Additional customs duty on imported goods
We import products and sell them to automobile manufacturers. We have been informed by the customs department that we need to pay additional customs duty based on the MRP of products at the time of import. Please confirm what value we need to pay as additional customs duty.
Additional customs duty, equivalent to the excise duty leviable on a like article manufactured/produced in India, is to be levied on any goods imported to India. For import of specified products, there is a different basis for calculation of additional duty. These products should: (i) be notified by the government; and (ii) display the MRP on their package as required under the Standards of Weights & Measures Act, 1976 (SWMA).
In your case, we assume that your products are notified as goods, which attract an excise duty (or additional customs duty) based on their MRP. That could be the reason why the customs authorities are seeking to levy additional customs duty based on the MRP.
However, for levy of duty based on the MRP, the second condition that there should be a requirement to declare the MRP of the goods on the package should also be satisfied. Therefore, you should first ascertain whether there is a requirement to disclose the MRP on import of your products. Under the SWMA, read with the Standards of Weights & Measures (Packaged