A practical, step-by-step playbook to classify Indonesian fresh shallots correctly under HS 0703.10.20, verify India’s 2026 AIFTA tariff in ICEGATE, and claim the preferential rate with Form AI—plus documents, IGST, and common pitfalls to avoid.
If you’re importing Indonesian-origin shallots into India in 2026, you can’t afford guesswork. We’ve seen importers overpay duty, miss AIFTA claims, or get stuck in assessment because the invoice description didn’t prove these were shallots and not onions. This guide is the exact process our team follows so your shipment clears cleanly, at the right rate, and on time.
The 3 pillars of getting shallots right in India
- Pillar 1. Classification. Use the correct HS and describe the goods so there’s no doubt they’re fresh shallots.
- Pillar 2. Origin and preference. Secure AIFTA Form AI and meet direct consignment rules to unlock the preferential customs duty.
- Pillar 3. Verification. Check live rates on ICEGATE and DGFT so you’re not relying on outdated spreadsheets.
Here’s the actionable walkthrough.
Step 1: Classify correctly under India’s HS (ITC-HS)
What is the correct HS code for fresh shallots imported into India?
Fresh shallots fall under Chapter 07. Use 8-digit code 0703.10.20 for shallots, fresh or chilled. The sister line 0703.10.10 is for onions. They’re not interchangeable.
Practical takeaways:
- Keep your documentation consistent: commercial invoice, packing list, COO, and the Bill of Entry should all reflect 0703.10.20 for shallots.
- Don’t mix lots. If your container has both onions and shallots, list separate lines with their correct HS codes. Mixing creates avoidable queries.
Difference between onions and shallots HS codes in India
- Onions: 0703.10.10.
- Shallots: 0703.10.20.
We’ve seen brokers assume “onions” as a catch-all for Allium cepa. That can cost you in re-assessment and delays. If you also trade onions, review our Onion spec to see why origin, variety, and packaging notes matter to classification.
Fresh vs dried shallots classification
This guide is for fresh or chilled product only. Dried/dehydrated shallots fall under Chapter 07.12, not 07.03. If you’re shipping dehydrated material, the tariff, IGST, and policy conditions are different.
Step 2: Document to prove they’re “shallots”
Minimum invoice description that works
Customs officers need to see enough detail to sustain 0703.10.20. Use:
- Product: “Fresh shallots (Allium cepa var. ascalonicum), not sprouted/not dried.”
- Condition: Fresh/chilled. State grade and size ranges.
- Packaging: e.g., 10 kg mesh bags in ventilated cartons.
- HS code: 0703.10.20.
- Origin: Indonesia. Marking on each bag “Product of Indonesia.”
Attach a simple spec sheet if possible. In our experience, a one-page PDF with photos, size chart, and post-harvest handling cuts questions by half.
Step 3: Confirm India’s 2026 duty in ICEGATE
How do I verify the current 2026 duty rate for HS 0703.10.20 on ICEGATE?
Use India’s official portal. Steps we recommend:
- Go to ICEGATE. Open Tariff/Duty Calculator.
- Enter HS 07031020 and select “Country of Origin: Indonesia.”
- Review columns for:
- BCD MFN (basic customs duty standard rate).
- Preferential BCD under AIFTA (if available).
- SWS (Social Welfare Surcharge). This is usually calculated on BCD. If BCD is zero under AIFTA, SWS is typically zero.
- IGST. Fresh vegetables often show NIL, but always confirm the current IGST notification applied to Chapter 07.
- Any additional cesses. Check for Agriculture Infrastructure and Development Cess (AIDC). It’s usually not applied to fresh shallots, but verify.
What’s interesting is how often we see screenshots from third-party calculators that miss the preferential box. ICEGATE is your source of truth.
Step 4: Claim AIFTA preferential duty with Form AI
Do Indonesian-origin shallots qualify for AIFTA?
Yes, provided the origin rules are met. Fresh shallots harvested in Indonesia are typically “wholly obtained” under AIFTA. The Certificate of Origin must show Origin Criterion WO and match shipment details.
Which documents are required to claim AIFTA for shallots at Indian Customs?
- Commercial Invoice and Packing List.
- Bill of Lading/AWB.
- AIFTA Certificate of Origin (Form AI) issued by Indonesia’s authorized body.
- Any applicable Phytosanitary Certificate.
- Bill of Entry referencing the preferential claim.
Documents needed to get Form AI in Indonesia
From the exporter’s side, we prepare:
- Exporter application via the Indonesian National Single Window.
