Indirect Tax Laws and Practice · Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017

Procedure for Availing Concessional Rate of Duty on Imports

Updated 11 October 2026 · Fact-checked

Under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, an importer who wants an end-use exemption must register with the jurisdictional officer, intimate the details of imports, declare the claim at the time of import, and meet the notification's conditions. Solve questions by checking each step in order.

Understand Procedure for Availing Concessional Rate of Duty

Some exemption notifications cut the customs duty on goods only if they are used for a stated purpose, for example in making a specific product. This is called an end-use condition. The government wants to be sure the goods are really used that way. The Concessional Duty Rules, 2017 set the procedure for this.

The rules work on trust backed by paperwork. The importer first registers with the customs officer who has jurisdiction over the factory or the place of use. Before importing, the importer intimates what will be imported and how it will be used. At the time of import, the importer declares in the bill of entry that the concessional rate is claimed under the notification.

After clearance, the importer must use the goods for the stated purpose and keep records. The Rules also require periodic certificates and returns showing that the goods were used as declared. Those parts are covered in the related topic on records and compliance.

The central idea for the exam: the notification decides who gets the benefit and on what conditions, and the Rules decide how you claim and prove it. If you miss a procedural step, the department can deny the concession and recover the duty with interest. Check the exact timelines, forms and wording in your ICMAI study material and the current text of the Rules, because this page does not reproduce them.

This is a different matter from refund of duty under the Customs Act. For example, Section 26A allows refund of import duty on defective goods only if specific conditions are met, and does not apply where an offence appears to have been committed. Do not mix the two routes.

Key rules to remember

Sequence of the procedure: Registration → Intimation → Declaration at import → Use as per notification → Records and certificates; Remember it as five stages. Questions usually test one missed stage.
Core condition: Concessional rate allowed only if the notification's conditions are met AND the procedure under the 2017 Rules is followed; Both must be satisfied. Meeting only the notification condition is not enough.
Consequence of failure: Breach of condition or procedure → concession lost → duty recoverable with interest; Details are in the topic on non-compliance, duty recovery and interest.
Section 26A refund (contrast): Refund of duty on defective imports: application within six months from the relevant date; action (export, abandonment or destruction) within thirty days of the order under section 47, extendable by up to three months for sufficient cause; Section 26A does not apply to goods regarding which an offence appears to have been committed. It is not a concessional-rate procedure.

How to solve Procedure for Availing Concessional Rate of Duty questions

Use the same method for any scenario question on claiming a concessional rate of duty.

1Identify the exemption notification and confirm that it carries an end-use or similar condition.
2Check whether the importer is registered with the jurisdictional officer before importing.
3Check whether the importer gave the required intimation about the goods and their intended use.
4Check the bill of entry: has the importer declared the claim of concessional rate under the notification?
5Check the notification's own conditions: type of goods, purpose, user and any time limit given in it.
6Check post-import compliance: actual use as declared, records kept, certificates or returns furnished.
7If any step fails, state the consequence: loss of concession and recovery of duty with interest.
8Close with a clear conclusion on whether the benefit is available.

Quickest way: Five-stage checklist

When to use it: Use it for MCQs and short case scenarios where you must decide whether the importer gets the concession.

Write R-I-D-U-R: Registration, Intimation, Declaration, Use, Records.
Tick each stage from the facts given in the question.
The first stage that is missing or wrong is the answer's reason.
Pick the option that states loss of concession for that failure, unless the facts show all stages complied with.

Common mistakes in Procedure for Availing Concessional Rate of Duty

Assuming the notification alone gives the benefit.
Students focus on the exemption rate and ignore the procedural Rules.
Fix: Always state both: notification conditions and compliance with the 2017 Rules.
Skipping registration because the goods are of a notified type.
Registration looks like a formality.
Fix: Treat registration with the jurisdictional officer as the first mandatory step.
Forgetting the declaration in the bill of entry.
Students think intimation earlier is enough.
Fix: Intimation and declaration at import are separate steps. Both are needed.
Confusing concessional duty with refund under section 26A.
Both deal with relief on import duty.
Fix: Concessional rate means a lower rate at import on an end-use condition. Section 26A is a refund for defective or non-conforming goods.
Ignoring use of goods after clearance.
The answer ends at customs clearance.
Fix: Add post-import use, records and certificates, and the consequence of diversion.

Worked examples

Example 1

Bharat Polymers Ltd, Vadodara, imports a raw material under a notification that gives a lower duty rate if the material is used in manufacturing a specified product. It imports the goods and claims the lower rate in the bill of entry, but it never registered with the jurisdictional customs officer or intimated its intended use. Can it retain the concession?

Show the solution

The notification has an end-use condition, so the 2017 Rules apply.
The procedure requires registration with the jurisdictional officer before import.
It also requires intimation of the goods and their intended use.
Bharat Polymers did the declaration at import but skipped the first two stages.
A claim without the prescribed procedure is not valid, even if the goods are later used for the stated purpose.

Answer: The concession is not safely available. The importer failed registration and intimation, so the department can deny the lower rate and demand the differential duty with interest.

Example 2

Kaveri Auto Components Pvt Ltd registered with the jurisdictional officer, intimated its import plan, and declared the notification benefit in the bill of entry. Later it sold part of the imported goods to a trader instead of using them in manufacture. State the position.

Show the solution

Registration, intimation and declaration were completed, so the claim was procedurally valid at import.
The notification's end-use condition applies after clearance as well.
The portion sold to a trader was not used for the stated purpose.
For that portion the condition is breached, and the concession does not hold.
Records and certificates would also fail to show the required use for that portion.

Answer: The benefit remains for the goods actually used as required. For the goods sold to the trader, the condition is breached, so the duty concession is lost and the duty is recoverable with interest.

Exam tips

In case scenarios, scan the facts for the missing stage: registration, intimation, declaration, use or records.
Quote the notification condition and the procedural rule separately. Examiners reward both.
Do not cite a section number for the 2017 Rules unless you are sure. Name the Rules instead.
If an option mentions refund under section 26A, check whether the question is really about a concessional rate at import.
End each answer with a clear conclusion on whether the concession stands.

Practice questions from Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017

Procedure for Availing Concessional Rate of Duty: frequently asked questions

What is the concessional rate of duty under the 2017 Rules?

It is a lower customs duty rate given by an exemption notification on goods that are used for a specified purpose. The Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 lay down how the importer claims and proves it.

What steps must an importer follow to claim the concession?

The importer registers with the jurisdictional officer, intimates the goods and their intended use, and declares the claim at the time of import. After clearance, the importer uses the goods as required and keeps records and certificates.

What happens if the importer does not use the goods for the stated purpose?

The conditions of the notification are breached and the concession is lost. The duty foregone becomes recoverable, with interest.

Is a refund under section 26A the same as a concessional rate?

No. Section 26A allows refund of duty already paid on identifiable imported goods that are defective or not as per agreed specifications, subject to conditions. A concessional rate is a lower rate applied at import under an end-use notification.