Indirect Tax Laws · Types of Duty

Export Duty and Other Duties under Customs (CA Final IDT)

Updated 5 October 2026 · Fact-checked

Export duty is a customs duty on goods leaving India. Section 12 of the Customs Act, 1962 levies it, and the Customs Tariff Act, 1975 gives the rates in its Second Schedule. It is rare. Other duties include NCCD, safeguard, anti-dumping and countervailing duty. To solve a question, identify the direction of trade, the charging provision, the rate source, the rate date and any exemption.

Understand Export Duty and Other Duties

Customs duty is not only a tax on imports. Section 12 of the Customs Act, 1962 allows duty on goods imported into or exported from India, at rates specified in the Customs Tariff Act, 1975 or any other law in force. So the Customs Act gives the power to levy, and the Tariff Act gives the rates.

Export duty is levied on goods leaving India. The export duty rates are in the Second Schedule of the Customs Tariff Act, 1975. India's policy is to promote exports, so most goods carry no export duty. It is used as a tool: to keep domestic supply high, control prices, conserve scarce resources, or capture windfall gains when global prices spike.

The Central Government can vary export duty rates by notification under Section 8 of the Customs Tariff Act, 1975. Export duty rates are also changed through the Finance Act. The Government can also grant exemptions by notification under Section 25 of the Customs Act, 1962. Where the Second Schedule shows a rate, it applies, subject to any valid notification; where no rate applies, no duty arises.

Export duty can be ad valorem (a percentage of the value) or specific (an amount per unit of quantity). It can also be fixed through a tariff value, which is a value fixed by the Government under Section 14(2) of the Customs Act, 1962 for the purpose of calculating duty. Under Section 16 of the Customs Act, the rate for export goods is the rate in force on the date the proper officer makes the order permitting clearance and loading of the goods for exportation. The goods are entered for export on the shipping bill, which is the starting point, but the shipping bill date is not the determining date for the rate. Check the dates given in the question.

Other duties are specialised levies, and most apply on imports. The National Calamity Contingent Duty (NCCD) is levied under Section 136 of the Finance Act, 2001 on specified goods to raise funds for calamity relief. It is a duty of customs on imported goods and a duty of excise on goods produced in India. After GST it applies to only a limited set of goods. Its goods and rates are set by the Finance Act and its later amendments, so use the rate given in the question. Safeguard duty, anti-dumping duty and countervailing duty are trade-remedy duties against surges of imports, dumped goods and subsidised goods. They are levied under the Customs Tariff Act, 1975: safeguard duty under Section 8B, countervailing duty under Section 9, and anti-dumping duty under Section 9A. Duties under special notifications are imposed or varied by the Government within delegated powers, and exemptions are also granted by notification.

Remember the old education cess is history. The exam question will tell you what applies, so do not add cess unless it is stated.

Key rules to remember

Charging provision: Section 12, Customs Act, 1962: duty on goods imported into or exported from India, at rates in the Customs Tariff Act, 1975 or other law; Always cite this for the power to levy. Export duty rates are in the Second Schedule of the Tariff Act. The Central Government can vary them by notification under Section 8 of the Customs Tariff Act, 1975, and the Finance Act can also change them. Exemptions are granted under Section 25 of the Customs Act.
Ad valorem export duty: Export duty = Assessable value × Rate % ÷ 100; Use when the rate is a percentage. Assessable value is the value determined under the Act for export goods.
Specific export duty: Export duty = Quantity × Duty per unit; Use the unit given in the notification, such as per tonne or per kg. Convert units first.
Tariff value basis: Duty = Tariff value × Rate % ÷ 100; Where the Government fixes a tariff value under Section 14(2) of the Customs Act, 1962 and the duty is ad valorem, use it instead of the invoice value.
Rate on export goods: Section 16, Customs Act: rate in force on the date the proper officer makes the order permitting clearance and loading of the goods for exportation; State this rule in your answer if the rate changes between dates in the case. The goods are entered on the shipping bill, but the shipping bill date is not the determining date.
Duty after exemption: Payable duty = Duty at the effective rate after the notification; Apply the exemption first, then compute. Check conditions of the notification.

How to solve Export Duty and Other Duties questions

Use this method for any question on export duty or a special customs duty. It keeps your answer in provision, facts and conclusion form.

1Read the direction of trade. Is the supply an export from India or an import into India? This decides which duties can apply. Note that NCCD can also arise on domestic production as excise.
2Name the charging provision: Section 12 of the Customs Act, 1962, with rates from the Customs Tariff Act, 1975 or the law governing that duty.
3Identify the duty type in the facts: export duty, NCCD, safeguard, anti-dumping, countervailing, or a duty under a special notification.
4Find the rate and the date. For export goods, pick the rate in force on the date of the proper officer's order permitting clearance and loading, and note any change in rate during the case.
5Find the base: assessable value, tariff value or quantity. Convert quantity units if needed.
6Apply any exemption notification and check its conditions before you use the reduced rate.
7Compute the duty step by step. Add each duty only if it applies on the facts and in the stated order.
8Write the conclusion in one line: duty payable, or no duty, with the reason.

