Import Customs Duty in India
Customs Duty is a tax on goods when they cross international borders. In India, import customs duty helps protect the economy, jobs, environment, and residents. It controls the movement of goods, especially those that are restricted or banned. Generally, all goods have a set duty rate. This rate depends on where the goods were made, where they were bought, and what they are made of. If you bring something into India for the first time, you must declare it according to customs rules. For example, you must declare any gifts you receive outside the country.
Custom Duties and Taxes
When shipping internationally, you must pay customs duties and taxes. These tariffs are set by the country you're sending to, and the amount you pay depends on the item you're shipping.
Different items have different duty rates. Knowing how your goods are classified is key to getting a reasonable estimate. Make sure you understand Malaysian import rules well.
Setting aside money for these costs can save you from surprises. If you're unsure, get advice from an expert. They can help you understand the tax system better.
Types of Customs Duties in India
There are ten types of customs duties on imports in India:
- BCD (Basic Customs Duty)
- CVD (Countervailing Duty)
- Special CVD (Countervailing Duty)
- Protective Duty
- Anti-dumping Duty
- Education Cess on Custom Duty
- Safeguard Duty
- Anti Dumping Duty
- National Calamity Contingent Duty
- Protective Duties
How Is the Customs Duty Computed?
Consequently, taxes on imported goods are based on an ad valorem or specific basis. In other words, they are based on the value of goods, as outlined in the customs valuation (determination of the value of imported goods) rules 2007. In cases where there are doubts about the validity of a valuation, the following method can be used:
Rules 4 and 5:
Comparison of the transaction value of items that is identical or similar.
Rule 7:
Using the sale price of such a good in the importing country to derive the value of the good.
Rule 8:
Computed value method based on materials, fabrication, and profit in the country of production.
Rule 9:
A fall-back method is based on previous methods, yet more flexible than them.
Online Payment of Customs Duty in India
With a few simple steps, one can pay customs duty online:
- Login to the e-payment portal of ICEGATE.
- Enter the import or export code or log in with the credentials provided by ICEGATE.
- Now make an online payment.
- Check all e-challans under your name.
- Once you choose the payment method and the challan to be paid. You will be redirected to the payment gateway.
- Your ICEGATE portal will be redirected to you once the payment has been made.
- You can now print and save your payment copy.
If you wanted to have services of import custom clearing agent, then please contact us noq!
List of Banks for Online Payment of Custom Duty
Increase in Basic Customs Duty
As a result, the rupee fell and the current account deficit worsened. That is to say, the import restrictions focused on certain imports. Increasing duties will cause the prices of these goods to rise. Also, dampening the demand and reducing imports, which will increase the income of domestic manufacturers.
Changes in Customs Duty under the following entries of notification No. 50/2017-Customs with effect from 1st May 2022.
| HSN CODE | ITEM NAME | CURRENT DUTY | INCREASED DUTY |
| 1012100 | pure-bred breeding horses | 0% | 30% |
| 0511 99 11 | Artemia | 5% | 30% |
| 0511 10 00 | Bovine Semen | 5% | 30% |
| 0801 31 00 | Cashew nuts in shell | 2.5% | 30% |
| 0802 51 00, 0802 52 00 | All goods (pistachios in the shell, shelled) | 10% | 30% |
| 0804 10 20, 0804 10 30 | All goods(Dates) | 20% | 30% |
| 0805 10 00, 0805 50 00, 0806 10 00, 0808 30 00 or 0808 40 00 | All goods (citrus fruit, fresh) | 30% | 40% |
| 0904 11 10 | Long pepper (Piper longum) | 30% | 70% |
| *0907 | All goods (cloves) | 35% | 70% |
| 1001 19 00 or 1001 99 10 | Wheat | 40% | 100% |
| 1005 10 00, 1007 or 1008 21, 1008 29 | All goods (maize corn) | 50% | 70% |
