Chapter: 2.1 Types of Duties

Types of Duties

The various types of customs duties are:

i. Basic duty: It may be at the standard rate or in the case of import from some countries, at the preferential rate. The effective rate shall be determined after considering the notification, if any.

ii. Additional customs duty: This is equal to the Central Excise duty leviable on the product manufactured in India and if the said product is not manufactured in India then on like product manufactured in India.

iii. Additional duty of customs in lieu of sales tax: This is leviable in order to provide a level playing field toindigenous goods, which have to bear sales tax, local tax and other charges.

iv. Antidumping/safeguard duty: This is leviable with a view to protecting domestic industry from unfair injury.

v. Education Cess: This is leviable at the rate of 2% on aggregate of basic customs duty and additional customs duty. (vide Finance (VI) Act, 2004)
Secondary and Higher Education Cess. This is leviable at the rate of 1% on aggregate of basic customs duty and additional customs duty from 1-3-2007. (vide Finance Act, 2007).