The minimum security requirement under IGCR is a continuity bond covering the differential duty, that is, the gap between the full customs duty and the concessional duty on the goods you import. This bond is the baseline security every IGCR importer furnishes. Whether any additional security such as a bank guarantee is required on top of the bond, and how much, depends on the importer’s profile rather than being a single fixed figure for everyone. So the minimum is best understood as a continuity bond for the differential duty always, plus possibly a bank guarantee for some importers.
The continuity bond is the core security instrument. It is a running bond that covers your imports under the IIN, sized to the differential duty at risk, and it replaced the older system of furnishing a separate bond for each transaction. Because the concession is conditional, customs holds this bond so that if the end-use condition is not met, the forgone duty can be recovered against it. Furnishing an adequate continuity bond is non-negotiable; it is what makes concessional clearance possible.
Beyond the bond, some importers are asked to provide a bank guarantee for part of the secured amount, while others are not. This depends on the importer’s standing, such as track record and risk category, rather than a uniform rule. Lower-risk or established importers may satisfy the requirement with the bond and little or no separate guarantee, while newer or higher-risk importers may need to back part of the amount with a bank guarantee. This is where the practical cost of security varies between businesses.
The security tracks the differential duty because that is exactly what is at stake. The concession lets you pay less now; the security ensures the difference can be recovered if the goods are not used as declared. As your import volumes grow, the differential duty at risk grows, which is why the continuity bond may need to be topped up over time to keep pace. Security is not a fixed one-time number but scales with your exposure.
There is a real cost to security, in bank charges, margin, and locked-up collateral, so the goal is to furnish enough to satisfy customs without over-providing. Getting the bond amount right, topping it up as needed, and providing a bank guarantee only to the extent genuinely required all keep the arrangement efficient. Our team helps importers size and manage IGCR security correctly. For more on the bond itself see our page on how to apply for the IGCR bond, or contact [email protected] or +91 91673 79073.
The minimum security requirement under IGCR is not a static number you set once and forget. Because the continuity bond is sized to the differential duty on goods currently in process, the amount at risk moves with your import activity. When your volumes rise, the bond may need topping up so it continues to cover the duty on new consignments; when consumption is proven and returns are filed, value is re-credited and freed up again. In practice the security requirement breathes in and out with your operations.
This is why treating the minimum security requirement under IGCR as an ongoing item rather than a one-time formality matters. An importer who lets the bond value run low, or whose re-credit lags because returns are outstanding, can find concessional clearance stalled at exactly the wrong moment. Reviewing the bond level against your pipeline periodically keeps the security adequate without tying up more collateral than necessary.
Security is furnished through the IGCR module on ICEGATE as part of registration.
A continuity bond covering the differential duty, the gap between full and concessional duty. This is the baseline every importer furnishes.
No. Some importers must provide a bank guarantee for part of the amount; others satisfy the requirement with the bond, depending on their profile.
Because that is exactly what is at stake if the end-use condition is not met, so the security tracks your exposure.
Yes. As import volumes grow, the continuity bond may need to be topped up to keep pace with the duty at risk.
Furnish enough to satisfy customs without over-providing, sizing the bond and any guarantee to genuine requirement.
