Import duty
Landed cost with the full duty cascade
Worked example
Using the default values, import duty gives a total landed cost of ₹13,09,800.
| Item | Value |
|---|---|
| Assessable value | ₹10,00,000 |
| Basic customs duty | ₹1,00,000 |
| Social welfare surcharge | ₹10,000 |
| AIDC | ₹0 |
| IGST is charged on | ₹11,10,000 |
| IGST | ₹1,99,800 |
| Compensation cess | ₹0 |
| Total duty | ₹3,09,800 |
| Duty as % of value | 31.0% |
| Landed cost | ₹13,09,800 |
| Recoverable as IGST credit | ₹1,99,800 |
| Net cost after credit | ₹11,10,000 |
What you need
- Assessable value (CIF)
- Basic customs duty
- Social welfare surcharge
- AIDC
- IGST
- Compensation cess
Questions
Why is the social welfare surcharge only on BCD?
It is levied at 10% of the basic customs duty, not of the goods value. On a 10% BCD it works out to 1% of the assessable value.
Can I recover any of this?
IGST paid at import is available as input tax credit if you are GST-registered and using the goods for business. BCD, surcharge and AIDC are costs you cannot recover.
Important
The cascade is computed correctly, but the rates are yours to supply. BCD, AIDC and cess depend on the exact HSN heading, on exemption notifications, and on whether a free-trade agreement rate applies with a valid certificate of origin. Anti-dumping, countervailing and safeguard duties are not included. Verify on ICEGATE or with your customs broker before committing to a costing.