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).
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.
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.
RELATED BUDGET TERMS
CUSTOMS DUTY NEWS
-
The CBIC has asked field offices not to deny Customs duty exemptions to importers of oxygen-related equipment merely for not ...| May 01, 2022, Sunday -
FinMin waives customs duty on cotton imports till September 30
Currently, cotton imports attract 5 per cent Basic Customs Duty (BCD) and 5 per cent Agriculture Infrastructure Development Cess ...| April 13, 2022, Wednesday -
Different strokes in transparency
More clarity on Customs duty changes could have made the Budget more transparent| February 08, 2022, Tuesday -
Budget 2022 specifies customs duty change on several items
This would mean that imports become more expensive or cheaper usually depending on the change in customs duties| February 01, 2022, Tuesday -
Budget 2022: Here's what will get costlier and what will be cheaper
Imported cut and polished diamonds, frozen mussels, frozen squids, asafoetida, cocoa beans, methyl alcohol and acetic acid will ...| February 01, 2022, Tuesday -
LIVE: This Budget brings more infra, more growth and more jobs, says PM
Budget 2022 LIVE updates: Finance Minister Nirmala Sitharaman presented the annual Union Budget 2022-23 in Parliament today. ...| February 01, 2022, Tuesday -
Budget: Assocham requests govt to remove custom duty on copper concentrate
Industry body Assocham has urged the government to reduce the customs duty on copper concentrate from the present 2.5 per cent to ...| January 23, 2022, Sunday -
PHDCCI for removing customs duty on copper concentrate in Budget
PHDCCI on Friday said it has suggested to the government to remove customs duty on copper concentrate as the move would encourage ...| January 14, 2022, Friday -
Govt scraps basic customs duty, cuts cess on crude palm, soy, sunflower oil
Move might impact farmers' realisation when kharif harvest is on, say industry players| October 13, 2021, Wednesday -
Govt scraps basic customs duty, cuts agri cess on vegetable oils
The move which will help cool prices and increase domestic availability in the festive season| October 13, 2021, Wednesday