Shipping items into India from abroad often results in unexpected customs bills. Indian customs regulations apply various taxes, including Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and Integrated GST (IGST). Here is a breakdown of how these fees are calculated.
1. Understanding the CIF Value
Indian Customs calculates duties on the **CIF Value** (Cost of the item + Insurance + Freight/Shipping costs), not just the item's purchase price.
2. The Standard Calculation Formula
Here is how taxes accumulate on a typical import:
- • Basic Customs Duty (BCD): Usually ranges from 10% to 20% of the CIF value.
- • Social Welfare Surcharge (SWS): A flat 10% tax calculated on the BCD amount.
- • Integrated GST (IGST): Usually 18% calculated on the sum of
CIF + BCD + SWS.
3. Gift Exemptions & Personal Imports
Importing personal gifts into India is no longer duty-free (the previous ₹5,000 exemption has been restricted). All personal imports are subject to standard tariff classifications.