How to Calculation Customs Import Duty?
Customs Duty is a tariff or tax imposed on
goods when transported across international borders. The purpose of Customs
Duty is to protect
each country's economy, residents, jobs, environment, etc., by controlling the
flow of goods, especially restrictive and prohibited goods, into and out of the
country.
Necessary Part of Customs Duty
Necessary Part of Customs Duty
- Knowledge enhance for proper H.S Code of your imported products.
- Product identified by H.S Code.
- Every country H.S Code used by individual.
- H.S Code means is Harmonized System.
Valuation of the Base
Assessable Value/ Transaction Value:
(C&F value X Conversion rate) + Insurance Cost + Landing Charge (Now
determined by PSI Companies)
Infrastructure Development Surcharge
(IDSC): (Assessable value X IDSC)
Custom Duty: (Assessable value
including IDSC X Custom duty)= Duty paid value
Valuation of the Base
Supplementary Duty: (Duty paid value
X SD)
VAT =( AV+IDSC+CD+SD except advance
income tax) X VAT rate
Advance income tax : (AV X tax rate)
(not to be considered for charge of any other duty and VAT)
Let’s Do It!
C & F Value 100
Insurance cost & Landing cost
(1% of C&F and I value)
IDSC (4% of AV)
Custom duty (37.5%)
Supplementary duty (25% of duty paid
value)
VAT able base VAT @ 15%
How to Calculation Customs Duty?
If want to find out Customs
Duty first of all will be gather knowledge of Bill of Entry of
Bill of Export tag 46. Now here you looking that lot symbol as like CD, RD, SD, VAT, AV AIT this
mark manner to calculate cost of assessment value.
Solution: 01
- To calculate customs duty at first you need to know the proper HS CODE of your imported products.
- HS CODE means a unique code which is recognize worldwide to identify a product.
- Every country has their own customs tariff schedule which is undated & announced in yearly basis.
- So check always the latest customs tariff.
- So, here I have found that my HS code.
- Seem that we imported any goods from China Which FOB Vale $10,000.00 x 83.75 = 8,37,500.00 BDT. Which HS Code is 38089121.
- So find out actual HS Code tariff CD=25%, RD=3%, SD=20%, VAT=15%, AIT=5%, ATV=5%.
- Now I we try to find out how much cost will be paid for customs duty purpose. Seem That Fob Value Is: $10,000.00.
- Then find out assessment value which mentioned own your Bill of Entry 46 tag.
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How to find out assess able value?
Total Invoice Value x Exchange Rate
CNF Value = Cost & Freight Value / Cost , No Insurance , Freight Value
CNF Value x 1% Insurance Charge
CIF Value = Cost , Insurance & Freight Value
CIF Value x 1% Landing Charge
CIFL Value / FOB Value x Adjustment = All assess able Value
Example for finding assassable value.
$ 10,000 x 83.50
BDT 8,35,000 x 1% Insurance Charge = BDT 8,350 + 8,35,000 = BDT 8,43,350
BDT 8,43,350 x 1% Landing Charge = 8,433.50 + 8,43,350= BDT 8,51,783.50
BDT 8,51,783.50 x 1 (Adjustment tag-45 of Bill of Entry)
= BDT 8,51,783.50 Assess able Value
If you any questions or doubt please feel free informed me by comments.
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Now we try find out customs duty below theory basis.
CD = AV x CD Rate / 100
So, we say for example we have got our asses-able value is -
Now we try find out customs duty below theory basis.
CD = AV x CD Rate / 100
So, we say for example we have got our asses-able value is -
AV = 8,51,783.50 BDT
CD = 8,51,783.50 (AV) x 25% (CD Rate) = 2,12,945.87 BDT.
RD = AV x RD Rate / 100 (8,51,783.50 x 3%) = 25,553.50 BDT.
SD = AV+CD+RD xSD Rate / 100 (SD=
8,51,783.50+2,12,945.87+25,553.50= 10,90,282.87 x 20% = 2,18,056.57 BDT.
VAT = AV+CD+RD+SD x 15% (13,08,339.44 x 15%) = 1,96,250.91 BDT
AIT = AV x 5% (8,51,783.50 x 5%) = 42,589.17 BDT.
ATV = AV+CD+RD+SD x 33.34% (Gov: Additional Value) = 4,36,200.30 BDT + 13,08,339.44 BDT = 17,44,539.74 x 5% = 87,226.98 BDT
TTI = (AV+CD+RD+SD+VAT+AIT+ATV) - AV = 16,34,406.50 - 8,50,783.50
= 7,82,623.00 BDT
= 7,82,623.00 BDT
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