Rates of Customs Duty

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Rates of Customs Duty

Whenever an individual or a business entity imports some goods in India, they have to pay a certain amount of duty and some additional taxes. The value of goods on which the rate of duty is applicable is based on the total cost of imported goods, cost of insurance, and cost of freight. These elements together constitute the shipping value.

Apart from the duty, other taxes are also applicable to import goods. These taxes include lading charges, countervailing duty, true countervailing duty, education cess, etc. The duty rates in India range from 0% to 150%. No sales tax is applicable for imported items in India.

The rates of taxes are as follows:

  • Lading charges – 1% CIF (Cost, Insurance, and Freight)

  • Basic Duty on the assessable value

  • Countervailing duty (CVD) – 0%, 6% or 12% on the Assessable value + basic duty. CESS (Education + Higher Education) – 3% (Duty + Countervailing duty)

  • Additional CVD: 4% on (Assessable value+ all duties + CESS)

As mentioned earlier, the Tariff Schedule is divided into 21 sections and 98 chapters and each chapter contains a list of items with the rate of duty applicable. Let us have a brief look at the first schedule and the chapters that are included in it.

The classification as given in the first schedule of Customs Tariff Act, 1975 is as follows:

SECTION-I: Live animals; animal products

Chapter 1: Live Animals

Chapter 2: Meat and edible meat offal

Chapter 3: Fish and crustaceans, molluscs and other aquatic invertebrates

Chapter 4: Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere specified or included

Chapter 5: Products of animal origin, not elsewhere specified or included

SECTION-II: Vegetable products

Chapter 6: Live trees and other plants; bulbs, roots and the like; cut flowers & ornamental foliage

Chapter 7: Edible vegetables and certain roots and tubers

Chapter 8: Edible fruit and nuts; peel of citrus fruit or melons

Chapter 9: Coffee, tea, mate and spices

Chapter 10: Cereals

Chapter 11: Products of the milling industry; malt; starches; inulin; wheat gluten

Chapter 12: Oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder

Chapter 13: Lac; gums; resins and other vegetable saps and extracts

Chapter 14: Vegetable plaiting materials; vegetable products, not elsewhere specified or included

SECTION-III: Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes.

Chapter 15: Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes

SECTION-IV: Prepared foodstuffs; beverages and vinegar; tobacco and manufactured tobacco substitutes

Chapter 16: Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates

Chapter 17: Sugar and sugar confectionery.

Chapter 18: Cocoa and cocoa preparations

Chapter 19: Preparations of cereals, flour, starch or milk; pastrycooks’ products

Chapter 20: Preparations of vegetables, fruit, nuts or other parts of plants.

Chapter 21: Miscellaneous edible preparations

Chapter 22: Beverages, vinegar and spirits

Chapter 23: Residues and wastes from the food industries; prepared animal fodder

Chapter 24: Tobacco and manufactured tobacco substitutes

SECTION-V: Mineral products

Chapter 25: Salt; sulphur; earths and stone; plastering materials, lime and cement

Chapter 26: Ores, slag and ash

Chapter 27: Mineral fuels, mineral oils and products of their distillation; bituminous substances, mineral waxes

SECTION-VI: Products of the chemical or allied industries

Chapter 28: Inorganic chemicals; organic or inorganic compounds of precious metals, of rare earth metals, of radioactive elements or of isotopes

Chapter 29: Organic chemicals

Chapter 30: Pharmaceutical products

Chapter 31: Fertilizers

Chapter 32: Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks

Chapter 33: Essential oils and resinoids; perfumery, cosmetics or toilet preparations

Chapter 34: Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster

Chapter 35: Aluminoidal substances; modified starches; glues; enzymes

Chapter 36: Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations

Chapter 37: Photographic or cinematographic goods

Chapter 38: Miscellaneous chemical products

SECTION-VII: Plastics and articles thereof, rubber and articles thereof

Chapter 39: Plastics and articles thereof

Chapter 40: Rubber and articles thereof

SECTION-VIII: Raw hides and skins, leather, fur skins and articles thereof; saddler and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk – worm gut)

Chapter 41: Raw Hides and Skins (other than Furskins) and Leather

Chapter 42: Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)

Chapter 43: Furskins and artificial fur; manufacturers thereof

SECTION-IX: Wood and articles of wood; wood charcoal; cork and articles of cork; manufactures of straw, of esparto or of other plaiting materials; basket ware and wickerwork

