Copper is one of the most widely consumed industrial metals across the globe, and India ranks among its largest importers. From electrical wiring and construction to electronics and renewable energy infrastructure, the demand for copper continues to rise sharply. If you are a manufacturer, trader, or business owner planning to import copper in India, understanding the regulatory landscape is the first step toward a smooth and profitable operation.
The copper import procedure involves a series of registrations, duty assessments, and compliance checks governed by multiple authorities, including the Directorate General of Foreign Trade (DGFT), the Central Board of Indirect Taxes and Customs (CBIC), and the Bureau of Indian Standards (BIS). Whether you intend to bring in refined copper cathodes, copper scrap, or finished copper products, each category carries distinct duty structures and documentation requirements. This guide covers everything you need to get started.
Who Can Import Copper in India
Any business entity registered in India can engage in the import of copper, provided it holds the necessary licences and registrations. This includes sole proprietorships, partnership firms, limited liability partnerships (LLPs), and private limited companies. The type of entity you choose often depends on the scale of operations, liability preferences, and future growth plans.
Before placing your first international purchase order, you must obtain an Import Export Code (IEC) from the DGFT. This 10-digit identification number is mandatory for all import and export activities in India. Without it, customs authorities will not release your consignment at the port. You can apply for IEC registration online through the DGFT portal, and the certificate is typically issued within a few working days.
If you are still in the process of setting up your business, consider registering a private limited company or an LLP to establish a credible legal structure for metal import India operations. A formal entity not only simplifies compliance but also strengthens your negotiating position with overseas suppliers and banks.
Registrations and Licences Required for Copper Import
Several registrations must be in place before you can legally import copper in India. Overlooking even one can result in shipment delays, penalties, or confiscation at the port. Here is a summary of the key requirements.
An active GST registration is essential because Integrated GST (IGST) is levied on all imports at the customs clearance stage. Your GSTIN enables you to claim Input Tax Credit on the IGST paid, effectively reducing your overall tax outflow. Ensure your GST returns are filed on time to avoid losing this credit.
For copper scrap and waste imports, additional clearance from the State Pollution Control Board (SPCB) or Central Pollution Control Board (CPCB) is necessary. You will need to declare the storage location and end-use of the imported material. Failure to obtain this clearance can lead to consignment rejection at the port.
Step-by-Step Copper Import Procedure
Once your registrations are secured, you can begin the actual process of sourcing and importing copper. The copper import procedure in India follows a systematic path designed to ensure regulatory compliance at each stage.
Step 1: Obtain IEC and Complete Business Registrations
Apply for IEC through the DGFT portal by submitting your PAN, business address proof, bank account details, and Digital Signature Certificate. Simultaneously, ensure your GST registration is active and your ICEGATE profile is set up for electronic filing of customs documents.
Step 2: Identify Your Supplier and Classify the Product
Source copper from international markets such as Chile, Peru, Indonesia, Australia, or the Democratic Republic of Congo. Determine the exact HSN code for your product under Chapter 74 of the Customs Tariff. Refined copper cathodes fall under HSN 74031100, copper wire under 74081100, and copper scrap under 7404. Accurate classification is critical because duty rates vary significantly across sub-headings.
Step 3: Negotiate Commercial Terms
Agree on Incoterms (CIF, FOB, CFR), payment terms, and delivery timelines with your supplier. Open a Letter of Credit (LC) through your bank if the supplier requires it. Most copper trades are conducted on LME (London Metal Exchange) pricing benchmarks, so factor in price fluctuations while negotiating.
Step 4: Arrange Shipping and Insurance
Copper shipments are heavy, high-value consignments that typically move via sea freight. Engage a reliable freight forwarder experienced in metal cargo. Arrange comprehensive marine insurance covering transit risks, including damage, theft, and natural calamities. Retain all shipping documents, as they are required for customs clearance.
Step 5: File the Bill of Entry at Customs
Once the shipment arrives at the designated Indian port, file a Bill of Entry through the ICEGATE portal. Attach supporting documents, including the commercial invoice, packing list, bill of lading, insurance certificate, and certificate of origin. For copper scrap, also attach the Pollution Control Board clearance certificate.
Step 6: Pay Customs Duty and IGST
Customs will assess the applicable Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and IGST based on the product's HSN code and assessable value. Pay the assessed duties electronically. Once confirmed, customs will release the consignment for delivery.
Step 7: Take Delivery and Update Records
Collect your consignment from the port warehouse or have it transported to your facility. Update your inventory records and accounting books promptly. Retain all duty payment receipts, Bills of Entry, and shipping documents for GST return filing and future audits.
Customs Duty and GST on Copper Imports
Understanding the copper import duty India structure is crucial for accurate cost estimation and competitive pricing. The duty rates depend on the form of copper being imported and its HSN classification under Chapter 74.
A Social Welfare Surcharge of 10% is also applied on the Basic Customs Duty amount. The total landed cost of your copper import will therefore include BCD, SWS, and IGST, calculated on the assessable value (CIF value plus BCD and SWS).
One of the most significant developments in the Union Budget 2025 was the complete removal of Basic Customs Duty on copper scrap and waste. This change was introduced to boost domestic recycling and manufacturing capacity, especially in sectors like electric vehicles and electronics. For importers dealing in copper scrap, this translates to a meaningful reduction in landed costs.
The IGST paid at customs can be claimed as Input Tax Credit when you file your GST returns. This makes the effective tax burden considerably lighter for businesses that maintain proper invoicing and compliance. For assistance with GST compliance, Patron Accounting offers end-to-end support to ensure your filings are accurate and timely.
HSN Codes and BIS Certification for Copper Products
Correct HSN code classification is the foundation of accurate duty calculation. Copper and its articles are classified under Chapter 74 of the Customs Tariff Act. The chapter covers everything from raw copper ores and concentrates (HSN 2603) to finished articles like copper kitchenware (HSN 7418).
For most refined copper imports, such as cathodes, billets, and wire bars, the relevant heading is 7403. Copper alloys like brass (copper-zinc) and bronze (copper-tin) fall under 7403 as well, but with distinct sub-headings that carry the same BCD rate of 5%. Copper wire rods and wires are classified under 7408, while plates, sheets, and strips belong to 7409.
The Bureau of Indian Standards (BIS) has issued Quality Control Orders for certain copper products, making BIS certification mandatory before these goods can be imported and sold in India. Products covered under these orders must carry the ISI mark or hold a valid BIS licence. If your import falls under a notified quality control order, you will need to obtain BIS registration for foreign manufacturers or ensure your supplier already holds it. Check the latest BIS notifications before finalising your supplier to avoid clearance issues at the port.
Key Documents Required for Copper Import
Documentation is the backbone of every successful metal import India transaction. Missing or incorrect paperwork can stall your shipment, attract penalties, or lead to re-export orders. Here is a comprehensive list of documents you should have ready.
You will need your IEC certificate, GST registration certificate, commercial invoice from the overseas supplier, packing list with weight and quantity details, bill of lading or airway bill, certificate of origin (for availing preferential duty rates under FTAs), insurance certificate, bill of entry filed through ICEGATE, test or analysis certificate for refined copper (where applicable), BIS licence or ISI mark certificate (for notified products), and Pollution Control Board clearance (for copper scrap and waste).
Working with an experienced customs house agent (CHA) who understands metal cargo can streamline the entire process. They can assist with HS code verification, duty computation, and document preparation. If you need help with foundational registrations like IEC registration, GST registration, or company incorporation, Patron Accounting can guide you through each step.
