Customs duty is a tax charged when goods are transported across a country’s border. The Government of India levies customs duty as an indirect tax. It is a vital source of revenue for the government and helps protect domestic markets from unfair competition. Customs duty on import products are import duty, while the duty charged on exported commodities export duty. Customs duty Act of 1962 describes the Customs duty of 19 in India. The act allows the government to collect tax on the import and export of commodities. It describes other regulations about import and export.
India had a complicated taxation system, there were different taxes charged on goods and services. Customs duty on import and export was elaborate with Basic Customs Duty (BCD), Countervailing Duty (CVD), Additional Customs Duty or Special CVD, Protective Duty, Anti-dumping Duty. Customs Duty was replaced by basic customs duty and IGST (Integrated Goods and Service Tax).
Authorities charge Import duty India on an ad Valorem basis or the value of the product. The basic customs duty (BCD) value depends on the HSN code of the product. The BCD rates are updated periodically by the Government of India. The duty can vary between 0 to 100%. The guidelines for valuation are available in Custom Valuable Rules, 2007. If the valuation is not clear, the calculations for custom duty charges in India are done as follows:-
Rule 4 and 5:- Comparative Value Method in this method we compare it to the sale value of identical or similar items.
Rule 7: Deductive value method uses the sale price of the commodity in the country of origin.
Rule 8: Computed value method uses the cost of material, manufacturing, and profit in the country of manufacturing.
Rule 9: The fallback method, is based on previous methods with some flexibility.
Custom duty charges in India can be paid online through the ICEGATE or Indian Customs Electronic Data Interchange Gateway. Trading Parting (Traders and cargo carriers) use the ICEGATE portal to e-file their returns.
SEAIR Exim Solutions is the right web portal that is offering actual information regarding Import Export Data. We are a market research firm that offers custom duty details including HS code, customs duty, GST Rates list, trade data, etc.
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