| 100590 | All goods (popcorn) | 50% | 60% |
| 1104 22 00 | De-hulled oat grain | 15% | 30% |
| 1107 10 00, 1108 12 00 | All goods (malt) | 30% | 40% |
| 1207 91 00 | All goods (other oil seed and oleaginous fruits) | 20% | 30% |
| 1209 91 or 1209 99 | All goods (seeds, fruits, and spores) | 5% | 30% |
| 1401 10 00 | Bamboo | 25% | 30% |
| 1702 11 or 1702 19 | All goods (other sugars etc.) | 25% | 30% |
| 1905 31 00 or 1905 32 | All goods (waffles and wafers, sweet biscuits, etc.) | 30% | 45% |
| 2207 20 00 | All goods (ethyl alcohol) | 5% | 30% |
| 2309 10 00 | All goods (animal feeding preparations) | 20% | 30% |
| Chapter 23 (except 23091000) | All goods (de-oiled cake, rice bran, etc.) | 15% | 30% |
| 25 (except 2515, 2516, 2523, 2524) | All goods (salt, natural sand, kaolin, clays, chalk, pebbles, mica, etc.) | 5% | 10% |
| 2503 00 10 | Crude or unrefined Sulphur | 2.5% | 10% |
| 2510 | Rock phosphate | 2.5% | 5% |
| 2520 10 10, 2520 10 20, 2520 10 90 | Gypsum | 2.5% | 10% |
| 2523 29 | All goods (Portland cement) | 0% | 10% |
| 2528 | All goods (natural borated) | 2.5% | 10% |
| 2601 to 2617 | All goods (iron ores, manganese ores) | 2.5% | 5% |
| 2604 00 00 | Nickel Ore and Concentrate | 0% | 5% |
| 2612 10 00 | Uranium Ore and Concentrates, for the generation of Nuclear Power | 0% | 5% |
| 2620 11 00, 2620 19 | All goods (hard zinc spelter) | 5% | 10% |
| 2620 30 | All goods (brass dross) | 5% | 10% |
| 2701, 2702, 2703 | All goods (coal, briquettes, lignite, peat) | 5% | 10% |
| 2704, 2705, 2706 | All goods (coke, tar, etc.) | 5% | 10% |
| 2707 | All goods (benzol, toluol etc. oil) | 2.5% | 10% |
| 2708 | All goods (pitches coke) | 5% | 10% |
| 2710 12 50 | Avgas | 0% | 10% |
| 2710, 2711, 2712, 2713, 2714 or 2715 | All goods (excluding naphtha), other than the goods | 5% | 10% |
| 2710 12 21, 2710 12 22, 2710 12 29 | Naphtha | 2.5% | 10% |
| 2711 19 10, 2711 19 20 | Liquefied petroleum gases (LPG) | 5% | 10% |
| 2711 12 00 | Propane | 2.5% | 10% |
| 2711 13 00 | Butanes | 2.5% | 10% |
| 2713 12 10, 2713 12 90 | Calcined Petroleum Coke | 7.5% | 10% |
| 28 (except 2801, 2802, 2803, 2804, 2805, 2 809 20 10, 2810 00 20, 2814, 2823 00 10, 2837 11 00 and 2843) | All goods | 7.5% | 10% |
| 2801 20 00 | Iodine | 2.5% | 5% |
| 2818 20 10 | All goods (alumina calcined) | 5% | 10% |
| 2825 40 00 | Nickel oxide and hydroxide | 0% | 10% |
| 2844 20 00 | All goods, for the generation of Nuclear Power | 0% | 10% |
| 29 (except 29054300, 29054400, and 29337100) | All goods | 7.5% | 10% |
| 2901, 2902 (except 2902 43 00, 2902 50 00) | All goods | 2.5% | 10% |
| 2902 41 00 | o-xylene | 0% | 10% |
| 2903 (except 2903 11 10, 2903 12 00, 2903 13 00, 2903 22 00) or 2904 | All goods | 5% | 10% |
| 2902 43 00 | p-xylene | 0% | 10% |
| 2902 50 00 | Styrene | 2% | 10% |
| 2903 15 00 | Ethylene Dichloride (EDC) | 0% | 10% |
| 2903 21 00 | Vinyl chloride monomer (VCM) | 2% | 10% |
| 2905 31 00 | Mono ethylene glycol (MEG) | 5% | 10% |
| 2910 20 00 | Methyl oxirane (propylene oxide) | 5% | 10% |
| 2917 36 00 | Purified Terephthalic Acid (PTA), Medium Quality Terephthalic Acid (MTA), and Qualified Terephthalic Acid (QTA) | 5% | 10% |
| 2917 37 00 | Dimethyl terephthalate (DMT) | 5% | 10% |
| 2926 10 0 | Acrylonitrile | 2.5% | 10% |
| 293371 00 | Caprolactam | 5% | 10% |
| 2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505, 3809 10 00 | All goods | 20% | 30% |
| 31 (except 31022100, 31023000, 31025000, 31043000, 31052000, 31053000, 31054000, 31055100, 31055900, 31056000, 31059010, 31059090) | All goods (fertilizers) | 7.5% | 10% |
| 3201, 3202, 3203, 3204, 3205 00 00, 3206 (except 3206 11, 3201 20 00 and 3206 19 00) or 3207 | All Goods (tanning extract, coloring matter, etc.) | 7.5% | 10% |
| 3201 20 00 | Wattle extract | 2.5% | 10% |
| 3403 | All Goods(lubricating preparations) | 7.5% | 10% |
| 3801, 3802, 3803 00 00, 3804, 3805, 3806, 3807, 3809 (except 3809 10 00), 3810, 3812, 3815, 3816 00 00, 3817, 3821 00 00, 3824 (except 3824 60 and 3824 99 00) or 3827 | All goods CHEMICALS) other than those at S. No. 250A | 7.5% | 10% |
