All That You Need To Know About Import Duty

 

Introduction:

Customs Act was passed by the parliament of India in the year 1962. Which gives the government of India the authority to levy a tax on goods imported from foreign country. Import duty is charged on the actual imported value of goods. In addition to this, GST (Goods and Services Tax) came into existence by replacing many forms of taxes which was very cumbersome in nature. After the introduction of GST, it drastically changed the overall taxation system. Under import, IGST (Integrated Goods & Services Tax) is charged and proceeds of which directly goes to the central government.

Different types of duties under customs:

Basic Customs Duty:

This is applicable to all goods falling under section 12 of the Customs Act. These are levies prescribed in the first schedule of the Customs Tariff Act 1975.

Countervailing Duty (CVD):

It is similar to central excise duty, this is charged on goods produced within the geographical boundaries of India. It is calculated on the aggregate value of the goods which include basic customs duty and landing charges.

Education Cess:

The goods are subject to higher education cess which will be charged at 2%

Anti-Dumping Policy:

This is levied when the value of the goods is less than the market price.

Calculation of taxes payable on import of goods:

Actual value of goods imported + Basic Customs Duty = value after customs duty × IGST Rate = Value after IGST

Customs Duty + IGST+GST Cess = Total value of duties payable on imports

Customs Duty Rates:

Depending on the nature of goods, the duty rates vary from 0% to 150%. At the same time, there are some goods which are exempt from paying import duty. Since rates are subject to change from time to time, you could refer to Central Board of Indirect Taxes & Customs

While you plan to import goods from China, you might probably find the above import formalities a little scary. Don’t worry, Oyeexpress is here to make your life easy. We have a specialized team who will take care of all import duty related formalities. You could reach out to us and leave the rest to us.

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