Customs duty on an import is calculated from the HS code, customs value (CIF), country of origin, and applicable trade agreements. In India, the calculation involves BCD + SWS + IGST in a cascading structure. Bangladesh has a different multi-layer stack. This guide gives you the formulas, worked examples, and country comparison you need to accurately estimate your import duty liability before the goods arrive.
India Customs Duty Formula
| Component | Base | Formula |
|---|---|---|
| Basic Customs Duty (BCD) | CIF Value | CIF × BCD% |
| Social Welfare Surcharge (SWS) | BCD Amount | BCD × 10% |
| IGST | CIF + BCD + SWS | (CIF+BCD+SWS) × IGST% |
| Anti-Dumping Duty (if applicable) | CIF or specific rate | Per SRO notification for specific origin+product |
India Worked Example — Industrial Machinery
CIF Value = ₹20,00,000 | HS 8479.89 | BCD = 7.5% | IGST = 18%
| Step | Calculation | Amount |
|---|---|---|
| BCD (7.5%) | ₹20L × 7.5% | ₹1,50,000 |
| SWS (10% of BCD) | ₹1,50,000 × 10% | ₹15,000 |
| IGST Base | ₹20L + ₹1.5L + ₹0.15L | ₹21,65,000 |
| IGST (18%) | ₹21,65,000 × 18% | ₹3,89,700 |
| Total Duty | ₹5,54,700 | |
| Effective duty % of CIF | ₹5,54,700 / ₹20L | 27.7% |
Bangladesh Customs Duty Stack
Bangladesh applies more duty components than India. For CIF BDT 10,00,000 | Electronics | CD=25%, RD=3%, SD=0%, VAT=15%, AIT=5%:
| Component | Rate | Base | Amount (BDT) |
|---|---|---|---|
| Customs Duty (CD) | 25% | CIF | 2,50,000 |
| Regulatory Duty (RD) | 3% | CIF | 30,000 |
| VAT Base | — | CIF+CD+RD | 12,80,000 |
| VAT | 15% | VAT Base | 1,92,000 |
| AIT (Advance Income Tax) | 5% | CIF+CD+RD | 64,000 |
| Total | 5,36,000 (53.6%) |
BCD Rates by Category — India Quick Reference
| Category | Typical BCD Rate |
|---|---|
| Live animals, plants | 0–30% |
| Food and agriculture | 30–100%+ |
| Capital goods / machinery | 0–7.5% |
| Electronics / components | 0–20% |
| Textiles | 10–20% |
| Automotive | 15–100%+ |
| Pharmaceuticals | 0–10% |
| Chemicals | 5–10% |
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