Customs Act, 1962, Customs Tariff Act, 1975, Foreign Trade Policy (FTP 2023) & Special Economic Zones (SEZ) Act, 2005

Customs Duty, Foreign Trade Policy & SEZ Advisory

Comprehensive cross-border indirect tax advisory covering Customs Act, 1962 compliance, ICEGATE electronic filings, Special Valuation Branch (SVB) proceedings, SEZ/EOU operations, MOOWR duty deferment under Section 65, and Foreign Trade Policy (FTP 2023) export incentives.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

Customs Duty, Foreign Trade Policy & SEZ Advisory Statutory Advisory

Turnkey Statutory Filing

MCA & Tax Practice

Official Govt of India AuthorityCBIC & DGFT, Government of India

ICEGATE Customs Official Portal & DGFT Portal

The official Government of India portals for electronic Bill of Entry clearance, duty e-payments (ICEGATE), online Importer-Exporter Code (IEC) lifecycle management, Advance Authorization/EPCG applications, and RoDTEP/RoSCTL script generation.

Visit Govt Portal

STATUTORY OVERVIEW

Cross-Border Indirect Tax, Customs & Export Incentive Frameworks

Cross-border merchandise trade and international service delivery in India are governed by the Customs Act, 1962, the Customs Tariff Act, 1975, the Foreign Trade Policy (FTP 2023), and the Special Economic Zones Act, 2005. Managing cross-border transactions requires strategic alignment of tariff classifications, duty exemptions, valuation rules, and trade incentive schemes. Our practice delivers technical advisory and diagnostic reviews to help global enterprises optimize landed costs, maintain regulatory transparency, and address customs clearance procedures.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Customs Act, 1962, Customs Tariff Act, 1975, Foreign Trade Policy (FTP 2023) & Special Economic Zones (SEZ) Act, 2005

Regulatory Authority

Central Board of Indirect Taxes and Customs (CBIC) & Directorate General of Foreign Trade (DGFT), Ministry of Finance and Ministry of Commerce & Industry, Govt of India

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Authorized Signatory PAN Card, Aadhaar Card, and Class 3 DSC with ICEGATE digital token registration
✓Valid 10-digit Importer-Exporter Code (IEC) issued by DGFT (updated within the current financial year)
✓Authorized Dealer (AD) Code letter issued by the commercial bank and registered at the respective customs port

2. Registered Office & Premises Proof

✓Principal Place of Business proof and manufacturing facility address corresponding to IEC master records
✓Private Bonded Warehouse license issued by the Principal Commissioner under Section 58 for MOOWR units

3. Specific Statutory Declarations & Enclosures

•Commercial Invoices, Packing Lists, and Bill of Lading (B/L) / Airway Bill (AWB)
•Country of Origin Certificate (Preferential / Non-Preferential) compliant with CAROTAR 2020 rules
•Advance Authorization / EPCG licenses and corresponding Export Obligation (EO) monitoring ledgers
•Special Valuation Branch (SVB) Questionnaire, transfer pricing study, and inter-company pricing agreements (for related-party imports)
•Technical catalog, Material Safety Data Sheet (MSDS), and test certificates for tariff classification under Customs Tariff Act

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Pre-Import

Tariff Classification & Landed Cost Modeling

Determining 8-digit HS classification, evaluating Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), IGST, and exploring Free Trade Agreement (FTA) duty concessions.

02Week 1

Scheme Selection & Regulatory Structuring

Assessing the viability of MOOWR in-bond manufacturing (Section 65 duty deferment) vs Advance Authorization (duty-free raw material import for exports).

03Real-Time / 24-48 Hrs

ICEGATE Filing & Faceless Clearance

Submitting electronic Bill of Entry (B/E) or Shipping Bill on ICEGATE, addressing queries raised by the National Assessment Centre (NAC), and generating Out-of-Charge (OOC).

04Ongoing & Annual

Post-Clearance Audit & Script Redemption

Managing Post-Clearance Audits (Section 99A), claiming RoDTEP/RoSCTL duty credit scrips on DGFT portal, and securing Export Obligation Discharge Certificates (EODC).

Customs Valuation & Special Valuation Branch (SVB)

Practice Scope & Statutory Guidance

Import transactions between multinational associated enterprises require scrutiny under the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 to ensure transaction values are not influenced by relationship. We assist multinational corporations in preparing documentation for Special Valuation Branch (SVB) investigations, formulating Annexure responses, substantiating arm's length pricing using transfer pricing documentation, and obtaining final SVB valuation orders.

SEZ, EOU & In-Bond Manufacturing (MOOWR Scheme)

Practice Scope & Statutory Guidance

Businesses operating under preferential trade regimes require specialized indirect tax compliance. We advise on zero-rated procurement under Section 16 of the IGST Act for Special Economic Zone (SEZ) developers and units, Export Oriented Units (EOU), and the Manufacturing and Other Operations in Warehouse Regulations (MOOWR) scheme under Section 65 of the Customs Act. MOOWR allows duty deferment on imported capital goods and raw materials, transforming cash liquidity for manufacturing enterprises.

