Q&A

The types of customs duties are as followed:

• Basic Customs Duty (BCD) – BCD is the basic component of customs duty levied at the effective rate stipulated in the First Schedule to the Customs Tariff Act 1985 (CTA) and applied to the landed value of the goods.
• Countervailing Duty (CVD) – CVD is equivalent to, and is charged to counter the effect of, the excise duty applicable on goods manufactured in India. CVD is calculated on the landed value of the goods and the applicable BCD.
• Educational Cess (EC) – EC at 2 percent and Secondary & Higher Education Cess (SHEC) at 1 percent are also levied on the CVD. Further EC at 2 percent and SHEC at 1 percent are also levied on the aggregate customs duties. An Additional Duty of Customs (ADC) at 4 percent is also charged.