Custom duty is that kind of duties levied on the export and import goods. The Customs Act, 1962 has underlined certain provisions to collect taxes or tariffs from import and export of goods. To adjust with the changing nature of taxation systems Indian Government has amend the principal Act from time to time. Currently custom duties in India are largely governed under the Customs Tariff Act, 1975.

The Central Board of Excises Customs (CBEC) under Ministry of Finance is acting as the principal authority to handle custom duty related affairs. The "Indian Customs Tariff Guide regularly published by CBEC provides all types of information on custom duty rules and regulation in India.

The Customs Duty in India is levied in different forms such as Basic Duty, Countervailing Duty, Anti Dumping Duty, Protective Duty, Export Duty and Duty on Bounty Fed Articles. In case of Basic Duty the tariff rate varies from 5% to 40%. Countervailing Duty is levied on the real value of the item in addition to the basic custom duty. Anti Dumping Duty is a preventive measure to protect the domestic production industries. It is levied additionally on less expensive foreign goods, so that the flow of such items could not affect the local market. Protective duty is a special type anti dumping duty, which protects the interest of domestic industries. Export Duty is that kind of tariff levied on export of goods.

Custom duties in India are also governed under various international rules and regulations. We follow custom duty guidelines defined by GATT, WTO and other international agreements.

Custom Duty