Import duty and taxes are due when importing goods into India whether by a private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. Duty in particular is calculated on the sum of the CIF value and landing charges (explained below). Some duties are also based on quantity measurements. In addition to duty, imports are subject to other taxes and charges such as landing charges, countervailing duty, CESS, and education CESS.
Duty rates in India can be ad valorem (as a percentage of value) or specific (rupees per unit). Duty rates vary from 0% to 150%, with an average duty rate of 11.9%. Some goods are not subject to duty (e.g. laptops and other electronic products).
There is no sales tax in India for imported goods.
There is no minimum threshold in India, i.e. all imports regardless of their value are subject to duty and taxes.
Other taxes and custom fees
- Landing charges: 1% CIF
- Countervailing duty (CVD): (0%, 6% or 12% (CIFD + Landing charges))
- CEX (Education & Higher Education CESS): 3% Countervailing duty
- CESS (Education + Higher Education): 3% (Duty + CEX (Education & Higher Education CESS) + Countervailing Duty)
- Additional CVD: 4% (CIFD +Landing charges + Countervailing duty + CESS + CEX(Education and Higher Education CESS))
Local Customs office and contacts
More information on import declaration procedures and import restrictions can be found at theIndian Customs website.