Quickest way: Four-question scan

When to use it: Use this in the MCQ section and for short numerical questions when time is tight.

Ask: export or import? For exported goods, export duty is the customs duty to test. Import-side duties do not apply to exports.
Ask: is any rate given? If the question gives a rate, use it, and do not rely on memory of current rates.
Ask: is a tariff value or quantity given? Pick ad valorem or specific accordingly.
Ask: is there an exemption, or a change in rate before the date of the order permitting clearance and loading? Apply it, then compute and stop.

Common mistakes in Export Duty and Other Duties

Assuming all exported goods attract export duty.
Students link customs duty with every cross-border movement.
Fix: Remember that export duty applies only to goods with a rate in force. If no rate is given, duty is nil.
Adding import-side duties such as IGST or safeguard duty to exports.
Students memorise one import duty stack and reuse it.
Fix: Check direction of trade first. Import duties do not apply to export goods unless the law says so.
Using the wrong date for the rate on export goods, such as the shipping bill date.
Students confuse the import rule with the export rule, or assume the shipping bill date decides the rate.
Fix: Under Section 16, use the date on which the proper officer makes the order permitting clearance and loading of the goods for exportation. The shipping bill is the entry for the goods, but its date is not the determining date. Say so in your answer.
Using a remembered NCCD rate instead of the one in the question.
Rates have changed over time and notes may be old.
Fix: Use the rate in the question. If none is given, state the principle and the levy basis (Section 136, Finance Act, 2001) rather than guessing a number.
Treating NCCD as only an import duty.
Students group it with safeguard and anti-dumping duties.
Fix: Remember that NCCD is a customs duty on imported goods and an excise duty on goods produced in India.
Adding education cess by habit.
Older problems added cess on duty.
Fix: Add a cess only when the question or notification states it. Do not assume it.
Ignoring conditions of an exemption notification.
Students stop reading once they see a lower rate.
Fix: Check each condition. If a condition fails, compute at the normal rate.

Worked examples

Example 1

Raman Exports Ltd. shipped 50 tonnes of a commodity. The goods are subject to specific export duty of ₹2,000 per tonne under a notification. The FOB value is ₹30,00,000. Compute the export duty payable.

Show the solution

Direction of trade: export from India. Export duty can apply under Section 12 of the Customs Act, 1962.
Duty type: specific duty, based on quantity and not on value.
Quantity is 50 tonnes. Rate is ₹2,000 per tonne.
Duty = 50 × ₹2,000 = ₹1,00,000.
The FOB value of ₹30,00,000 is not used because the duty is specific.

Answer: Export duty payable is ₹1,00,000.

Example 2

Shreya Metals exports goods with an assessable value of ₹40,00,000. Export duty is 10% ad valorem on the date the proper officer makes the order permitting clearance and loading of the goods. Compute the duty and state the rate date rule.

Show the solution

Direction of trade: export. Charging provision is Section 12, with the rate from the Tariff Act or a valid notification.
Rate date: under Section 16, for export goods the rate in force on the date the proper officer makes the order permitting clearance and loading applies. The question gives 10% on that date.
Duty = ₹40,00,000 × 10 ÷ 100 = ₹4,00,000.
No cess is added because none is stated.

Answer: Export duty payable is ₹4,00,000, at the rate in force on the date of the order permitting clearance and loading.

Exam tips

Write the charging provision first: Section 12 of the Customs Act, 1962 with rates from the Tariff Act. It earns marks in descriptive answers.
In case scenarios, underline the direction of trade and the dates before you choose a duty. For exports, look for the date of the order permitting clearance and loading.
Use rates given in the question. Do not import rates from memory.
For ad valorem versus specific duty, check whether the unit is quantity or value, and show the multiplication step.
Close each answer with a one-line conclusion that states duty payable or nil with the reason.

Practice questions from Types of Duty

Export Duty and Other Duties in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CMA FinalRefund of Export Duty under Section 26

Export Duty and Other Duties: frequently asked questions

When is export duty levied in India?

Export duty is levied only on goods for which a rate is in force under the Second Schedule of the Customs Tariff Act, 1975. The Central Government can vary the rates by notification under Section 8 of that Act, and the Finance Act can also change them. India generally promotes exports, so most goods carry no export duty. It is used to manage domestic supply or prices.

What is National Calamity Contingent Duty?

NCCD is levied under Section 136 of the Finance Act, 2001 on specified goods to raise funds for calamity relief. It is a duty of customs on imported goods and a duty of excise on goods produced in India. After GST it applies to a limited set of goods, so in exams use the rate given in the question.

Which Act gives the power to levy export duty?

Section 12 of the Customs Act, 1962 gives the power to levy duty on goods imported or exported. The rates are taken from the Customs Tariff Act, 1975 or other law in force.

Which date decides the rate of export duty?

Under Section 16 of the Customs Act, the rate is the one in force on the date the proper officer makes the order permitting clearance and loading of the goods for exportation. The goods are entered on the shipping bill, but the shipping bill date is not the determining date for export goods.

Is export duty ad valorem or specific?

It can be either. Ad valorem duty is a percentage of value, and specific duty is an amount per unit of quantity. Read the notification to see which applies.