What is BCD in Indian customs?

BCD stands for Basic Customs Duty — the primary ad valorem duty levied on imported goods under the Customs Tariff Act 1975. It is calculated as a percentage of the CIF (Cost, Insurance, Freight) value of the goods. BCD rates range from 0% to 150% depending on the product and applicable notifications.

What is a Bill of Entry in India?

A Bill of Entry (BoE) is the legal customs document filed at ICEGATE by a licensed customs broker on behalf of the importer. It declares the nature, quantity, value, and HS code of imported goods. Customs duty is assessed and paid on the basis of the BoE.

What is MOOWR in Indian customs?

MOOWR stands for Manufacture and Other Operations in Warehouse Regulations. It allows importers to defer customs duty on raw materials and components imported for use in manufacturing, as long as the goods remain in a bonded warehouse. Duty is only paid on finished goods that enter the domestic market.

What is the difference between demurrage and detention?

Demurrage is a charge levied by the shipping line when a container is not returned to the port terminal within the free-time window. Detention is charged when the importer holds a container outside the port or ICD beyond the allowed free period. Both accrue daily and can become significant if customs clearance is delayed.

Customs & Import Glossary | 60+ Terms Explained

A

AEO — Authorised Economic Operator: Status granted by CBIC to trusted importers and exporters, offering faster clearance, fewer physical examinations, and priority treatment at ports and ICDs. Three tiers: T1 (basic), T2 (advanced), T3 (full). AEO holders benefit from 24/7 clearance and deferred duty payment facilities.
Advance Authorization: A duty-free import scheme for inputs used in export production. The importer undertakes to export finished goods within a specified period. Inputs are imported without BCD and IGST subject to export obligation. Managed by DGFT.
Assessment: The process by which an ICEGATE system or assessing officer determines the customs duty payable on a Bill of Entry. May be self-assessed (RMS Green channel), assessed without examination (Yellow channel), or assessed after physical examination (Red channel).

B

BCD — Basic Customs Duty: The primary ad valorem duty levied on imported goods under the Customs Tariff Act 1975. Calculated on CIF value. Rates range from 0% (certain raw materials and capital goods under schemes) to 150% (luxury goods and certain protected categories). BCD is the starting point for all duty calculations.
Bill of Entry (BoE): The legal document filed at ICEGATE by a customs broker on behalf of the importer, declaring the nature, quantity, HS code, value, and origin of imported goods. Customs duty is assessed and collected on the basis of the BoE. Must be filed before goods can be physically released from the port or ICD.
BIS — Bureau of Indian Standards: Regulatory body under the Ministry of Consumer Affairs that enforces quality and safety standards for specified goods via Quality Control Orders (QCOs). Products under QCOs — including electronics, steel, cement, toys, and household appliances — need BIS CRS registration or ISI mark before customs clearance. New QCOs are issued regularly.
BEE — Bureau of Energy Efficiency: Ministry of Power body that mandates energy efficiency star labels on covered appliances. Imports of ACs, refrigerators, washing machines, LED lamps, and other notified products require valid BEE Star Rating certification. Products without valid BEE labels cannot be imported or sold in India.

