How Do I Calculate Duty Saved Under IGCR?

When you import goods under the IGCR (Import of Goods at Concessional Rate of Duty) Rules, 2017, you pay a reduced or zero customs duty. The “duty saved” is simply the difference between the normal duty payable and the concessional duty actually paid.

Here’s how to calculate it step by step:

Step 1: Determine the Assessable Value (AV)

This is usually the CIF value (Cost + Insurance + Freight) converted to INR.

Example:
CIF value = ₹10,00,000

Step 2: Calculate Normal Duty (Without IGCR)

Apply all applicable duties:

Basic Customs Duty (BCD)
SWS (Social Welfare Surcharge)
IGST
Any additional duties or cess

Example (Normal rates):

BCD @10% → ₹1,00,000
SWS @10% of BCD → ₹10,000
Subtotal → ₹11,10,000
IGST @18% on subtotal → ₹1,99,800
Total Duty Without IGCR: ₹2,09,800

Step 3: Calculate Concessional Duty (Under IGCR)

If BCD is fully exempt under IGCR:

BCD = ₹0
SWS = ₹0
IGST may still apply depending on exemption
Total Concessional Duty: e.g., ₹0 or ₹1,80,000

Step 4: Calculate “Duty Saved”

Duty Saved = Normal Duty – Duty Paid Under IGCR

If full exemption applies:
₹2,09,800 – ₹0 = ₹2,09,800 saved

Why This Matters

Duty saved helps calculate bond value
Used to determine 5% security margin
Important for returns and compliance

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

Related guides

Would you rather not handle this yourself? We offer IGCR clearance support.

Compliance and clearance under one group

Who actually clears your cargo?

JPARKS INDIA handles the compliance: eligibility, registration and IIN, the continuity bond, ICEGATE filings and the periodic returns. The customs clearance itself is handled by S. K. Agency, a firm of licensed Customs Brokers clearing cargo since 1990, working from the same building in Vashi. The two are sister concerns, so one group is answerable for both the paperwork and the port.

JPARKS INDIA handles

Eligibility and exemption notification review
Registration and IIN on ICEGATE
Continuity bond and security
Periodic returns and reconciliation
Utilisation records and bond closure

S. K. Agency handles

Bill of Entry filing and assessment
Customs clearance at the port
Examination and Out of Charge
Freight forwarding and transportation
Bonded and general warehousing

Customs Broker Licence 11/864, valid for lifetime
AEO-LO certified by Indian Customs, valid to April 2029
ISO 9001:2015 certified
Member, Brihanmumbai Custom Brokers Association

Clearing air and sea cargo at Mumbai, JNPT / Nhava Sheva, Mundra and Kandla.

Verify independently: Customs Broker Licence AANFS5040DCH001 (licence no. 11/864) on ICEGATE, and AEO-LO certificate INAANFS5040D0F240, valid to 09.04.2029.

How compliance and clearance are split Visit S. K. Agency

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