Simplifying Import Duty Notifications in India to Benefit Industry

The Global Trade Research Initiative (GTRI) has recommended that the Central Board of Indirect Taxes and Customs (CBIC) seek the assistance of communication experts to simplify and improve the clarity of their notifications regarding import duties. This move is expected to benefit the Indian industry, as it will make it easier for the over one lakh firms expected to import goods worth over USD 660 billion in 2023 to understand and comply with the necessary import duties. The use of complex language and cross-referencing in the notifications has made it difficult for companies to determine the correct customs duty for their products.

The complexities of import duties in India, which can range from 0 to 150 per cent and include various components such as basic customs duty, social welfare cess, AIDC, and IGST, have posed a significant challenge for companies. The current system makes it nearly impossible for laypeople to understand and calculate the total duty payable, leading to the need for expert help and cross-referencing multiple notifications. In response, GTRI has recommended that CBIC use clearer and more concise language in their notifications to make them easily understandable and standalone, without the need for cross-referencing. It has also suggested that all duty-related information be compiled in a single notification under various conditions, similar to the approach taken by the Directorate General of Foreign Trade (DGFT).

By implementing these recommendations, the effectiveness of CBIC notifications will be greatly enhanced, leading to improved compliance and ease of interpretation for the industry.

Source .