Know About Indian Custom Duty

”Custom Duty” is just a tax system imposed on imports & exports of products to and from any country in the world. It is levied by the customs authorities of India to hike state revenue and to defend local industries from predatory opponents from foreign countries.

This is completely based on the value of commodities/goods or upon the dimensions, weight or other criteria of an item/product (like the size of the engine in case of vehicles). Export and import business is an area that needs the movement of products on every border.

Every country has its own rules and regulations about tax. If we are talking about India, a few months back Customs Duty India has hiked on several products including refrigerators, jet fuel, and ACs. Complete import bill on account of a consignment of these products/goods into the nation last fiscal was Rs 86,000 crore, finance minister of India said in a statement.

Other products comprise jewelry products, plastic articles, suitcases, speakers, washing machines, radial car tyres, and tableware.

After this change, import duty was doubled to 20% on washing machines, ACs, and refrigerators (less than 10kg). All these changes in the prices of basic custom duty have applied from midnight of September 26 to 27, 2018. Cutting non-essential imports was part of the 5 pronged steps announced by the Indian government in order to check dispersal capital outflows and account deficit.

Custom Duty is a tax that one should pay for exporting and importing products. Now check out some types of this tax system:-

• Basic Customs Duty- This one is imposed on the value of the products at a specific rate. It is fixed at a specified rate of ad-valorem basis.

• Countervailing Duty- It is levied by the central government when a nation is giving the subsidy to the exporters who are exporting products to India.

• Special CVD or Additional Customs Duty- To equalize imports with local taxes such as VAT, service tax and other local taxes which are levied from time to time, this tax system is imposed on imported products.

• Safeguard Duty- This one is levied to safeguard the attention of local domestic industries and also ensure that no harm is caused to the Indian domestic industries.

These are some types of Custom Duty that you should have known if you’re a part of the import-export industry.

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