Custom Duty?

What is Custom Duty?




Customs duty may be a kind of taxation that's levied on all merchandise|the products} that ar foreign to the country additionally as some goods exported from the country. The duty levied on the previous is said as tariff whereas that on the latter is said because of the tariff. To alter it, any tariff that's introduced on product across national borders is said as custom duty.





The duty levied depends on the worth of the products, its dimensions and weight beside a lot of different criteria. whereas value-based duties ar referred to as Valorem duties, quantity-based duties ar referred to as specific duties. On the opposite hand, duties on values and different factors ar referred to as compound duties.

Customs Duty in the Asian nation




Custom Duty within the country falls beneath the Customs Act, 1962. As per this act, the govt. levies duties on each import and export of products besides their procedures, prohibitions, penalties, etc. Matters relating this duty be the CBEC (Central Board of Excise and Customs), a division of the Department of Revenue of the Ministry of Finance.




The CBEC helps in formulating policies w.r.t. the gathering and imposition of customs duties as well as custom duty evasions, interference of importation, etc. It oversees the tax administration of midland and foreign travel. its completely different divisions to require care of fieldwork like the Commissionerate of Customs, Central Revenues Laboratory, and Directorates, etc.

Types of Custom Duty




Custom duties ar levied on nearly all products that ar foreign into the state. whereas export duties are levied on product as mere by the Second Schedule, import duties don't seem to be levied on bound things like fertilizers, food grains, rescue medicine, etc. Custom duty is often classified into subsequent types:




Basic Customs Duty: This duty is obligatory on the worth of products at a mere rate because it is fastened on the associate ad-valorem basis. when being amended time and once more, it's presently regulated by the Customs Tariff Act, 1975. The Central Government, however, holds the right to exempt specific products from this tax.




Countervailing Duty: CVD or further duty is levied on a foreign product that is Section three of the Customs Tariff Act of 1975. it's an equivalent because the Central Excise Duty that is levied on similar product that ar made in Asian nation.




Education Cess: The cess accustomed be levied at two and a further I Chronicles of the combination of customs duties.




protecting Duty: This duty is obligatory so as to protect the domestic trade against the imports at rates that arcounseled by the Tariff Commissioner.




Safeguard Duty: because the name suggests, this duty is a way of safeguarding the increase in exports. Sometimes, if the govt. feels that an increase in exports will injury the prevailing domestic trade, it's going to levy this duty.




Anti-Dumping Duty: This duty relies on the marketing margin, i.e. the distinction between the export worth and therefore the traditional worth. it's solely obligatory once the products that ar foreign ar below the honest market value.




Calculating Custom Duty




Custom duty is often calculated on either a particular or an advertisement Valorem basis. the worth of products, for the latter, is set by Rule 3(i) of the Customs Valuation Rules, 2007. If there's no quantitative knowledge w.r.t. valuation factors, then the valuation of the things is completed mistreatment different means that supported a system of hierarchy, as follows:




Comparative price Method: This methodology compares group action values of things similar in nature (Rule 4)




Comparative price Method: This methodology compares group action values of things similar in nature (Rule 5)




Deductive price Method: This methodology uses the sale worth of things within the commerce country (Rule 7)




Comparative price Method: This methodology uses prices connected the fabrication, materials additionally as profit within the production country (Rule 8)




retreat Method: This methodology relies on the sooner ways that provide higher flexibility (Rule 9)




Custom Duty on-line




The portal that contains on-line custom duty is that the ICEGATE or Indian Customs Electronic Commerce/Electronic knowledge Interchange (EC or EDI) entry. It permits the purchasers of the Customs Department associate e-filing service that has trade and wares carriers, that is conjointly referred to as mercantilism Partner. Through ICEGATE, one will do associate electronic filing of Bill of Entry and shipping bills beside messages between the mercantilism partner and customs through email, net transfer or FTP. This portal notably helps airline and shipping agents World Health Organization file their manifests. to boot, wares supplying additionally as custodians are ready to have interactions with customs EDI for items of knowledge associated with wares and supplying. Besides e-filing, document trailing, e-payment, on-line registration of IPR, PAN primarily based CHA knowledge, code standing and verification of bound licenses are often done too. For any queries and problems, the 24*7 service is often contacted by mercantilism partners.

Payment of Custom Duty




In the world of the web, payment of customs duty hasn’t been left so much behind. It will simply be paid on-line with many straightforward steps:




First, access the e-payment portal of ICEGATE




Then, enter the import or export code or just key within the login credentials given by ICEGATE




Finally, click on e-payment




you'll be ready to check all the e-challans that ar in your name




you'll then choose the challan that you've got to pay and opt for the payment methodology or choose the bank




you'll be redirected to the payment entry of the bank




Initiate the payment




Once it's done, you'll be redirected to the ICEGATE portal




The last step would be to click on the print button and save the payment copy.




Custom Duty Calculator




This calculator is an easy tool for scheming the custom duty you've got to pay. you'll gain access to that at the ICEGATE portal. Upon accessing the custom duty calculator, you'll enter the CTH or HS Code of the products that you just arrange to import. you'll enter an outline of most thirty characters so choose the country of origin, be it for discriminatory duty or antidumping. If you wish to envision the list of products, then merely click on the search tab and therefore the list matching your criteria can seem. you'll opt for the correct one so gain access to a chart loaded with relevant info. during this dynamic chart, you'll enter the values to visualize the precise custom duty you have to be compelled to pay.

Custom Duty Rates




These rates will either be specific or ad val. The duty, in general, varies from the vary 0-150%. the common rate, but is eleven.90%. there's a listing to see for a product that are exempted from this duty.




There are different sorts of fees that ar applicable to custom duty. They include:




LC: Landing charge – I Chronicles CIF




CVD: tariff – third, 6 June 1944 or 12-tone system (CIFD + LC)




CEX: Education and better Education Cess – three-dimensional CVD




CESS: Education + pedagogy – three-dimensional (Duty + CEX (Education and better Education Cess) + CVD)




further CVD: four-dimensional (CIFD + LC + CVD + CESS + CEX)