Import Customs Duty in India

import customs duty in india

Import Customs Duty in India

Customs Duty on goods refers to the tax imposed on them when they cross international borders. The purpose of import customs duty in India to protect each country’s economy, jobs, environment, residents, etc., by controlling the movement of goods, especially prohibited and restricted goods, into and out of that country. As a general rule, all goods have a predetermined rate of duty, which is determined by factors such as where the goods were made, where they were acquired, and what the goods are made of. In addition, if you are bringing anything into India for the first time, you will need to declare it in accordance with customs rules. For example, you will need to declare any gifts you receive from outside the country.

Types of Custom Duties in India

There are ten types of customs duties on imports in India:

  1. BCD (Basic Customs Duty)
  2. CVD (Countervailing Duty)
  3. Special CVD (Countervailing Duty)
  4. Protective Duty
  5. Anti-dumping Duty
  6. Education Cess on Custom Duty
  7. Safeguard Duty
  8. Anti Dumping Duty
  9. National Calamity Contingent Duty
  10. 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:

Rule 4 and 5:
Comparison of the transaction value of items that is identical or similar.

Rule 7:
Using the sale price of such 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 Custom Duty in India

With a few simple steps, one can pay customs duty online:

  1. Login to e-payment portal of ICEGATE.
  2. Enter the import or export code or log in with the credentials provided by ICEGATE.
  3. Now make an online payment.
  4. Check all e-challans under your name.
  5. Once you choose the payment method and the challan to be paid. You will be redirected to the payment gateway. 
  6. Your ICEGATE portal will be redirected to you once the payment has been made.
  7. You can now print and save your payment copy.

