value — applied automatically on export.

An Advance Authorization allows duty-free import of raw materials that will be used to manufacture export goods. The exporter must fulfill an export obligation within 18–36 months (depending on product) and submit proof of exports to discharge the authorization.

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Custom Duty & Import-Export Tax

Start Your Custom Duty & Import-Export Tax Today

Navigate Cross-Border Trade With Confidence

IEC Registration

Customs Duty Classification

Duty Drawback

IGST on Imports

Who Needs Customs & IEC Compliance?

Importers of Goods

Exporters of Goods & Services

E-Commerce Exporters

Special Economic Zone Units

Benefits of Professional Customs Advisory

Correct Duty Calculation

Exemption Notifications

Free Trade Agreement Benefits

Drawback & Incentive Recovery

ITC on Import IGST

Audit & Investigation Support

IEC Registration & Customs Compliance Process

Apply for IEC (DGFT Portal)

Link IEC with GSTIN

Tariff Classification Advisory

Customs Clearance Support

Export Incentive Claims

Annual Compliance Review

Documents for Customs & IEC Compliance

IEC Registration Documents

PAN of Entity

Aadhaar / Passport

Bank Account Details

Ongoing Customs Compliance

Update IEC Annually

Track Advance Authorization Obligations

File RoDTEP Claims

Your Trusted Customs & Trade Compliance Partner

Annual IEC Update Tracking

Accurate Duty & Exemption Claims

FTA Benefit Optimization

Drawback & ITC Recovery

1,500+

100%

4.8 ★

0

Frequently Asked Questions

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