IGCR Benefits for Importers and Exporters

One of the most important Government schemes that benefits Indian Importers and Manufacturers is the Import of Goods at Concessional Rate of Duty (IGCR). This scheme enables businesses to import the necessary raw materials and goods at reduced customs duties, using the goods for specified end purposes like manufacture or for the production of exports. The IGCR Scheme also provides a substantial contribution towards decreasing the costs of production, improving the cash flow and enhancing the competitiveness of Indian Products in the Global Market.

Afleo Group, a well-known Customs and DGFT Consultancy in India, provides complete support to businesses to get registered under the IGCR Scheme, to manage their compliance and to claim the maximum possible concessions under the scheme, thus enabling them to save the maximum amount of money and improve their operating efficiency.

Understanding IGCR (Import of Goods at Concessional Rate of Duty)

The IGCR Scheme was established by the Central Board of Excise and Customs under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, in order to facilitate ease of doing business for the importers. Under this scheme, the manufacturers and exporters are permitted to import Capital Goods, Components, Inputs or Consumables at concessional or nil customs duty, provided they are utilized for a specified end purpose.

This initiative supports India’s trade facilitation aims by eliminating multiple approvals and establishing electronic systems for efficient clearance. For Companies involved in Manufacturing and Exports, the IGCR Scheme is a means to bring down the import costs while complying completely with the Customs Laws.

Objectives of the IGCR Scheme

The main objectives of the IGCR Scheme were threefold:

• To Promote Domestic Manufacture: By providing lower customs duty on inputs, the scheme will increase the cost competitiveness of Indian manufacturers.
• Simplify Import Processes: By eliminating various license requirements, the scheme will provide a single registration to the Customs and simplify the entire process of import.
• Encourage Exports: Lower input costs will make the Indian goods cheaper internationally and will contribute to the “Make in India” and “Export-led growth” visions of the Government.

Who Can Avail the Benefits of IGCR?

The IGCR Scheme is available to a large number of importers and manufacturing entities, including:

• Manufacturers who import raw materials, components or consumables for further production.
• Export Oriented Units (EOUs) and Special Economic Zones (SEZ), units which import goods for manufacturing or exporting purposes.
• Importers registered under the IGCR Rules with jurisdictional Customs Authorities.
• Micro, Small and Medium Enterprises (MSMEs) and other industrial units which produce eligible goods under specific end-use categories.

Whether you are engaged in the manufacture of Electronics, Pharmaceuticals, Automobiles, Engineering or Chemicals, etc., the IGCR Scheme will substantially reduce the burden of your imports and therefore improve your profit margins.

Key Benefits of the IGCR Scheme

The businesses utilizing the IGCR Scheme shall derive multiple financial and operational benefits:

• Reduced or NIL Duty on the imported inputs, capital goods, and consumables.
• Lowered Production Costs and higher Profitability.
• Better Cash Flow due to lower initial customs duty payments.
• Simplified Import Procedures through online submissions and faster clearance.
• Improved Global Competitiveness to make the Indian exports more price-efficient.
• Support for the Government Schemes like “Make in India” and “Aatmanirbhar Bharat”.

As an example, in sectors such as automobile parts, electronics manufacturing and pharmaceuticals, the importers have succeeded in lowering the input costs by using the IGCR framework.