For irrigation Plant

Project import machinery for irrigation plant setup

PARTNER GOVERNMENT AGENCY CLEARANCE

HSN 9801 00 12 (For irrigation Plant) is governed by the Project Import Regulations, 1986 administered by the Central Board of Indirect Taxes and Customs (CBIC), which provide a concessional duty regime for machinery, instruments, apparatus, components, and raw materials required for the initial setting up or substantial expansion of an irrigation plant. The contract for supply must be registered with the Proper Officer at the port of import under Rule 5 of the Project Import Regulations, 1986 before out-of-charge.

What this is

HSN code

9801 00 12

Chapter

98 · Project imports; laboratory chemicals; passengers' baggage

Primary regulator

CBIC · Project Import Regulations, 1986

Customs documentation

Registered contract from CBIC
Project registration certificate from CBIC

Compliance steps

1
Register the supply contract — or any amendment thereof — with the Proper Officer at the port of import before filing the bill of entry. Failure to register the contract disqualifies the consignment from classification under Chapter 98 and the associated concessional duty rate.
Rule 5 of the Project Import Regulations, 1986
2
Ensure each bill of entry references the registered project contract and describes the goods as machinery, components, or raw materials required for the initial setting up or substantial expansion of the irrigation plant. Goods not covered by the registered project scope are ineligible for Chapter 98 classification.
Rule 5 of the Project Import Regulations, 1986

A word of counsel

The most common error on this tariff line is importing goods against a contract that has been amended — in scope, value, or supplier — without registering the amendment separately with the Proper Officer. An unregistered amendment is treated as a new, unregistered contract; customs may re-assess the bill of entry at the general tariff rate with full duty recovery, interest, and potential penalty for mis-declaration of classification.

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Frequently asked

Does HSN 9801 00 12 require BIS certification?

No; no BIS Quality Control Order covers project-import machinery classified under Chapter 98. The applicable regime is the Project Import Regulations, 1986 administered by the Central Board of Indirect Taxes and Customs, with contract registration at the port of import as the primary clearance obligation.

At which stage must the contract be registered under Rule 5 of the Project Import Regulations, 1986?

The contract must be registered with the Proper Officer at the port of import before the first bill of entry is filed; subsequent amendments must also be registered before goods under the amended terms are cleared.

What happens if goods imported under this HSN fall outside the registered project scope?

Goods not covered by the registered contract scope are ineligible for Chapter 98 classification and are re-assessed at the applicable general import duty rate, with interest and potential penalty for mis-classification.

Last verified against gazette notifications: 2026-05-16. Source: CBIC / Indian Customs CUSDATA.