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What is Customs duty

Customs duty

About Customs duty

What is Customs duty

Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.
 
The rate of Customs duty varies depending on where the goods were made and what they were made of.
 
Custom duty in India is defined under the Customs Act, 1962, and all matters related to it fall under the Central Board of Excise & Customs (CBEC).

The Budget estimate of the government's customs revenue for the year 2020-21 was Rs 1,38,000 crore. The revised estimates of customs for the 2019-20 Budget came at Rs 1,25,000 crore, while the actuals for the 2018-19 Budget stood at Rs 1,17,812.85 crore.
 
Types of custom duty
  • Basic Customs Duty (BCD)
  • Countervailing Duty (CVD)
  • Additional Customs Duty or Special CVD
  • Protective Duty,
  • Anti-dumping Duty
Changes in Customs duty
 
In Budget 2019, the government announced a slew of changes to Customs duty in order to meet multiple objectives, including promotion of clean energy, curbing non-essential imports, boosting domestic manufacturing and raising revenue. Customs duty was cut on several inputs to incentivise domestic production and increased on finished products to garner additional revenues.
 
The government had said it was expecting a 19 per cent growth in Customs collection to Rs 1.5 trillion for 2019-20.
 

Latest Updates on Customs duty

Scrap 5% Customs duty on newsprint to manage operation cost: INS to govt

2 min read Last Updated :Mar 05 2024 | 2:55 PM IST
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WTO MC13: India for review of Customs duty pause on digital goods

3 min read Last Updated :Feb 29 2024 | 11:01 PM IST
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Govt should not cut import duties on parts used in making smartphones: GTRI

4 min read Last Updated :Jan 22 2024 | 2:08 PM IST
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Indian exporters gear up to comply with EU's paperless customs system: Rpt

5 min read Last Updated :Jan 10 2024 | 12:53 PM IST
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Jindal Stainless seeks zero customs duty on ferro nickel, ferro molybdenum

2 min read Last Updated :Jan 05 2024 | 7:57 PM IST
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LS passes Bills to cap age of GSTAT Prez, effect Budget duty changes

4 min read Last Updated :Dec 19 2023 | 8:21 PM IST
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India, Bangladesh customs officials discuss opening of new customs stations

2 min read Last Updated :Aug 22 2023 | 8:24 PM IST
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CHATROOM: 'Customs should reveal method used to fix value of export goods'

3 min read Last Updated :Aug 07 2023 | 11:18 PM IST
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50,000 cases to be taken up for GST audit in FY24, says CBIC chairman

4 min read Last Updated :Jun 15 2023 | 12:00 AM IST
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Issues faced during customs duty payment to be resolved soon: CBIC

1 min read Last Updated :Apr 03 2023 | 10:58 PM IST
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Govt hikes duty on X-ray machine imports from 10% to 15% starting April 1

1 min read Last Updated :Mar 26 2023 | 12:40 PM IST
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Customs duty cut, I-T slab rejig to boost consumer durable stocks: Analysts

3 min read Last Updated :Feb 10 2023 | 9:37 PM IST
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'In CIF/CFR contracts, the seller bears risk of variation in freight rates'

3 min read Last Updated :Feb 06 2023 | 10:52 PM IST
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Duty hike won't apply brakes on luxury car demand, say automakers

4 min read Last Updated :Feb 02 2023 | 11:56 PM IST
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Cut in customs duty, support to MSMEs will boost shipments: Exporters

3 min read Last Updated :Feb 02 2023 | 1:45 PM IST
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Making the regime less taxing: Pain points & what's on offer in Budget

1 min read Last Updated :Feb 01 2023 | 10:43 PM IST
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Up but not out of the woods: Pain points & what's on offer in Budget

1 min read Last Updated :Feb 01 2023 | 10:18 PM IST
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Budget 2023-24: Customs duty rejig to boost domestic manufacturing

3 min read Last Updated :Feb 02 2023 | 12:32 AM IST
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Budget 2023: Many PLI schemes are in the pipeline, says Piyush Goyal

4 min read Last Updated :Feb 01 2023 | 10:47 PM IST
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Budget 2023-24: Relief to middle class set to spur private consumption

2 min read Last Updated :Feb 01 2023 | 10:22 PM IST
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