Export more - Get Import Duty benefits

Indian importers, the main duty-saving and cash-flow support routes are EPCG, IGCR, Advance Authorisation, and the new EMI/deferred-duty facility. In simple terms: Advance Authorisation is best for duty-free input imports for export production, IGCR is for concessional duty imports for specified end-use, EPCG is for capital goods tied to export obligation, and EMI helps eligible manufacturers defer customs duty payment.

1) Advance Authorisation
Advance Authorisation allows duty-free import of inputs used in export production, including raw materials, components, and intermediates. It is meant for exporters and can exempt duties such as BCD, IGST, compensation cess, and other applicable import levies, subject to export obligation and norms compliance.

2) IGCR
IGCR (Import of Goods at Concessional Rate of Duty) is for imports that qualify for a concessional customs duty when the goods are used for a declared end-use, usually manufacturing or related output service. The scheme is useful for importers who want lower duty on raw materials or capital goods, but it comes with post-import compliance, usage monitoring, and periodic reporting.

3) EPCG
EPCG lets importers bring in capital goods at concessional or nil customs duty for producing goods and services, provided they meet export obligation conditions. It is especially useful for manufacturers upgrading machinery, improving productivity, and reducing capex burden while committing to export performance.

4) EMI
EMI here refers to the Eligible Manufacturer Importer facility, which is a deferred payment mechanism for customs duty rather than a pure exemption scheme. It helps eligible manufacturers ease working-capital pressure by paying duty later, subject to registration and conditions under the customs framework.

5) Capital subsidies and related support
For capital subsidies, the benefit usually comes from state industrial policies, MSME/cluster schemes, technology-upgradation support, or sector-specific incentives rather than from customs law itself. These are typically used alongside import schemes to reduce project cost, but eligibility depends on the state, sector, investment size, and compliance conditions.

Practical guide
Use Advance Authorisation if you import inputs for export orders.

Use IGCR if your imports are for specified domestic manufacturing or end-use.

Use EPCG if you are importing machinery/capital goods and can meet export obligation.

Use EMI if your priority is duty deferment and working-capital relief.

Simply Exim thru Sow Exim
91 9944430392
ceo@sowexim.com
www.sowexim.com