C

CAROTAR 2020: Customs (Administration of Rules of Origin under Trade Agreements) Rules 2020. Requires importers claiming preferential (FTA) duty rates to maintain proof-of-origin documentation and submit it on request. Customs may reject FTA claims if supporting documents do not meet CAROTAR standards. Critical for ASEAN, Japan, UAE, and South Korea FTA imports.
CFS — Container Freight Station: An off-dock facility near a port or ICD where LCL (Less than Container Load) cargo is consolidated before export or de-stuffed after import. Goods may be stored in a CFS while awaiting customs clearance. Demurrage does not accrue at a CFS, but CFS handling charges apply.
CIF — Cost, Insurance, Freight: An Incoterms 2020 term where the seller pays for freight and marine insurance to the named destination port. In India, customs duty is assessed on the CIF value — the combined cost of the goods, freight to Indian port, and insurance. This is the base for BCD, SWS, and IGST calculations.
CBLR — Customs Broker Licensing Regulations 2018: The CBIC regulation governing who may act as a customs broker in India and what obligations they hold. Only CBLR-licensed brokers may file Bills of Entry on behalf of importers. The licence requires a written examination, financial security, and adherence to a code of conduct. Aurum Global holds a valid CBLR licence.
CBIC — Central Board of Indirect Taxes and Customs: The apex ministry-level body under the Ministry of Finance governing customs, GST, and central excise in India. CBIC issues tariff notifications, customs circulars, and public notices. All customs policy in India flows from CBIC.
CSI — Container Scanning Inspection: Physical examination of a sealed container using an X-ray scanner without opening the container. Assigned by the RMS system. Less disruptive than a full examination but adds time to the clearance process.

D

DBK — Duty Drawback: Refund of customs duties paid on imported inputs that are used in the manufacture of exported goods. Two variants: All Industry Rate (AIR) drawback, which is a fixed percentage of FOB export value, and Brand Rate, which is a specific refund calculated on actual duty paid. Claimed via ICEGATE after export.
DPD — Direct Port Delivery: A fast-track scheme at JNPT (Nhava Sheva) and select other ports allowing pre-arrival ICEGATE clearance so that a container moves directly from the vessel to the importer's factory without entering a CFS or terminal yard. Eliminates CFS handling charges and significantly reduces dwell time.
Demurrage: A charge levied by the shipping line when a container is not returned to the port terminal within the free-time window (typically 3–7 days). Demurrage accrues daily and can become significant if customs clearance is delayed. Unlike detention, demurrage relates to the container's time inside the terminal.
Detention: A charge levied when the importer holds a shipping line's container outside the port or ICD beyond the allowed free period. Distinct from demurrage (which accrues inside the terminal). Both charges accrue independently once free time expires.

E

e-Sanchit: CBIC's online document management platform for uploading supporting documents required for Bill of Entry filing — including invoices, packing lists, BL/AWB, BIS certificates, FSSAI NOCs, and WPC approvals. Documents uploaded to e-Sanchit are referenced by their IRN in the BoE, eliminating physical document submission at customs.
EPCG — Export Promotion Capital Goods: A DGFT scheme allowing import of capital goods at 0% BCD subject to a future export obligation (typically 6x the duty saved, to be fulfilled within 6 years). Ideal for manufacturers importing machinery. EPCG authorisations require careful monitoring of export obligation fulfillment.
EPR — Extended Producer Responsibility: A CPCB-administered regulation requiring importers of electronics (E-waste rules), batteries (Battery Waste Management Rules), and plastic packaging (Plastic Waste Management Rules) to register on the EPR portal and fulfil annual collection and recycling targets. Non-compliance attracts environmental compensation charges.

F

FSSAI — Food Safety & Standards Authority of India: The apex food regulator under the Ministry of Health. All food and food-related imports require FSSAI import clearance (NOC) from a designated FSSAI officer at the port of entry. Labelling requirements — FSSAI logo, net weight in metric units, importer's FSSAI licence number — must be present on secondary packaging.
FTA — Free Trade Agreement: A bilateral or multilateral agreement providing preferential (lower) duty rates on goods meeting the Rules of Origin. India's active FTAs include ASEAN-India FTA, India-Japan CEPA, India-South Korea CEPA, India-UAE CEPA (effective 2022), and India-Australia ECTA. Claiming FTA rates requires a valid Certificate of Origin and CAROTAR compliance.

G

GST — Goods and Services Tax: India's unified indirect tax. At import, GST is levied as IGST (Integrated GST) on the combined value of CIF + BCD + SWS. GST-registered importers can claim IGST paid at customs as Input Tax Credit (ITC), making the effective cost of import lower for businesses in the GST chain.

