Definition: Customs Duty is a tax imposed on imports and exports of goods.
Description: The rates of customs duties are either specific or on ad valorem basis, that is, it is based on the value of goods. Rule 3(i) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 states that the value of imported goods shall be the transaction value adjusted in accordance with the provisions of its Rule 10.
If objective and quantifiable data do not exist with regard to the valuation factors, if the valuation conditions are not fulfilled, or if Customs authorities have doubts concerning the truth or accuracy of the declared value in terms of Rule 12 of the said Valuation Rules, 2007, the valuation has to be carried out by other methods in the following hierarchical order: (i) Comparative Value Method - Comparison with transaction value of identical goods (Rule 4); (ii) (Comparative Value Method - Comparison with transaction value of similar goods (Rule 5); (iii) Deductive Value Method - Based on sale price in importing country (Rule 7); (iv) Computed Value Method - Based on cost of materials, fabrication and profit in country of production (Rule 8); and (v) Fallback Method - Based on earlier methods with greater flexibility (Rule 9).
Import duties are generally of the following types: 1. Basic duty; 2. Additional Customs duty; 3. True Countervailing duty or additional duty of customs; 4. Anti dumping duty/Safeguard duty.
While revenue is a paramount consideration, Customs duties may also be levied to protect the domestic industry from foreign competition.
Price fall, tax changes make Gold ETFs attractive; more so as SGBs seen on holdFollowing a customs duty reduction and a fall in gold prices, investors were drawn to gold ETFs and funds. The budget announcement made long-term gold investments more tax-efficient, and with no new sovereign gold bond issues expected, experts recommended a 10% portfolio allocation. Gold remains a hedge against inflation and provides diversification.
India facing acute shortage of natural rubber, prices soarIndia experienced an alarming shortfall in natural rubber for 2023-24, with domestic production unable to meet the growing demand. Rising import duties and global supply constraints, along with the highest prices recorded in 15 years, have impacted industries, particularly small and micro-enterprises in the non-tyre sector, which are struggling due to this cost spike.
Rising Chinese steel imports may hit local investments, warns AMNS CEO Dilip OommenIncreasing the basic customs duty to 12.5% from 7.5% at present, implementing the 'melt-and-pour' norm in free trade agreements (FTAs), and making BIS norms more stringent could be some of the measures that the government can look at implementing in the short-term, Dilip Oommen said.
Toys exports dip due to fall in global demand: Jitin PrasadaThe Indian toy export market saw a decline from USD 177 million in 2021-22 to USD 152 million in 2023-24, driven by reduced global demand, said Minister of State for Commerce and Industry Jitin Prasada in a written reply to the Rajya Sabha. Major markets like the USA, UK, and Germany also experienced a drop in imports. Government initiatives, including stricter quality controls and customs duties, have helped strengthen the domestic toy industry.
India seeks duty concession on cars, commercial vehicles, machinery in FTA with Sri LankaIndia is seeking customs duty concessions on goods such as cars, commercial vehicles, and machinery from Sri Lanka under a comprehensive free trade agreement (FTA). The 14th round of talks between senior officials of India and Sri Lanka concluded in Colombo, focusing on rules of origin, goods, services, and technical barriers for trade. Sri Lanka has also requested removal of a quota on apparel exports to India, duty concessions on tea, and certain agricultural commodities.
Gold jumps Rs 550; silver rallies 600Gold prices rallied Rs 550 to Rs 72,500 per 10 grams in the national capital on Thursday on higher domestic demand and positive global trends. The yellow metal rose for the third day in a row, recovering from sharp losses due to the government's budget announcement of a customs duty cut on gold and silver.
Has government reduced SGB issuance this year? Know the loss on SGB maturity in FY25 due to custom duty reductionSovereign Gold Bonds: When the government announced a reduction of customs duty from 15% to 6% on Gold, the prices crashed by up to 9% in two days. A part of this fall in price is attributable to international price effect. However as a result of this, 2016-17 Series I SGB investors lost out a good earning opportunity. Read the story to know why.
Stocks to be held till 2029 elections, for risk taker with patience: 7 stocks where budget may lead to real changeFor risk takers with patience and stock picks for next five years. To some it might appear to be contradictory. Normally risk is taken when one is looking for short term gains and the suggestion is to keep it for 5 yearsThere is a reason for it. Majority of the stocks in the list are from a sector, which despite being in existence for 3 decades has not grown the way it was expected by all shareholders. In this budget a number of steps have been taken to revive this sector. Right from providing institutional finance to lowering of duty to raw material. If policy changes work well, the top and bottom line will grow manifold and stocks will do well and might be a multibagger. If not then capital invested in them might end up being an under performer. So, a combination of risk and patience to play out the turnaround of the sector.