Components (whether or not finished or not) or raw materials for the manufacture of aforesaid items required for the initial setting up of a unit or the substantial expansion of a unit

Components and raw materials for project import unit setup

PARTNER GOVERNMENT AGENCY CLEARANCE

HSN 9801 00 20 covers components (whether finished or not) and raw materials for manufacturing machinery required for the initial setting up or substantial expansion of a specified industrial unit, imported under the Project Imports regime governed by the Directorate General of Foreign Trade (DGFT) and administered at the port level under the Project Import Regulations, 1986. The contract or amendment must be registered with the Proper Officer at the port of import as a condition precedent to customs clearance under Rule 5 of the Project Import Regulations, 1986.

What this is

HSN code

9801 00 20

Chapter

98 · Project imports; laboratory chemicals; passengers' baggage

Primary regulator

DGFT · Project Import Regulations, 1986 (Rule 5 contract registration)

Customs documentation

Registered contract from Proper Officer
Project import declaration from CBIC

Compliance steps

1
Register the project contract — or any amendment to it — with the Proper Officer at the port of import before filing the bill of entry. Non-registration disqualifies the consignment from the Project Imports concessional tariff regime and exposes it to standard-rate duty assessment.
Rule 5 of the Project Import Regulations, 1986
2
File the bill of entry under Chapter 98 (Project Imports head 9801 00 20), attaching the registered contract and a declaration that the components or raw materials are for the manufacture of machinery required for the initial setting up or substantial expansion of the specified unit.
Project Import Regulations, 1986; Chapter 98 of the Customs Tariff Act, 1975

A word of counsel

The most common error on this tariff line is importing components or raw materials against an unregistered or partially amended contract. Any amendment to the project contract — including scope changes, value revisions, or additions of new equipment categories — must itself be registered with the Proper Officer before the amended goods are cleared; treating the original registration as covering subsequent amendments triggers re-assessment at standard rates and potential demand of short-levied duty with interest.

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Frequently asked

Does HSN 9801 00 20 require BIS certification?

No. This tariff line is a project-imports concessional heading and no BIS Quality Control Order covers it. Import is governed by the Project Import Regulations, 1986, with contract registration before the Proper Officer at the port of import as the operative compliance obligation.

Is contract registration under Rule 5 of the Project Import Regulations, 1986 required before each consignment or only once?

Registration is required once for the project contract, but any amendment to that contract must also be registered before goods covered by the amendment are cleared; failure to register an amendment is treated as a fresh non-registration for those goods.

What happens if goods arrive at the port before the contract is registered?

Goods that arrive before contract registration cannot be assessed under the concessional Chapter 98 rate and are liable to clearance at the standard tariff rate, with no retrospective relief once the bill of entry is assessed.

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