- Farm sourcing and harvest documentation supporting “wholly obtained.”
- Invoice and packing list drafts matching final shipment.
- Transport booking showing direct consignment or compliant transshipment. Approval typically takes 1–3 working days once the file is complete. We time Form AI issuance close to shipment date so the certificate aligns with the BL.
Can I submit an electronic Certificate of Origin (Form AI) for AIFTA claims in India?
India accepts e-COO uploads via eSanchit, and customs officers can verify QR codes or serial numbers. In practice, some ports still ask to sight a physical original during assessment or OOC. We advise carrying the original courier copy or a digitally signed original plus the verification link. It saves back-and-forth.
Practical tip: Ensure the importer’s name and address on Form AI match the Bill of Entry. Mismatches trigger queries.
Step 5: Understand IGST and landed cost
Is IGST charged on fresh shallots imports, or is it nil?
Under GST, many fresh vegetables in Chapter 07 are exempt from IGST. Shallots commonly show NIL IGST on ICEGATE. But don’t assume. Confirm the live IGST rate in ICEGATE for 07031020 on your shipment date. If IGST applies, it’s calculated on the assessable value after customs duties.
Calculate landed cost for Indonesian shallots under AIFTA
A simple working formula:
- Assessable Value = CIF value in INR.
- Preferential BCD (AIFTA) = ICEGATE preferential rate × Assessable Value.
- SWS = 10% of BCD, if BCD > 0.
- AIDC/other cesses = as shown in ICEGATE.
- IGST = IGST rate × (Assessable Value + BCD + SWS + any cesses).
- Landed Cost = Assessable Value + BCD + SWS + cesses + IGST + port/CHA charges.
When AIFTA reduces BCD to zero and IGST is NIL, your fiscal outlay can be limited to port and handling charges. That’s a meaningful edge in a tight-margin market.
Policy checks beyond duty
DGFT import policy for shallots in 2026
Historically, fresh shallots have been “Free” for import, but India can issue time-bound measures on sensitive agri lines. Always:
- Search DGFT for notifications tied to 07031020.
- Check CBIC circulars for safeguard or anti-dumping actions. These are rare for shallots, but vigilance pays.
Are safeguard duties or MIP applied to shallots in 2026 India?
There’s no standing safeguard or MIP we default to for shallots. But India sometimes moves quickly on allium products. Before you fix prices, run a last-mile check on DGFT and CBIC notices.
Common mistakes we see (and how to avoid them)
- Misclassifying as onions. If you declare 0703.10.10 for shallots, expect re-assessment and potential penalties. Your invoice description and photos should make “shallots” unambiguous.
- COO name mismatches. Importer name or address differs between Form AI and Bill of Entry. Fix at source before filing.
- Missing direct consignment proof. AIFTA requires that goods move directly from Indonesia to India, or if transshipped, remain under customs control with no operations beyond preservation. Unexplained repacking in a third country risks losing preference.
- Late or missing e-COO upload. Upload Form AI through eSanchit with clear scans and visible QR/serial number. We add it to the document set the same day the BL is issued.
- Thin invoice descriptions. “Vegetables, HS 0703” is an invite for queries. Spell out variety, condition, size, and HS 0703.10.20.
Quick answers to what buyers ask us most
Do Indonesian-origin shallots qualify for AIFTA preferential duty in India?
Yes, usually under “wholly obtained,” subject to proper Form AI and consignment rules.
How do I verify the duty rate in 2026?
Use ICEGATE. Enter 07031020 and origin Indonesia. Check preferential BCD, SWS, IGST, and any cesses.
Is IGST payable on fresh shallots?
Often NIL. Confirm on ICEGATE for your shipment date.
What happens if I misclassify shallots as onions?
Expect assessment delays, duty re-calculation, and potential penalties. It also jeopardizes your AIFTA claim if the code and COO don’t align.
Can I use electronic Form AI?
Yes, India can verify e-COO. Some ports may still ask to see the original. Keep both ready.
Resources and next steps
If you want a second set of eyes on your HS 0703.10.20 paperwork or a quick live-rate check before you price a PO, Contact us on whatsapp. We can also align your invoice description and COO timing so your AIFTA claim is airtight.
Prefer to review product lines first? See quality specs and pack options here: View our products.
Our experience shows that getting these three pillars right—classification, origin, and verification—cuts clearance time and prevents duty surprises. Indian buyers notice reliability. And in a market that can move overnight on agri items, that reliability is a competitive advantage you can bank on.