Customs guides
Import Duty Calculator India 2026
Calculate customs duty on any import into India. Understand BCD, IGST, Social Welfare Surcharge, and how to legally reduce your duty outgo with FTA benefits.
Every import into India attracts a stack of levies — Basic Customs Duty, Social Welfare Surcharge, and IGST — calculated on a cascading basis. Understanding the formula prevents costly surprises at the port and helps you optimise landed cost.
The Calculation Formula
India's import duty is not a single flat rate. Three charges stack on top of each other:
- Assessable Value (AV) = CIF value (Cost + Insurance + Freight) in INR at the CBIC exchange rate for the import date
- Basic Customs Duty (BCD) = BCD% × AV
- Social Welfare Surcharge (SWS) = 10% × BCD (not on IGST)
- IGST Base = AV + BCD + SWS
- IGST = IGST% × (AV + BCD + SWS)
- Total duty paid at port = BCD + SWS + IGST
Interactive Calculator
🧮 Calculate Your Landed Cost
Common BCD Rates by Category (Budget 2026)
| Category | HSN Chapter(s) | BCD | IGST | Note |
|---|---|---|---|---|
| Mobile phones | 8517 | 20% | 12% | PLI protection |
| Laptops / computers | 8471 | 0% | 18% | ITA bound |
| Lithium-ion batteries (EV) | 8507.60.10 | 5% | 18% | FAME concession |
| Lithium-ion batteries (other) | 8507.60.00 | 15% | 18% | — |
| Solar cells / panels | 8541.40 | 40% | 12% | Safeguard duty |
| Steel (flat products) | 7208–7212 | 7.5–12.5% | 18% | AD duty may apply |
| Crude petroleum | 2709 | 0% | Nil | Excise applies domestically |
| Gold (bars) | 7108 | 15% | 3% | + Agriculture Infra Cess 5% |
| Cotton (raw) | 5201 | 0% | 5% | — |
| Machinery (general) | 8428–8479 | 7.5% | 18% | EPCG eligible |
FTAs That Can Reduce Your Duty
India has signed Free Trade Agreements with several major trading partners. To claim FTA preferential duty, you must present a valid Certificate of Origin (COO) and file Form B-17 with the Bill of Entry.
- ASEAN–India FTA (AIFTA) — covers Thailand, Vietnam, Indonesia, Malaysia, Singapore, Philippines, Myanmar, Cambodia, Laos, Brunei. Most manufactured goods: 0–5% BCD on originating goods.
- India–Japan CEPA — significant reductions on machinery, auto parts, electronics.
- India–South Korea CEPA — steel, chemicals, textiles.
- India–UAE CEPA (2022) — gold, aluminium, petrochemicals at 0% BCD.
- India–Australia ECTA (2022) — coal, wool, copper, aluminium.
- India–Mauritius CECPA — pharmaceuticals, textiles.
Duty-Free and Concessional Schemes
Advance Authorisation (AA)
Exporters can import inputs duty-free under Advance Authorisation if the inputs are used in the exported product. The scheme is governed by the Foreign Trade Policy (FTP) 2023–28. The SION (Standard Input Output Norms) defines how much input is permitted per unit of output.
EPCG (Export Promotion Capital Goods)
Import capital goods at 0% BCD (IGST applies at 5%) on a commitment to export 6× the duty saved over 6 years. Widely used in textiles, pharmaceuticals, and engineering.
SEZ Imports
Units in Special Economic Zones are treated as foreign territory. Imports into SEZ attract no customs duty. Domestic procurement into SEZ is treated as deemed export (IGST refund available).
Finding the Right HSN Code to Minimise Duty
Several products can legitimately be classified under more than one heading with different BCD rates. Using CustomsAI's classifier, you can identify the most defensible heading — not just the lowest-duty one, but one backed by CBIC circulars and CESTAT judgments. This matters if Customs challenges your classification: you need citations, not just a lower rate.
Classify First, Then Calculate Duty
Get the right HSN code, then use this calculator. Wrong code = wrong duty = demand notice.
Frequently asked questions
How is customs duty calculated in India?
Total duty = BCD + Social Welfare Surcharge (10% of BCD) + IGST on (CIF + BCD + SWS). IGST rate mirrors the domestic GST rate for that HSN heading. Most manufactured goods attract 18% IGST.
What is the Social Welfare Surcharge on imports?
SWS is 10% levied on the aggregate of BCD and any other customs duties (excluding IGST and Compensation Cess). Introduced in Budget 2018 to fund social welfare schemes. No ITC allowed on SWS.
Can I claim ITC on IGST paid at import?
Yes. IGST paid at the time of import is fully available as Input Tax Credit under Section 20 of the IGST Act. BCD and SWS are not creditable and become part of the landed cost.
How can I reduce customs duty legally?
Main routes: (1) FTA/CEPA benefits — India has FTAs with ASEAN, Japan, South Korea, UAE, Mauritius. File Form B-17 for preferential duty. (2) Exemption notifications under Section 25 of Customs Act. (3) Advance Authorisation Scheme for inputs used in exports. (4) Correct HSN classification — some sub-headings attract lower BCD.
Need an 8-digit HSN with CBIC and CESTAT citations?