List of Bank 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 CODEITEM NAMECURRENT DUTYINCREASED DUTY
1012100pure-bred breeding horses0%30%
0511 99 11Artemia5%30%
0511 10 00Bovine Semen5%30%
0801 31 00Cashew nuts in shell2.5%30%
0802 51 00, 0802 52 00All goods (pistachios in shell, shelled)10%30%
0804 10 20, 0804 10 30All goods(Dates)20%30%
0805 10 00, 0805 50 00, 0806 10 00, 0808 30 00 or 0808 40 00All goods (citrus fruit, fresh)30%40%
0904 11 10Long pepper (Piper longum)30%70%
*0907All goods (cloves)35%70%
1001 19 00 or 1001 99 10Wheat40%100%
1005 10 00, 1007 or 1008 21, 1008 29All goods (maize corn)50%70%
100590All goods (popcorn)50%60%
1104 22 00De-hulled oat grain15%30%
1107 10 00, 1108 12 00All goods (malt)30%40%
1207 91 00All goods (other oil seed and oleaginous fruits)20%30%
1209 91 or 1209 99All goods (seeds, fruits and spores)5%30%
1401 10 00Bamboo25%30%
1702 11 or 1702 19All goods (other sugars etc.)25%30%
1905 31 00 or 1905 32All goods (waffles and wafers, sweet biscuits etc.)30%45%
2207 20 00All goods (ethyl alcohol)5%30%
2309 10 00All 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 10Crude or unrefined sulphur2.5%10%
2510Rock phosphate2.5%5%
2520 10 10, 2520 10 20, 2520 10 90Gypsum2.5%10%
2523 29All goods (Portland cements)0%10%
2528All goods (natural borated)2.5%10%
2601 to 2617All goods (iron ores, maganese ores)2.5%5%
2604 00 00Nickel Ore and Concentrate0%5%
2612 10 00Uranium Ore and Concentrates, for generation of Nuclear Power0%5%
2620 11 00, 2620 19All goods (hard zinc spelter)5%10%
2620 30All goods (brass dross)5%10%
2701, 2702, 2703All goods (coal, briquettes, lignite, peat)5%10%
2704, 2705, 2706All goods (coke, tar etc.)5%10%
2707All goods (benzol, toluol etc. oil)2.5%10%
2708All goods (pitches coke)5%10%
2710 12 50Avgas0%10%
2710, 2711, 2712, 2713, 2714 or 2715All goods (excluding naphtha), other than the goods5%10%
2710 12 21, 2710 12 22, 2710 12 29Naphtha2.5%10%
2711 19 10, 2711 19 20Liquefied petroleum gases (LPG)5%10%
2711 12 00Propane2.5%10%
2711 13 00Butanes2.5%10%
2713 12 10, 2713 12 90Calcined Petroleum Coke7.5%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 goods7.5%10%
2801 20 00Iodine2.5%5%
2818 20 10All goods (alumina calcined)5%10%
2825 40 00Nickel oxide and hydroxide0%10%
2844 20 00All goods, for generation of Nuclear Power0%10%
29 (except 29054300, 29054400 and 29337100)All goods7.5%10%
2901, 2902 (except 2902 43 00, 2902 50 00)All goods2.5%10%
2902 41 00o-xylene0%10%
2903 (except 2903 11 10, 2903 12 00, 2903 13 00, 2903 22 00) or 2904All goods5%10%
2902 43 00p-xylene0%10%
2902 50 00Styrene2%10%
2903 15 00Ethylene Dichloride (EDC)0%10%
2903 21 00Vinyl chloride monomer (VCM)2%10%
2905 31 00Mono ethylene glycol (MEG)5%10%
2910 20 00Methyl oxirane (propylene oxide)5%10%
2917 36 00Purified Terephthalic Acid (PTA), Medium Quality Terephthalic Acid (MTA) and Qualified Terephthalic Acid (QTA)5%10%
2917 37 00Dimethyl terephthalate (DMT)5%10%
2926 10 0Acrylonitrile2.5%10%
293371 00Caprolactam5%10%
2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505, 3809 10 00All goods20%30%
31 (except 31022100, 31023000, 31025000, 31043000, 31052000, 31053000, 31054000, 31055100, 31055900, 31056000, 31059010, 31059090)All goods (fertilisers)7.5%10%
3201, 3202, 3203, 3204, 3205 00 00, 3206 (except 3206 11, 3201 20 00 and 3206 19 00) or 3207All Goods (tanning extract, coloring matter, etc.)7.5%10%
3201 20 00Wattle extract2.5%10%
3403All 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 3827All goods CHEMICALS) other than those at S. No. 250A7.5%10%
3823 11 00, 3823 12 00, 3823 13 00, 3823 19 00 or 3823 70All goods7.5%30%
3901 to 3915 (except 3904 and 3908)All goods LDPE, HDPE, POLYMERS,POLYACETALS, PVA,ACRYLIC POLYMERS7.5%10%
3906 90 70Sodium polyacrylate5%10%
4001 21, 4001 22, 4001 29All goods (SMOKED SHEETS NATURAL RUBBER)25% or Rs. 30/- per KG, whichever is lower25%
5101All goods (WOOL)2.5%25%
5102All goods5%25%
5103 10 10, 5103 20 10, 5103 20 20, 5103 20 90Wool Waste5%25%
5103 10 90, 5103 30 00All goods other than Wool waste10%25%
5105 29 10Wool Tops2.5%20%
5201All goods (COTTON)5%25%
5301All goods (FLAX, RAW)0%30%
5303 10 00Raw jute5%25%
5401, 5402, 5403, 5404, 5405 00 00 or 5406All goods (sewing thread, synthetic yarn, filament yarn, monofilament yarn)5%20%
5501 to 5510All goods (filament tow, staple fibers, waste, yarn, sewing thread)5%20%
5511All goods5%25%
6815 91 00, 6901, 6902, or 6903All goods7.5%10%
7001 00 10All goods (ENAMEL GLASS RODS)5%10%
7015 10 10Rough ophthalmic blanks5%10%
7101 10 10 and 7101 21 00Raw pearls5%10%
7110 31 00, 7110 39 00Rhodium2.5%10%
7201, 7202, 7203, 7205 (excluding 7226 11 00)All goods (PIG IRON,FERRO ALLOY,FERROUS )5%15%
7202 60 00Ferro-nickel2.5%15%
7204All goods [Effective rate of ‘Nil’ will operate through S. No. 368 of 50/2017- Customs till 01.04.2023] SCRAP2.5%15%
7404COPPER WASTE SCRAP2.5%5%
7411 or 7412All goods (COPPER TUBE & PIPE, FITTING)7.5%10
75All goods (NICKEL)0%5%
7602Aluminium scrap2.5%5%
8105 20 10Cobalt mattes and other intermediate products of cobalt metallurgy2.5%5%
8110 10 00, 8110 20 00All Goods (MANGANESE)2.5%5%
8407 21 00Outboard motors5%15%
8419 19 20Water heaters7.5%10%
8421 39 20, 8421 39 90All 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 29All goods (PARTS OF MOTOR)7.5%10%
8504 10 10, 8504 10 20 or 8504 10 90All goods ELECTRIC TRANSFORMER7.5%10%
8546All goods ELECTRIC INSULATOR7.5%10%
8547All goods FITTING7.5%10%
9030 31 00, 9030 90 10All goods7.5%10%
8802 11 00 and 8802 12 00Helicopters2.5%10%
8902 00 10Trawlers and other fishing vessels0%10%
8905 10 00All goods, part of repair of dregers0%10%
8907 10 00All goods, floating structures, raft, etc.0%10%
8908 00 00All goods vessels2.5%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 98Goods required for medical, surgical, dental or veterinary use5%10%
9018 (other than items in entry at Sr. No. 563 and 9018 90 99), 9019 (other than 9019 10 20), 9020, 9021All goods7.5%10%
9108, 9110 or 9114 30 10Watch dials and watch movements5%10%
9506 91All goods10%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 on call: +91-9717360020 | email: cargodeal@falconfreight.com

