The Customs Duties on Imported Honey in India: A Comprehensive Guide

For importers and traders looking to bring honey into India, understanding the applicable customs duties is crucial. This article provides a detailed breakdown of the current customs duties, related taxes, and a step-by-step calculation method for assessing the total tax burden on imported honey.

Overview of Customs Duties on Honey Imports in India

As of the latest update, the primary customs duty on imported honey in India stands at 30%. However, it is imperative to stay informed about any changes or updates in trade policies, as they can evolve rapidly. Additionally, there may be other levies and taxes applying to imports, such as the Goods and Services Tax (GST).

GST and Other Relevant Taxes

The Goods and Services Tax (GST) could be applicable to imported honey, depending on the specific import transactions. For the most accurate and current information, it is advisable to consult the official notifications from the Indian Customs Department or engage the services of a customs broker.

Calculation of Customs Duties and Taxes on Imported Honey

The customs duties and taxes on imported honey in India are detailed in the Harmonized System (HS) codes, which provide a standardized method of classification for goods. Here, we delve into the specific HS codes and duties applicable to honey imports.

Natural Honey and Its HS Code

Natural honey is categorized under the HS Code 04090000. This classification attracts specific duties and taxes as detailed below:

Basic Customs Duty (BCD)

The basic customs duty (BCD) for natural honey is set at 60%. This means that for every unit of honey imported, a duty of 60% of the assessed value is charged.

Special CVD (Composite Duties)

A special CVD (composite duties) of 4% is also applicable to natural honey.

Social Welfare Surcharge (SWS)

The social welfare surcharge (SWS) is a supplementary tax that adds 10% of the BCD. Therefore, the SWS for natural honey will be 6% of the assessed value (0.10 * 60% of the assessed value).

Integrated Goods and Services Tax (IGST)

The Integrated Goods and Services Tax (IGST) is an additional tax that applies to the total value of the item, post-customs duty and SWS. The IGST rate for natural honey is 5% of the total price after including customs duties and social welfare surcharge.

Calculating the Total Tax to be Paid

To calculate the total tax to be paid for imported honey, we need to follow these steps:

Determine the assessed value (p) of the imported honey. Calculate the Basic Customs Duty (BCD): 0.6p Calculate the Social Welfare Surcharge (SWS): 0.06p Calculate the Integrated Goods and Services Tax (IGST): 0.05 * (p 0.6p 0.06p) 0.083p Calculate the net tax to be paid: 0.6p 0.06p 0.083p 0.743p

Therefore, the net tax to be paid on imported natural honey is 74.3% of the assessed value.

Conclusion

Understanding the complex web of customs duties, taxes, and import regulations is essential for effective and compliant honey importation to India. Employers and importers should stay updated on any changes in trade policies and rely on official notifications from the Indian Customs Department or seek professional advice from customs brokers for the most accurate and tailored guidance.