India consumes over 4 million tonnes of aluminium annually, yet domestic production doesn't always meet the demand for specialized grades and alloys. Whether you're a manufacturer sourcing raw billets, a trader dealing in aluminium scrap, or an infrastructure company procuring finished profiles, understanding how to import aluminium in India is essential for running a compliant and cost-efficient operation.
The aluminium import procedure involves several layers of regulatory compliance, from obtaining foundational licences to navigating customs duties and port clearances. This guide walks you through every step of the process, covering prerequisites, documentation, applicable duties, and the latest policy developments that affect metal import India.
Why India Imports Aluminium
Despite being the world's fourth-largest aluminium producer, India relies on imports for certain product categories. High-purity aluminium ingots, specialty alloys used in aerospace, automotive-grade sheets, and recycled aluminium scrap are among the most commonly imported items. The domestic smelting industry, while robust, doesn't produce every grade required by downstream manufacturers.
Aluminium products fall under Chapter 76 of the ITC (HS) Code. This chapter covers everything from unwrought aluminium and aluminium waste to bars, rods, profiles, plates, sheets, foils, tubes, pipes, and finished structures. Identifying the correct HS code for your specific product is the first critical step, because duty rates, regulatory requirements, and compliance obligations vary across sub-headings.
Prerequisites for Importing Aluminium in India
Before placing your first purchase order with a foreign supplier, you need a set of foundational registrations. Missing even one of these can halt your consignment at the port.
Import Export Code (IEC)
The IEC is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT). It's mandatory for every business involved in cross-border trade. Without an IEC, customs won't process your Bill of Entry, and banks won't facilitate foreign remittances. The application is handled entirely online through the DGFT portal and takes 3 to 7 working days. For professional assistance, you can get support with IEC registration to ensure your application is filed correctly.
GST Registration
Integrated GST (IGST) is levied on all goods imported into India, including aluminium. You need a valid GSTIN to claim input tax credit on the IGST paid at the time of customs clearance. Your GST details must align with the information in your IEC and PAN records. If you haven't registered yet, the GST registration process can be completed online through the government portal.
AD Code Registration on ICEGATE
The Authorized Dealer (AD) Code is a 14-digit number issued by your bank. It links your current account to the customs system and enables foreign exchange transactions tied to import payments. This code must be registered on the ICEGATE portal, which is the electronic gateway operated by the Central Board of Indirect Taxes and Customs (CBIC). Without a registered AD Code, you cannot file the Bill of Entry.
Digital Signature Certificate (DSC)
A Class 3 DSC with signing and encryption capabilities is needed for authentication on ICEGATE. The DSC token for ICEGATE is different from the standard signing-only certificate used for income tax or GST filings. You can apply for a Digital Signature Certificate through any licensed Certifying Authority in India.
Step-by-Step Aluminium Import Procedure
Once your foundational registrations are in place, you can begin the actual import process. Here is the aluminium import procedure broken down into clear steps.
Step 1: Identify the Correct HS Code
Aluminium products are classified under Chapter 76. For example, unwrought aluminium (not alloyed) falls under HS 7601.10, aluminium alloy ingots under HS 7601.20, aluminium scrap under HS 7602, and aluminium bars and rods under HS 7604. Selecting the wrong code can result in overpayment of duty or compliance issues at the port.
Step 2: Source Your Supplier and Negotiate Terms
Identify a reliable overseas supplier and negotiate commercial terms. Common Incoterms for aluminium imports include CIF (Cost, Insurance, Freight) and FOB (Free on Board). Your supplier should provide a proforma invoice, which you'll use to arrange financing and open a Letter of Credit if required by your bank.
Step 3: Arrange Financing and Foreign Exchange
Coordinate with your bank to facilitate the foreign exchange payment. Your AD Code registration ensures the bank can process remittances linked to your import transaction. For high-value consignments, many importers prefer using Letters of Credit to secure the deal.
Step 4: Obtain Shipping Documents
Once your supplier dispatches the goods, they'll share key shipping documents. These typically include the commercial invoice, packing list, Bill of Lading or Airway Bill, Certificate of Origin, and test or mill certificates confirming the aluminium grade and specifications.
Step 5: File the Bill of Entry on ICEGATE
When the shipment arrives at an Indian port, file the Bill of Entry electronically through ICEGATE. You'll need to declare the HS code, assessable value, country of origin, and all applicable duties. Customs officials will verify the documentation and may inspect the goods physically before granting clearance.
Step 6: Pay Customs Duties and Clear the Goods
Pay the calculated customs duty, IGST, and any other applicable charges through the ICEGATE payment gateway. Once payment is confirmed and documents are verified, the goods are released from the port. You can then arrange transportation to your warehouse or factory.
Aluminium Import Duty in India: What You'll Pay
Understanding the aluminium import duty India structure is critical for calculating your landed cost accurately. The duty framework consists of multiple components layered on top of each other.
For unwrought aluminium and aluminium scrap (HS 7601 and 7602), the BCD is typically 2.5%. Aluminium bars, rods, profiles, and plates (HS 7604 to 7606) attract a higher BCD of 7.5%. Finished aluminium structures under HS 7610 may carry a BCD of 10%. Always verify the exact rate for your specific HS code on the CBIC tariff lookup tool before finalizing your cost estimates.
Importers sourcing aluminium from countries covered under Free Trade Agreements or Preferential Trade Agreements can avail reduced or nil BCD rates. However, you must furnish a valid Certificate of Origin issued by the exporting country's designated authority. Without this certificate, standard duty rates apply.
Documents Required for Aluminium Import
Keeping your documentation organized is essential for smooth customs clearance. Here is a consolidated checklist.
Common Challenges When Importing Aluminium
Incorrect HS code classification is the most frequent issue. Aluminium products come in dozens of forms, and picking the wrong sub-heading can lead to duty short-payment, penalty notices, or clearance delays. Always consult the customs tariff schedule or work with a licensed customs broker to confirm your classification.
Mismatched details across IEC, GST, and PAN records also cause rejection of documents. Ensure your business name, address, and authorized signatory details are identical across every registration. Even minor discrepancies, like an extra initial or a different address format, can create hurdles.
Another challenge involves anti-dumping duties. India has imposed anti-dumping duties on certain aluminium products from specific countries in the past. These duties can significantly increase your landed cost. Check the latest CBIC notifications before finalizing your supplier to avoid unexpected charges.
