WHAT IS CUSTOMS DUTY
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).
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.
RELATED BUDGET TERMS
CUSTOMS DUTY NEWS
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Hike in Customs duty: Toy retailers stare at shortage in three months
While Mattel, Funskool, Hasbro, and Hamleys are impacted by the hike, none of them are part of the agitation yet| February 18, 2020, Tuesday -
No customs duty on imported solar cells and modules, says ministry
There is already safeguard duty of 15 per cent levied on the imported solar cells and modules| February 13, 2020, Thursday -
Customs dept to seek additional district-level data on goods from exporters
The initiative is also aimed at bringing uniformity with the data/ information captured in the Goods and Services Tax Network ...| February 09, 2020, Sunday -
Strict provisions across Customs rules to tighten the screws on imports
A string of measures includes specific provisions in rules governing anti-dumping, safeguards, and basic Customs duties.| February 02, 2020, Sunday -
Budget 2020: Customs duty ambiguity on imported solar power equipment
Solar modules constitute 80% of the cost of a solar power project.| February 02, 2020, Sunday -
FM prepares ground for new electronics policy to boost local production
But Customs duty hike may lead to price rise in EVs, ACs, refrigerators & handsets| February 02, 2020, Sunday -
Budget 2020: FM proposes hike in Customs duties, outlines road map for more
Govt to trim exemptions by Sept, review customs law and procedures in line with ease of doing business| February 02, 2020, Sunday -
Indirect tax: Few but well-justified changes in Budget 2020
Customs duties and exemptions need to be streamlined| February 01, 2020, Saturday -
Budget 2020 in 2 minutes: Fiscal deficit target, income tax rates, and more
The personal income tax has been simplified and reduced. Individuals will have to pay tax at the reduced rate of 10% for incomes ...| February 01, 2020, Saturday -
Budget 2020: Govt to review customs duty exemptions on products by Sept
Finance Minister Nirmala Sitharaman while presenting the Budget for 2020-21 said exemptions from customs duty have been given in ...| February 01, 2020, Saturday
