What is the minimum security requirement under IGCR?

Under the Import of Goods at Concessional Rate of Duty (IGCR) Rules, importers are required to furnish a security to the Customs authorities to ensure compliance with the conditions of the exemption.

🔹 What is the Minimum Security?

There is no fixed amount prescribed as “minimum security” in the IGCR Rules. Instead, the security amount is based on:

1. The differential duty (i.e., the duty benefit claimed on the imported goods), and
2. The nature of the importer (manufacturer, service provider, job worker, etc.).

Typically, Customs may ask for a Bank Guarantee (BG) or Surety equivalent to the duty foregone. However, the actual requirement can vary depending on:

• Past compliance record
• Size and credibility of the importer
• Type and value of goods
• Risk perception by Customs

🔹 Exemption from Bank Guarantee

In many cases, no security or BG is required if:

• The importer has a clean compliance history
• They are recognized under AEO status (Authorised Economic Operator)
• They fall under low-risk categories as per Customs assessment

Such importers may be allowed to furnish only a Bond without BG.

🔹 Practical Scenario

• New or high-risk importers: May need to submit BG covering the duty benefit.
• Established or compliant importers: May only need a bond or may be exempt from BG entirely.

Learn more about IGCR at https://www.jparks.co/services/apply-for-igcr-clearance/