Cargo shipping companies

To Know More

  • Import/Export, cargo mode: Air, sea, and by land.
  • Routine shipment, home consumption (duties paid)
  • Ex-Bond/In-Bond shipment
  • Shipments of DEPB, EPCG, and DFCEC licenses
  • 100% EOU / STPI / SEZ / TP for ship spares / R&D certification / passbook scheme
  • Import clearance for a project
  • Direct deliver perishables and certain cargo
  • Re-import after repairs / exhibition
  • Clearance of third-country exports
  • ATA carnet clearance
  • Second-hand capital goods
  • Free-of-charges shipments
  • Courier clearance
  • Door to door delivery

There are certain certificates that you must obtain from the concerned departments regarding the following items:

  • Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments)
  • Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. )
  • Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof)
  • Drug & Cosmetics Act, 1940, No-objection Certificate (NOC) from Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.)
  • BIS, Bureau of Indian Standards BIS is responsible for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto
  • EPR, Extended Producer’s Responsibility With EPR India authorization, the manufacturer / importer of electronic and electrical products has been given the responsibility to control E-waste by the products after expiry of their lifetime.
  • WPC, Wireless Planning & Coordination Imports of radio equipment into India, without prior permission from WPC, will be confiscated by Customs at point of entry.
  • LMPC, Legal Metrology & Packaged Commodity Registration  For import of any pre-packed commodities commodity to distribute or sell Then he need to apply for packer / manufacturer registration

Legal, Standard and Specific Documents Required

  1. Commercial Invoice
  2. Packing list
  3. KYC Documents Required by The CHA for Custom Clearance.
  4. GST (LUT)/ IGST declaration
  5. Export License (If required)
  6. AD Code on (Bank Letter Head)
  7. MSME Certificate (If required)
  8. RCMC/EPC Certificate (If required)
  9. AA (DEEC)/ DFIA/ EPCG/ EOU License For Export Benefits (incentive) (As an option the Exporter may Choose)
  10. Any other Documents required to in this Consignment.

Certificates From The Concerned Departments

In relation to the following items you will need to obtain certain certificates from the concern department, which we have provided you  below :

  1. Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments) (if required)
  2. Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof) (if required)
  3. Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. ) (if required)
  4. CDRUG – ADC Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.) (if required)
  5. SCOMET – Special Chemical organism, material Equipment, Technology.
  6. PSI – Pre Shipments Inspection. (if required)
  7. Certificate of origin.
  8. APEDA – Agriculture and processed food products Export development authority.
  9. FUMIGATION (if required)
  10. WILD LIFE (if required)
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