01Advance Authorisation: inputs for exports
If the imported material goes into goods you export, Advance Authorisation lets you import it free of basic customs duty, IGST and compensation cess. You must export the finished product within the export obligation period and achieve at least 15% value addition (higher for some sectors). See the Advance Authorisation scheme page.
02EPCG: machinery
Under EPCG you import capital goods at zero customs duty, and you must export six times the duty saved within six years. The authorisation is valid for imports for 24 months and cannot be revalidated.
03SEZ and EOU units
Units in a Special Economic Zone, and Export Oriented Units, import inputs and capital goods duty-free as long as they remain net foreign-exchange earners. Goods they sell into India pay duty as imports.
04Free trade agreements and the certificate of origin
If the goods originate in a country that has a trade agreement with India (for example ASEAN members, Japan, South Korea, the UAE or Australia), you may claim a lower “preferential” rate. You must have a valid certificate of origin issued in that country under the agreement, and the goods must actually meet its rules of origin — not just be shipped from there.
05CAROTAR 2020: your duties when you claim an FTA rate
The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (Notification 81/2020-Customs (N.T.), in force from 21 September 2020) put the burden on the importer.
- Hold the origin information set out in Form I (how the goods meet the origin criteria) before you claim the rate, and produce it if asked.
- Keep the supporting documents for at least five years from the bill of entry.
- Answer a Customs request for information within ten working days.
- If origin cannot be proved, the preference is denied and you pay the normal duty, possibly with penalty.