Is IGCR Applicable to Importers in SEZ or Only DTA?

The IGCR (Import of Goods at Concessional Rate of Duty) Rules, 2017 primarily apply to importers operating in the Domestic Tariff Area (DTA). These rules allow DTA-based manufacturers and service providers to import capital goods, raw materials, and consumables at concessional or nil duty, provided they use them strictly for specified purposes such as manufacturing, job work, or eligible services.

1. Why SEZ Importers Are Not Covered

Importers in Special Economic Zones (SEZs) are already entitled to customs duty exemptions under the SEZ Act and Rules. Goods imported into SEZs are considered to be outside the customs territory of India for duty purposes, meaning they automatically enjoy duty-free imports. As a result, IGCR benefits are redundant for SEZ units.

2. Applicability in DTA

The IGCR scheme is designed specifically for DTA importers who would otherwise be required to pay full customs duties. By offering concessional duty rates, the scheme supports domestic industries in reducing costs, enhancing competitiveness, and encouraging value addition within India.

3. Key Distinction

• SEZ Importers → Already duty-free, no IGCR needed.
• DTA Importers → Can claim concessional duty under IGCR for manufacturing, job work, or services.

👉 In short: IGCR is applicable only to DTA importers, not to SEZ units, since SEZs already enjoy broader exemptions.

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