India Import Customs Explained: IEC, Bill of Entry, ICEGATE and Duty

To import goods into India for business you need an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT), and every consignment is declared to Indian Customs on a Bill of Entry filed electronically through ICEGATE, the customs portal of the Central Board of Indirect Taxes and Customs (CBIC). The two things importers most often get wrong are timing and the duty base. As of October 2026, a Bill of Entry for sea cargo generally has to be filed before the end of the day before the vessel arrives, with daily late charges after that, and IGST is charged on the customs value plus basic customs duty and surcharge, not on the invoice alone. This guide covers the Indian mechanics. For the general sequence of a clearance in any country, start with our customs clearance explainer.

The Importer Exporter Code (IEC): what it is, and why it is not one-and-done

DGFT describes the IEC as a business identification number that is mandatory for importing into or exporting from India unless a specific exemption applies (personal-use imports are the common one). Since GST came in, the IEC number is the same as the business's PAN, but it is still issued separately on application through the DGFT portal. The applicant needs a PAN, a bank account in the firm's name and a valid address, which DGFT may verify. Third-party guides consistently put the application fee at Rs 500; check the current fee on the DGFT portal before you pay.

The common misconception is that an IEC, once issued, lasts forever. Since DGFT Notification 58/2015-20 (February 2021), every IEC holder must update or confirm its IEC details online each year between April and June, even if nothing has changed. An IEC that is not updated in that window is deactivated after June, and a deactivated IEC will stop a Bill of Entry. The update is free, and the IEC is reactivated automatically once you complete it, but finding out at the port that your code lapsed costs days.

The three types of Bill of Entry

Section 46 of the Customs Act, 1962 requires the importer to make entry of imported goods by filing a Bill of Entry. Which type you file depends on whether you pay duty now or store the goods in a customs bonded warehouse first. Paper Bills of Entry used to be printed on different coloured forms, which is why brokers still sometimes call them by colour.

Warehousing defers duty; it does not waive it. Goods kept in bond are subject to a time limit under Section 61 of the Act (one year for most goods, extendable on application), and the Finance Act, 2026 changes to Section 67, as reported in the ICAI's CA Journal, let owners move goods between warehouses on a self-declaration on the portal instead of waiting for an officer's prior permission. If you are weighing bonded storage against clearing on arrival, our comparison of free trade zones and bonded warehouses sets out when deferral is worth the extra handling.

When to file: advance Bill of Entry and late-filing charges

This is the rule that changed most and is still misunderstood. Before 2017 there was no statutory late charge for a Bill of Entry filed after the goods arrived. The Finance Act, 2017 introduced one, and the Finance Act, 2021 moved the default deadline forward. Section 46(3) now requires the Bill of Entry to be filed before the end of the day (including holidays) preceding the day of arrival, and lets the Board set different deadlines that are no later than the end of the day of arrival. A Bill of Entry can be filed up to 30 days before the expected arrival.

The Board's deadlines are in Notification 34/2021-Customs (N.T.) dated 29 March 2021, which amended regulation 4(1) of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018, and in CBIC Circular 08/2021-Customs:

If the Bill of Entry is filed late and the officer is not satisfied there was sufficient cause, regulation 4(3) of the 2018 Regulations sets late charges of Rs 5,000 per day for the first three days and Rs 10,000 per day after that. Under regulation 4(4) the charge cannot exceed the duty payable on that Bill of Entry, or Rs 50,000 where no duty is payable (for example because of an exemption). The officer can waive the charge where the reasons for delay are accepted, and ports such as Jawaharlal Nehru Custom House publish their own waiver procedure. For ICD cargo, remember the reference date is arrival at the ICD, not discharge at the gateway port; our guide to inland container depots and dry ports covers how that movement works.

Two practical points from the 2021 changes. You no longer need the master bill of lading or master air waybill to file in advance: Circular 08/2021 lets you file on the house document alone (the MBL field is declared as NOMBL or NOMAWB) and add the master reference later through an amendment that is auto-approved without a late fee. And goods left uncleared at the port or ICD do not wait forever: under Section 48 of the Act, goods not cleared within 30 days of unloading can be sold by the custodian after notice.

