Customs Duty & HS Code

Customs at the border

Customs duty is levied on goods crossing India's borders. Correctly classifying and valuing goods determines the duty payable and keeps clearance smooth.

The HS Code

Every product is classified under a Harmonised System (HS) Code — an internationally standardised numbering system (India uses an 8-digit ITC-HS). The HS code drives the applicable duty rate, eligibility for exemptions, and import/export restrictions. Misclassification is a common cause of disputes and penalties.

Components of import duty

Import duty typically stacks: Basic Customs Duty (BCD), Social Welfare Surcharge, and IGST (with GST Compensation Cess on some goods). Some goods attract anti-dumping or safeguard duties. The customs value (transaction value, often CIF) is the base for these levies.

Procedures and assessment

Importers file a Bill of Entry on ICEGATE; exporters file a Shipping Bill. Customs assesses classification and value, sometimes through the Risk Management System for faceless assessment. Getting the HS code and valuation right upfront is the single biggest lever for avoiding customs trouble.