I. Total Duty = Basic Duty + Extra Duty + Special Extra DutyBasic Duty = Total cif + Total cif x Basic Duty RateExtra Duty = Basic Duty x Extra Duty RateSpecial Extra Duty = (Basic Duty + Extra Duty) x Special Extra Duty RateII, Products imported into India Indian authorities levied taxes include: 1, basic customs duties 2, additional duties 3, additional taxes 4, special additional taxes 5, other additional taxes such as offsetting duties, anti-dumping duties, security duties and so on. The following is a brief description of the taxes levied:1. Different products are subject to different rates of basic customs duty, which are specified in Section 4 of the Customs Tariff Act, 1975, and are called "standard rates". Preferential rates can be obtained if India has entered into bilateral or other agreements with the country. The basic rate of duty is either a portion of the total amount of the product or a specific percentage, which is calculated for different products at the time of customs clearance. The basic tariff rate must include insurance and freight charges for the product.
2. The so-called additional customs duty (ACD), which is similar to the excise duty levied on products manufactured by Indian producers, has been levied since the Customs Tariff Act, 1975. It is generally referred to as cvd i.e. offset duty, while its correct term is additional customs duty. In order to calculate the exact additional duty, the producer must first rate the product under the Excise Duty on Major Products Act. However, there are certain products for which specific duties are levied. The rate of duty for calculating the additional duty is calculated on the basis of cif price + basic duty.
3. The Customs Tariff Act, 1975 provides for special additional duties. The special additional duty is calculated on the basis of total leviable duty, basic duty and additional duty mentioned above.
4. The additional duty is generally 10% of the basic duty.
5. Anti-dumping duty (Section IXa of the Customs Tariff Act, 1975) is a tax levied by India on certain specified products dumped in India by certain countries for the purpose of protecting the development of domestic industry. The imposition of anti-dumping duty is subject to investigation of the circumstances.
6. Security Duty (Section 8a of the Customs Tariff Act, 1975) is a duty levied on the import of certain specified products into India for a specified period of time in order to prevent excessive import of products from that country into India, which would be injurious to Indian industry.
7. Tax exemption. Duty exemption can be manifested in many different ways, the following is a brief introduction to the situation of duty exemption: 1), circular duty exemption by the central government through the government notification of duty exemption news, this exemption can be based on certain conditions or unconditional. Some products imported under certain conditions can be exempted from duty, such as products imported by members of the United Nations. Some of the unconditional exemptions may be in the form of border trade facilitation, etc. 2) Preferential rates refer only to tariff concessions on products manufactured in Sri Lanka, Mauritius, Seychelles, Tonga and imported into India subject to fulfillment of certain specified conditions. Written provisions have been established to facilitate the determination of the origin of the imported products within the ambit of these countries. The determination of origin is very important and is one of the bases for determining the rate of duty that must be paid on the imported product.