HOW IMPORT DUTY IS CALCULATED? ARE CUSTOM DUTY AND IMPORT DUTY SAME?

There are   two different things of import duty and custom duty.

Customs Duty
Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Import of goods means bringing of goods in India  from any other country outside India.

Import Duty
‘Import Duty ‘ A tax collected on imports and some exports by the customs authorities of a country. This tax is used to raise state revenue. It is based on the value of goods called ad valorem duty or the weight, dimensions, or other criteria of the item such as its size.

Types of Custom Duty:-

• Basic Custom Duty:
  Basic custom duty is applicable on imported items that fall under the ambit of Section 12 of the Customs Act, 1962. These duties are levied at the rates prescribed in First Schedule to Customs Tariff Act, 1975, under the terms specified in Section 2 of the act. The levied rates may be standard or preferential as per the country of import.
• Additional Customs Duty (Countervailing Duty (CVD)):
  This duty is levied on imported items under Section 3 of Customs Tariff Act, 1975. It is equal to the Central Excise Duty that is levied on similar goods produced within India. This duty is calculated on the aggregate value of goods including BDC and landing charges.
• Protective Duty:
  Protective duty may be imposed to shield the domestic industry against imports at a rate recommended by the Tariff Commissioner.
• Education Cess:
  This duty is levied at 2% and higher education cess at another 1% of aggregate of customs duties.
• Anti-dumping Duty:
  Anti-dumping duty may be imposed if the good being imported is at below fair market price, and is limited to the difference between export and normal price (dumping margin).
• Safeguard Duty:
  Safeguard duty is levied if the government feels that a sudden increase in exports can potentially damage the domestic industry.