| 3823 11 00, 3823 12 00, 3823 13 00, 3823 19 00 or 3823 70 | All goods | 7.5% | 30% |
| 3901 to 3915 (except 3904 and 3908) | All goods LDPE, HDPE, POLYMERS, POLYACETALS, PVA, ACRYLIC POLYMERS | 7.5% | 10% |
| 3906 90 70 | Sodium polyacrylate | 5% | 10% |
| 4001 21, 4001 22, 4001 29 | All goods (SMOKED SHEETS NATURAL RUBBER) | 25% or Rs. 30/- per KG, whichever is lower | 25% |
| 5101 | All goods (WOOL) | 2.5% | 25% |
| 5102 | All goods | 5% | 25% |
| 5103 10 10, 5103 20 10, 5103 20 20, 5103 20 90 | Wool Waste | 5% | 25% |
| 5103 10 90, 5103 30 00 | All goods other than Wool waste | 10% | 25% |
| 5105 29 10 | Wool Tops | 2.5% | 20% |
| 5201 | All goods (COTTON) | 5% | 25% |
| 5301 | All goods (FLAX, RAW) | 0% | 30% |
| 5303 10 00 | Raw jute | 5% | 25% |
| 5401, 5402, 5403, 5404, 5405 00 00 or 5406 | All goods (sewing thread, synthetic yarn, filament yarn, monofilament yarn) | 5% | 20% |
| 5501 to 5510 | All goods (filament tow, staple fibers, waste, yarn, sewing thread) | 5% | 20% |
| 5511 | All goods | 5% | 25% |
| 6815 91 00, 6901, 6902, or 6903 | All goods | 7.5% | 10% |
| 7001 00 10 | All goods (ENAMEL GLASS RODS) | 5% | 10% |
| 7015 10 10 | Rough ophthalmic blanks | 5% | 10% |
| 7101 10 10 and 7101 21 00 | Raw pearls | 5% | 10% |
| 7110 31 00, 7110 39 00 | Rhodium | 2.5% | 10% |
| 7201, 7202, 7203, 7205 (excluding 7226 11 00) | All goods (PIG IRON, FERRO ALLOY, FERROUS ) | 5% | 15% |
| 7202 60 00 | Ferro-nickel | 2.5% | 15% |
| 7204 | All goods [Effective rate of ‘Nil’ will operate through S. No. 368 of 50/2017- Customs till 01.04.2023] SCRAP | 2.5% | 15% |
| 7404 | COPPER WASTE SCRAP | 2.5% | 5% |
| 7411 or 7412 | All goods (COPPER TUBE & PIPE, FITTING) | 7.5% | 10 |
| 75 | All goods (NICKEL) | 0% | 5% |
| 7602 | Aluminum scrap | 2.5% | 5% |
| 8105 20 10 | Cobalt mattes and other intermediate products of cobalt metallurgy | 2.5% | 5% |
| 8110 10 00, 8110 20 00 | All Goods (MANGANESE) | 2.5% | 5% |
| 8407 21 00 | Outboard motors | 5% | 15% |
| 8419 19 20 | Water heaters | 7.5% | 10% |
| 8421 39 20, 8421 39 90 | All goods (FILTERS) | 7.5% | 10% |
| 8502 (except 8502 11 00, 8502 20 10, 8502 40 00) | All goods (ELECTRIC GENERATING SET) | 7.5% | 10% |
| 8503 00 10, 8503 00 21, or 8503 00 29 | All goods (PARTS OF MOTOR) | 7.5% | 10% |
| 8504 10 10, 8504 10 20, or 8504 10 90 | All goods ELECTRIC TRANSFORMER | 7.5% | 10% |
| 8546 | All goods ELECTRIC INSULATOR | 7.5% | 10% |
| 8547 | All goods FITTING | 7.5% | 10% |
| 9030 31 00, 9030 90 10 | All goods | 7.5% | 10% |
| 8802 11 00 and 8802 12 00 | Helicopters | 2.5% | 10% |
| 8902 00 10 | Trawlers and other fishing vessels | 0% | 10% |
| 8905 10 00 | All goods, part of the repair of dredgers | 0% | 10% |
| 8907 10 00 | All goods, floating structures, rafts, etc. | 0% | 10% |
| 8908 00 00 | All goods vessels | 2.5% | 10% |
| 9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 95, 9018 90 96, 9018 90 97, 9018 90 98 | Goods required for medical, surgical, dental, or veterinary use | 5% | 10% |
| 9018 (other than items in entry at Sr. No. 563 and 9018 90 99), 9019 (other than 9019 10 20), 9020, 9021 | All goods | 7.5% | 10% |
| 9108, 9110, or 9114 30 10 | Watch dials and watch movements | 5% | 10% |
| 9506 91 | All goods | 10% | 20% |
e-SANCHIT
Meanwhile recent years, India witnessed massive changes to its taxation system through the use of digitalization. To clarify, from income tax to GST, most things are now online. Furthermore, with the launch of e-SANCHIT, the CBIC is making doing business easier. ICEGATE users can only use the e-SANCHIT application until the end of March this year. However, the new scheme does not require assessing officers to produce hard copies of the uploaded documents. Further, the objective here is to minimize the physical interface between the customs agency and trade and to maximize clearance times.
For detailed information about import customs duty in India, feel free to contact us on-call: +91-9311595648 | email: [email protected]