IGCR Rules explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, known as the IGCR Rules, set the procedure for an importer who takes an exemption that depends on how the goods are used after clearance. The Rules were made under section 156 of the Customs Act, 1962 by Notification No. 74/2022-Customs (N.T.) of 9 September 2022, replacing the 2017 Rules. Notification No. 07/2025-Customs (N.T.) amended them from 2 February 2025: the monthly statement became a quarterly one, and two six-month periods became one year. If you are setting up or reviewing an IGCR account, our legal consultation service can help.
The importer gives one-time information in Form IGCR-1 on the common portal, gets an IIN, and submits a continuity bond (rule 4). The IIN and bond number go on the bill of entry, and the bond is debited automatically on clearance (rule 5). Receipt problems are reported in IGCR-2. Since 2 February 2025 the importer files a quarterly statement in IGCR-3 by the tenth day of the following quarter (rule 6(2)). Goods may stay with a job worker for up to one year, and unused goods must be used, re-exported or cleared within the notification's period or, if none, one year from the date of import (rules 7(3), 10(1)).
When the Rules apply: rule 2
The Rules apply where an exemption notification says they must be observed, or where the importer wants a notification benefit that depends on the imported goods being used for manufacture, for an output service, or for a specified end use. "Notification" includes one under section 25(1) or section 11 of the Act (rule 3(1)(j)); see our article on section 25: power to grant exemption from duty. "Specified end use" means dealing with the goods as the notification specifies, including supply to the intended person, the "end use recipient". "Date of import" is the date of the section 47 order permitting clearance; see section 47.
What the 2025 amendment changed
| Provision | Before 2 February 2025 | From 2 February 2025 (07/2025-Customs (N.T.)) |
|---|---|---|
| Rule 3(1)(ka) | Not present | "Quarter" defined: three consecutive calendar months ending on the last day of March, June, September or December |
| Rule 6(2): IGCR-3 | Monthly statement by the tenth day of the following month | Quarterly statement by the tenth day of the following quarter |
| Rule 6(2) proviso: IGCR-3A | Forms part of the next month's statement | Forms part of the statement of the subsequent quarter |
| Rules 7(1), 8(1), 9(1), 10(2), (3), (5) | Recorded in the monthly statement | Recorded in the quarterly statement |
| Rule 7(3): job work | Six months from the invoice or e-way bill | One year |
| Rule 10(1)(ii): period where the notification is silent | Six months from the date of import | One year from the date of import |
| Form IGCR-3 heading | "MONTHLY" | "QUARTERLY" |
Step 1: one-time information and the bond (rule 4)
The importer provides one-time prior information on the common portal in Form IGCR-1: name and address of the importer and any job worker, the goods produced or process carried out, the imported goods used, the notification, any output service, premises for unit transfer, end use recipients, and the intended ports of import. On acceptance an IGCR Identification Number (IIN) is generated. The information can be updated if the details change.
The importer also submits a continuity bond, with such surety or security as the Deputy or Assistant Commissioner having jurisdiction over the premises of use thinks fit. The undertaking in the bond is to pay:
- for an exemption notification, the difference between the duty leviable but for the exemption and the duty already paid, with interest at the rate fixed under section 28AA from the date of import to the date of payment;
- for any other notification, an amount equal to the assessable value of the goods.
Step 2: the bill of entry (rule 5)
The IIN and the continuity bond number and details are mentioned on the bill of entry. The Deputy or Assistant Commissioner at the port allows the benefit, and when the bill of entry is cleared for home consumption the bond is debited automatically in the customs automated system, with details passed electronically to the jurisdictional Customs officer. Our guide on bill of entry types, filing and assessment covers the entry itself.
Step 3: records, IGCR-2 and the quarterly IGCR-3 (rule 6)
The importer keeps an account showing the quantity and value imported, receipt at the premises, quantity consumed or exported or sent to an end use recipient, goods sent to and received back from job work, goods re-exported, and stock in hand by bill of entry. Non-receipt or short receipt is reported at once in Form IGCR-2.
