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Total duty for shampoo

Akolkare (Owner) (26 Points)

03 June 2012

I am looking to import Shampoo bottles of 300ml, 400ml, 500 ml from western europe (several suppliers but same recipe) to india. What is the import duty (complete duty like custom cess, CVD, etc etc) for this product in india.

Once in india and customs cleared, what other taxes do I pay before it ends up in the hands of customer like VAT, state tax? anything else, more or less?

Thanks

Akol

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5 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 04 June 2012

duty is:

https://www.cybex.in/indian-custom-duty/Duty-Calculator-33059090.aspx

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Akolkare (Owner) (26 Points)
Replied 05 June 2012

What is the difference between CIF and access value? how is duty calculated then? on the highest of two? or can I choose as importer? Thanks for your help

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 05 June 2012

Noted that:

When any importer import a material from overseas the foreign supplier or the person who send the material seller from foreign can send the material in different modes.

CIF: means Cost, Insurance and Freight. That means, say you are in India and want to buy product "A" from USA . The supplier who is sitting at USA collect the cost of the material "A" and he will collect cost of the freight to ship out the material from US to India and also he covers the necessary insurance for the possible risks in the transit for that particular material. You need not have to pay any charges.

ON THE OTHERHAND :

Assessable value means after it lands in any Indian Airport, the designated Customs officer assess the value of the importer material based on the ITC HS codend & Custom officer A.O./SUPTDT. will calculate the value of the material in Indian rupees and this value is called assessable value.

If you have any query, please put up..............

Akolkare (Owner) (26 Points)
Replied 06 June 2012

This new info somewhat confusing me. Say I buy something for 10000 dollar. freight cost 1500 insurance 1500. as per your explanation CIF means duty will be calculated for 13000 dollars. This calculation is simple and easy for me to understand.

what is really assessible value? who decides whether I want to go for CIF based calculation or assessable value based calculation for import duty? I as an importer or the customs. Moreover what is the basis for assessible value which the custom officials take? Say the above product which cost me 10000 dollars has a market value in india for 20000 dollar. does it mean, the customs will take 20000 dollar as assessible value and calculate my duty (which is actually a deal breaker in my opinion as in margin games where 5% is the maximum margin, one might end up making losses instead of small profits which we dream of) or the customs will also the take the value which states in the invoice which is 10000 dollar as assessible value?

Thank you once again for your support.