Import Duty Calculator

Karbon Business- Easier, Better Money Transfer for Indian Importers

Karbon makes it easier for Indian importers and businesses to pay overseas suppliers and manage foreign currency expenses with better rates and transparency.

1. What Do I Need an Import Duty Calculator for?

Importers are completely responsible for declaring the correct value and correct classification of their goods.

Here’s how it works:

When you import goods into India, you (or your customs broker) must file a Bill of Entry. In the Bill of Entry, you declare:

• The assessable value (FOB + freight + insurance + landing charges)
• The correct HSN code
• The customs duty rate that applies (BCD + SWS + IGST)

Customs officers verify your declaration. If your declared value, HSN, or duty calculation is wrong or incomplete, they may reassess it, impose a penalty, or delay clearance.

So, in practice, most importers or their agents must estimate and check duty upfront so they can:

• Budget the true landed cost
• Avoid cash flow shocks
• File the Bill of Entry correctly
• Ensure quick clearance without disputes

That’s why a clear, accurate import duty calculator is so useful. Once the duty is confirmed, importers using Tally will also need to record the bill of entry against their purchase order — here's how vendor bill matching automates this.

2. Why Use Karbon’s Import Duty Calculator?

Karbon’s calculator gives you, up-to-date customs duty estimates using actual tariff data. Unlike generic tools, it factors in product HSN codes, latest duty rates, and GST rules.

3. Who Can Use Karbon’s Import Duty Calculator?

Anyone who imports:

• Startups bringing in test shipments
• Solo traders and freelancers hunting global deals
• Small and growing businesses scaling up orders
• First timers trying out new products

If you’re shipping goods into India, this tool is for you.

Frequently asked questions

What is the import duty calculation formula?

In India, import duty is calculated on the total value of the goods, plus shipping and insurance. This total is called the CIF value (Cost, Insurance, Freight).
The basic formula is: Assessable Value = FOB Value + Freight + Insurance + Landing Charges
Import Duty = Basic Customs Duty + Social Welfare Surcharge + IGST

What is an HSN Code and how do I find it?

HSN (Harmonized System of Nomenclature) is a global system to classify goods for customs and GST. Every product has an HSN code. Indian Customs uses this code to decide the duty rates and GST rate.
To find the right HSN code, check the product description on the CBIC or DGFT website or consult a licensed customs broker.
Example HSN Codes for Different Product Type:
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Here is a sample table of HSN codes for common imports:
Product Category - HSN Code
Smartphones - 85171290
Laptops - 84713010
Furniture - 94033010
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Always verify the exact code with an official source or customs agent.

What is FOB value and how is it calculated?

FOB stands for Free on Board. It is the base price of your goods at the seller’s port of shipment, ready to be exported.
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The FOB value includes:
• The cost of the actual goods (the product price)
• Local expenses to get the goods to the port (transport within the seller’s country, handling, packing, and loading onto the ship)
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The FOB value does not include:
• International shipping from the seller’s port to India (freight)
• Insurance for the journey
• Any unloading or landing charges in India
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Example:
If you buy machinery from Germany for ₹1,00,000, and local transport and loading at the German port cost another ₹5,000, your FOB value is ₹1,05,000.

What is Freight charge and how is it calculated?

Freight charges in import duty calculation are the shipping costs paid to transport goods from the supplier’s port to the Indian port of arrival. Freight is one of the main cost components added to the FOB (Free on Board) value to arrive at the CIF (Cost, Insurance, Freight) value, which is used to calculate customs duty.

Know Your True Import Costs Instantly