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Custom Import Duty on Importing Goods.


Introduction

The concept of import duty is very wide and is almost applicable to every product or item imported to India barring a few goods like food grains, fertilizer, life saving drugs and equipment etc. Import duties form a significant source of revenue for the country and are levied on the goods and at the rates specified in the Schedules to the Customs Tariff Act, 1975.

Import through Sea
Territorial water extends up to 12 nautical miles into the sea from the coast of India and so the liability to pay import duty commences as soon as goods enter the territorial waters of India. No duty is livable on goods which are in transit in the same ship or if goods are in transit from one ship to another.

Basic duty

Basic Duty is a type of duty or tax imposed under the Customs Act (1962). Basic Customs Duty varies for different items from 5% to 40%. The duty rates are mentioned in the First Schedule of the Customs Tariff Act, 1975 and have been amended from time to time under the Finance Act. The duty may be fixed on ad –valorem basis or specific rate basis. The Central Government has the power to reduce or exempt any good from these duties.

Additional customs
Additional duty also known as countervailing duty or C.V.D is equal to excise duty imposed on a like product manufactured or produced in India. It is implemented under the Section 3 (1) of the Indian Custom Tariff Act. The Government has exempted all goods, when imported into India for subsequent sale, from the whole of the additional duty of customs leviable thereon under Sub-Section (5) of Section 3 of the Customs Tariff Act vide Customs Tariff Notification No. 102/2007 dated 14th September 2007. However, the importers will be first required to pay the said duty and thereafter required to claim the refund.

Special additional duty
Special Additional Duty of Customs is imposed at the rate of 4% in order to provide a level playing field to indigenous goods which have to bear sales tax. This duty is to computed on the aggregate of –

  • assessable value;

  • basic duty of Customs;

  • surcharge; and

  • additional duty of Customs leviable under section 3 of the Customs Tariff Act, 1975 (c.v.d.)

Anti-Dumping Duty
Dumping means exporting goods in a foreign market at a price which is less than their cost of production or below their "fair" market value. Dumping gives a hard competition to a domestic goods manufacturer. So, to counteract this dumping, the Indian government has formulated certain guidelines and policies. Imposing duty on imported goods is also one of them and is known as Anti-Dumping Duty.

All the laws related to anti-dumping duties are mention in the sections 9A, 9B and 9C of the Indian Customs Tariff Act (1975), and the Indian Customs Tariff Rules (1995). These laws are based on the Agreement on Anti-Dumping which is in pursuance of Article VI of GATT 1994.

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What is New?

Date: 25-11-2014
Central Excise INSTRUCTION
Regarding procedure of service tax refund/exemption to SEZ

Date: 25-11-2014
RBI/2014-15/316 A.P. (DIR Series) Circular No. 41
Routing of funds raised abroad to India

Date: 21-11-2014
RBI/2014-15/309 A.P. (DIR Series) Circular No. 39
External Commercial Borrowings (ECB) Policy – Parking of ECB proceeds

Date: 21-11-2014
RBI/2014-15/310 A.P. (DIR Series) Circular No.40
Release of Foreign Exchange for Haj/ Umrah pilgrimage

Date: 21-11-2014
Customs Notification No. 32/ 2014
Seeks to exempt from customs duty goods required for the Intensified Malaria Control Project funded by GFATM.

Date: 21-11-2014
Customs Notification No. 44/2014-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of diclofenac sodium, originating in or exported from People's Republic of China, for a period of five years.

Date: 21-11-2014
Customs Notification No. 45/2014-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of Digital Versatile Discs-Recordable (DVD-R and DVD-RW), originating in or exported from People's Republic of China, Hong Kong and Chinese Taipei for a period of five years.

Date: 21-11-2014
Central Excise Notification No 23/2014
Seeks to exempt from excise duty goods required for the Intensified Malaria Control Project funded by GFATM.

Date: 20-11-2014
DGFT Public Notice No.75/(RE 2013)/2009-14
Modification of SION A-1475 and SIONs A-1839, A-1841 and A-1842.

Date: 20-11-2014
Customs Notification No 111/2014 (NT)
Rate of exchange of conversion of each of the foreign currency with effect from 21st November, 2014