Filing on ICEGATE: who files and what you need

The Bill of Entry is filed electronically through ICEGATE, which CBIC notified as the common customs electronic portal in March 2021. The 2018 Regulations define the person who may file as the importer or a licensed customs broker acting for the importer, so an importer can self-file. To register on ICEGATE you typically need your IEC, PAN, GSTIN and a Class 3 digital signature certificate, and the portal validates your details against DGFT and GST records, so make sure the email and mobile number match.

Supporting documents (commercial invoice, packing list, bill of lading or air waybill, certificates of origin, licences and agency approvals) are uploaded through e-Sanchit, which gives each document a reference number that is linked to the Bill of Entry. Through the Single Window Interface for Facilitating Trade (SWIFT), the same declaration carries the data that partner agencies such as FSSAI and plant quarantine need. If you are assembling the pack for the first time, our import documentation checklist lists what customs authorities generally ask for.

Filing is self-assessment under Section 17. The importer declares the classification, value and duty, and is legally responsible for them even when a broker types the entry. Classification follows India's eight-digit ITC (HS) tariff lines, so the work starts with the right HS code.

How Indian import duty is built up

Indian import duty is a stack of separate levies, each with its own base. The components most importers meet are:

• Basic Customs Duty (BCD): set tariff line by tariff line in the First Schedule to the Customs Tariff Act, 1975, and often reduced by exemption notifications. It is charged on the assessable value, which is the transaction value adjusted to a CIF basis under the valuation rules (see our guide to how customs value is calculated).
• Social Welfare Surcharge (SWS): 10% under Section 110 of the Finance Act, 2018. It is 10% of the customs duty, not of the value: CBIC has clarified that where BCD is nil because of an exemption, SWS is nil too. IGST, compensation cess, anti-dumping, countervailing and safeguard duties are outside its base.
• Agriculture Infrastructure and Development Cess (AIDC): introduced in 2021 on a defined list of goods (including gold, silver and some agricultural products). Where it was introduced the BCD was generally cut so that the overall rate did not rise. Check the notification for your tariff line.
• Integrated GST (IGST): charged under Section 3(7) of the Customs Tariff Act on the assessable value plus BCD, SWS and other customs duties. Since the GST rate changes of 22 September 2025, most goods fall in the 5% or 18% slab, with 40% on a short list of demerit goods. A GST-registered importer can normally claim the IGST back as input tax credit, which BCD and SWS are not.
• GST compensation cess: removed from most goods on 22 September 2025 and reduced to nil on the remaining tobacco products from 1 February 2026, when those products moved to a central excise and health cess structure. For almost all imports it is no longer part of the calculation as of October 2026.
• Trade remedy duties: anti-dumping, countervailing or safeguard duty on specific products from specific origins, on top of everything above.

An illustrative calculation for a product with 10% BCD and 18% IGST, no AIDC and no trade remedy duty:

The total is about 31% of the assessable value, not the 28% you get by adding the headline rates, because IGST is charged on top of the customs duty. A preferential rate under a trade agreement reduces the BCD line (and therefore SWS and the IGST base), but only with a valid certificate of origin that meets the agreement's rules at the time of filing.

When the duty must be paid

Under Section 47(2), duty on a self-assessed Bill of Entry is due on the date the Bill of Entry is presented. Where it is assessed, reassessed or provisionally assessed by an officer, payment is due within one day (excluding holidays) of it being returned to the importer. Interest runs after that at the notified rate. Eligible importers can use deferred payment instead: according to CBIC Circular 03/2026-Customs (1 February 2026), as summarised by several practitioners, the deferral period was extended from 15 to 30 days from 1 March 2026, with duty on Bills of Entry returned in a month (other than March) due by the 1st of the following month, and a new class of "Eligible Manufacturer Importer" was added until 31 March 2028.

Customs brokers under the CBLR 2018 (formerly CHAs)

The agent Indian importers still call a "CHA" (Custom House Agent) has been a customs broker since the 2013 licensing regulations, now replaced by the Customs Brokers Licensing Regulations, 2018 (Notification 41/2018-Customs (N.T.), 14 May 2018). A broker is licensed after passing an examination conducted through the National Academy of Customs, Indirect Taxes and Narcotics (NACIN). Regulation 10 sets out the broker's obligations, including obtaining written authorisation from each client, verifying the client's identity and address, advising the client to comply with the Customs Act, and exercising due diligence on the information it gives the client.

