A Guide to Calculate Import-Export Duties in India (2025)

Import-export duties are the taxes charged by the Indian government when goods are imported (brought into India) or exported (sent out of India). These duties help regulate trade and generate revenue for the country. A Guide to calculate import-export duties helps understand government taxes that regulate trade and generate revenue for the country.

Import Duty Calculation (When Bringing Goods into India)

To calculate import duty in India, follow these simple steps:

• Identify the HS Code (Harmonized System Code)

  • Every product has an HS Code that helps determine the tax rate.

  • You can find the HS Code from the Indian Trade Portal or Customs Department.

• Calculate the Customs Value (CIF Value)

  • CIF Value = Cost of Goods + Insurance Cost + Freight Cost (Shipping Charges)

• Apply Import Duties

The total import duty includes different types of taxes:

• • Basic Customs Duty (BCD)

    • This is the main tax charged on imported goods.

    • Rate: 5% to 40% (varies by product).

  • Integrated Goods and Services Tax (IGST)

    • IGST is charged on the total of CIF Value + Basic Customs Duty.

    • Rate: 5%, 12%, 18%, or 28% (depends on product type).

  • Social Welfare Surcharge (SWS)

    • Rate: 10% of Basic Customs Duty (some items are exempt).

  • Anti-Dumping Duty (if applicable)

    • Extra duty charged if goods are imported at very low prices from certain countries.

    • Rate: As per government notifications.

  • Safeguard Duty (if applicable)

    • Extra duty applied to protect Indian industries from cheap imports.

    • Rate: Depends on product and government rules.

Final Calculation of Total Import Duty

• Use this formula:

  • Total Import Duty = (BCD + IGST + SWS + Any Additional Duty) on CIF Value

• Example Calculation:

  • Suppose you import a machine worth ₹1,00,000.

  • Insurance: ₹5,000

  • Freight Cost: ₹10,000

  • CIF Value = ₹1,00,000 + ₹5,000 + ₹10,000 = ₹1,15,000

  • BCD (10%) = ₹11,500

  • IGST (18%) on ₹1,26,500 (₹1,15,000 + ₹11,500) = ₹22,770

  • SWS (10% of BCD) = ₹1,150

  • Total Import Duty = ₹11,500 + ₹22,770 + ₹1,150 = ₹35,420

Export Duty Calculation (When Sending Goods Out of India)

India usually does not charge export duties, but some items (like minerals, raw materials, and specific chemicals) have export duties.

• Identify the HS Code

  • Check the Indian Trade Portal to find the duty on your product.

• Apply Export Duty

  • Formula:
    Export Duty = (FOB Price × Export Duty Rate)

    • FOB Price (Free on Board Price) is the price of goods before shipping.

• Other Charges

  • Some products may have a cess (extra tax) depending on government policies.

Online Tools to Calculate Import-Export Duties in India

If you don’t want to calculate manually, use these:

• ICEGATE Portal (Indian Customs Website)

• Indian Trade Portal

• CBIC Duty Calculator

Tips to Reduce Import-Export Duty Costs

• Use Free Trade Agreements (FTA) – Import goods from countries that have FTAs with India to get lower tax rates.
• Check for Duty Exemptions – Some machinery, raw materials, and technology products have lower or zero customs duty.
• Use Export Promotion Schemes – MEIS, SEIS, EPCG, Advance Authorization schemes help exporters reduce duty costs.

Learn how to calculate import-export duties in India (2025) with a simple step-by-step guide. Discover import duty rates, CIF value calculation, export duty rules, and tips to save on customs taxes. Get expert training from B2B Export Import Academy for successful global trade!

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