DIFFERENT TYPES OF CUSTOMS DUTIES

The tariff rates for customs duties are specified in custom Tariff Act, 1975. The types of duties
are as under:
 Basic customs duty
 National calamity contingent duty
 Special additional duty of customs
 Additional customs duty
 Protective duties
 Countervailing duty on subsidised goods
 Anti-Dumping duty on dumped articles
The above duties are explained below:
1. Basic customs duty: Basic customs duty is levied under Section 12 of customs Act.
Normally it is levied as a percentage of value of goods. The rates of Basic customs duty
vary for different items. The general basic customs duty rate is 20%. The rates range
from 5% to 20% for different commodities.
The basic customs duty is reduced to 10% by the Finance Act 2007.
2. National calamity contingent duty: This rate is called “NCCD” of customs and it is
imposed from 2001. It is imposed on panmasala, chewing tobacco and cigarettes. The
rate varies from 10% to 45% NCCD of 1% was imposed on Motor Cars, multiutility
vehicles and Two wheelers and NCCD of Rs.50 per ton was imposed on domestic crude
oil during 2003.
3. Special additional duty of customs: Special additional duty @ 4% was introduction from
2nd June 1998. This additional duty was introduced to offset the effect of local sales tax
payable by Indian manufacturers. This duty was leviable upto 8-1-2004. Special
additional customs duty was applicable on all goods imported except Baggage, Gold and
Silver, News print, Crude petroleum etc.
4. Additional customs duty: This is called ‘Counter vailing duty’. It is imposed when
excisable articles are imported in order to offset the excise duty leviable on similar goods
manufactured within the state. Additional customs duty is leviable on alcoholic liquor
and some other goods like stainless steel manufactured for household use and transformer
oil.