You are traveling in a foreign country and purchase an expensive gift for family member or friend. When you in India and import any product then you must pay an indirect tax that is known as customs duty. What exactly Custom Duty on Import is and why is it charged?
Custom Duty is a tax charged by the Central government on the country’s imports and sometimes on a few exports. The indirect tax and duties that are imposed on import of goods are called “Import Duty” and duties which are imposed on exports are called “Export Duty”.
There are two main aims behind using import custom duty; one is to increase tax revenues and to protect domestic industries from excessive competition from global items imported into India. It is charged dependent on the weight, size, and value of the product. There are 3 major categories of
Custom Duty import in India:-
· Additional Valorem Duty: This tax is levied based on of price/value of the imported item.
· Specific Duty: this tax is levied based on the weight or quantity of an imported item.
· Compound Duties: If the imported item’s value is considered along with one or more other factors.
Many Types of Customs Duty in India
The concept of this tax exists in almost all countries around the world. Import duties are imposed on the global products that come in except food grains, lifesaving drugs or equipment, fertilizers, etc. Export duties are imposed on a few products. This tax is levied under numerous categories that have mentioned below:-
· Basic Customs Duty: This one is related to imported products that come under the domain of Section 12 of the customs act, 1962.
· Additional Customs Duty: It is levied on products which are produced in India. This custom duty rate is computed on the aggravate value of products.
· Education CESS: this tax is levied at 2% and another 1% of aggregated custom duties go towards higher education CESS.
· Safeguard duty: this is charged whenever the Indian government believes a sudden increase in exports can damage the domestic industry.
· Anti -Dumping duty: It is imposed if an imported item is at a price that is lower than the fair market price.
How Import Custom Duty in India is calculated?
Custom Duty India Calculator is provided by various online market research and export import data provider firms, SEAIR Exim Solutions is one of such type company in India. This company provides access to this tool to calculated the right import export duty of your products. All and all, it will help to know your product’s Custom Duty on Import.
Seair Exim Solutions is company provides global trade data of 80+ countries in the world. Or major services are Export Import Data, Indian Import Data, Export data India, HS code finder etc.
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