How to Calculate Effective Rate of Import Duty?
- Blog|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 23 June, 2022
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Checkout CENTAX R.K. Jain’s Customs Tariff of India | Set of 2 Volumes which provides the complete text of the rate of duties as applicable on import and export of goods with amended tariff schedules w.r.t. to changes coming to effect from 1-5-2022 as per the Finance Act 2022. The book's coverage includes Customs Duty Rates & Exemptions, IGST, Export Tariff, Cesses, Anti-dumping, Safeguard, Additional Duties & Commodity Index.
R.K. Jain’s Customs Tariff of India has been divided into following nine parts comprising in Two Volumes:
Part 1 – Customs Tariff Act, 1975 (Text) [Vol. 1]
Part 2 – Import Tariff – First Schedule [Vol. 1]
Part 3 – Export Tariff – Second Schedule [Vol. 2]
Part 4 – IGST – Integrated Goods and Services Tax [Vol. 2]
Part 5 – Annexures (containing Compensation Cess, Road and Infrastructure Cess, Social Welfare Surcharge, NCCD, Health and Other Cess, Additional Duty, Special Duty & Baggage Rules) [Vol. 2]
Part 6 – Safeguard Duty [Vol. 2]
Part 7 – Anti-dumping Duty & Countervailing Duty on Dumped Articles [Vol. 2]
Part 8 – Correlation of Customs Tariff between 2021 and 2022 [Vol. 2]
Part 9 – Miscellaneous (Indexes) [Vol. 2]
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- For Basic Customs Duty, See Part 1 – Import Tariff which gives Customs duty rates as per First Schedule.
- For exemption either in full or in part, reference to the General Exemption Notifications are provided in each Chapter. The relevant notification may be referred to arrive at effective rate of duty. If there is any specific exemption on one or more goods of a particular Chapter, exemption notification provided under that Chapter may be seen.
- For Additional Duty (CVD) on items now covered under Central Excise i.e. Specified Petroleum Products and Tobacco products, please refer Annexure 2 in Part 5. Now, CVD rates are as per Schedule to Central Excise Act, therefore, the same may be referred to in the Central Excise Act.
- For Integrated Goods and Services Tax (IGST) leviable under IGST Act, 2017, see Part 4.
- For GST Compensation Cess, wherever applicable, see Annexure 1 in Part 5
- For Special Customs Duty, see Annexure 4 in Part 5.
- Social Welfare Surcharge, see Annexure 5 in Part 5.
- Road and Infrastructure Cess, see Annexure 6 in Part 5.
- Health Cess, See Annexure 6A in Part 5
- Anti-dumping duty can be seen in Part 7.
- Safeguard duty is provided in Part 6.
| Calculation of Effective Duty on Import of Goods – Illustration | |||
| Sl. No. | Particulars | Rate (%) | Amount (Rs.) |
| 1. | Transaction value of an item | – | 100 |
| 2. | Basic Customs Duty on S. No. 1 | 10 | 10 |
| 3. | Social Welfare Surcharge on Sl. No. 2* | 10 | 1 |
| 4. | IGST on Sl. No. 1+2+3 | 18 | 19.98 |
| 5. | Compensation Cess – say 12% on Sl. No. 1+2+3 (if applicable) | 12 | 13.32 |
| Effective Duty | 44.3 | ||
*2 Social Welfare Surcharge on IGST and Compensation Cess payable on imported goods is exempted vide Notification No. 13/2018-Cus., dated 2-2-2018.
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