IGCR Rules explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The IGCR Rules 2022 govern how an importer avails a concessional or nil rate of customs duty that is conditional on a specified end-use — for example inputs used in manufacture. The importer registers on the ICEGATE common portal, executes a one-time continuity bond, files IGCR-1 to IGCR-3, and accounts for end-use in a monthly return.
Overview
Many customs exemption notifications grant a lower or nil rate only if the imported goods are put to a particular use — such as raw materials for a manufacturer or equipment for a service provider. To claim such a conditional benefit, the importer must follow the procedure in the IGCR Rules, which provide the audit trail proving that end-use. The 2022 Rules replaced the earlier IGCRD Rules 2017 and moved the process to a paperless, portal-based system.
Legal Basis
The rules are the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules 2022, issued under the Customs Act 1962 and administered by the CBIC. Filings are made on the ICEGATE common portal, and the concessional duty is claimed at the Bill of Entry stage by referencing the exemption notification and the IGCR intimation.
Key Features
| Feature | Under IGCR 2022 |
|---|---|
| Bond | One-time continuity bond covering differential duty |
| Registration | IGCR-1 prior intimation on common portal |
| Job work | Permitted, including end-use at job worker's premises |
| Returns | Monthly IGCR-3 of receipt, consumption, re-export |
| Re-export | Allowed within prescribed period on payment as applicable |
Step-by-Step Process
- IGCR-1 intimation: File prior intimation/registration on the ICEGATE common portal with estimated quantity and the exemption notification claimed.
- Continuity bond: Execute a one-time bond for the differential duty; it is debited on each import.
- Import at concessional rate: File the Bill of Entry claiming the conditional exemption, referencing the IGCR registration.
- Receipt & IGCR-2: Record receipt of goods; if sent for job work, follow the job-work provisions.
- End-use: Use the goods for the specified purpose within the time limit and keep consumption records.
- IGCR-3 monthly return: File the monthly account; the bond is re-credited as end-use is established.
Worked Example
An importer brings inputs with an assessable value of ₹25,00,000. The normal BCD is 10% (₹2,50,000), but a conditional notification allows a concessional 5% (₹1,25,000) for manufacturing end-use.
- Duty foregone (differential) = ₹2,50,000 − ₹1,25,000 = ₹1,25,000
- This ₹1,25,000 is secured by the continuity bond and released once end-use is proved via IGCR-3.
- If the goods are diverted, the ₹1,25,000 becomes payable with interest.
Common Pitfalls
- Skipping the IGCR-1 intimation and then claiming the conditional exemption on the Bill of Entry.
- Not filing the monthly IGCR-3, so the bond is never re-credited and utilisation appears open.
- Exceeding the end-use time limit, converting the concession into a duty demand.
- Poor job-work records when goods move to a third-party premises.