Import duty and GST on goods from China: how the cost is built up

Costs & customs  ·  Published 30 October 2026  ·  Laxmi Global

The price the Chinese supplier quotes is only part of what an import costs. Duties and taxes assessed at the Indian port can add a large share on top, so you need to estimate them before you place an order.

What is charged

• Basic Customs Duty (BCD). A percentage of the assessable value, set by the product's HS (tariff) classification.
• Social Welfare Surcharge (SWS). Normally 10% of the BCD amount.
• IGST. Integrated GST at the rate for the product, charged on the assessable value plus BCD plus SWS.
• Other duties. Some goods from China attract anti-dumping or safeguard duty, and a few carry a compensation cess. These apply only to specified products.

Assessable value

Customs normally assesses duty on the CIF value: the cost of goods plus freight and insurance to the Indian port. Where actual landing charges are not known, an additional 1% of CIF is commonly added. This is why the Incoterm in your supplier's quote matters.

A worked example (illustrative rates)

The rates above are examples only. The real BCD and IGST rates depend on the HS code of your product and the current tariff.

How to find the right rate

1. Identify the product's HS code (the supplier or customs agent can suggest one).
2. Look up the current duty rates for that code in the Indian customs tariff, published by CBIC.
3. Check whether any anti-dumping or other additional duty applies to that product from China.
4. Add the customs agent's charges, port and terminal charges, and delivery inside India.

GST credit

A GST-registered business importing goods for business use can usually claim the IGST paid as input tax credit, subject to GST rules. Confirm this with your accountant.

Our quotes show estimated duty and taxes as a separate line. Send us your product and we will include it.