To be able to calculate the duty correctly, let us first understand the duty structure in India.
IMPORT DUTY STRUCTURE
The imported goods are levied with a Basic Customs Duty (BCD) on the assessable value. In addition Education cess and Higher Education Cess is charged on the BCD amount. On the value thus arrived (after adding the BCD and Edu cess) additional duties are charged to countervail the duties charged on the domestic like products.
Presently almost all of the products are charged to IGST on interstate sale and imports being considered as interstate sale, an additional customs duty equivalent to IGST is charged. In addition other duties like anti dumping, safe guard duties are applicable in specific cases. The duties normally are ad-valorem, but in some cases even specific duties are leviable. There may be certain concessions in duty owing to certain end usage or certain conditions. Further imports from specific countries may have concessional duties owing to the trade agreements or other reasons.
All the above is necessary to be taken into account to arrive at correct leviable duty.
Goods / Raw Materials
Normally a BCD of 10% is charged along with an IGST of 18%. This works out to a total of 30.154%. The duties (BCD) on the agricultural goods are 30%. In some cases however they may be up-to 85%. For wines and liquor duties upto 150% are levied. For minerals normal duty are 10%, 5%, 2%, NIL. The duty on the textile fabrics is with floor value on per sq. m basis depending upon the kind of and weight of the fabric.
Capital Goods, machinery, equipments mostly covered under chapter 84 and 85 normally attract basic customs duty of 7.5% + E Cess + IGST (say 18%). This works out to a total of 27.116%. Duties are lesser for computers & and computer parts and telecom related products under IT agreement. The duties are further reduced by exemption notifications based on the usage of goods for specified purposes and for specified industries.
Project Imports enjoy BCD of 5% plus other applicable duties. Please see Project Imports section for more details.