Import Duty Calculator India: BCD, IGST, Cess Explained

A complete breakdown of every duty component on an Indian import, how they stack on each other, a worked example, and how to check anti-dumping duty before you order.

Overview: why import duty is complex in India

India does not impose a single flat "import duty." Every importation is subject to multiple duty components that stack on top of each other in a specific sequence. The total levy depends on the HS code, the country of origin, the CIF value of the goods, and whether any trade remedy duties (anti-dumping, safeguard, countervailing) apply.

For a typical industrial import, the duty structure looks like this:

• BCD (Basic Customs Duty) — the core tariff rate, set per HS code
• SWS (Social Welfare Surcharge) — always 10% of BCD
• AIDC (Agriculture Infrastructure and Development Cess) — applies on select categories
• Health Cess — applies on medical devices under certain HS codes
• IGST (Integrated Goods and Services Tax) — equivalent to domestic GST, charged on import
• ADD / CVD / SG (trade remedy duties) — if applicable to the HS code and origin country

A crucial point: each duty component is calculated on a different base. BCD is on the CIF assessable value. SWS is on BCD. AIDC may be on CIF value or on BCD depending on the notification. IGST is on a combined base that includes BCD, SWS, and AIDC. This cascading structure means you cannot simply add percentages — you must follow the sequence.

Step 1 — Assessable value (CIF)

All import duties in India are calculated on the CIF (Cost + Insurance + Freight) value, converted to Indian Rupees at the CBR (Customs Exchange Rate) notified by CBIC at the start of each fortnight.

• Cost (C) — the invoice value of the goods at origin, in the transaction currency.
• Insurance (I) — actual marine/air cargo insurance premium. If not separately declared, customs uses 1.125% of FOB as a proxy.
• Freight (F) — actual freight from origin port to Indian port. For air freight, a cap applies (25% of FOB value) to prevent freight inflation from inflating duty.

If your invoice is already on CIF terms, the declared value is the assessable value (subject to the customs officer's right to reject it under the Customs Valuation Rules if it appears artificially suppressed). If your invoice is on FOB terms, you add actual freight and insurance to arrive at CIF.

Step 2 — Basic Customs Duty (BCD)

BCD is the primary tariff duty, set per 8-digit ITC-HS tariff item in Schedule I of the Customs Tariff Act, as amended by Notification 45/2025-Customs (effective 1 November 2025, covering FY 2025-26 rates). BCD rates currently range from 0% on raw materials and capital goods in certain sectors to 40% on some finished consumer goods and passenger vehicles.

Common BCD rates by category:

Formula: BCD amount = Assessable Value (CIF in INR) x BCD rate

Step 3 — Social Welfare Surcharge (SWS)

Introduced by the Finance Act, 2018, the Social Welfare Surcharge (SWS) is 10% of the BCD amount — not 10% of the assessable value. It is charged on almost all goods and applies even on exempted goods where BCD has been fully exempted under a specific notification (in such cases SWS is also nil).

Formula: SWS = BCD amount x 10%

Note: SWS is included in the calculation base for IGST (i.e., you pay IGST on CIF + BCD + SWS + AIDC, not just on CIF).

Step 4 — Agriculture Infrastructure and Development Cess (AIDC)

AIDC was introduced in Budget 2021-22 and applies on a select list of agricultural and related imports: crude palm oil, crude soyabean oil, crude sunflower oil, peas, lentils, apples, gold and silver, alcohol-based fuels, and several other commodities. AIDC rates range from 5% to 100% of assessable value depending on the commodity.

When AIDC applies, a compensating BCD exemption is typically provided so that the total duty burden does not increase. Check the latest AIDC notification (Budget 2025 amendments) for the current rate applicable to your HS code.

Formula: AIDC = Assessable Value (CIF in INR) x AIDC rate (if applicable)

Step 5 — Health Cess (medical devices)

A 4% Health Cess applies on the BCD amount for specified medical devices — primarily those classified under HS Chapter 90 (optical, photographic, measuring and medical instruments). The cess was introduced to fund the Ayushman Bharat PM-JAY health insurance scheme.

Not all Chapter 90 items attract Health Cess — it applies only to specific tariff items listed in the relevant Finance Act notification. TradePrep's duty calculator flags Health Cess applicability at the HS code level.

Formula: Health Cess = BCD amount x 4% (if HS code is in the specified list)

Step 6 — IGST on imports

Integrated GST (IGST) on imports is not a separate customs levy — it is the equivalent of the GST that would have been paid if the goods were purchased domestically. Importers can typically take IGST paid on imports as input tax credit (ITC) against their GST output liability, making it effectively a cash-flow item for registered GST taxpayers rather than a permanent cost.

