Is IGCR Available for All Businesses or Only Manufacturers?

The Import of Goods at Concessional Rate of Duty (IGCR) Scheme is primarily designed to benefit manufacturers, but it is not limited to them alone. The scheme extends to certain other businesses and sectors as well, provided they use the imported goods for eligible purposes defined under the IGCR Rules, 2017.

1. Manufacturers

• The scheme is most widely used by manufacturing units that import raw materials, components, and capital goods at concessional duty for producing finished goods.
• Example: An automobile company importing specialized components to assemble vehicles in India.

2. Job Workers / MSMEs

• IGCR allows importers to send goods for job work to third-party manufacturers, including small and medium enterprises. This provides flexibility and supports the wider industrial ecosystem.

3. Service Providers (Specific Sectors)

• In certain cases, service industries that need imported goods for their operations (e.g., aviation, healthcare, IT hardware) can also avail IGCR benefits, subject to DGFT/customs notifications.

4. Not for Traders

• Pure trading businesses importing goods only for resale in the domestic market are not eligible. IGCR is strictly for businesses that use the goods for manufacturing, production, or specified end-use purposes.

In summary, IGCR is available mainly for manufacturers and certain eligible businesses engaged in production or job work, but not for traders importing goods solely for resale.

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