A broker files on your behalf and handles the examination and the officers' queries, but it does not take over your liability for the declaration. Brokers have lost licences for failing those KYC duties, which is why a careful broker asks for documents that can feel excessive. Whether you need one at all, or whether your forwarder's in-house brokerage is enough, is covered in our guide do you need a customs broker.

Risk Management System, faceless assessment and examination

Once filed, a Bill of Entry passes through CBIC's Risk Management System (RMS), which decides from risk rules whether it is facilitated (cleared on the self-assessment, without officer assessment or physical examination), sent for assessment, sent for examination, or both. Facilitated entries move straight to duty payment and out-of-charge. Since CBIC's faceless assessment rollout completed nationwide in late 2020, the officer who assesses your entry is usually not at the port where the goods are: queries arrive electronically and are answered through ICEGATE. Examination, when ordered, still happens physically at the port, ICD or container freight station.

AEO in India: what the tiers buy you

India's Authorised Economic Operator programme, run by CBIC's Directorate of International Customs under Circular 33/2016-Customs (22 July 2016, as amended), has three tiers for importers and exporters (AEO-T1, T2 and T3) and an AEO-LO certificate for logistics operators such as customs brokers, warehouse operators and terminal operators. Benefits rise with the tier. Direct port delivery (taking containers straight from the terminal to your premises) is available from T1, while deferred payment of duty is limited to T2 and T3 (and, since the 2026 change above, approved Eligible Manufacturer Importers). India's AEO mutual recognition arrangements with other customs administrations also apply at the higher tiers. Exact benefit lists differ between summaries, so read the current circular before you build a business case.

Common holds: BIS, FSSAI and other agencies

Most delays that are not about documents or duty come from another government agency's requirement that customs enforces at the border:

• BIS certification: goods covered by a Quality Control Order or the Compulsory Registration Scheme (much consumer electronics and IT hardware, toys, many steel, chemical and electrical products) cannot be cleared without a valid Bureau of Indian Standards licence or registration and the standard mark. The list changes: in November 2025 the government withdrew a batch of QCOs covering chemicals and polymers such as PVC, polypropylene and polyethylene. Check the product against BIS's current list before you ship, not after.
• FSSAI for food: food importers need an FSSAI import licence, and each consignment needs a no-objection certificate through FSSAI's Food Import Clearance System, which is linked to ICEGATE. Shelf life is a frequent cause of rejection: after the 2018 amendment, imported food must have at least 60% of its original shelf life or three months before expiry, whichever is less, remaining at the time of import. Labels must also meet FSSAI's labelling rules, which are checked at clearance.
• Other agencies: plant quarantine for plants and plant products, animal quarantine for livestock products, drug controller approvals for medicines and medical devices, wireless (WPC) approval for radio equipment, and Legal Metrology declarations on retail packs. Restricted items under the ITC (HS) import policy also need a DGFT licence.

Budget 2026-27: what changed for importers (as of October 2026)

The Finance Act, 2026 amended the Customs Act, 1962 rather than replacing it. Beyond the deferred payment and warehouse transfer changes above, the ICAI's CA Journal summary lists advance rulings valid for five years instead of three, and many exemption-notification rates folded into the Customs Tariff from 1 May 2026, which practitioners report left effective rates unchanged. Individual tariff lines also moved, so check the rate in force on the date you file.

What to do next

1. Check that your IEC is active and was updated in this year's April to June window, and register on ICEGATE (or confirm your broker's authorisation) before the first shipment.
2. Classify every product to its eight-digit tariff line and check BCD, AIDC, IGST, any trade remedy duty, and BIS, FSSAI or other agency requirements for that line.
3. Agree with your forwarder or broker who files the Bill of Entry and when, working back from the vessel's arrival (or the ICD arrival) so that you file in advance and avoid late charges.
4. Have the duty funded on the filing date, or, if you hold AEO T2 or T3 or Eligible Manufacturer Importer status, use deferred payment and diary the due date.

If you need a customs broker or forwarder that handles Indian clearances, more than 29,300 logistics companies are searchable by country and service in the CargoLinked directory, and our overview of logistics companies in India is a starting point. To get quotes on a specific shipment, the public requests board lists freight that shippers have posted for forwarders to quote on directly.

This article is general information about Indian import procedures as of October 2026, not legal, tax or customs advice. Duty rates, deadlines and agency requirements change by notification. Confirm the current position with CBIC, DGFT or the relevant agency, or with a licensed customs broker, before you ship.