For any business engaged in international trade with India, understanding the structure and rates of customs duties is crucial for accurate cost estimation and regulatory compliance. India’s import duty framework is comprehensive, with the Basic Customs Duty serving as the foundational levy, complemented by several other duties and taxes.
Basic Customs Duty
The Basic Customs Duty (BCD) is the primary tax imposed on goods imported into India. It is highly product specific.
Purpose of BCD
- Revenue Generation: It is a significant source of income for the Central Government.
- Protection of Domestic Industries: By imposing a duty on imported goods, the BCD helps shield local producers from intense competition, especially from cheaper foreign imports, aligning with the “Make in India” initiative.
- Trade Regulation: It allows the government to control and manage the flow of specific goods into the country.
Other Customs Duties
- Social Welfare Surcharge: An extra 10% of the BCD for supporting social welfare projects in India
- Integrated Goods & Services Tax (IGST): Applies to goods and services that move between states in India. This varies between 5%, 18%, and 40% based on the specific good in consideration.
- Anti-Dumping Duty & Safeguard Duty: Imposed temporarily or selectively to protect domestic industry from unfair pricing (dumping) or a sudden surge in imports.
- Importers must also consider Free Trade Agreements. Goods originating from countries with which India has an FTA (e.g., ASEAN, Japan) may qualify for a concessional or zero BCD rate upon furnishing the required Certificate of Origin.
Interested in taking your products to India? We can help. Amritt is a management advisory firm that deals with all aspects of doing business in India. Schedule a consultation today to see how we can help you win in India.
Disclaimer: Customs duties and tax laws are subject to frequent changes. This page provides a general overview and is not a substitute for professional legal or tax advice. For binding information, always refer to the latest notifications from the Central Board of Indirect Taxes and Customs at https://www.cbic.gov.in/entities/customs
Last updated: December 5th, 2025
