This document defines and explains customs duties in India. It states that customs duty is a tax imposed on imports and exports to raise government revenue and protect domestic industries. There are different types of customs duties including basic customs duty, additional duty, education and secondary education cess, and special additional duty. The document provides examples of how each duty is calculated and applied to the assessable value of imported goods.

1. Customs Duty – Meaning,
Taxable Event, Various Types
of Customs duties.
Made By:-
Dhrumil Shah
TYBBA Div 1
Roll No. 38

2. Meaning
• A tax levied on imports and exports by the
customs authorities of a country to raise state
revenue, and/or to protect domestic industries
from more efficient or predatory competitors
from abroad.
• In simple words, Customs Duty is a tax imposed
on imports and exports of goods.

3. Taxable Event
Goods will be liable to be taxed if the same enter
India from any of the either mentioned routes:
• Road/Rail
• Air
• Sea

4. Types
• Basic Customs Duty (BCD)
• Additional Duty of Customs/ Counter Veiling Duty
(CVD)/ Section 3(1)
• Education and Secondary and Higher Education Cess
• Special Additional Duty (SAD) of Customs/ Special
CVD/ Section 3(5)
• Safeguard Duty
• Anti-Dumping Duty

5. Basic Customs Duty (BCD)
• Example:
Assessable Value 10,00,000
Add: 10% of AV 1,00,000
11,00,000

6. Additional Duty of Customs/ Counter
Veiling Duty (CVD)/ Section 3(1)
• Example:
Assessable Value 10,00,000
Add: 10% of AV 1,00,000
11,00,000
Add: CVD 12.5% 1,37,500
12,37,500

7. Education and Secondary and Higher
Education Cess
• Example:
Assessable Value 1,00,000
Add: 10% of AV 10,000
1,10,000
Add: CVD 12% 13,200
1,23,200
Add: Edu. Cess 3% 696
1,23,869

8. Special Additional Duty (SAD) of
Customs/ Special CVD/ Section 3(5)
• Example:
Assessable Value 1,00,000
Add: 10% of AV 10,000
1,10,000
Add: CVD 12% 13,200
1,23,200
Add: Edu. Cess 3% 696
1,23,869
Add: SAD 4% 4,956
1,28,852