Custom Duty Payment

Know how to make customs duty payments online and avoid delays in clearing your shipments.
APPLY NOW
Business Loan
Apply Now
3 min
26 December 2024

The rate of customs duty varies based on the type of goods, their value, and the country of origin. Importers and exporters must declare their goods and pay the applicable customs duty to ensure compliance with customs regulations. Utilising online platforms like ICEGATE, individuals and businesses can now pay custom duties more efficiently.

What is custom duty payment?

Custom duty payment is a tax imposed by the government on goods imported into or exported out of the country. It aims to regulate the movement of goods across borders, protect domestic industries, and generate revenue for the government.

What is the ICEGATE e-payment portal?

ICEGATE, the Indian Customs Electronic Gateway, is an online portal that facilitates the e-filing of documents and payment of custom duties. This platform streamlines the customs clearance process by providing a seamless interface for importers, exporters, and customs brokers. By offering services such as e-payment, document tracking, and electronic data interchange, ICEGATE enhances efficiency and transparency in customs operations. Users can access the ICEGATE portal to complete transactions securely and promptly.

How to pay customs duty online?

  • Register on ICEGATE: Create an account on the ICEGATE portal to get started.
  • Login to the portal: Enter your credentials to access the dashboard.
  • Select e-payment option: Navigate to the e-payment section.
  • Enter Bill of Entry details: Provide the necessary information regarding your shipment.
  • Calculate duty amount: The portal will calculate the applicable custom duty.
  • Choose a payment method: Select from available online payment options such as net banking or credit/debit card.
  • Confirm payment: Review the details and confirm the payment.
  • Receive acknowledgement: Download or print the payment receipt for your records.

How to calculate customs duty?

Customs duties are calculated either on a specific basis or an ad valorem basis, meaning they are based on the value of goods. This valuation follows the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. If the declared value raises doubts, the following methods are applied:

  • Rules 4 & 5: The comparative value method compares the transaction value of identical or similar goods
  • Rule 7: The deductive value method considers the sale price of the item in the importing country
  • Rule 8: The computed value method calculates costs related to materials, production, and profit in the exporting country
  • Rule 9: The fallback method applies previous methods with greater flexibility

Documents required to pay custom duty online

  • Bill of Entry: The primary document declaring the imported goods.
  • Importer's invoice: Details the value and nature of the goods.
  • Packing list: Provides information on the packaging and contents.
  • Shipping bill: Necessary for export customs duty.
  • Import/export licence: If applicable, depending on the goods.
  • Bank details: For facilitating the online payment process.

Benefits of custom duty payment online

  • Convenience: Pay custom duties from anywhere, anytime, without the need to visit customs offices.
  • Speed: Online payments are processed faster, reducing clearance times.
  • Accuracy: Automated calculations minimise errors in duty assessment.
  • Transparency: Track payment status and maintain records easily through the portal.
  • Security: Secure online transactions ensure the safety of sensitive financial information.
  • Cost-effective: Reduce administrative costs and time spent on manual procedures.
  • Environmentally friendly: Digital transactions reduce the need for paper documentation.
  • Compliance: Ensure timely payment of duties, avoiding penalties and delays.
  • Accessibility: 24/7 access to the portal facilitates timely customs duty payments.
  • Integration: Seamlessly integrates with other customs and shipping processes for a smoother experience.

Conclusion

Paying custom duties online through platforms like ICEGATE offers significant advantages in terms of convenience, speed, and security. Businesses can streamline their import/export processes, ensuring compliance and efficiency. This digital approach not only simplifies customs operations but also supports sustainable practices by reducing paper usage.
Businesses seeking financial support to manage their international trade operations smoothly, can consider exploring a business loan.

Here are some of the key advantages of the Bajaj Finserv Business Loan that make it an ideal choice to manage expenses:

  • Rapid disbursement: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.
  • Competitive interest rates: The interest rates for our business loans range from 14% to 30% per annum.
  • Flexible repayment schedules: Repayment terms can be tailored to align with the business's cash flow, helping manage finances without strain. You can choose a tenure ranging from 12 months to 96 months.

Frequently asked questions

What is custom duty payment?
Custom duty payment is a tax imposed by the government on goods imported into or exported out of the country. It aims to regulate trade, protect domestic industries, and generate revenue. The duty rate depends on the type and value of goods and their origin. Importers and exporters must declare their goods and pay the applicable duty. Using online platforms like ICEGATE, businesses can efficiently manage and pay customs duties. Pay now by clicking on this link to access ICEGATE.

How is custom duty calculated?
Custom duty is calculated based on the assessable value of the goods, which includes the cost, insurance, and freight (CIF) value. The duty rate varies depending on the type of goods and their classification under the Harmonised System (HS) codes. Additional charges, such as countervailing duty (CVD), special additional duty (SAD), and other applicable taxes, may also be included. The total custom duty is the sum of all these components, ensuring accurate taxation of imported goods.

Who should pay customs duty?
Importers and exporters are responsible for paying customs duty on goods entering or leaving a country. This includes individuals, businesses, and organisations involved in international trade. The duty must be paid to the customs authorities to comply with national regulations and facilitate the legal movement of goods across borders. The obligation to pay customs duty ensures that the appropriate taxes are collected, supporting government revenue and protecting domestic industries.

What is customs duty on a bill of entry?
Customs duty on a bill of entry refers to the tax levied by the government on goods imported into a country. The bill of entry is a crucial document filed by importers, detailing the nature, value, and quantity of the goods. Customs authorities use this document to assess and calculate the applicable duties and taxes. Payment of customs duty is mandatory to obtain clearance for the goods and ensure compliance with import regulations.

How is custom duty paid?

In India, customs duty can be paid online through the ICEGATE portal or manually via authorised banks. The process involves generating a Challan on the portal, selecting the payment mode, and completing the transaction through net banking, debit cards, or credit cards. Once the payment is successful, a receipt is issued for future reference. This system ensures quick and transparent payment of customs duties, facilitating smoother import and export processes.

At what time is the custom duty paid?

Customs duty in India is paid before goods are cleared from customs. After filing the Bill of Entry (BoE) and duty assessment, payment must be made online via ICEGATE using Internet Banking, Debit/Credit Cards, or RTGS/NEFT. Goods are released once payment is verified.

What is the time for custom duty payment?

In India, customs duty payments can be made online between 4:00 AM and 10:45 PM via the ICEGATE system. This time window provides businesses and individuals sufficient flexibility to process their payments conveniently. Timely payment is essential for avoiding delays in customs clearance and ensuring compliance with regulatory requirements for seamless import and export operations.

Show More Show Less

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Related videos