Information on Import Customs Duties and their Calculation
A) Basic Customs Duty
This duty is
leviable on the assessable value.
The basic customs duty rates are 0%, 15%, 25%, 30 % or
which the item has been classified.
B) Additional Duty or Counterveilng Duty
is leviable on the assessable value + basic customs duty. The
duty rate is equivalent to the Central Excise Duty leviable on the similar
item manufactured in India. The
duty rate is therefore ascertained
from the Central Excise Tariff.
Generally the CVD rate is 16%. However,
the applicable duty rate would be arrived at after
considering the notification applicable to
the relevant chapter under which the item has been classified.
In certain cases (mostly consumer goods) the CVD is chargeable on Minimum Retail Price (MRP). In such cases the importer has to declare the MRP of the item and the CVD is then chargeable on MRP and not on assessable value plus basic customs duty.
C) Special Additional Duty
This is a duty chargeable in lieu of sales tax and the general rate is 4 %. Specific exemption notifications may also be applicable. The special additional duty is leviable on assessable value + basic customs duty + CVD.
D) Other Duties
Besides the above three
main duties, there are at times other duties applicable to the item of import.
Such other duties are Safe-Guard Duty, Antidumping Duty, Special
Excise Duty under the Second Schedule, Additional Duties on Textiles,
Excise Duties – Cesses Leviable under Miscellaneous
Acts, Additional Duty under Additional Duties of Excise (Goods of Special
E) Duty Calculation
The Gross Duty calculation for some of the general duty rates is as follows :-