Customs Duty meaning: Are you wondering what is meant by Customs Duty? Customs Duty is levied when goods are transported across borders between countries. It is the tax that governments impose on export and import of goods. Customs Duty is beneficial for many reasons. For instance, it ensures a country’s economic stability, jobs, environment, among others. It regulates the movement of goods in and out of the country. It keeps a check on restricted items. Next, we shall look into its various aspects such as how Customs Duty is calculated, different categories that you need to be familiar with, how to pay Customs Duty online, using simple steps that are shared below.sports-betting-online
Every country levies Custom Duties on goods that are imported into or exported out of that nation. Customs Duties are classified as follows:
- Basic Customs Duty (BCD)
- Additional Customs Duty or Special CVD
- Protective Duty
- Countervailing Duty (CVD)
- Anti-dumping Duty
- Education Cess on Custom Duty
Curious to know how Customs Duty is calculated? The value of Custom Duties is computed on ad valorem or specific basis. Or we can say that the value of Custom Duties depend on the value of goods. These goods are valued in accordance with the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
If there is still some difficulty in arriving at an accurate value of goods, such items are valued by the following method:
- Comparative value method: Given in Rule 4 and 5, in this method, the comparison is done with the transaction value of an identical or a similar item
- Deductive value method: As given in Rule 7, this method uses goods’ sale price in the country which it is importing from.
- Computed value method: Described in Rule 8, under this method, costs related to fabrication, materials, and profit in the country of production are calculated
- The Fallback method: Governed by Rule 9, this method has an element of higher flexibility because it is based on previous methods of computing Custom duties
Paying Custom Duty online is very simple. One needs to just follow the below mentioned steps:
- Open ICEGATE and login into the e-payment portal
- Log in with credentials provided by ICEGATE or enter your simply import or export code
- You’ll see e-payment button, click on it
- Now, check all e-challans which are given under your name
- Choose the challan you wish to pay
- Select payment’s method, after which you’ll be redirected to the payment gateway
- After payment, you would be redirected back to ICEGATE’s portal
- Now, click on the print button and print and/or save your payment’s copy
With these easy steps, you can pay your Customs Duty online.