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Custom Duty India for Import and Export Products at International Level

Custom duty India is a tax levied by the Government of India on the import and sometimes export of goods. The indirect tax is levied when goods across international borders. 

Why custom Duty is important? 

Custom duty helps to earn revenue for the economy. Custom duty helps to protect the domestic industry, employment, and the environment by regulating the flow of goods, especially on restricted and prohibited goods across the country’s border. Custom duty helps to restrict imports protecting the foreign reserves of the country and reduce the trade deficit. 

The main types of customs duty in India are:-

  • The basic customs duty is the tax imposed under the Customs Act 1962. The basic customs duty differs as per the commodity. The government of India can change, reduce, or exempt the basic customs duty on any product.
  • Countervailing Duty (CVD) or additional duty is equal to the excise duty imposed on a manufactured product in India. The CVD is implemented under provision Section3 (1) of the Indian Customs Tariff Act.
  • Special CVD equalizes imports with local taxes the provision is imposed periodically. The government imposes special CVD on import goods.
  • Anti-Dumping Duty is charged to prevent developed countries who sell their goods at lower rates in developing countries. The duty prevents companies from dumping their excess goods or to damage the local economy. Anti-dumping duty is used by countries to prevent goods from being sold below the market rate.
  • Protective Duty is imposed by the central government when it feels the need to protect the Indian industry. Protective duty is imposed under the Customs Act 1975.
  • Safeguard Duty is applied when the government feels that exports can damage the local markets. 

Import Custom Duty in India is administered by the Government of India Foreign Trade Act and India’s Export-Import Policy on import taxes. Importers trading in India needs to register before engaging in trading. The import duty is calculated on a specific value (weight, quantity, etc) or on ad votem basis. The value of goods is fixed as per Rule 3(i) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

If there are no quantifiable data regarding valuation, the valuation of the imported commodity is done according to the following hierarchy:-

  • Transaction Value of Identical Goods compares the transaction value of identical items (Rule 4).
  • Transaction Value of Similar Goods uses the transaction value of similar items (Rule 5) is used in this method. 
  • The deductive Value Method uses the sale price of the particular item in the importing country (Rule 7).
  • The computed Value Method uses the costs of fabrication, materials, and profit in the production country (Rule 8).
  • The fallback method is used when earlier methods are not applicable. It is based on previously determined values in the country of import. (Rule 9)

The trader must pay the correct import custom duty to avoid penalties or delays in releasing the consignment. Importer, Exporters, and trading partners can pay customs duty online using Indian Customs Electronic Commerce/ Electronic Data Interchange (EC/EDI) Gateway or the ICEGATE. The portal allows users to e-filling, online payments, tracking, registration, IE code status, verifications of DEPB/EPCG/DES license, etc. The ICEGATE portal allows users to access to custom duty calculator. 

There are various websites where you can get to know custom duties. The Indian Government and the Federation of Indian Exporters created the Indian Trade Portal. Several websites provide information regarding custom duty. The best website to Know Indian custom duty is Seair Exim Solutions. The website offers statistical import-export data and provides comprehensive Custom duty information. You can get the latest custom notification and news on the website. The easy to navigate website allows users to find custom duty for the product easily using product description and HS Code.

Seair Exim Solutions is one of the leading export import data provider company in India. It provides updated, 100% genuine, and reliable trade data of more than 80 countries of the world such as India, USA, Russia, Kenya, Mexico, Indonesia, Sri Lanka, Vietnam, Pakistan etc. Our major services are USA imports data, import data IndiaIndian export data, import data Indonesia, Vietnam export data, Russia customs data, Mexico trade data, Kenya shipment data etc. You can find various free resources related to import export business like HS code list, HS code search, HS code Finder, sac code search, sac code list, custom duty in India, custom duty calculator, foreign ports, trading partners of India, GST rates in India, GST rates list and many more on our website –

For free sample data report and free live demo data search

Phone No: +91-9990837766

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  • Seair Exim
  • 23-Oct-2020

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