South Korea is one of India's largest trade partners for electronics, semiconductors, and automotive components. The India-Korea CEPA reduces Basic Customs Duty on 85% of tariff lines, making Korean imports significantly cheaper than MFN-rated alternatives. Sea Air Cargo Systems handles CEPA-claimed imports from Busan and Incheon to Bengaluru via JNPT and ICD Whitefield — with full customs clearance support.
The India-Korea CEPA (Comprehensive Economic Partnership Agreement) has been in force since 2010 and offers preferential duty rates on approximately 85% of tariff lines for South Korean goods by 2026. Electronics, auto parts, steel, and industrial machinery imported from Korea attract 0–7.5% BCD under CEPA versus 7.5–20% under MFN rates. A valid Korea-India CEPA Certificate of Origin is required at customs to claim these concessions. Sea Air Cargo Systems verifies CEPA eligibility, files the Bill of Entry with the correct preferential rate, and clears cargo at ICD Whitefield or BLR airport.
The India-Korea CEPA delivers measurable cost savings on high-volume import categories. By 2026, roughly 85% of Indian tariff lines carry preferential rates for Korean-origin goods — many at 0% BCD. To claim the concession, importers must present a Korea-India CEPA Certificate of Origin issued by the Korea Chamber of Commerce and Industry (KCCI) or another authorised body. Without this form, goods are assessed at full MFN rates.
The biggest beneficiaries are industries importing auto parts, steel products, industrial machinery, and petrochemicals. A single FCL of Korean auto components worth USD 80,000 can save ₹400,000–₹800,000 in BCD alone under CEPA versus standard MFN rates — before accounting for SWS and IGST differences. For manufacturers in Bengaluru's Electronic City and Peenya, these savings compound across repeated procurement cycles.
| Product Category | HS Chapter | MFN BCD | CEPA BCD | Duty Saving |
|---|---|---|---|---|
| Auto parts (OEM components) | 87 | 10–15% | 0–7.5% | 7.5–15% |
| Steel flat products | 72 | 7.5–15% | 0–5% | 7.5–10% |
| Industrial machinery | 84 | 7.5% | 0% | 7.5% |
| Petrochemicals | 27/29 | 5–10% | 0% | 5–10% |
| EV battery cells | 8507 | 7.5% | 0% | 7.5% |
| Semiconductor components | 8541/8542 | 0% | 0% | 0% (already ITA-1) |
Electronics components such as semiconductors and displays already enjoy 0% BCD under ITA-1 (Information Technology Agreement), so CEPA does not add further savings there. However, CEPA confirms the preferential status and simplifies origin verification for Korean suppliers. For a detailed breakdown of battery import classifications, see our battery import duty guide.
South Korea's primary export gateway is Busan (Pusan), the country's largest container port. Busan handles the majority of Korean containerised exports to India, with feeder services transhipping through Singapore, Port Klang, or Colombo before reaching JNPT or Chennai. For air cargo, Incheon International Airport (ICN) is the main hub — Korean Air Cargo and Asiana Airlines Cargo operate regular freighter services to India with connections via Delhi or Singapore to Bengaluru.
| Origin | Mode | Route | Transit Days | Cost Range |
|---|---|---|---|---|
| Busan | Sea FCL | Busan → Singapore → JNPT → ICD Whitefield | 26–35 days | USD 700–1,300 (20ft) |
| Busan | Sea LCL | Busan → Singapore → JNPT CFS → Bengaluru | 28–38 days | ₹1,800–₹3,200/CBM |
| Incheon (ICN) | Air freight | ICN → Delhi/Singapore → BLR | 5–8 days | ₹300–₹550/kg |
| Gwangyang | Sea FCL | Gwangyang → Colombo → Chennai → Bengaluru road | 24–32 days | USD 750–1,350 (20ft) |
Sea freight FCL from Busan is typically 20–25 days ocean time to JNPT, plus 3–5 days CONCOR rail to ICD Whitefield and 3–5 days customs clearance — totalling 26–35 days door-to-door. For time-sensitive electronics and semiconductor shipments, air freight from Incheon to BLR is the standard choice, with transit times of 5–8 days including customs clearance at Bengaluru. If you are shipping full containers regularly, see our FCL shipping from Korea page for volume pricing.
