Why is it in the news?
→ Union Budget 2026–27 proposed full exemption of Basic Customs Duty on 17 cancer-related drugs and medicines.
→ Measures announced to provide immediate relief to patients with cancer and rare diseases.
Category
Economy
Important Points
- BCD is a tax imposed on goods imported into India.
- Levied under Section 12 of the Customs Act, 1962.
- Rates notified as per First Schedule to Customs Tariff Act, 1975.
- Calculated on ad-valorem basis (percentage of value of imported goods).
- Typical BCD rates range from 5% to 40% depending on item category and country of origin.
- The Central Government has power to exempt specific goods from BCD.
- BCD impacts total landed cost of imported items.
- Imported goods classified under Harmonised System (HS) codes to determine duty rate.
- Valuation based on CIF (cost, insurance, freight).
- Additional customs duties include CVD, SAD, Anti-Dumping Duty, Protective Duties, Safeguard Duties, Education Cess, and NCCD.
- Education cess is a 2% additional charge on customs duties for education initiatives.
- Safeguard duties imposed under Section 8B of Customs Tariff Act as temporary protection.
- NCCD used to fund responses to natural disasters and national emergencies.