Estimate import duty on a shipment's declared value, simplified.
Duty = declared value × duty rate / 100. Real customs calculations often add freight/insurance to the dutiable value and layer on additional taxes (like VAT/GST on the duty-paid value) — check your country's customs authority for the exact method.
Illustrative estimate only — tax rules change frequently and vary by jurisdiction/circumstance. Verify with an accountant or official source before relying on this.
Customs duty in India is calculated on the assessable value — essentially the CIF value (Cost + Insurance + Freight) of the goods at the Indian port, not just the invoice price of the product itself. That means freight and insurance charges genuinely increase your duty bill even though they aren't part of the product's price, which surprises many first-time importers who calculate duty only against the item cost. The calculation then compounds through several layers rather than being a single flat percentage, which is exactly why the effective total duty rate ends up noticeably higher than the headline Basic Customs Duty (BCD) rate alone.
The sequence matters: first, Basic Customs Duty is calculated as a percentage of the CIF assessable value. Next, Social Welfare Surcharge (SWS) is added at a flat 10% of the BCD amount (not of the CIF value). Then IGST is calculated — and this is where the compounding really shows — on the sum of Assessable Value + BCD + SWS, meaning you're paying GST on top of duty that's already been added, not just on the original product value. For certain goods (tobacco, luxury cars, aerated beverages, coal, and others), a Compensation Cess is layered in as well, typically calculated on Assessable Value + BCD. The end result: a nominal 10% BCD rate, once SWS and IGST are compounded on top, routinely produces a total landed-cost duty burden well above 10% of the original CIF value — which is exactly why using the headline BCD percentage alone to estimate total import cost consistently underestimates the real number.
On the assessable value, which is essentially the CIF value — Cost of the goods, plus Insurance, plus Freight to the Indian port. Freight and insurance charges genuinely add to your duty bill, which surprises importers who calculate expected duty using only the product's invoice price.
Basic Customs Duty (BCD) is calculated first as a percentage of CIF assessable value. Social Welfare Surcharge (SWS) is then added at a flat 10% of the BCD amount. IGST is calculated on Assessable Value + BCD + SWS combined. Compensation Cess (for specific goods like tobacco, luxury cars, and coal) is typically calculated on Assessable Value + BCD.
Because IGST is calculated on the assessable value plus BCD plus SWS already added — not just on the original product value. This compounding means you're effectively paying GST on top of duty that's already been layered in, pushing the total effective duty burden meaningfully above the nominal BCD rate alone.
No — Compensation Cess applies only to specific categories of goods, including tobacco products, luxury cars, aerated beverages, and coal, among others. Most general imported goods carry only BCD, SWS and IGST, without an additional cess layer.