Tax/ Duties

Tax/ Duties

India’s Export Import (EXIM) Policy and the Foreign Trade (Development & Regulation) Act of 1992 monitor the Imports and exports in India. Importers must register with the office of the Director General of Foreign Trade prior to engaging in export-import activities.

The structure of India’s duty system has been simplified as follows:

  • BCD – Basic Customs Duty
  • SWC Surcharge – Social Welfare Charges
  • IGST – Integrated Goods Service Tax
  • CMPNSTRY – Compensatory (only applicable for Chapters 21 to 27 and 85 to 87 (as per the Customs Tariff))

Central Sales Tax apply to all imports in addition to various local taxes and charges, state-level value-added or sales taxes. India permits importers to apply for a reimbursement of the special additional duty paid on imports that are consequently sold within India and for which the importer has paid state-level value-added taxes.

Important Destination charges:

  • Disbursement fees- 2.5% of customs duties or INR 250/- (USD 4) whichever is higher
  • High value/Cargo clearance fee- INR 4500 + GST (Air Cargo clearance fee)
  • Formal Entry clearance fee (Express/Courier mode)
  • Separate Bill of Entry-INR 3500/- (Formal Regular BOE clearance charges)
  • Delivery Order to Consignee’s Broker – INR 2500 +GST, Delayed Documentation Collection /day is INR 500/- + GST   (if Consignee authorized his own broker to collect the documents)

Disclaimer: All prices are subject to change without prior notice due to currency fluctuation and/or unforeseen economic circumstances.

Understanding Customs | UPS - India

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