Budget 2023: What is Custom Duty? Know its types | E-payment Gateway

Custom Duty: Customs duty is referred to the tax levied on goods when they are transported across international borders. In simple terms, it is the tax that is imposed on the import and export of goods. This duty is used by the government to raise its revenues, safeguard domestic industries as well as to regulate the movement of goods. Custom duty in India is defined under the Customs Act, of 1962. The Central Board of Excise & Customs (CBEC) is responsible for all things pertaining to customs duty.

Types of Custom Duty

-Basic Customs Duty

-Countervailing Duty (CVD)

-Additional Customs Duty or Special CVD

-Safeguard Duty

-Anti-Dumping Duty

-National Calamity Contingent Duty

-Education Cess on Customs Duty

-Protective Duties

Online Custom Duty

Users can avail the facility of e-Payment through ICEGATE for all Custom Locations from authorized banks.

Custom Duty Payment Online

Custom duty can be paid online by following the steps given below:

Step 1: Visit the ICEGATE e-payment portal

Step 2: Enter the Import/Export code or log in credential by ICEGATE

Step 3: Click on the e-payment option

Step 4: One can now see all the unpaid challans in their respective names.

Step 5: Select the challan one wants to pay and select a bank or payment method

Step 6: The user will then be redirected to the particular bank's payment gateway. Proceed with the payment.

Step 7: Take a printout for future reference.

Customs Duty changes in Union Budget 2022

In the last budget 2022 Finance Minister Nirmala Sitharaman announced a few changes concerning customs duty. The following proposals were made:

-With subject to IGCR rules, exceptions were introduced to allow duty-free imports of items like handicrafts, leather goods and apparel.

-More than 40 exemptions were proposed.

Also, read- Budget 2023: What is Finance Bill and how is it different from Money Bill?