Frequently Asked Questions

HS (Harmonised System) codes are 6-digit international product classification codes. In India, the ITC-HS code is 8 digits. In the EU, the CN (Combined Nomenclature) is 8 digits; TARIC is 10 digits. To find your HS code: (1) search the CBIC ICEGATE HS browser (icegate.gov.in), (2) check ITC-HS at DGFT website, (3) search EU TARIC at trade.ec.europa.eu/access-to-markets. Correct HS code is the first step for any export.

EU import duty rates vary by HS code: 0% for most raw materials and some industrial goods, 3-12% for most manufactured goods (under GSP for India), up to 12% for textiles, higher for agriculture. Check the specific rate at EU TARIC: trade.ec.europa.eu/access-to-markets. Under India-EU FTA (when concluded), most rates will go to 0%.

RoDTEP (Remission of Duties and Taxes on Exported Products) is India' WTO-compliant export incentive scheme refunding embedded taxes in exported goods. Rates range 0.5%-4.3% of FOB value. To claim: the RoDTEP benefit is credited to your ICEGATE ledger at the time of shipping bill processing. Use AJG' RoDTEP Finder tool to look up your rate by HS code.

Duty Drawback (DBK) is a refund of customs duties paid on imported raw materials subsequently used in the manufacture of exported goods. Two types: (1) All Industry Rate (AIR) — published rates for broad product categories; (2) Brand Rate — specific rate calculated for your actual input costs. Claimed through shipping bill at time of export.

Import Export Code (IEC) is a mandatory 10-digit identification number issued by DGFT to any business engaged in import or export from India. Apply online at the DGFT portal (dgft.gov.in) using your PAN, Aadhaar, bank details, and business registration documents. IEC is issued within 2-3 working days and has no expiry.

Export Promotion Capital Goods (EPCG) scheme allows Indian exporters to import capital goods (machinery, equipment) at 0% customs duty, subject to an export obligation of 6x the CIF value of the imported capital goods over 6 years. Managed by DGFT. Ideal for Indian manufacturers investing in EU-standard machinery to improve export product quality.

Advance Authorisation allows duty-free import of raw materials and inputs for manufacture of specific exported goods, subject to export obligation. Issued by DGFT before or after export. Common for pharma, chemicals, textiles where imported API or yarn is used in exported finished goods.

Authorised Economic Operator (AEO) is India' trusted trader programme issued by CBIC. AEO-certified exporters benefit from: faster customs clearance, self-sealing of containers, priority examination, reduced examination frequency. EU has a similar AEO programme. India-EU Mutual Recognition of AEO (expected in India-EU FTA) will allow Indian AEO exporters to get EU Green Lane treatment at EU ports.

TARIC (Tariff Integré Communautaire) is the EU' integrated customs tariff database at trade.ec.europa.eu/access-to-markets. It provides 10-digit commodity codes for all goods entering the EU, plus all applicable measures: MFN tariff rate, GSP preferential rate, anti-dumping duties, tariff rate quotas, safeguard measures, and import prohibitions. Use TARIC to verify the exact duty on your Indian goods entering EU.

BTI is an official EU customs decision providing a legally binding classification of your specific product under the EU tariff nomenclature. Valid for 3 years across all EU member states. Apply through any EU member state customs authority (e.g., HMRC in UK pre-Brexit, or Dutch Customs if entering via Rotterdam). Eliminates HS code disputes at EU customs.

Anti-dumping duty (ADD) is an additional customs duty imposed on goods sold below their normal value (dumped) in the importing country. EU has imposed anti-dumping measures on some Indian exports — check the EU TARIC database for any ADD applicable to your HS code. Common EU anti-dumping measures on Indian goods: stainless steel, certain chemicals, ceramic tiles.

Free Trade Zones (FTZs) are designated areas where goods can be imported, stored, or manufactured free from customs duties until they are declared for domestic use or re-export. Key FTZs relevant to India trade: Jebel Ali FTZ (UAE), Singapore FTZ, Nhava Sheva FTZ (India). Used for re-packaging, consolidation, or triangular trade structures.

EU import duties are calculated on the CIF (Cost + Insurance + Freight) value at the EU port of entry, based on the WTO Customs Valuation Agreement transaction value method. Customs value = invoice price of goods + international freight + insurance to the EU port of entry. Correct CIF declaration is critical for duty calculation.

First Sale valuation is a customs valuation method using the price at the first sale in a chain of transactions (manufacturer to trader) rather than the last sale (trader to EU importer). If an Indian manufacturer sells to a trading house which sells to an EU importer, First Sale uses the manufacturer' lower price as the customs value — reducing import duty. Requires documentary evidence of the first transaction.