| Goods, freight and insurance | — |
| Customs assessable value (reference) | — |
| BCD | — |
| SWS | — |
| Other entered customs duties | — |
| Import IGST | — |
| Separate service fees | — |
| Estimated cash outlay | — |
Indian import duty calculation formula
The simplified planning model begins with goods value, relevant freight and insurance. Where the Customs Valuation Rules require additions to transaction value, enter them separately. Basic Customs Duty is calculated from assessable value. The Social Welfare Surcharge is then calculated from BCD at the entered rate for a case where BCD is the applicable SWS base. IGST is modeled from assessable value plus BCD, SWS and user-entered duties that form part of its base.
BCD = assessable value × BCD rate. SWS = BCD × SWS rate, subject to the applicable statutory treatment. IGST = eligible tax base × IGST rate. No uniform 1% CIF uplift is applied because India’s valuation rules depend on the actual transaction and allowed additions.
Worked example
For ₹85,000 of goods, ₹12,000 of freight and ₹1,500 of insurance, CIF is ₹98,500. With 10% BCD, ₹9,850 BCD arises. Using a 10% SWS on that BCD gives ₹985. An illustrative 18% IGST on ₹109,335 produces ₹19,680.30. Add ₹4,500 in separately paid brokerage and the modeled cash landed cost is ₹133,515.30 for 100 units, or about ₹1,335.15 each.
What can change the result?
India uses detailed HSN classifications and schedules. Special exemptions, anti-dumping duties, safeguard duties, tariff-rate quotas, Free Trade Agreement preferences, compensation cess, and different customs valuation bases can affect the total. For example, a CEPA claim is conditional on origin and documentary compliance, not just the fact that the shipment comes from a particular country.
Official references: Customs Act Section 14, Customs Valuation Rules, 2007, and CBIC tax information portal. Verify the current tariff rate and required classification with CBIC or a licensed customs broker.
Reviewed November 14, 2026. Explanations and worked examples are conditional on the stated customs procedures and entered rates.
The difference between CIF and customs assessable value
For Indian imports, a commercial goods price, the landed freight cost, and the insurance amount are useful starting inputs. However, Section 14 of the Customs Act and the Customs Valuation (Determination of Value of Imported Goods) Rules govern the official assessable value. They may require specific additions such as assists, particular royalties, transport, and insurance to the extent prescribed by the rules.
The estimator shows the customs valuation adjustments separately so users can understand the difference between amounts paid for logistics and amounts included for customs assessment. It does not apply a blanket 1% uplift. Adding an assumed 1% to every CIF value without checking the applicable valuation provision can produce a misleading estimate.
How Basic Customs Duty, Social Welfare Surcharge and IGST interact
Basic Customs Duty, or BCD, is calculated from the correct customs assessable value at the tariff rate applicable to the goods. The Social Welfare Surcharge, or SWS, often applies at 10% of the relevant customs duties, but exemptions and the specific statutory base matter. This simplified tool models SWS as a percentage of BCD; it does not automatically calculate every surcharge on every possible duty type.
For many examples, import IGST is calculated on the customs assessable value plus relevant customs duties and other includible charges. The precise composition of the tax base varies with the goods and the law. Additional anti-dumping duties, safeguard duties, agriculture infrastructure cesses, compensation cesses or exemptions must be verified rather than assumed.
Fully worked ₹98,500 CIF example
Assume goods worth ₹85,000, freight of ₹12,000, and insurance of ₹1,500. With no additional valuation adjustments, the modeled base is ₹98,500. At 10% BCD, the BCD amount is ₹9,850. A 10% SWS on BCD produces ₹985. The modeled IGST base becomes ₹1,09,335 and, at an illustrative 18%, the IGST is ₹19,680.30.
Add customs duty and IGST to CIF, then add separately paid brokerage of ₹4,500. The modeled cash outlay becomes ₹1,33,515.30. Dividing by 100 units gives approximately ₹1,335.15 per unit. These rates are example inputs and are not a verified rate for any particular HSN code.
Country of origin versus country of shipment
An invoice issued in the UAE does not mean goods automatically qualify as UAE-origin goods under the India-UAE CEPA. Preferential treatment depends on product-specific rules of origin, eligible tariff headings, documentary requirements, and the relevant date. The same caution applies when goods pass through Singapore or Dubai before arriving in India.
Find the precise Indian eight-digit tariff classification, check the effective customs notifications, and determine whether a valid certificate of origin and other conditions support any preferential claim. Compare the base tariff with the preference rate before entering it in the calculator.
What the estimator excludes
The calculator is designed for a straightforward planning calculation. It does not calculate exchange conversion under the official notified customs exchange rate, anti-dumping duty schedules, tariff-rate quotas, valuation of related-party transactions, demurrage, local sales tax, or every category-specific tax and cess. Those factors can materially affect an importer’s final payment.
Imported goods used in a business may create input tax credit questions. Import IGST may be recoverable subject to the CGST/IGST framework and documentary requirements, so the amount paid at clearance is not necessarily the permanent economic cost. Keep customs cash outlay separate from accounting profit and loss calculations.
Documents to gather before a customs estimate
Keep the supplier’s commercial invoice, packing list, purchase order, bill of lading or airway bill, insurance invoice, freight agreement, accurate HSN code, country-of-origin documents, and the importer’s IEC/GST information where applicable. Check whether transport or insurance costs are already included in the quoted price.
If a broker has provided an assessed duty calculation, reconcile each amount to the corresponding line in your estimate instead of simply replacing the total with a single percentage. This is particularly useful for identifying discrepancies in customs value, missing preference claims, or duplicated logistics expenses.
Frequently asked questions
Is SWS always 10% of the assessable value?
No. It is a surcharge on relevant customs duties, not a flat 10% of the goods value. Exemptions and the applicable base must be checked.
Is a 1% landing charge compulsory for every Indian import?
No. India’s customs valuation rules have been amended. Determine the applicable transaction-value additions from the current law and actual circumstances.
Do I pay IGST on the goods value only?
Often not. The import IGST base may include assessable value and relevant customs duties or other includible charges.
Can I claim duty exemption under an FTA?
Only if the goods and documents meet the specific agreement’s origin, classification, and procedural requirements. The exporting country alone is not sufficient.
Are brokerage charges included in customs assessable value?
Their treatment depends on what type of payment is involved and the valuation rules. The calculator separates service fees from declared valuation adjustments to avoid an unsupported assumption.
Official references
Calculator limitations
These results are educational shipment-planning estimates, not a customs ruling, a broker quote, or tax advice. Confirm effective dates, product HS/HTS classification, country of origin, preferential status, import procedure, and other duties with the destination customs authority. Read our methodology and disclaimer.