The Government of India levies Custom Duty on some exports and import of products. Furthermore, the amount to pay as custom duty depends on several things that include dimensions, weight, and value of the goods.
Update of Custom Duty in 2021s Union Budget
In the Union Budget 2021, Finance Minister Nirmala Sitharaman has announced a few changes to make the custom duty. Some proposals that have made are:
Rationalize the custom duty structure
Decrease the custom duty percentage on metals including gold and silver.
On both metals, there is a rate cut down of 7.5% Custom Duty in India. Then, there is a fall in the prices of precious metals gold, and silver.
Types of custom duty charges in india
The custom duty tax has been levied on all goods universally. Furthermore, the goods that come under the second schedule. Therefore, export duty has been levied on them. On the other hand, the Import Duty has classified into different types that include:
Basic Customs Duty: The items that come in Section 12 of the Customs Act, 1962 therefore, the basic customs duty has charged on them.
Additional Custom Duty: The things that come in section 3 of the Customs Tariff Act of 1979 therefore, additional customs duty has been charged on this list of items. The rates depend on the rates of the importing country. Additionally, it is similar to the Central Excise Duty. This tax has been charged on the goods that have been produced in India.
Protective Duty: On the recommendation of the tariff commissioner, the rates of the protective duty have been calculated on the domestically produced goods.
Education Cess: On higher education, the education cess of 2% has been calculated. Furthermore, an additional 1% cess is also charged on it.
Anti-Dumping Duty: The anti-dumping duty is on the goods that have been calculated on the goods whose value is below the market price. It has limited to the difference between the normal price and export rate accordingly.
Safeguard Duty: In certain cases, the safeguard duty has been calculated. The government decides the rates on it. These things happen only when the government wants to reduce the sudden increase in exports that could damage the domestic industrial sector.
Custom Duty & Calculations
The calculation of the customs duty is on a Valorem basis. It means that the customs duty has been calculated on the value of goods. Valuation of goods has been conducted based on Rule 3(i) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. Different types of methods include Comparative Value Method (Rule 4), Comparative Value Method (Rule 5), Deductive Value Method (Rule 7), Computed Value Method (Rule 8), and Fallback Method (Rule 9) to calculate the customs duty on the goods.
Waiver of Custom Duty on Medical Items in Pandemic
The central government has decided to exempt the medical items including coronavirus vaccine and medical pieces of equipment from the custom import duty basics. Our Prime Minister Narendra Modi took this decision after a review meeting with the central government ministers to deal with the pandemic situation in India.
It is advisable to read the SAC code list act of 1962, if you are now or startup into EXIM business. You can check this online to get the duty of a product by using the customs duty calculator. It will help you if you can check for Gst rate finder to the other countries from India.
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