There are different types of custom duty that are levied in India. Let us delve into the details in the following sections of this Indian Money review.
Types of Custom Duty
Listed below are the different types of customs duties
Basic customs Duty: As per IndianMoney.com reviews, imported goods are levied with Basic Customs Duty, BCD, on the assessable value. Basic Duty is a type of duty or tax imposed under the Customs Act (1962). The duty may be fixed on specific rate basis. The Central Government has the power to reduce or exempt any good from these duties.
Education CESS: This is a tax that is levied by the Government to finance basic education in India. According to Indian Money Company, the CESS is levied at 2% and an additional 1% of the aggregate of the customs duties.
Countervailing Duty: Indian Money reviews show that this is a type of additional customs duty levied on goods that fall under Section 3 of the customs tariff act, 1975. It is the same as central excise duty levied on smaller goods produced in India.
Protective duty: Protective tariffs are taxes or duties placed on foreign goods by a national or state government in order to protect domestic products and markets.
Safeguard Duty: As per Indianmoney.com Bangalore, the safeguard duty is a type of tax, which aims to safeguard against the rise in exports. The safeguard taxes are levied on goods when the government feels that the rise in exports can damage the existing domestic market.
Anti-dumping Duty: Dumping means exporting goods in a foreign market at a price which is less than cost of production or below their “fair” market value. Dumping gives hard competition to a domestic goods manufacturer. So, to counteract complaints about dumping, the Indian government has formulated certain guidelines and policies. Imposing duty on imported goods is one of them and is known as Anti-Dumping Duty.