What are the IGCR Rules?
The Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (Notification 74/2022-Customs (N.T.), 9 September 2022, in force from 10 September 2022) replaced the 2017 rules. They apply when a customs exemption notification gives a lower rate of duty, or an exemption, on condition that the goods are used for a specified purpose: manufacture of specified goods, providing an output service, or another specified end use.
The 2022 rules widened the scope from manufacturing and output services to any specified end use, and moved the whole process onto the common customs portal. In 2025, Notification 07/2025-Customs (N.T.) changed the statement from monthly to quarterly.
How does an importer use IGCR?
- Form IGCR-1, once. The importer files one-time prior information on the common portal, giving the goods, the notification, the end use and the premises. An IGCR Identification Number (IIN) is generated when it is accepted.
- Continuity bond. The importer gives a continuity bond. Where the import is for a specified end use and no differential duty is involved, the bond value equals the assessable value of the goods.
- Bill of entry. The import is cleared at the concessional rate, quoting the IIN and the notification.
- Receipt. Non-receipt or short receipt of the goods at the premises is reported at once in Form IGCR-2.
- Use. The goods are used for the specified purpose within the period in the notification. Where the notification gives no period, the default period applies, extended from six months to one year by the 2025 amendment. The jurisdictional Commissioner can allow more time where the delay is beyond the importer's control.
- Quarterly statement. Form IGCR-3 is filed by the 10th of the month after each quarter, showing receipts, consumption, job work, re-exports, clearances and stock. Goods used can also be reported at any time in Form IGCR-3A for immediate re-credit of the bond.
What about unused or defective goods?
Unused or defective goods can be re-exported or cleared for home consumption within the time allowed (rule 10):
- Re-export: the export details are recorded in the statement, and the re-export value must not be less than the value of the goods at import.
- Home consumption: the importer pays the differential duty with interest through the common portal and records it in the statement. Interest runs from the date of import to the date of payment, at the rate notified under section 28AA of the Customs Act.
Can IGCR goods go out for job work?
Yes, under rule 7, on these conditions:
- Documents: the goods go to the job worker under an invoice or, where applicable, an e-way bill, with description and quantity.
- Time limit: the goods must come back within the period the rules allow from the date of the invoice or e-way bill.
- Records: the importer records goods sent for job work and reports them in the IGCR statement.
- Job worker: keeps records of goods received, the process carried out and any waste, and sends the processed goods back to the importer, or to another job worker the importer names, under an invoice or e-way bill.
- Responsibility: the importer must be able to show that the goods were used for the specified purpose.
Where goods are supplied onward for a specified end use, the importer keeps records of the supply to each recipient and shows them in IGCR-3.
What if the end-use conditions are not met?
Customs can start recovery under rule 11: the duty forgone is recoverable with interest at the rate notified under section 28AA. Re-export of unused goods is an option within the time allowed, but it does not cancel recovery for goods already used in breach of the conditions.
What goes wrong in practice?
- Goods used outside the time allowed, or for a purpose the notification does not cover.
- IGCR-3 filed late or not tied to actual stock and consumption.
- The continuity bond running out because consumption was not reported for re-credit.
- No link in SAP between the bill of entry under IGCR and the goods issues that used the goods.
How does OptiEXIM handle IGCR in SAP?
OptiEXIM integrates with SAP import transactions, from the purchase order onwards, to track concessional-duty imports against the customs notifications, continuity bonds and end-use requirements:
- IIN registration and master data for the applicable exemption notifications.
- Continuity bond or bank guarantee: utilisation, available balance and customs-confirmed re-credit.
- SAP integration to capture goods receipts, goods issues and other material movements for end-use consumption monitoring and reconciliation.
- End-use deadline alerts, configurable by notification and the current IGCR rules.
- IGCR-3 and IGCR-3A preparation and validation, covering consumption, job work, re-exports, home-consumption clearances and pending stock.
Frequently asked questions
What is IGCR?
The Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, which set the procedure for importing goods at a concessional rate tied to a specified use.
What is Form IGCR-1?
One-time prior information filed on the common portal; an IGCR Identification Number (IIN) is issued when it is accepted.
Is IGCR-3 monthly or quarterly?
Quarterly, since the 2025 amendment (Notification 07/2025-Customs (N.T.)). It is due by the 10th of the month after each quarter.
What is IGCR-3A?
A statement of goods consumed that can be filed at any time for immediate re-credit of the continuity bond; it becomes part of the next periodic statement.
How long does an importer have to use IGCR goods?
The period in the exemption notification. Where none is given, the default period applies, one year from import since the 2025 amendment (earlier six months).
What happens if IGCR goods are not used for the purpose?
Customs can recover the duty forgone with interest under section 28AA. Unused or defective goods can be re-exported, or cleared for home consumption on paying the differential duty with interest, within the time allowed.
Does IGCR apply only to manufacturers?
No. Since 2022 it also covers goods imported for other specified end uses, not only manufacture or output services.
How does OptiEXIM help with IGCR?
It links IGCR imports in SAP to the notification, bond and end use, tracks consumption and bond re-credit, alerts before end-use deadlines and prepares IGCR-3 and IGCR-3A.
Sources
This guide summarises the rules for general information and is not legal advice. Check the current notifications before acting on them.