Industrial equipment imports to India fall under Harmonized System (HS) Chapters 84 and 85, attracting Basic Customs Duty (BCD) of 7.5-10% plus Integrated Goods and Services Tax (IGST) of 18%. Manufacturers can reduce duty to zero under the Export Promotion Capital Goods (EPCG) scheme. This guide covers HS classification, duty calculation, EPCG eligibility, and the step-by-step import process.
To import industrial equipment into India in 2026, goods must undergo formal HSN classification under Chapter 84 or 85. Importers must yield an active Import Export Code (IEC) and fulfill compliance clearances based on Central Board of Indirect Taxes and Customs (CBIC) and DGFT. Most mechanical and capital hardware carries a 7.5% Basic Customs Duty (BCD), 10% Social Welfare Surcharge (SWS), and 18% Integrated Goods and Services Tax (IGST), resulting in a standard total effective duty of 27.735% (CBIC Tariff Rules 2026).
Industrial equipment imports to India fall under HS Chapters 84 (machinery, boilers) and 85 (electrical equipment), attracting standard duty of 27.735% — comprising 7.5% BCD, 10% SWS on BCD, and 18% IGST on the cumulative value. Accurate HSN classification is critical because customs officers examine descriptions, specifications, and use cases to cross-verify the specific duty rates and allied chemical or ecological restrictions.
Every commercial importer must register with the **DGFT (Directorate General of Foreign Trade)** – the government agency responsible for issuing the mandatory 10-digit **IEC (Import Export Code)** – prior to loading cargo at the port of origin. Key machinery categories routinely cleared through Indian customs operations include:
Industrial equipment attracts BCD of 7.5–10% on the CIF-based Assessable Value (AV), plus 10% SWS on the BCD and 18% IGST on the total cumulative value, yielding an effective duty rate of 27.735% for most machinery under Section 14 of the Customs Act, 1962. BCD is calculated over the CIF (Cost, Insurance, and Freight) value, which constitutes the AV under Indian Customs Valuation Rules. In addition, CBIC processes levy the SWS at 10% on the computed BCD, followed by statutory IGST of 18% on the total cumulative value (AV + BCD + SWS).
Importers should apply the precise mathematical formula to prevent surprise tax valuations. The standard computation is as follows:
Assessable Value (AV) = Cost of Goods + Ocean/Air Freight + Marine Insurance Premium (Section 14 of Customs Act, 1962).
Let us calculate the total payable customs duties on a CNC Machining Center with an Assessable Value of ₹10,000,000 (INR 1 Crore):
| Equipment Category | HSN Code Range | Basic Customs Duty (BCD) | Social Surcharge (SWS) | IGST % | Cumulative Effective Duty | EPCG Eligibility |
|---|---|---|---|---|---|---|
| CNC Machine Centers | 8457.10.00 | 7.5% | 10% on BCD | 18% | 27.735% | Yes (0% BCD) |
| Injection Moulding Machines | 8477.10.00 | 7.5% | 10% on BCD | 18% | 27.735% | Yes (0% BCD) |
| Industrial Air Compressors | 8414.80.11 | 7.5% | 10% on BCD | 18% | 27.735% | Yes (0% BCD) |
| Industrial Robots | 8479.50.00 | 7.5% | 10% on BCD | 18% | 27.735% | Yes (0% BCD) |
| Gas/Diesel Generators | 8502.11.00 | 10.0% | 10% on BCD | 18% | 30.98% | Yes (0% BCD) |
| Laser Cutting Machinery | 8456.11.00 | 7.5% | 10% on BCD | 18% | 27.735% | Yes (0% BCD) |
The EPCG (Export Promotion Capital Goods) scheme reduces BCD on industrial machinery imports to 0%, requiring the importer to meet an export obligation of 6 times the duty saved within 6 years. Managed by the DGFT under Foreign Trade Policy 2023, this conditional exemption supports domestic manufacturing capabilities by granting duty-free imports on capital assemblies, provided the importing business satisfies physical export commitments.
The EPCG framework functions as a conditional exemption program targetted at direct manufacturers, manufacturer-exporters, or service exporters. The essential structure of this central facilitation scheme details:
Failure to fulfill the export target within six years requires the importer to pay the full saved customs duty back to the DGFT plus interest, verified by statutory audits. For complete application steps and details, refer to our detailed EPCG Scheme Guide India.
Indian customs requires four primary safety certificates for industrial equipment: CE/UL markings for high-voltage equipment, BIS registration for electronics, EPR certificates for e-waste compliance, and a Chartered Engineer Certificate (CEC) for all pre-owned machinery. It is critical to prepare and check technical documentation before the vessel unloads to avoid customs delays.
