Customs duty and incentives in India: your questions, answered
What you pay, where to see the rate, and which schemes can reduce the cost.
- Duty depends on the tariff head and the country of origin.
- The ICEGATE Trade Guide shows the current duty.
- Exporters can claim schemes such as RoDTEP.
- Work out the full landed cost before you agree a price.
What duties apply on imports?
Usually Basic Customs Duty, Social Welfare Surcharge and IGST.
Some goods also attract other duties, such as anti-dumping duty. Check by tariff head.
Where do I see the current rate?
On the ICEGATE Trade Guide on Imports.
Enter the tariff head and the country of origin.
Did you know? The first container voyage
Q. When did containers first go to sea? On 26 April 1956 a converted tanker, the Ideal X, left Port Newark in the United States with 58 containers for Houston, about five days away.
Q. Why does it matter to you? Sealed containers made cargo easier to count, inspect and clear. Today almost every Indian port clearance starts with a container number.
Illustration, not a photograph.How is the value for duty decided?
On the transaction value: the price actually paid or payable for the goods when sold for export to India.
- Added to it, to the extent the rules provide: transport to the place of importation, insurance, loading, unloading and handling charges, commissions, royalties and licence fees.
- The exchange rate is the one in force on the date the Bill of Entry is presented. Since 4 July 2024 the State Bank of India sends the rates to ICEGATE, where they are published (Circular 7/2024-Customs).
- A few goods have a fixed tariff value instead. The Customs Manual 2025 lists crude palm oil, brass scrap, areca nuts, gold and silver (Notification 36/2001-Cus. (N.T.)).
What is landed cost?
The total you pay to get the goods to your door.
It adds freight, insurance, duty and local charges to the price. Our guide shows how Incoterms change it.
What is RoDTEP?
A scheme that refunds certain embedded taxes and duties on exports. It has been extended to 31 December 2026.
Can I get duty back on re-exported goods?
In some cases, through duty drawback.
Are duty-free imports possible?
Some schemes allow it, with conditions.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This page is general information.