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 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 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
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 –
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
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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