7. What is a custom duty?
Custom duty is a tax imposed on goods transported across international borders, designed to regulate trade and protect domestic industries. In India, it includes the Basic Customs Duty (BCD), Integrated Goods and Services Tax (IGST), and other cesses. You can calculate your exact charges using the ICEGATE Trade Guide. [1, 2, 3, 4]
Customs duties are typically assessed based on the Harmonized System of Nomenclature (HSN) code, which classifies your product, alongside its assessable value (the cost of the goods, insurance, and freight). [3, 4, 5]
To figure out exactly how much you will pay for a specific item entering or leaving the country, you can:
- Look up HS Codes: Determine your item's 8-digit HSN classification.
- Estimate Taxes: Use the official Indian Customs EDI System (ICEGATE) to get accurate rates for your specific import/export scenario.
- Check Personal Allowances: If you are traveling and bringing goods into India for personal use, review the allowances on the Central Board of Indirect Taxes and Customs (CBIC) to understand what you can bring duty-free and what must be declared. [1, 6, 7, 8]
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