Custom Duty - Rates, payment

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Custom Duty - Rates, Valuation, Online Payment
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CONTENTS

• Introduction
• Custom duty on imports and exports
• Custom duty rates
• Types of custom duty
• Valuation of custom duty
• Custom duty payment

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CUSTOM DUTY INTRODUCTION

• Custom Duty is a type of indirect tax levied on
  imports (imported goods) into India and exports
  (exported goods) out of India.
• Duties levied on exported goods are known as
  Export Duty, and duties levied on imported goods
  are known as Import Duty.
• Countries levy customs duty on import or export
  of goods as a means to raise revenue.

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CUSTOM DUTY ON IMPORTS AND EXPORTS

• It is levied as per the value of goods or weight,
  dimensions and another such basis according to
  the goods. 
• If duties are based on the quantity/dimensions/wei
  ght, then they are called as specific duties.
• If duties are based on the value of goods, they
  are called as ad valorem duties.
• The combination of both value of goods and
  quantity/weight, as well as various other
  factors, are called as specific duties

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CUSTOMS DUTY IN INDIA

• Customs duty in India is defined under the
  Customs Act, 1962. All matters related to Customs
  Duty fall under the CBEC (Central Board of Excise
  Customs).
• Central Board of Excise Customs has various
  divisions that take care of the field work
  including Customs, Commission rate of Customs,
  etc.
• Some of the definitions under Customs Act, 1962
  is as follows.
• Bill of Entry Basic document for the assessment
  of custom duty.
• Customs Airport It means any airport appointed
  under Sec 7(a) to be a customs airport and
  includes a place appointed under section 7(aa) to
  be an air freight station.

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• Customs Area The area of the custom station and
  includes any area in which imported goods or
  export goods are ordinarily kept before clearance
  by customs authorities.
• Custom Station Custom Station means any customs
  port, customs airport or land custom station.
• Dutiable Goods Any goods which are chargeable to
  duty and on which duty has not paid.
• India India includes Indian territorial waters.
  It also includes any creek or tidal water.

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CUSTOM DUTY RATES

• The Basic Customs Duty are 5, 7.5 10.
• The highest rate of basic customs duty is 10 for
  non-agricultural items (with some exceptions).
• On baggage, the general rate of duty is 35 and
  no additional duty of customs is leviable on
  baggage.

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TYPES OF CUSTOM DUTY

• Basic Custom Duty
• Additional Customs Duty
• Protective Duty
• Safeguard Duty
• Anti-dumping Duty
• Anti-subsidy Duty
• Education Cess

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Classification of Goods

• The Customs Tariff Act, 1975 provides
  the Classification of Goods and the Rates of
  Custom Duty. It comprises of 2 schedules.
• First Schedule.
• Second Schedule.
• First Schedule In this schedule goods chargeable
  with import duty are listed. It is also known as
  Import Tariff.
• Second Schedule In this 2nd schedule goods
  chargeable with export duty are listed. It is
  also known as Export Tariff.

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Valuation of Custom Duty

• Import Valuation Rules
• Transaction value of identical goods
• Transaction value of similar goods
• Deductive Value
• Computed Value
• Residual method of valuation
• Export Valuation Rules
• Transaction value
• Determination of value by comparison
• Computed value
• Residual method

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Custom Duty Payment

•  procedure for Custom Duty Payment
• Customs Duty can be paid online in the portal
  icegate.gov.in.
• Visit the website and click on e-Payment or
  utilise the direct link given below.
• Enter the IEC and Location Code, which are
  mandatory and click on submit.
• You can see all the unpaid challans of yours.
• Select the desired challan and choose a payment
  method.
• Make the payment at that particular banks
  payment gateway.
• After payment, you will be redirected to
  the ICEGATE portal.
• Take a print of payment copy for further
  reference.

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