FAQ: Customs Compliance India

Any entity importing or exporting goods in India needs an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade before the first shipment; certain product categories additionally require sector-specific licenses or registrations depending on what's being traded.  Read full answer →

Every product's import status is determined by its HS code classification under India's Foreign Trade Policy — goods fall into free, restricted (requiring a specific DGFT license), or prohibited categories, and checking the ITC-HS classification schedule against your product's tariff code before shipping is the only reliable way to confirm which bucket it falls into.  Read full answer →

Customs clearance for a straightforward shipment with complete, correctly-filed documentation typically takes 2-4 days at major Indian ports and 1-2 days at airports, but incomplete paperwork, first-time importer scrutiny, or a product falling under a regulator's additional clearance requirement can extend this to 1-2 weeks or more.  Read full answer →

India offers several schemes that let exporters import inputs or capital goods without paying full customs duty — including Advance Authorisation, the Export Promotion Capital Goods (EPCG) scheme, and Special Economic Zone status — each suited to a different mix of import volume, capital investment, and export commitment.  Read full answer →

Customs duty in India is calculated on the assessable value of goods (broadly the CIF value plus certain adjustments) and combines Basic Customs Duty with IGST and, for some goods, additional cesses; the applicable rate depends on the product's HS classification code, so accurate tariff classification is the first step in any landed-cost estimate.  Read full answer →