IGST is calculated on a broader base than BCD: it is charged on CIF + BCD + SWS + AIDC (where applicable). This "IGST base" is sometimes called the "loaded value."

Formula: IGST = (Assessable Value + BCD + SWS + AIDC) x IGST rate

IGST rates on imports mirror the domestic GST rate for the same product. Common rates:

• 0% — essential items: live animals, eggs, certain fresh vegetables, books and newspapers
• 5% — basic food items, certain textiles and garments, life-saving drugs
• 12% — processed foods, certain machinery and equipment
• 18% — most manufactured goods, chemicals, electronics, machinery
• 28% — luxury goods, automobiles, aerated beverages, tobacco

Step 7 — Trade remedy duties (ADD, CVD, Safeguard)

India is one of the most active users of trade remedy measures globally. These duties are additional to BCD and IGST and are applied per the findings of the Directorate General of Trade Remedies (DGTR). They do not attract SWS.

Anti-Dumping Duty (ADD)

ADD is levied when goods are exported to India at a price below their normal value in the exporting country (i.e., "dumped"). India currently maintains over 210 active ADD measures. ADD rates are product- and country-specific — the same HS code can attract ADD at 0% for some countries and 30% for others. ADD is typically expressed as a USD-per-MT rate (specific duty) or as a percentage of CIF.

Countervailing Duty (CVD)

CVD is levied to offset export subsidies granted by the government of the exporting country. India has 12+ active CVD measures as of FY 2025-26. CVD operates similarly to ADD: the DGTR investigates, makes a recommendation, and CBIC issues a notification imposing the duty at a country- and company-specific rate.

Safeguard Duty (SG)

Safeguard duties are temporary measures to protect a domestic industry from a sudden surge in imports, irrespective of whether the exporting country is dumping. India currently has one active safeguard measure (Solar cells). Safeguard rates often reduce in stages over the measure's duration.

Worked example: laptop import from China

Let us walk through a full calculation for a shipment of 50 laptops imported from China with an invoice value of USD 10,000 (CIF basis). We will use ITC-HS code 8471.30.10, BCD 20%, IGST 18%, CBR = Rs 86.50/USD.

This example shows why understanding the cascading base is important: the effective duty rate of 43.96% is significantly higher than the headline BCD + IGST sum of 38% because IGST is charged on the BCD-inclusive value, not just the CIF value.

FTA preferential rates

India has signed FTAs with several major trading partners that allow reduced or zero BCD rates when goods genuinely originate in the partner country. Key FTAs in force as of 2026:

• ASEAN FTA (AIFTA) — 10 Southeast Asian nations including Singapore, Thailand, Vietnam, Malaysia, Indonesia
• South Korea CEPA — comprehensive agreement with Korea
• Japan CEPA — comprehensive agreement with Japan
• UAE CEPA — India-UAE Comprehensive Economic Partnership Agreement, effective May 2022
• Australia ECTA — India-Australia Economic Cooperation and Trade Agreement, effective December 2022
• SAFTA — South Asian FTA (Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives)
• MERCOSUR PTA — Partial Trade Agreement with Brazil, Argentina, Uruguay, Paraguay

To claim preferential rates, you must present a valid Certificate of Origin (COO) in the prescribed format for each FTA. The COO must be issued before or at the time of export. You cannot retroactively claim an FTA rate after clearance in most cases. TradePrep's duty calculator shows the applicable preferential rate for each FTA partner alongside the standard BCD rate.

TradePrep import duty calculator

TradePrep provides a free, browser-based import duty calculator powered by the CUSTADA FY 2025-26 dataset (12,771 ITC-HS codes, 210+ ADD measures, 17 safeguard measures, 16 CVD measures). Key features:

• Full duty breakdown — BCD, SWS, AIDC, Health Cess, IGST, total effective rate
• Anti-dumping duty detection — flags applicable ADD measures by HS code and origin country
• FTA rate lookup — shows preferential rates for ASEAN, Korea, Japan, UAE CEPA, SAFTA
• BCD notification auto-detection — automatically applies Budget notifications (e.g. 45/2025-Customs) without manual lookup
• CBR override — enter the current fortnightly customs exchange rate for accurate INR calculations
• Specific duty support — handles per-unit and per-kg ADD rates with automatic USD/INR conversion
• Explanation trail — every calculation step is shown with its formula for auditability
• 99.5% accuracy validated against CUSTADA reference data