South Korea dominates global supply chains for OLED and LCD display panels, EV battery cells, and semiconductor memory. Indian manufacturers assembling TVs, smartphones, appliances, and electric vehicles increasingly source these critical components directly from Korean suppliers. Samsung Display and LG Display supply OLED and LCD panels to Indian OEMs for local assembly. LG Energy Solution and SK On export lithium-ion battery cells to Indian EV manufacturers under long-term supply agreements.
SK Hynix and Samsung Semiconductor supply memory chips (DRAM, NAND flash) and other semiconductor components that feed India's growing electronics assembly sector. These components attract 0% BCD under ITA-1, making them cost-competitive regardless of origin — but Korean suppliers offer tighter quality control, faster lead times, and established logistics channels to India compared to alternative sources.
Yes. Lithium-ion battery cells and packs for automotive use (IS 16046) require BIS CRS certification before import and sale in India. Korean manufacturers such as LG Energy Solution and SK On typically hold valid BIS registrations for their India-export product lines. Importers should verify the BIS registration number on the Certificate of Conformity before placing orders. For more details on electronics compliance in Bengaluru, see our electronics imports to Electronic City guide.
To claim CEPA preferential duty rates, importers must submit a valid Korea-India CEPA Certificate of Origin at the time of customs clearance. This certificate is issued by the Korea Chamber of Commerce and Industry (KCCI), Korea Trade-Investment Promotion Agency (KOTRA), or another authorised certifying body in South Korea. The form must specify the HS code, product description, quantity, invoice value, and a declaration that the goods meet the CEPA rules of origin.
The rules of origin under India-Korea CEPA generally require a minimum of 35% Korean domestic value content, or a change in tariff heading (CTH) at the 4-digit HS level for manufactured goods. Simply transhipping Chinese goods through Korea does not qualify — the goods must undergo substantial transformation in Korea. Importers should request a copy of the CEPA Certificate of Origin from their Korean supplier before the vessel departs Busan, as retroactive issuance is difficult and can delay clearance.
Your CHA files the Bill of Entry under the CEPA preferential tariff, attaches the Certificate of Origin, and ensures the ICEGATE system captures the concessional rate. If the CoO is missing or invalid at the time of filing, customs will assess duty at MFN rates — which can increase landed cost by 7.5–15% on high-duty categories. To compare CEPA savings against other sourcing options, use our calculate Korean import landed cost tool or read our compare Germany imports guide.
Yes. The India-Korea CEPA (Comprehensive Economic Partnership Agreement) has been in force since 2010. It provides preferential duty rates on eligible Korean goods — by 2026, approximately 85% of tariff lines receive CEPA benefit. A Korea-India CEPA Certificate of Origin is required to claim concessions.
Busan to JNPT via transhipment (Singapore/Port Klang): 20–25 days ocean + 3–5 days rail to ICD Whitefield + 3–5 days clearance = 26–35 days total. Air freight from Incheon (ICN) to BLR: 5–8 days door-to-door.
Auto parts (BCD 10–15% → CEPA 0–7.5%), steel products (BCD 7.5–15% → CEPA 0–5%), industrial machinery (BCD 7.5% → CEPA 0%), petrochemicals (BCD 5–10% → CEPA 0%). Electronics components are already low under ITA-1, so CEPA savings are modest there.
Yes. Samsung and LG are major Korean exporters and their components (displays, batteries, modules) qualify for CEPA duty concessions. Importers need the CEPA Certificate of Origin. Many Indian consumer electronics and appliance manufacturers source Korean displays and batteries through this channel.
CBIC has levied anti-dumping duty on some Korean products including certain steel flat products and chemical products. Verify current DGTR notifications for your specific product before ordering. Most general electronics and auto parts from Korea are not subject to ADD.
The India-Korea CEPA schedule is available on the DGFT website. Search your HS code in the CEPA preferential tariff annexure to find the applicable concession rate. Your CHA verifies this and presents the CEPA CoO at customs.
Speak with our CHA team about CEPA claims, freight booking, and customs clearance for your next Korean shipment.