Quick answer
Indian customs duty on goods from China is calculated on the CIF (assessable) value: Basic Customs Duty (BCD) at the rate for your HS code, plus a Social Welfare Surcharge of 10% of the BCD, plus IGST charged on the CIF value plus BCD and SWS. Some products also carry anti-dumping duty. IGST is usually recoverable as GST input credit.
The components of import duty
| Component | Charged on | Typical rate |
|---|---|---|
| Basic Customs Duty (BCD) | Assessable value (CIF) | 0%–70%+ depending on HS code; 10%–20% is common for consumer goods |
| Social Welfare Surcharge (SWS) | BCD amount | 10% of BCD (exempt for some goods) |
| IGST | CIF + BCD + SWS | Same as the GST rate for that product, commonly 5% or 18% |
| Anti-dumping / safeguard duty | Varies | Only on specific products and origins |
Rates change in each Union Budget and through notifications, so always confirm the current rate for your exact 8-digit HS code on the CBIC tariff or with your customs broker.
Step 1: Work out the assessable value
Customs duty is charged on the CIF value — cost of goods, insurance and freight to the Indian port — converted to rupees at the customs exchange rate notified by CBIC (which is updated regularly and may differ slightly from the bank rate).
If you buy FOB, add the actual freight and insurance. If insurance is unknown, customs typically adds 1.125% of FOB value.
Worked example
You import kitchen items with an FOB value of ₹5,00,000, sea freight of ₹40,000 and insurance of ₹5,000. Assume BCD of 20% and IGST of 18%.
| Assessable value (CIF) | ₹5,45,000 |
| BCD @ 20% | ₹1,09,000 |
| SWS @ 10% of BCD | ₹10,900 |
| IGST @ 18% on ₹6,64,900 | ₹1,19,682 |
| Total duty payable | ₹2,39,582 |
|---|
Of this, the ₹1,19,682 IGST can usually be claimed back as input tax credit if you are GST-registered — so the real cost of duty in this example is BCD + SWS, about 22% of CIF value.
Try your own numbers in the landed cost calculator.
Legal ways to reduce your duty bill
- Classify correctly. Similar products can fall under different HS codes with different rates — but the code must genuinely describe the product.
- Consolidate shipments. Fewer Bills of Entry means fewer fixed port, CFS and broker charges.
- Claim IGST credit by registering for GST and buying in your GSTIN.
- Check scheme benefits such as EPCG or advance authorisation if you import inputs for export manufacturing.
Never under-declare invoice values. Customs compares declared prices against its valuation database and can reassess, impose penalties and hold goods.
Frequently asked questions
What is the customs duty on electronics from China to India?
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It varies by item. Many consumer electronics carry BCD between 10% and 20% plus SWS and 18% IGST, and some components have lower rates. Several electronic products also need BIS CRS registration before import.
Is IGST on imports refundable?
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IGST paid at customs is not refunded in cash, but GST-registered importers can claim it as input tax credit against their output GST.
This guide is general information, not legal or customs advice. Duty rates and import rules change — confirm current requirements for your HS code with DGFT, CBIC or a licensed customs broker.
