Nothing terrifies a first-time importer like the words 'held by customs'. The fix is boring and beautiful: file early, classify correctly, and let the paperwork arrive before the ship does. Here is the entire Indian clearance procedure, in order.
Before anything moves: your three registrations
- IEC (Importer-Exporter Code): a 10-character, PAN-based code from DGFT — apply online, ₹500 fee. It must be revalidated electronically every April–June, even with no changes, or it is deactivated.
- AD Code: a 14-digit code from your bank, registered on ICEGATE before your first Shipping Bill/Bill of Entry. Registration is now fully online via ICEGATE 2.0.
- GSTIN: linked to your IEC so IGST paid at import flows back as input tax credit.
The clearance procedure, end to end
Document gathering
7–14 days before sailingCollect the Commercial Invoice, Packing List, and Bill of Lading/AWB — plus Certificate of Origin if claiming preferential duty (CAROTAR 2020 due-diligence applies). Currency values, piece counts, and weights must match perfectly across all three core documents; mismatches are the #1 cause of customs queries in India.
ITC-HS classification
Before cargo loadsAssign the correct 8-digit ITC-HS code to every line item. The code dictates Basic Customs Duty, IGST rate, and licence requirements (BIS, FSSAI, CDSCO, WPC). Misclassification means penalties, first-check examinations, and weeks of dwell.
Advance Bill of Entry on ICEGATE
Up to 30 days before arrivalYour broker files the Bill of Entry electronically on ICEGATE, uploading supporting documents via e-Sanchit (digitally signed PDFs, each receiving a unique reference number). Indian law requires the BoE before the end of the day preceding arrival — and late filing attracts charges of ₹5,000/day for the first three days, ₹10,000/day after.
Assessment, duty payment & release
On arrivalUnder faceless assessment (Turant Customs), your entry is assessed by officers anywhere in India, delinked from the port. Pay duty electronically; once customs issues Out of Charge (OOC), the terminal releases the container to your trucker. AEO-status importers and advance filers routinely clear in under 24–48 hours.
How Indian import duty is actually calculated
Duty stacks on assessable value (CIF basis) — transaction value plus actual freight and insurance. (The old notional 1% landing charge was abolished in 2017; guides still quoting 'CIF + 1%' are out of date.) The stack, in order:
| Layer | Basis | Amount (₹) |
|---|---|---|
| Assessable value (CIF) | — | 10,00,000 |
| Basic Customs Duty @10% | On assessable value | 1,00,000 |
| Social Welfare Surcharge @10% | On BCD | 10,000 |
| IGST @18% | On (AV + BCD + SWS) | 1,99,800 |
| Total duty outlay | (IGST creditable against GST) | 3,09,800 |
How experienced importers clear in hours, not days
- Direct Port Delivery (DPD) at Nhava Sheva lets vetted importers pull containers straight from the terminal within ~48 hours, skipping the CFS entirely — typical savings of ₹8,000–20,000 per container and several days of dwell.
- AEO accreditation earns deferred duty payment, lower examination rates, and priority processing.
- Advance BoE + e-Sanchit discipline: the single highest-leverage habit. India's average import release time still runs ~3–4 days at seaports; advance filers beat it by days.
- A broker who flags duty exposure before shipping — not after the container is on the water. (Ours are in-house.)