H

HS Code — Harmonized System Code: The 8-digit ITC-HS code that determines duty rates, PGA requirements, export/import policy conditions, and statistical tracking for every product entering or leaving India. The first 6 digits follow the WCO's international Harmonized System; digits 7–8 are India-specific extensions. Classification disputes are the most common cause of customs litigation.
High Seas Sale: A sale of goods while in transit on the high seas, before the vessel reaches Indian territorial waters. The final buyer (not the original importer) pays customs duty. High seas sale requires a High Seas Sale Agreement and specific documentation at customs. Commonly used to transfer title before import without paying duty twice.

I

ICD — Inland Container Depot: A dry port facility linked to a seaport by rail or road, offering full customs clearance, container storage, and CFS functions away from the seaport. Delhi NCR's major ICDs: ICD Tughlakabad (TKD), ICD Faridabad, and ICD Dadri (PNCT). Importers in the hinterland can clear goods at their nearest ICD rather than travelling to JNPT or Mundra.
ICEGATE — Indian Customs EDI Gateway: The national electronic platform for customs clearance in India. All Bills of Entry, Shipping Bills, duty payments, document uploads (e-Sanchit), and out-of-charge orders flow through ICEGATE. System availability directly affects clearance timelines.
IEC — Importer Exporter Code: A 10-digit alphanumeric code issued by DGFT (Directorate General of Foreign Trade) — mandatory for all entities importing or exporting from India. Without a valid IEC, no customs broker can file a Bill of Entry. IEC is linked to the entity's PAN.
IGST — Integrated GST: The GST component levied on imports in addition to BCD and SWS. Calculated on CIF + BCD + SWS. Standard rate is 18% for most goods; reduced rates of 12%, 5%, and 0% apply to specific HSN codes. GST-registered importers can set off IGST paid as Input Tax Credit against their output GST liability.
ITC-HS — Indian Trade Clarification, Harmonized System: India's 8-digit tariff code system extending the WCO's 6-digit HS codes with 2 India-specific digits. Also called the Schedule 1 (import) tariff. All duty rates, policy conditions, and PGA requirements are mapped to ITC-HS codes. The correct 8-digit code is the foundation of every customs transaction.

J

JNPT — Jawaharlal Nehru Port Trust: India's largest container port, located at Nhava Sheva near Mumbai. Also called Nhava Sheva. Handles approximately 50% of India's containerised cargo. The DPD (Direct Port Delivery) scheme was pioneered at JNPT. Gateway port for most Delhi NCR importers bringing cargo via sea from any direction.

L

LCL — Less than Container Load: A shipment that does not fill a full 20-foot or 40-foot container. LCL cargo from multiple shippers is consolidated by a freight forwarder at origin and de-stuffed at destination. LCL attracts higher per-CBM freight rates and longer transit times due to consolidation and de-consolidation processes.
LOA — Letter of Authority: A formal document authorising a customs broker (or a specific F-card holder) to act on behalf of an importer for customs clearance. Required under CBLR 2018. The LOA must be executed before the customs broker files any document on the importer's behalf.

M

MOOWR — Manufacture and Other Operations in Warehouse Regulations: A CBIC scheme allowing duty-deferral on imported inputs and capital goods for manufacturers operating in a bonded warehouse (private bonded warehouse). Customs duty is only payable when finished goods exit the warehouse for the domestic market. Goods cleared for export attract no duty at all. Particularly valuable for electronics and auto manufacturers.
Mundra Port: An Adani-operated port in Gujarat, now India's largest port by container volume. Offers faster transit times from China compared to JNPT for some routes. Gateway port for cargo destined for Rajasthan, Gujarat, and parts of Madhya Pradesh. Delhi NCR importers sometimes route via Mundra for faster vessel connections.

O

Out-of-Charge: The final customs order releasing goods from port or ICD control after assessment, duty payment, and any required examination or PGA clearance is complete. The Out-of-Charge order is the green light for goods to physically exit the CFS or terminal. Obtaining it promptly is the customs broker's primary job.

