Here’s Everything You Need to Know About Customs Duty India

Simply begin with the definition; “Customs Duty” states to the tax levied on the commodities when they are transported across the global borders. The only aim behind charging Custom Duty India is to defend each country’s environment, jobs, residents, and economy by regulating the movement of products particularly preventive and banned products in and out of any country.

Six months back, India has raised customs duty on a number of products like washing machines, tableware, footwear, jewelry, air-conditioners, furniture fittings and many more.

Here is listed the Revised Custom Duty India Rate for the Following Items:-

Product’s Name	Previous Rate	Current Revised Rate
Air conditioner	10	20
Washing machines (less than 10 kg)	10	20
Non-industrial diamonds	5	7.5
Cut & polished colored gems stone	5	7.5
Bath, sink, washbasin, shower bath, etc.	10	15
Aviation turbine fuel	0	5
Compressor for refrigerators & ACs	7.5	10
Speakers	10	15
Radial car tires	10	15
Footwear	20	25
Tableware, kitchenware, and other household items of plastics	10	15
Trucks, briefcases, travel bags, suitcase, and other bags	10	15
Decorative sheets, beads, bangles, etc.	10	15
Items of plastics like boxes, bottles, containers, etc.	10	15
Lab-grown diamonds	5	7.5

Every product has a predefined Custom Duty India rate that is determined based on several factors like where such products were acquired, where such goods were made, etc. As well as, anything that you bring into India for the very first time should be declared the items bought in a global country and any gifts which you obtain outside India..

What Are the Types of Customs Duty?

Customs duties are imposed almost universally on products which are imported into a country. These are divided into the following taxes:-

·         Basic Customs Duty

·         Countervailing Duty

·         Additional Customs Duty or Special CVD

·         Protective Duty

·         Anti-dumping Duty

·         Education Cess on Custom Duty

How is Customs Duty India Calculated?

Customs import duty is calculated on an exact or ad valorem basis. In another way, it is calculated on the value of products. Such value is determined as per the rules laid down in the Customs Valuation Rules, 2007. Calculation of items is done through the following ways:-

·         Rule 4 & 5- Comparative Value Method compares the transaction value of equal or similar products.

·         Rule 7- Deductive Value Method that uses sale amount of any item in the importing nation.

·         Rule 8- Computed Value Method that works costs related to fabrication, materials, and revenue in the country of manufacture

·         Rule 9- The Fallback Method i.e. based on earlier ways along with an element of greater flexibility.

In the business of import-export where people are importing and exporting their goods, Customs Duty India plays an important role. Also, it is compulsory to know your product’s actual import and export data to operate trading transactions without any hassles. If you want to keep updated with this tax rate system then you can consult any market research company online. A lot of options present out there.