Importing to India: A Complete Guide to IEC, Customs and Duties
Importing into India involves several sequential steps. Getting the order right — code, classification, certification, clearance — prevents costly delays.
Step 1: The IEC code
Every importer needs an Importer Exporter Code (IEC) from DGFT, linked to PAN. It's mandatory for customs and foreign-exchange transactions and must be updated annually.
Step 2: HS classification
Your product's HS code determines the basic customs duty, cesses and IGST rate — and whether preferential duty applies. Misclassification leads to over/under-payment and clearance delays.
Step 3: Product certification
Confirm mandatory approvals before shipping — CDSCO (cosmetics), FSSAI (food), BIS (electronics), and drug/device licences where relevant.
Step 4: How duties are calculated
- Assessable value = CIF (cost + insurance + freight)
- Basic Customs Duty (BCD) on the assessable value
- Social Welfare Surcharge on BCD
- IGST on (assessable value + BCD + surcharge)
BCD and surcharge are real costs; IGST is creditable for registered businesses.
Step 5: Customs clearance (ICEGATE)
The customs broker files a Bill of Entry on ICEGATE; customs assesses value and classification, duties are paid, and the goods get "out of charge" for release.
Save with trade agreements
India's FTAs (e.g., with Korea, Japan, ASEAN) can cut or eliminate BCD when you provide a valid Certificate of Origin and meet the rules of origin.
Statura handles IEC, HS classification, certification and clearance — and even acts as importer of record.