How custom duty is calculated in india

In India, custom duty is primarily calculated on the Assessable Value (AV) of imported goods, which is the CIF value (Cost, Insurance, and Freight) plus a 1% landing charge. The calculation follows a specific sequence:

• Basic Customs Duty (BCD): Calculated as a percentage of the AV based on the item's HSN code.
• Social Welfare Surcharge (SWS): Usually 10% of the BCD amount.
• Integrated Goods and Services Tax (IGST): Calculated on the cumulative value (AV + BCD + SWS).

The total duty is the sum of BCD, SWS, and IGST.