Construction projects importing equipment, machinery, and materials benefit from Project Import provisions that allow concessional duty. However, temporary equipment — cranes, scaffolding, formwork — imported for a project and later re-exported can enter under bond without full duty payment.
Construction Import Categories and Duty
| Category | HS Chapter | BCD | Notes |
|---|---|---|---|
| Construction machinery (cranes, excavators) | 8426, 8429, 8430 | 7.5% | Project Import: 7.5% flat if new project |
| Structural steel | 7308 | 10–15% | Anti-dumping duties on some Chinese steel |
| Cement (imported) | 2523 | 10% | Rarely imported; India self-sufficient |
| Electrical equipment (substations) | 8537 | 10% | Project Import eligible |
| Pre-fabricated buildings | 9406 | 15% | HS classification critical |
Temporary Import of Construction Equipment
Cranes, piling rigs, and specialized equipment imported temporarily for a project can enter under bond without duty payment if they will be re-exported within a specified period. Procedure:
- File a warehousing bill of entry (or re-export bond arrangement)
- Customs holds a bond equal to the full duty value
- Equipment is used on site; returned to port and re-exported
- Bond cancelled on re-export; no duty paid
- If re-export doesn't happen within the period: full duty becomes payable
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Frequently asked questions
Under HS 9801, all plant and machinery for a new industrial project can be assessed at 7.5% BCD flat, regardless of individual HS code rates. Requires prior approval from the Customs Commissioner.
Yes — temporary import under bond (re-export bond). No duty paid; bond equal to duty value is held. When equipment is re-exported, bond is released. Requires customs permission.