Chapter 44: Wood and articles of wood, wood charcoal

Chapter 45: Cork and articles of cork

Chapter 46: Manufactures of straw, of esparto or of other plaiting materials; Basket-ware and wickerwork

SECTION-X: Pulp of wood or of other fibrouscellulosic material; recovered (wasteandscrap) paper or paper- board; paper and paper-board and articles thereof

Chapter 47: Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard

Chapter 48: Paper and paperboard; articles of paper pulp, of paper or of paperboard

Chapter 49: Printed books, newspapers, pictures and other products of the printing industry, manuscripts, typescripts and plans

SECTION-XI: Textiles and textile articles

Chapter 50: Silk

Chapter 51: Wool, fine or coarse animal hair; horsehair yarn and woven fabric

Chapter 52: Cotton

Chapter 53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarns

Chapter 54: Man-made filaments; strip the like of man-made textile materials

Chapter 55: Man-made staple fibres

Chapter 56: Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof

Chapter 57: Carpets and other textile floor coverings

Chapter 58: Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery

Chapter 59: Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use

Chapter 60: Knitted or crocheted fabrics

Chapter 61: Articles of apparel and clothing accessories, knitted or crocheted

Chapter 62: Articles of apparel and clothing accessories, not knitted or crocheted

Chapter 63: Other made up textile articles, sets, worn clothing and worn textile articles; rags

SECTION-XII: Footwear, headgear, umbrellas, sun umbrellas, walkingsticks, seat-sticks, whips, riding – crops and parts thereof, prepared feathers and articles made therewith; artificial flowers, articles of human hair

Chapter 64: Footwear gaiters and the like; parts of such articles

Chapter 65: Headgear and parts thereof

Chapter 66: Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof

Chapter 67: Prepared feathers and down and articles made of feather or of down – artificial flowers; articles of human hair

SECTION-XIII: Articles of stone, plaster, cement, asbestos, mica or similar materials: ceramic products: glass and glassware

Chapter 68: Articles of stone, plaster, cement, asbestos, mica or similar material

Chapter 69: Ceramic products

Chapter 70: Glass and glassware

SECTION-XIV: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof: imitation jewellery; coin

Chapter 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin.

SECTION-XV: Base metals and articles of base metal

Chapter 72: Iron and steel

Chapter 73: Articles of iron or steel

Chapter 74: Copper and articles thereof

Chapter 75: Nickel and articles thereof

Chapter 76: Aluminium and articles thereof

Chapter 77: Blank

Chapter 78: Lead and articles thereof

Chapter 79: Zinc and articles thereof

Chapter 80: Tin and articles thereof

Chapter 81: Other base metals; cermets; articles thereof

Chapter 82: Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base metal

Chapter 83: Miscellaneous articles of base metal

SECTION-XVI: Machinery and mechanical appliances, electrical equipment; parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and re-producers, television image and sound recorders and reproducers, and parts and accessories of such articles

SECTION-XVII: Vehicles, aircraft, vessels and associated transport equipment

Chapter 86: Railway or tramway locomotives, rolling-stocks and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds

Chapter 87: Vehicles other than railway or tramway rolling-stocks, and parts and accessories thereof

Chapter 88: Aircraft; spacecraft and parts thereof

Chapter 89: Ships, boats and floating structures

SECTION-XVIII: Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof

Chapter 90: Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof

Chapter 91: Clocks and watches and parts thereof

Chapter 92: Musical instruments; parts and accessories of such articles

SECTION-XIX: Arms and ammunition, parts and accessories thereof

Chapter 93: Arms and ammunition; parts and accessories thereof

SECTION-XX: Miscellaneous manufactured articles

Chapter 94: Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like; prefabricated buildings

Chapter 95: Toys, games and sports requisites; parts and accessories thereof

Chapter 96: Miscellaneous manufactured articles

SECTION XXI: works of art, collectors’ pieces and antiques

Chapter 97: Works of art, collectors’ pieces and antiques

Chapter 98: Project imports, Laboratory chemicals, passenger’s baggage, personal importation by air or post; ship stores

Although the list of duty rates is quite exhaustive, a part of the list is illustrated below. Figure shows how the rates are arranged in the tariff schedule (here, the use of four digit, six-digit and eight-digit codes should be noted):

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