Indian customs accepts certifications issued by recognized international accreditation bodies, provided they correspond to domestic safety protocols. The primary certifications examined during assessment include:
Heavy industrial equipment over 500 kg should move by sea freight (FCL, Open Top, or Flat Rack) costing 60–80% less than air freight, while precision instruments under 100 kg should use air cargo to reduce moisture and vibration damage. The table below compares the two modes across cost, transit time, and handling requirements:
| Parameter | Sea Freight | Air Freight |
|---|---|---|
| Best For | Heavy machinery > 500 kg, CNC beds, injection molding plants | Control panels, precision tools, calibration instruments < 100 kg |
| Container / Load Type | FCL (Full Container Load), Open Top (OT), Flat Rack (FR) | Air cargo pallets, ULD containers |
| Cost vs. Air | 60–80% lower per kg | Premium rate, INR 120–450 per kg |
| Transit Time (Origin to BLR) | 18–35 days + 24–36 hours inland | 2–5 days + 6–12 hours customs |
| Oversized / ODC Handling | Specialized stowage, heavy-lift cranes, multi-axle trailers | Limited; dimensional weight penalties apply |
| Risk Factors | Moisture, salt exposure, longer transit vibration | Lower damage risk, faster recovery |
Importing industrial equipment to India requires 6 sequential steps — HSN verification, IEC/AD Code registration, EPCG license procurement (if applicable), logistics booking, advance BoE filing 48 hours before arrival, and customs valuation with duty payment — taking 3 to 5 business days at major ports like JNPT or Chennai. Following a structured process helps ensure compliance with Indian customs regulations and administrative rules.
Determine the correct 8-digit HSN classification code under CBIC tariff tables. Verify if your equipment is restricted under the current Foreign Trade Policy, check for testing standards, and calculate the applicable 27.735% cumulative duty or other rate structure.
Verify that your 10-digit Import Export Code (IEC) is active on the DGFT registry. Complete the Authorized Dealer (AD) Code registration at the target port of entry (e.g., Chennai or JNPT) to enable customs payment transactions through your bank.
If you qualify, apply for and secure your EPCG Authorization License from the DGFT portal before shipping the machinery from the origin port. This license must be presented during the customs verification process in India to claim the 0% BCD exemption.
Partner with an experienced freight forwarder like Sea Air Cargo Systems to select suitable shipping containers (e.g., standard GP, Open Top, or Flat Rack) and arrange transport. Secure comprehensive marine transit insurance based on the machinery's CIF value.
File your Bill of Entry (BoE) through the ICEGATE portal at least 48 hours before the vessel arrives in India. Providing advance notice helps speed up the scheduling of physical examinations and customs assessments.
Submit your documentation (e.g., catalog, drawings, and invoice) for valuation review under Section 14 of the Customs Act. Pay the calculated duties or apply your active EPCG license. Once cleared, secure the Out-of-Charge (OOC) order and arrange heavy haulage transport to your factory floor.
JNPT, Chennai Port, Kattupalli Port, and Mundra Port are the four primary gateways for heavy machinery imports to India, offering deep-draft berths, heavy-lift cranes, and direct rail/road connections to manufacturing hubs. Using ports with specialized heavy-lift infrastructure helps prevent cargo damage and delays.
The key customs ports for clearance of industrial machinery in India include:
Industrial machinery imported to India generally carries a 7.5% Basic Customs Duty (BCD) under Chapters 84 and 85 of the tariff schedule, plus a 10% Social Welfare Surcharge (SWS) on the BCD and 18% Integrated Goods and Services Tax (IGST) on the cumulative value. This results in a standard effective duty rate of 27.735% of the machinery's Assessable Value (AV) determined under Section 14 of the Customs Act, 1962. For example, a CNC machine with an AV of ₹1 crore pays approximately ₹27.73 lakhs in total customs duties before clearance.
Yes. Eligible manufacturers and service exporters can import new industrial machinery at 0% Basic Customs Duty by utilizing the Export Promotion Capital Goods (EPCG) scheme managed by the DGFT under Foreign Trade Policy 2023. The importer must meet an export obligation of 6 times the total customs duty saved value within 6 years from the license issue date, while also maintaining their average historical export volumes over the preceding 3 fiscal years. Failure to meet the obligation requires repayment of saved duty plus interest.
To import and clear a CNC machine through Indian customs, you must provide: an active Import Export Code (IEC), AD Code registration, the commercial invoice, packing list, Bill of Lading (B/L) or Airway Bill (AWB), a technical specification sheet, and compliance certificates (such as CE or UL). For pre-owned or second-hand machinery, you must also provide a Chartered Engineer's Certificate (CEC) confirming its valuation and residual life.
Customs clearance of industrial machinery at JNPT typically takes 3 to 5 business days, provided the Bill of Entry is filed at least 48 hours before vessel arrival. The timeline depends on three factors: documentation accuracy (matching invoice, packing list, and IGM), prompt scheduling of physical customs inspections if flagged by RMS, and timely duty payment through the ICEGATE portal within the 24-hour challan window. Pre-booking a CFS examination slot and having a licensed CHA on-site can reduce this to 2–3 days.
Yes. Second-hand industrial machinery can be imported if it is under 10 years old and accompanied by a Chartered Engineer Certificate (CEC) certifying a minimum residual life of 5 years, country of origin, and current market value. Machinery older than 10 years or categorized as restricted (such as used electronics) requires a DGFT Restricted Import Licence. Duties are calculated on depreciated value under CBIC Circular No. 25/2015-Customs, not the original purchase price.
Project Cargo clearance is a customs procedures framework under Heading 9801 of the Customs Tariff Act, 1975. It is designed for importing complete industrial installations, manufacturing plants, or expansion projects. It allows all imported equipment, spare parts, and components for the project to be cleared under a single, unified HSN classification code with a uniform, concessional duty rate, rather than classifying and taxing each item individually.
Let Sea Air Cargo Systems handle your industrial machinery logistics and customs clearance in India. We assist with HSN classification, EPCG filing, port clearing, and heavy haulage delivery.