Basic Customs Duty : Union Budget 2026
Bringing immediate relief to patients with cancer and rare diseases, Union Budget 2026-27 proposed a full exemption of basic customs duty on 17 cancer-related drugs and medicines.
- BCD is a type of tax imposed on goods imported into India.
- It is levied on imported items under the Customs Act, 1962. The tax rate is levied as per the First Schedule to Customs Tariff Act, 1975.
- Purpose is To protect domestic industries from foreign competition, regulate trade, and generate revenue for the government.
- BCD is calculated as a percentage of the value of the imported goods, determined based on the customs tariff, i.e., it is fixed based on the ad-valorem.
- It can significantly impact the total landed cost of the imported items.
- The Central Government holds the power to exempt specific goods from tax.
- The calculation of BCD involves several steps:
- Classification of Goods: Imported goods are classified under specific Harmonized System (HS) codes, which determine the applicable duty rate.
- Assessment of Value: The value of the goods is assessed based on the transaction value, including the cost of goods, insurance, and freight (CIF).
- Application of Duty Rate: The BCD Tax rate is applied to the assessed value to determine the duty payable.