Foreign Trade Policy (FTP 2023) & Export Remission Schemes

Practice Scope & Statutory Guidance

The Foreign Trade Policy provides vital duty neutralization and remission mechanisms for Indian exporters. We provide advisory and compliance support for schemes including the Remission of Duties and Taxes on Export Products (RoDTEP), Rebate of State and Central Taxes and Levies (RoSCTL), Advance Authorisation for duty-free input imports, and Export Promotion Capital Goods (EPCG) authorisations, monitoring export obligation fulfillment and redemption.

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Customs & Foreign Trade Policy Scheme	Governing Statute / Chapter (FTP 2023 / Customs Act)	Statutory Benefit & Compliance Obligation
MOOWR Scheme (Bonded Manufacturing)	Section 65 of Customs Act, 1962 read with MOOWR Regulations	Complete deferment of BCD and IGST on capital goods and raw materials. Zero duty if finished products are exported; duty payable on inputs only if cleared into Domestic Tariff Area (DTA).
Advance Authorization Scheme (AA)	Chapter 4 of Foreign Trade Policy, 2023	Duty-free import of raw materials incorporated into export products. Minimum 15% value addition required within 18 months export obligation.
EPCG Scheme (Export Promotion Capital Goods)	Chapter 5 of Foreign Trade Policy, 2023	Zero customs duty on import of capital goods for pre-production, production, and post-production, subject to export obligation of 6 times duty saved over 6 years.
RoDTEP Scheme (Remission of Duties & Taxes)	Chapter 4 of Foreign Trade Policy, 2023	Rebate of un-refunded central, state, and local taxes embedded in exported goods; issued as transferable electronic duty credit scrips on ICEGATE.
CAROTAR 2020 (Preferential Trade Origin Rules)	Section 28DA of Customs Act read with CAROTAR Rules	Mandatory origin documentation and value-addition testing required to claim concessional customs duty rates under India's FTAs (ASEAN, Japan, Korea, UAE, Australia).
Special Valuation Branch (SVB) Related Party Imports	Customs Valuation Rules, 2007 read with Circular 5/2016	Statutory investigation to confirm whether relationship between multinational parent and Indian importer influenced the transaction value.

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

Online DGFT IEC PortalBetween April and June annually

Annual IEC Profile Validation (DGFT)

Mandatory annual electronic verification of IEC profile; unverified IECs are automatically de-activated by DGFT.

Form B Annexure RegisterMonthly on or before 10th

MOOWR In-Bond Warehouse Returns

Maintaining accounts of imported inputs and capital goods received, processed, and cleared from the bonded manufacturing facility under Section 65.

ANF-4F (Advance Auth) / ANF-5B (EPCG)Within 6 months of EO period expiry

Export Obligation Discharge Certificate (EODC)

Submitting redemption dossiers with shipping bills and e-BRCs to DGFT to formally redeem customs import bonds.

Section 99A Customs AuditRecords preserved for 5 years

Post-Clearance Audit (PCA) Readiness

Maintaining import/export documentation, bank remittances, and valuation files for verification during transactional or premise-based customs audits.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding Customs Duty, Foreign Trade Policy & SEZ Advisory.

What are the primary cash-flow advantages of the MOOWR scheme under Section 65?

Under the MOOWR scheme, all customs duties (Basic Customs Duty and IGST) on imported capital goods and raw materials are completely deferred at the time of import. If the finished goods manufactured in the bonded warehouse are exported, the deferred duties are 100% exempted. If the finished goods are sold into the domestic Indian market (DTA), customs duty is paid only on the imported raw materials actually utilized, while capital goods enjoy indefinite duty deferment with zero interest until de-bonding.

What is the CAROTAR 2020 requirement for claiming Free Trade Agreement (FTA) duty benefits?

Under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020), an importer claiming preferential customs duty under an FTA cannot merely rely on a Certificate of Origin. The importer must possess detailed information demonstrating regional value content, origin-conferring processes, and production steps undertaken in the exporting country, and produce them upon customs requisition under Section 28DA.

When is an import transaction referred to the Special Valuation Branch (SVB)?

Under Circular No. 5/2016-Customs, import transactions are referred to the Special Valuation Branch (SVB) when goods are imported from a related party (as defined under Rule 2(2) of Customs Valuation Rules, 2007) and there is prima facie indication that the relationship may have influenced the invoice price, or where payment of royalty, license fees, or other conditional post-import additions are involved.

What is the consequence of failing to validate an Importer-Exporter Code (IEC) annually?

Under the Foreign Trade Policy, every IEC holder is statutorily mandated to verify and update their IEC details electronically on the DGFT portal between April and June of every financial year. Failure to do so leads to automatic system de-activation of the IEC, preventing the business from clearing import or export consignments through customs or transmitting shipping bills on ICEGATE.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

In strict conformity with ICAI Council Guidelines No. 1-CA(7)/06/2004, professional engagements for Customs Duty, Foreign Trade Policy & SEZ Advisory are accepted following formal conflict verification and statutory documentation. Contact our registered practice offices for procedural guidance.

Contact Practice Office +91 99140-14949