Import of Goods at Concessional Rate (IGCR): Framework for compliant duty concessions
India’s IGCR framework is the primary route to import inputs and capital goods at reduced or nil customs duty when they are used for manufacturing, specified end use, export production or eligible output services. If your cost structure relies on duty concessions, the IGCR Rules are the operating manual that keeps benefits intact and exposure to interest and penalty under control.
What exactly are the IGCR “Rules”?
The Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (commonly referred to as “IGCR Rules 2022”) lay down the procedural framework for:
- How importers claim concessional or nil duty
- How the end use of imported goods is monitored by Customs through registration, bonds, records and reporting
The 2022 Rules modernised and expanded the earlier 2017 framework and are fully integrated with the ICEGATE system for online filing, monitoring and bond management.
Key policy milestones:
- 2017
Introduction of the IGCR Rules, providing a structured route for concessional imports linked to end use. - 2021
Major liberalisation of the regime. Job work was permitted, outsourcing of one hundred percent of manufacturing became possible, and an exit route for capital goods based on depreciated value for clearance into DTA was formalised. These changes were clarified and explained through Circular 10/2021 Customs. - 2022
Rules were recast as the IGCR Rules 2022. The scope was extended beyond manufacturing and services to cover specified end use. A complete system based procedure on ICEGATE was rolled out and clarified through Circular 04/2022 Customs and Circular 18/2022 Customs. - 2024
Export Oriented Units were brought into the automated IGCR module with effect from 1 September 2024 by Circular 11/2024 Customs, followed by operational advisories and FAQs on ICEGATE.
Link to customs exemption notifications
IGCR does not itself grant any duty exemption. It is a procedural framework. The actual concession flows from specific customs exemption notifications issued under section 25(1) and section 11 of the Customs Act.
Rule 3 of the IGCR Rules 2022 defines “notification” to cover such exemption and end use notifications. In practice, IGCR acts as the compliance layer that supports those notifications.
Historically, most concessional entries were contained in omnibus Notification 50/2017 Customs. With effect from 1 November 2025, this structure has been consolidated. Notification 45/2025 Customs dated 24 October 2025 merges Notification 50/2017 along with a large set of other exemption notifications into one master exemption notification. The underlying end use conditions and the requirement to follow IGCR are largely carried forward.
The exemption notifications expressly prescribe the conditions for availing concessional customs duty. Wherever a notification entry states that the benefit is subject to compliance with the “Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules 2022”, the IGCR framework is triggered and becomes mandatory.
When are the IGCR Rules 2022 triggered
Rule 2 of the IGCR Rules 2022 sets out the trigger clearly. IGCR applies where:
- A customs notification specifically provides that its benefit is subject to observance of the IGCR Rules, and
- The importer chooses to avail that benefit, and the benefit is linked to any of the following:
- Use of goods in the manufacture of a commodity
- Use of goods in the provision of an “output service”
- Putting the goods to a specified end use, including supply to a specified category of user
If both these conditions are met, IGCR compliance is compulsory. It is not optional simply because the importer has the capacity to pay normal duty.
IGCR compliance step by step
For practical implementation, IGCR compliance can be viewed as a life cycle:
- Pre import registration and bond
- Import and customs clearance
- Post import tracking, job work, unit transfer and supply
- Timely utilisation or exit through re export or duty payment
- Monthly reporting and bond recredit
4.1 Pre import: one time information and bond
4.1.1 One time prior information (Rule 4 and Form IGCR 1)
Before importing under IGCR, the importer is required to file one time prior information on the common portal (ICEGATE) in Form IGCR 1. Based on this filing, an IGCR Identification Number (IIN) is generated and is used for all subsequent imports under that prior information.
4.1.2 Execution of continuity bond and security
After filing IGCR 1, the importer must execute a continuity bond with the jurisdictional Assistant or Deputy Commissioner of Customs.
4.2 Import and customs clearance (Rule 5)
At the time of filing the Bill of Entry for an IGCR import, the importer must:
- Quote the IGCR Identification Number (IIN)
- Quote the bond registration number
- Quote the relevant exemption notification number and serial number
On clearance of the Bill of Entry, the customs system debits the bond for the appropriate duty amount or assessable value, and links the consignment to the IGCR record for subsequent monitoring.
4.3 Post import record keeping, job work, unit transfer and end use supply
4.3.1 Core record keeping obligations (Rule 6)
The importer must maintain detailed and verifiable accounts as required under Rule 6. These records support both monthly reporting and any verification by the jurisdictional customs officer.
4.4 Utilisation timelines, re export and home clearance (Rule 10)
Rule 10 is the operative provision that links actual utilisation of goods with continued eligibility for exemption. Timely action under Rule 10 is essential. In the absence of proper utilisation, re export or payment of duty within the prescribed period, Customs is entitled to proceed with recovery under the bond, along with interest and penalty as per the Customs Act.
If any assistance or clarification is needed on applying the IGCR framework to your imports, our team will be pleased to advise and support you through eligibility assessment, documentation, and representation before Customs.
