What Are the Penalties for IGCR Non-Compliance?

Non-compliance with the IGCR (Import of Goods at Concessional Rate of Duty) Rules, 2017 can lead to serious consequences for importers. Since concessional duty is granted conditionally, any violation is treated as a breach of Customs law.

Key Penalties and Consequences:

1. Repayment of Duty with Interest:
   Importers must pay back the duty concession availed if goods are not used for the declared purpose, along with applicable interest.
2. Forfeiture of Bank Guarantee/Bond:
   Customs may invoke the bond or bank guarantee furnished at the time of registration.
3. Monetary Penalties:
   Penalties may be levied under the Customs Act, 1962 for failure to comply with IGCR timelines, misuse, or false declarations.
4. Suspension/Withdrawal of IGCR Benefits:
   Importers may lose eligibility for concessional duty benefits on future imports.
5. Stricter Customs Scrutiny:
   Non-compliant importers may be flagged for regular audits and checks, causing clearance delays.
6. Legal Action for Fraudulent Acts:
   In cases of deliberate misuse, Customs can initiate legal proceedings which may include prosecution.

In summary: IGCR non-compliance can cost importers heavily in the form of repayment of duty, penalties, forfeiture of guarantees, and loss of future benefits.

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

Related guides

• Start here: What is the IGCR Scheme? The Rules, Legal Basis and How It Evolved
• Can IGCR and EPCG Be Availed Together?
• IGCR vs Project Import: What Should You Choose?
• IGCR vs Advance Authorisation: Which is Better for Your Business?
• IGCR vs EPCG Scheme: Key Differences Explained

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