{"id":85500,"date":"2026-09-25T12:30:10","date_gmt":"2026-09-25T07:00:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=85500"},"modified":"2026-09-25T16:27:01","modified_gmt":"2026-09-25T10:57:01","slug":"basic-customs-duty-bcd","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/basic-customs-duty-bcd\/","title":{"rendered":"Basic Customs Duty"},"content":{"rendered":"<h2><b>Basic Customs Duty Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Government recently reduced the Basic Customs Duty (BCD) on major imported crude edible oils with a view to moderating domestic edible oil prices.\u00a0 <\/span><\/p>\n<h2><b>About Basic Customs Duty\u00a0<\/b><\/h2>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">BCD is a type of <\/span><b>tax imposed on goods imported<\/b><span style=\"font-weight: 400;\"> into India.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is the <\/span><b>principal custom duty levied<\/b><span style=\"font-weight: 400;\"> on imported goods.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is levied<\/span> <span style=\"font-weight: 400;\">under Section 12 of the<\/span><b> Customs Act, 1962.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is <\/span><b>calculated as a percentage of the assessed value of the goods<\/b><span style=\"font-weight: 400;\">, i.e., it is fixed based on the <\/span><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/ad-valorem-duty\/\" target=\"_blank\">ad-valorem<\/a>,<\/b><span style=\"font-weight: 400;\"> with <\/span><b>rates set out in the Customs Tariff Act, 1975.\u00a0\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">There is <\/span><b>no specific rate <\/b><span style=\"font-weight: 400;\">of BCD, and it can <\/span><b>vary on the basis of the country of origin<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>types of goods<\/b><span style=\"font-weight: 400;\"> being imported.\u00a0\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The <\/span><b>Central Government<\/b><span style=\"font-weight: 400;\"> holds the <\/span><b>power to exempt specific goods <\/b><span style=\"font-weight: 400;\">from BCD.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Purpose:\u00a0<\/b>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It <\/span><b>protects domestic manufacturers<\/b><span style=\"font-weight: 400;\"> from underpriced foreign competition by <\/span><b>raising the landed cost of comparable imports.\u00a0<\/b><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It <\/span><b>generates revenue<\/b><span style=\"font-weight: 400;\"> for the central government, since customs duty remains a significant indirect tax stream.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It also functions as a<\/span><b> policy lever. <\/b><span style=\"font-weight: 400;\">The government <\/span><b>raises or removes BCD on specific inputs to support sectors<\/b><span style=\"font-weight: 400;\"> such as electronics, renewable energy, and defence manufacturing.\u00a0<\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Because <\/span><b>BCD applies before Integrated GST (IGST) on imports<\/b><span style=\"font-weight: 400;\">, it<\/span><b> directly affects the final landed cost<\/b><span style=\"font-weight: 400;\"> that a business builds into its pricing.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The <\/span><b>calculation <\/b><span style=\"font-weight: 400;\">of BCD involves several steps:<\/span>\n<ul>\n<li style=\"text-align: justify;\"><b>Classification of Goods<\/b><span style=\"font-weight: 400;\">: Imported goods are classified <\/span><b>under specific Harmonized System (HS) codes,<\/b><span style=\"font-weight: 400;\"> which determine the applicable duty rate.<\/span><\/li>\n<li style=\"text-align: justify;\"><b>Assessment of Value:<\/b><span style=\"font-weight: 400;\"> The value of the goods is assessed <\/span><b>based on the transaction value<\/b><span style=\"font-weight: 400;\">, including the <\/span><b>cost of goods, insurance, and freight (CIF).<\/b><\/li>\n<li style=\"text-align: justify;\"><b>Application of Duty Rate:<\/b><span style=\"font-weight: 400;\"> The<\/span><b> BCD rate for that HS code is applied<\/b><span style=\"font-weight: 400;\"> to the assessed CIF value to arrive at the duty payable. <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>News: <\/b><a href=\"https:\/\/newsonair.gov.in\/govt-reduces-bcd-on-crude-edible-oils-amid-rising-global-prices\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>NOA<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Basic Customs Duty (BCD) is a type of tax imposed on goods imported into India. Read more about Basic Customs Duty (BCD), Purpose, Types, Latest News.<\/p>\n","protected":false},"author":23,"featured_media":85504,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[5093,21,22,23],"class_list":["post-85500","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-prelims-current-affairs","tag-basic-customs-duty","tag-prelims-pointers","tag-upsc-current-affairs","tag-upsc-prelims-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/85500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=85500"}],"version-history":[{"count":6,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/85500\/revisions"}],"predecessor-version":[{"id":126235,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/85500\/revisions\/126235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/85504"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=85500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=85500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=85500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}