P

PGA — Promoting Government Agency: Any government ministry or department that must approve an import before customs releases the goods. Common PGAs: BIS (quality standards), FSSAI (food), WPC (wireless equipment), CDSCO (drugs/medical devices/cosmetics), BEE (energy efficiency), EPR (waste compliance). Missing one PGA approval is sufficient to delay an entire consignment indefinitely.
PO — Purchase Order: The commercial document from the Indian importer to the overseas supplier detailing the goods, quantity, price, and delivery terms. Required as a supporting document for Bill of Entry filing. Customs may use the PO to verify invoice value, especially in related-party transactions under SVB scrutiny.
PSI — Pre-Shipment Inspection: An inspection by a designated agency in the country of origin, conducted before goods are loaded on the vessel. Some Indian government contracts and certain product categories require PSI certificates. PSI reports may be used to support customs valuation.

Q

QCO — Quality Control Order: An order issued by DPIIT or a line ministry under the BIS Act requiring that imported (and domestically produced) goods comply with specified BIS standards. Products under QCOs cannot be imported without a valid BIS CRS registration. The number of QCOs has expanded significantly since 2020, covering hundreds of product categories.

R

RoDTEP — Remission of Duties and Taxes on Exported Products: A WTO-compliant export incentive scheme reimbursing embedded taxes and duties on exported goods that are not refunded through GST drawback. Rates are product-specific (mapped to HS code) and issued as transferable duty credit scrips usable for customs duty payment. Replaced MEIS in January 2021.
RMS — Risk Management System: ICEGATE's automated risk-scoring system that assigns every incoming Bill of Entry to a clearance channel: Green (self-assessment, no examination), Yellow (document verification only), or Red (physical examination of cargo). RMS scoring is opaque but influenced by importer AEO status, commodity risk, country of origin, and historical compliance.
ROW — Rest of World: The general MFN (Most Favoured Nation) duty rate category applicable to countries that do not have a Free Trade Agreement with India. Most imports from countries without FTA are assessed at ROW rates under the standard Customs Tariff.

S

SVB — Special Valuation Branch: A CBIC branch that scrutinises customs valuation in transactions between related parties — such as a subsidiary importing from its parent company, or a sole agent importing from its principal. SVB investigations can result in provisional assessment and imposition of loading on declared value. Early disclosure of related-party relationships is critical.
SWS — Social Welfare Surcharge: A 10% surcharge on BCD levied in addition to BCD to fund government social welfare schemes. SWS is applied to the BCD amount (not the CIF value). It forms part of the base on which IGST is calculated. SWS is not creditable as Input Tax Credit for GST purposes.
Shipping Bill: The primary customs document for exports — the export equivalent of a Bill of Entry. Filed at ICEGATE by the customs broker before cargo is loaded. The Shipping Bill number is the reference document for all export incentive claims including RoDTEP, drawback, and EPCG fulfillment.

T

TKD — ICD Tughlakabad: India's largest and busiest inland container depot, located in south Delhi. Handles approximately 30% of Delhi NCR's container import and export traffic. Rail-linked to JNPT and Mundra. Aurum Global operates at TKD and maintains relationships with the CFS operators, customs officers, and rail service providers at this ICD.

W

WPC — Wireless Planning and Coordination Wing: The Ministry of Communications body that grants type-approval for wireless and radio equipment imports. Mandatory for Wi-Fi routers, Bluetooth devices, walkie-talkies, radio frequency equipment, and any product containing a wireless transmitter. Type approval requires testing at a WPC-accredited lab and typically takes 6–12 weeks.

Z

Zero-Duty: Certain goods attract 0% BCD — including some capital goods under project import rules, specific raw materials for export-linked manufacturing, and goods covered under EPCG or Advance Authorization schemes. FTA imports may also attract 0% preferential duty if Rules of Origin conditions are met. Always verify with your customs broker as conditions and notification numbers vary.

Customs jargon, decoded.

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