Customs Duty

1. Customs Duty – Meaning,
Taxable Event, Various Types
of Customs duties.
Made By:-
Dhrumil Shah
TYBBA Div 1
Roll No. 38

2. Meaning
• A tax levied on imports and exports by the
customs authorities of a country to raise state
revenue, and/or to protect domestic industries
from more efficient or predatory competitors
from abroad.
• In simple words, Customs Duty is a tax imposed
on imports and exports of goods.

3. Taxable Event
Goods will be liable to be taxed if the same enter
India from any of the either mentioned routes:
• Road/Rail
• Air
• Sea

4. Types
• Basic Customs Duty (BCD)
• Additional Duty of Customs/ Counter Veiling Duty
(CVD)/ Section 3(1)
• Education and Secondary and Higher Education Cess
• Special Additional Duty (SAD) of Customs/ Special
CVD/ Section 3(5)
• Safeguard Duty
• Anti-Dumping Duty

5. Basic Customs Duty (BCD)
• Example:
Assessable Value 10,00,000
Add: 10% of AV 1,00,000
11,00,000

6. Additional Duty of Customs/ Counter
Veiling Duty (CVD)/ Section 3(1)
• Example:
Assessable Value 10,00,000
Add: 10% of AV 1,00,000
11,00,000
Add: CVD 12.5% 1,37,500
12,37,500

7. Education and Secondary and Higher
Education Cess
• Example:
Assessable Value 1,00,000
Add: 10% of AV 10,000
1,10,000
Add: CVD 12% 13,200
1,23,200
Add: Edu. Cess 3% 696
1,23,869

8. Special Additional Duty (SAD) of
Customs/ Special CVD/ Section 3(5)
• Example:
Assessable Value 1,00,000
Add: 10% of AV 10,000
1,10,000
Add: CVD 12% 13,200
1,23,200
Add: Edu. Cess 3% 696
1,23,869
Add: SAD 4% 4,956
1,28,852