Guides

How Import Customs Clearance Works in India

When your machinery, raw material or spare parts reach an Indian port or ICD, they can't leave until customs clears them. Here is how the process works and what you need to have ready.

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What you need

Importer Exporter Code (IEC) and GST registration
Commercial invoice and packing list from your supplier
Bill of lading or air waybill
Certificate of origin, if you claim lower duty under a trade agreement
Product licences or certificates, where the goods need them
Insurance details

The steps

Your customs broker files the bill of entry on ICEGATE, ideally before the cargo arrives
Customs assesses the value and HS code and calculates the duty
You pay the duty online
Customs may examine the cargo, based on its risk system
Customs gives "out of charge" and the cargo is released
You pay port or CFS charges and the cargo is delivered to you

What you'll pay

Import duty usually has several parts: basic customs duty, a social welfare surcharge on that duty, and IGST on the total. Registered businesses can usually claim the IGST back as input tax credit. The rates depend on the HS code, so the right classification matters, and a trade agreement can lower the basic duty if you have a valid certificate of origin.

How to avoid delays and demurrage

Most delays come from wrong HS codes, invoice values that don't match the documents, or missing licences. Each day cargo sits at the port after its free time costs demurrage and storage. File early, check documents before the ship arrives and keep payments ready. PH Logistics India clears imports for businesses across Punjab, including cargo as unusual as an aircraft at ICD Patiala.

Common questions

What is a bill of entry?

It is the import declaration filed with Indian customs. It lists the goods, value, HS code and duty, and customs clears the cargo against it.

Can I claim back the IGST paid on imports?

In most cases, yes. GST-registered businesses can usually claim IGST paid at import as input tax credit. Check with your accountant for your situation.

What causes customs delays on imports?

The usual causes are wrong HS codes, mismatched values or quantities between documents, missing licences or certificates, and late filing. Checking documents before arrival avoids most of them.