How to compute the duty amount in respect of imported goods?
A. Under the Custom Tariff Act, 1975 and other laws, there are various types of duties, which are leviable. As a first step, the following three types of customs duties have to computed:- (i) Duty which is specified against each Heading or Sub-Heading in the First Schedule to the Customs Tariff Act, 1975. This is usually referred to as Basic Customs Duty. There are different rates of duty for different commodities. You may find these rates in column no. 4 (labeled as “standard rates”) of the tariff. There is also a 5th column specifying the “preferential rates”. These are different rates of duty for goods imported from certain countries in terms of bilateral or other agreements with such countries–which are called preferential rates of duties. The duty may be a percentage of the value of the goods ( in such cases it is called ad valorem duty) or at a specific rate, which is based on unit of measurement which is specified in the tariff entry. The rate of duty in percentage (in the case
