India weighs simpler customs rules for semiconductor imports as firms flag major clearance hurdles

India is considering a semiconductor-specific, risk-based customs clearance mechanism as chipmakers and manufacturing companies flag delays and compliance hurdles in importing equipment, components and consumables, Moneycontrol reported.

Customs authorities have indicated that they are open to developing a separate approach for the semiconductor industry, recognising that applying a uniform regulatory framework can impose disproportionate costs on a sector where even small delays in receiving consignments can affect production schedules.

Anupam Prakash, Joint Secretary (Customs) in the Department of Revenue, said Customs would work with other ministries to examine whether compliance requirements for semiconductor imports could be simplified.

Speaking during a panel discussion at Semicon India 2026, Prakash described the proposal for a sector-specific risk assessment mechanism as a good suggestion. He noted that several regulatory requirements applicable to imports originate from different government ministries, making coordination an important part of any simplification exercise.

The semiconductor industry has been seeking changes as companies establishing fabs and other manufacturing facilities in India depend heavily on imported capital equipment, components and specialised consumables.

Sushil Pal, Joint Secretary at the Ministry of Electronics and Information Technology (MeitY), who moderated the discussion, said even when Customs is able to clear consignments quickly through risk-based systems, requirements imposed by other agencies can continue to create costs for semiconductor companies.

According to Moneycontrol, compliance requirements can involve multiple government departments, covering areas ranging from electronics and information technology to chemicals, petrochemicals and heavy industries.

Prakash pointed to the National Trade Facilitation Committee, headed by the Cabinet Secretariat, as an existing mechanism through which Customs can coordinate with different government departments to explore ways of simplifying compliance.

Customs already operates a single-window system integrated with more than 23 government departments whose clearances may be required during the import process. The system also has electronic integration with agencies such as the Bureau of Indian Standards (BIS) for certain licences and no-objection certificates.

Prakash said the semiconductor industry could help identify compliance requirements that are frequently needed before semiconductor consignments are cleared. Customs could then examine these requirements with the concerned departments and look for ways to reduce the process.

Customs is also expanding automated and non-intrusive clearance mechanisms. Prakash said the department is working towards faster clearance of consignments where no risk is identified, including through greater use of container scanning and AI-enabled image analysis.

The proposed changes come as India seeks to strengthen its domestic semiconductor manufacturing ecosystem and attract investments in fabs and related supply chains.