India Import Duty, Customs Tariff Rates & Duty Calculation Guide

Import duty in India is a tax levied on goods imported into the country. The duty is imposed by the Central Government of India under the Customs Act, 1962. The purpose of import duty is to regulate the flow of goods into the country, protect domestic industries, and generate revenue for the government. Import duty varies by product and is typically a percentage of the assessable value of the goods. In addition to import duty, imported goods are also subject to 18% GST and other taxes, which are levied on the assessable value plus the import duty.

Import duty in India can be calculated in two ways: ad valorem and specific. Ad valorem duty is a percentage of the assessable value of the goods, while specific duty is a fixed amount per unit of the goods. The assessable value is the value of the goods plus any freight and insurance costs. For example, if the assessable value of a product is INR 100,000 and the import duty is varies by product, the total duty payable would be a percentage of INR 100,000.

HS codes, also known as Harmonized System codes, play a crucial role in the calculation of import duty in India. HS codes are used to classify goods into different categories, and each category has a specific import duty rate. The HS code is used to determine the assessable value of the goods and the applicable import duty rate. It is essential to use the correct HS code to avoid any errors in duty calculation and to ensure compliance with Indian customs regulations.

Preferential origin refers to the country of origin of the goods, which can impact the import duty rate. India has signed several free trade agreements with other countries, which provide for reduced or zero import duty rates on certain goods. To claim preferential origin, the importer must comply with the rules of origin specified in the agreement and provide the necessary documentation, such as a certificate of origin. The preferential origin can significantly reduce the import duty payable, making it essential to understand the rules of origin and the applicable agreements.

To calculate the import duty, the following steps can be followed: (1) determine the assessable value of the goods, (2) classify the goods using the correct HS code, (3) determine the applicable import duty rate, (4) calculate the import duty payable, (5) add the 18% GST and other taxes, and (6) pay the total duty and taxes in INR. For example, if the assessable value of a product is INR 100,000 and the import duty is varies by product, the total duty payable would be a percentage of INR 100,000, plus 18% GST on the assessable value plus the import duty.