Customs guide

Seaports and airports with customs codes बंदरगाह और हवाई अड्डे

Every customs station in India has a six-character location code. It goes on your shipping bill (export) or bill of entry (import) and tells customs where the goods are cleared. The last digit shows the type: 1 for seaports, 4 for air cargo, 6 for inland container depots (ICDs).

Codes are listed for reference. Always confirm the code for your shipment on ICEGATE or with your customs broker before filing.

IEC: Importer-Exporter Code आयातक-निर्यातक कोड

The port code identifies the place. The IEC identifies you. It is a 10-digit code issued by the DGFT, and it is needed for almost every commercial import or export. Banks also ask for it before sending or receiving foreign payments for trade.

How to get it

1. Register on the DGFT portal with your PAN, and a mobile number and email you can verify.
2. Fill in the application with business details, address and bank account (a cancelled cheque or bank certificate).
3. Pay the ₹500 fee online. The IEC is usually issued online soon after.

How GST affects import and export व्यापार पर जीएसटी

On imports: IGST is charged at customs

Imported goods pay basic customs duty (BCD), a Social Welfare Surcharge of 10% of BCD, and IGST calculated on the value including those duties. Some goods also attract compensation cess. Here is an example for goods with 10% BCD and 18% IGST:

The good news: the IGST paid at customs is available as input tax credit. It appears in your GSTR-2B from the bill of entry, and you use it against GST on your domestic sales. BCD and the surcharge are a cost; IGST is not, if you claim it.

On exports: zero-rated

Exports are zero-rated under Section 16 of the IGST Act. Your buyer abroad pays no Indian GST, and you get back the GST you paid on inputs. There are two routes:

• Under LUT, without paying IGST. File a Letter of Undertaking (form RFD-11) on the GST portal once a year, export without charging IGST, and claim a refund of your accumulated input tax credit.
• With IGST paid. Charge and pay IGST on the export invoice. The shipping bill itself works as the refund claim, and the refund reaches your bank once your GSTR-1 and GSTR-3B match the shipping bill data.

Other rules that matter

• Merchant exporters: a manufacturer can supply goods to a merchant exporter at a concessional 0.1% GST, if the goods are exported within 90 days and the conditions of the notification are met.
• E-way bill: needed when goods move from your premises to the port or ICD.
• Payment must come in: for exports under LUT, if payment isn't received within the time allowed under FEMA, you may have to pay the IGST with interest.

How to receive export payments निर्यात भुगतान: एलसी और टीटी

How you get paid decides how much risk you carry. From safest to riskiest for the exporter:

TT: telegraphic transfer

A TT is a bank wire sent over SWIFT. It can be an advance before shipment, or payment after the buyer receives the goods.

• Give your buyer your exact account name, account number, your bank's SWIFT/BIC code and branch address. Some banks also give a correspondent bank for US dollar payments; include it if your bank asks.
• When the money arrives, the bank asks for the purpose of the remittance. For an advance against exports, the purpose code is generally P0103. Ask your bank for the right code for other cases.
• Link the payment to the shipping bill with your bank, so the export is closed in EDPMS, RBI's export tracking system. The e-BRC is then generated on the DGFT portal, and you'll need it for GST refunds and export incentives.

LC: letter of credit

Under an LC, the buyer's bank promises to pay you, as long as you present documents that match the LC terms exactly. The bank pays against papers, not goods. Most LCs follow the ICC's UCP 600 rules. The process runs in this order:

1. You and the buyer agree on the contract and that payment will be by LC.
2. The buyer asks their bank to open the LC in your favour.
3. Your bank in India receives and advises the LC to you. Check every term now, before you ship.
4. You ship the goods and prepare the documents the LC asks for: usually commercial invoice, packing list, bill of lading or airway bill, certificate of origin, and insurance.
5. You present the documents to your bank within the LC's deadline. If the LC doesn't state one, UCP 600 allows 21 days after shipment, and never later than the LC's expiry.
6. The banks check the documents (up to five banking days each). If they match, you get paid at sight or on the agreed usance date.

Time limit to bring the money in

Under FEMA, export proceeds must be realised and brought into India within a set period from the date of export, currently 15 months under the latest RBI rules. This limit has changed more than once since late 2025, so confirm the period that applies to your shipment date with your bank.

Incoterms 2020 इनकोटर्म्स

Incoterms are three-letter trade terms published by the International Chamber of Commerce. They decide where the seller's responsibility ends, who pays the main freight, and who buys insurance. Always write the term with a named place and the version, for example "FOB Mundra, Incoterms 2020".

Incoterms also affect customs value. Indian import duty is charged on CIF value, so for an FOB purchase the freight and insurance are added. The duty calculator does this for you.