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IGCR Bond

Our Expertise, Your Advantage

Kelular Consulting is a team of experienced professionals with in-depth knowledge of IGCR (Import of Goods at Concessional Rate of Duty) procedures and Customs compliance. We assist businesses in understanding the applicable IGCR notifications, determining eligibility, preparing documentation, managing registration and bond requirements, and ensuring compliance with prescribed reporting and end-use conditions.

Our objective is to help businesses avail eligible concessional customs duty benefits while maintaining proper documentation and regulatory compliance.

Why Choose Kelular Consulting?

  • Expert IGCR Guidance: Practical assistance throughout the IGCR process.
  • Eligibility Assessment: Help identify applicable notifications and concessional duty benefits.
  • Documentation Support: Assistance with preparing and reviewing required documents.
  • Customs Compliance: Guidance on bonds, end-use conditions, and IGCR-3 filing requirements.
  • End-to-End Support: Assistance from application and registration through ongoing compliance.
  • Reduced Compliance Risk: Help minimise errors, delays, and potential Customs queries.
  • Business-Focused Solutions: Tailored support based on your industry, imports, and end-use requirements.

The IGCR (Import of Goods at Concessional Rate of Duty) Scheme is a Customs initiative that allows eligible importers to import specified goods at concessional customs duty rates, subject to compliance with prescribed conditions.

The imported goods must be used for the specified end-use, such as manufacturing or other permitted operations, as stipulated under the applicable notification.

The IGCR Scheme benefits can be availed by eligible manufacturers, exporters, Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and MSMEs that meet the prescribed conditions and comply with the requirements under the IGCR Rules.

An IGCR surety bond is a legal undertaking executed by the importer in favour of the Customs authorities, confirming that the imported goods will be used only for the specific end-use prescribed under the applicable Customs notification.

If the goods are not used as specified or the required IGCR-3 returns are not filed, the importer may be required to pay the duty foregone along with applicable interest and other consequences, as prescribed under the relevant provisions.

The IGCR Scheme offers several benefits to eligible importers, including:

  • Lower Import Duty: Import eligible goods at concessional rates of customs duty.
  • Reduced Production Costs: Lower the overall cost of manufacturing by reducing the duty burden on imported inputs.
  • Simplified Compliance: Streamlined procedures for availing concessional duty benefits, subject to prescribed conditions.
  • Increased Competitiveness: Improve cost efficiency and strengthen competitiveness in domestic and international markets.

Application for IGCR Registration can be submitted online through the Customs ICEGATE Portal, along with the prescribed documents and required details.

Once the application is submitted, the importer must comply with the applicable IGCR requirements to avail the concessional duty benefits.

Failure to file IGCR-3 returns within the prescribed timelines may result in demand notices from Customs.

The importer may be required to pay the applicable differential duty on goods imported under the IGCR concession, along with interest.

While regularisation may be possible, non-compliance can also lead to penalty proceedings and additional compliance requirements.

There are 100+ Customs notifications providing concessional or reduced duty rates for specified goods and end-uses across various sectors.

These include Project Imports (CT-12), solar energy equipment, oil and gas exploration, educational and research institutions, defence manufacturing, and several other sector-specific categories.

Eligibility and applicable conditions depend on the relevant Customs notification and prescribed end-use requirements.

IGCR surety bonds are generally executed at the port of import in accordance with the applicable Customs requirements.

If goods are imported through multiple ports under IGCR notifications, separate bonds may be required at each port, subject to the prescribed procedures.

However, the quarterly IGCR-3 return covers the relevant imports and is filed through the Customs online portal.

 
     
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