The parts of import duty
| Part | How it's worked out |
|---|---|
| Assessable value | The CIF value of the goods (cost, insurance and freight to India), converted to rupees at the exchange rate customs notifies. |
| Basic customs duty (BCD) | A percentage of the assessable value, set per product in India's customs tariff. It can be zero or high. |
| Social welfare surcharge (SWS) | 10% of the basic customs duty, not of the goods' value. If BCD is exempt, SWS usually is too. |
| IGST | The GST rate for the product, charged on the assessable value plus BCD plus SWS. |
A worked example
Using example rates of 10% BCD and 18% IGST. Your product's real rates will differ.
| Assessable value (CIF in rupees) | ₹1,00,000 |
|---|---|
| Basic customs duty at 10% | ₹10,000 |
| Social welfare surcharge: 10% of BCD | ₹1,000 |
| IGST at 18% on ₹1,11,000 | ₹19,980 |
| Total paid at customs | ₹30,980 |
IGST credit for businesses
A GST-registered importer can usually claim the IGST paid at import as input tax credit against the GST it charges on sales. So for a business, the duty that really stays as cost is the basic customs duty and surcharge: ₹11,000 in the example above, not ₹30,980. The IGST is a cash-flow cost until the credit is used. Buyers who aren't registered for GST bear the full amount.
Other duties to check
- Anti-dumping and safeguard duties on specific products from specific countries.
- Agriculture Infrastructure and Development Cess on some goods.
- Other product-specific levies listed in the current customs tariff and notifications.
Lower duty under trade agreements
If the goods come from a country India has a trade agreement with and meet its rules of origin, basic customs duty may be lower or zero. To claim it, the importer declares the preference in the Bill of Entry and holds proof of origin from the exporter, under India's CAROTAR 2020 rules. Since March 2025 the rules refer to “proof of origin” rather than only a certificate of origin. The importer must be able to back up the claim if customs asks.
Finding your rate
Rates depend on the eight-digit tariff code. Check the current customs tariff published by CBIC, or ask a licensed customs broker. If you don't know your code yet, start with our HS code guide. Once you have the rates, the import duty calculator does the sums.
Questions
Is the social welfare surcharge 10% of the goods' value?
No. It is 10% of the basic customs duty amount. On goods worth ₹1,00,000 with 10% BCD, the surcharge is ₹1,000, not ₹10,000.
Does this example include every import levy?
No. Some products attract additional duties or cesses. Check the current tariff and notifications for your exact eight-digit code before quoting a landed price.
Which exchange rate does customs use?
The rate notified by the Central Board of Indirect Taxes and Customs (CBIC) for imports, which is updated periodically. It can differ from your bank's rate.