Today a company from anywhere can bid for a project anywhere. AI tools can help draft a bid in hours. What they cannot do reliably is tell you what Customs will charge or demand on the day your goods arrive at an Indian port.
This guide is for suppliers, contractors and tender teams who bid for projects that involve imported goods. It explains where bids lose money at the Customs stage and what to check before you price.
What is the biggest Customs risk in a project bid?
The biggest risk is the gap between the price in your bid and the real landed cost. Landed cost is the total cost of getting goods to the project site: the product price, freight, insurance, customs duty and taxes, approvals, port charges and the cost of delays. A bid priced without these numbers can win the contract and lose the money.
The 7 Customs costs bidders miss
1. A wrong or uncertain HS classification
The duty rate depends on the HS code of each item. Two codes that look reasonable can carry different rates, and Customs can question the one you chose. Before you bid: decide the code for every imported item and write down why.
2. Exemptions assumed but not secured
Schemes such as project import, concessional duty notifications, EPCG and Advance Authorisation can reduce duty, but each has conditions on registration, documents, end use or export obligations. An exemption built into your price and then lost comes straight out of your margin. Before you bid: confirm the exemption applies to your case and that you can meet its conditions.
3. Valuation add-ons
The Customs value is not always the invoice price. Freight, insurance, commissions and certain royalties or licence fees linked to the goods can be added. Before you bid: list every payment connected to the goods, not only the invoice.
4. Registrations, certificates and standards
Some goods need approvals before clearance, such as BIS certification, wireless approvals or other product-specific permissions. Missing approvals hold the goods. Equally, importers are sometimes asked for a registration that does not apply to their goods, and accepting it wastes time and money. Before you bid: check what each item needs, how long it takes, and whether a demand actually applies.
5. Trade remedy duties
Anti-dumping, countervailing and safeguard duties can apply depending on the product and country of origin, and they can change during a long contract. Before you bid: check the origin of each item and any duty in force.
6. Delay costs
A Customs query, an examination or a document mismatch can hold a container for days. Storage, demurrage and detention are charged daily, and a project schedule can slip with them. Before you bid: include a realistic clearance timeline and a buffer, and keep your documents consistent. See our guide on how to reply to a Customs query without losing time or money.
7. Conditions that follow the goods
Goods imported temporarily must be re-exported. Some schemes carry export obligations, bonds or bank guarantees, and these must be closed with proper paperwork. Missing a condition can bring duty, interest and penalties. Cash is also tied up in duty and taxes before it can be recovered. Before you bid: note every obligation that continues after clearance and who will manage it.
A pre-bid Customs checklist
Can AI tools do this for me?
AI tools are useful for a first reading of tender documents, for drafting lists and for summarising notifications you give them. But they can quote outdated rates, confuse similar HS codes, miss the conditions attached to an exemption, or state a rule that does not exist. A wrong answer looks as confident as a right one.
A sensible rule: use AI to find the questions quickly, then confirm the answers against the official tariff and the notification text. For high-value, restricted or technical goods, have a Customs specialist review the numbers before you price.
How a pre-bid Customs review works
A pre-bid review is a short, fixed-scope check done before you submit your price.
- You send the tender or product list.
- We confirm the fee and timeline before you commit.
- You receive a short report on classification and duty, exemptions, approvals, clearance risks and a landed-cost note.
This is the service we offer as the Bid Customs & Duty Check. Send us the tender or product list on WhatsApp and we will confirm the fee within a few hours.
Frequently asked questions
What is landed cost in a tender?
Landed cost is the full cost of delivering imported goods to the project site, including the product price, freight, insurance, customs duty and taxes, approvals, port charges and the cost of delays.
Can Customs duty change after I submit my bid?
Yes. Duty rates, exemptions and trade remedy duties can change. If the contract allows, ask for a price-variation clause that covers changes in duty or rules after the bid date.
Which exemptions can reduce duty on project goods?
Depending on the case, options can include project import, concessional duty notifications, EPCG for capital goods used to make exports, and Advance Authorisation for inputs used in exports. Each has conditions, so confirm eligibility before you count on the saving.
Who pays Customs duty in a project contract?
It depends on the contract and the delivery terms. Settle this before you bid, because a bid priced on the wrong assumption can turn a profit into a loss.
When should I check Customs costs for a bid?
Before the price is final, and as soon as the list of imported items is fixed. Checking after the contract is signed leaves no room to adjust the price.
About the author
Shankar Jha is the founder of Multimodal Logistic Systems Pvt. Ltd., Pune, with 27+ years of consulting experience in Indian Customs and EXIM matters. His work centres on replying to Customs queries and checking whether registration demands actually apply to a shipment.
Last reviewed: October 2026. This article is general information, not legal or financial advice. Customs rules and rates change, so confirm current rules before you rely on them.