An Overview of India’s Customs and Dutiable Goods System

India Custom Duty Rate & Dutiable Goods Conducting import and export related businesses in India requires an understanding of how the custom duty rate and dutiable goods framework works.


What Is the Customs Duty Rate?

The customs duty rate is the tax that is imposed on goods when the goods are transferred across a country’s international borders. Customs duties are levied to help protect the nation’s economy. That is the whole purpose of this duty, to protect and regulate the movement of these goods. It is also how the relevant authorities keep tabs on the movement of restricted and prohibited goods as they move in and out of the country.

The rate that gets imposed on these dutiable goods is decided by several factors. These factors include:

  • Where the goods came from
  • Where the goods were manufactured
  • What the goods are made of

Any goods that are brought into India for the first time must be declared. This is the Customs requirement that any goods or gifts purchase in a foreign country be declared when they are brought back to India.


The Types of Customs Duties in India

Nearly all goods will be universally charged with a customs duty rate if they are imported. The duties are then computed on an ad valorem basis. This means that the duty rates are calculated based on the value of the goods in question. In India, the rules are determined per the Customs Valuation (Determination of Value of Imported Goods) Rules 2007.

The types of customs duties include the following:

  • Education Cess on Custom Duty
  • Countervailing Duty (CVD)
  • Basic Customs Duty (BCD)
  • Additional Customs Duty or Special CVD
  • Anti-dumping Duty
  • Protective Duty


How to Pay for Your Custom Duty in India

To pay the fees for your dutiable goods in India is simple. In India, a system known as the Indian Customs Electronic Commerce/Electronic Data Interchange Gateway (ICEGATE) is used as the payment portal. All you could need to do is log in with your ICEGATE credentials and click the e-payment button.


Is There a Custom Duty Exemption in India?

Yes, there is a Duty Exemption plan per the Foreign Trade Policy (2015-20) as of 31 March 2019. This plan allows for duty-free import of inputs that are needed for India’s export production. You will need to be issued with an advance license under this plan.

India Custom Duty Rate & Dutiable Goods