The quarterly statement in Form IGCR-3 is filed on the common portal by the tenth day of the following quarter. Consumption may also be reported at any time in IGCR-3A for immediate recredit of the bond; that entry then becomes part of the statement for the subsequent quarter.
Example. Nimbus Polymers Pvt Ltd imports a chemical under a concessional-rate notification for manufacture. For goods received in April to June it files IGCR-3 by 10 July. In May it reports a large consumption in IGCR-3A to restore its bond balance before the next import, and that entry is carried into the April-June statement.
Job work, unit transfer and end use recipients (rules 7 to 9)
Goods may be sent to a job worker, moved to another unit of the importer, or supplied to an end use recipient, in each case under an invoice or an e-way bill under the CGST Act and recorded in the quarterly statement. Goods may stay with a job worker for one year from the invoice or e-way bill (rule 7(3), as amended). The job worker, the receiving unit and the end use recipient each keep an account of receipts, processing and waste and produce it when asked. "Job work" in these Rules excludes gold, jewellery and other precious metals or stones (rule 3(1)(g)). If the importer cannot show that goods sent for job work were used as declared, action follows under rules 11 and 12.
Unused goods, defective goods and capital goods (rule 10)
| Situation | What rule 10 says |
|---|---|
| Time to use the goods | Within the period in the notification; if none, within one year from the date of import. The Commissioner may extend by up to three months for reasons beyond the importer's control |
| Unused or defective goods | Re-export, or clear for home consumption, within that period |
| Re-export | Recorded in the quarterly statement; value not less than the value at import |
| Clearance for home consumption | Voluntary payment of duty with interest on the common portal, recorded in the quarterly statement |
| Capital goods after use | Duty difference with interest on the depreciated value: 4% a quarter in year one, 3% in years two and three, 2.5% in years four and five, 2% thereafter (straight line) |
A part of a quarter counts as a full quarter for depreciation, which runs from the date the capital goods came into use for the notified purpose.
Recovery and penalty (rules 11 and 12)
If the conditions of rule 10(1) are not met, or the payments under rule 10(3) or (4) are not made or are short, the jurisdictional Deputy or Assistant Commissioner invokes the bond to recover the amounts described in rule 4(3), with interest under section 28AA. The importer stays responsible for goods at a job worker. A contravention by the importer or job worker attracts a penalty up to the amount in section 158(2)(ii) of the Act.
Common mistakes
- Still filing monthly. From 2 February 2025 the statement is quarterly; diaries built on the tenth of every month need resetting to the tenth of July, October, January and April.
- Working to six months. The job-work period and the default period for use are now one year.
- Leaving the bond exhausted. Use IGCR-3A to recredit the bond between quarterly statements.
- Using IGCR for gold or jewellery job work. The job-work definition excludes them.
Need help with an IGCR account?
An unreconciled IGCR-3 or an exhausted bond usually surfaces at the next import. Our legal consultation team can review the account, the bond position and any notice.
Key takeaways
- The IGCR Rules, 2022 apply to exemptions that depend on end use, manufacture or an output service.
- IGCR-1 and a continuity bond come first; the IIN and bond number go on the bill of entry.
- Since 2 February 2025, IGCR-3 is quarterly, due by the tenth day of the following quarter.
- Job work can run for one year, and the default period to use or re-export goods is one year from the date of import.
- Shortfalls are recovered by invoking the bond, with interest under section 28AA.
Read next
- Section 25: power to grant exemption from duty
- Project imports: concessional duty procedure
- MOOWR scheme: duty deferment without export obligation
- Customs duty types: BCD, IGST, cess and SWS
Disclaimer: Based on the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (Notification No. 74/2022-Customs (N.T.)) as published on the CBIC Tax Information Portal, read with the Amendment Rules, 2025 (Notification No. 07/2025-Customs (N.T.), in force from 2 February 2025), as consulted on 3 October 2026. CBIC has not published a consolidated text with the 2025 changes. This article is general information, not legal advice; check the official text and the notification you claim before acting.