India is a major market for footwear imports, with shoes sourced globally to meet diverse consumer demands. Importing shoes into India involves paying customs duties and taxes, which vary based on the type of footwear, materials, and trade agreements. If you are wondering, how much is import duty on shoes in India, this article provides a clear explanation along with essential details for importers.
Import Duty on Shoes in India
The import duty on shoes in India typically ranges from 10% to 20%, depending on the material, type of shoe, and classification under India’s customs tariff.
Breakdown of Duties and Taxes:
- Basic Customs Duty (BCD):
- The standard duty is 10%–15% for most footwear types.
- Certain categories, like luxury or leather shoes, may attract higher rates.
- Integrated Goods and Services Tax (IGST):
- 18% IGST is levied on the value of imported shoes, including the basic customs duty.
- Social Welfare Surcharge (SWS):
- A 10% surcharge on the basic customs duty is applicable.
- Additional Cess or Duties:
- Special cesses may apply depending on trade policies and product specifications.
Example Calculation of Import Duty on Shoes
| Cost Component | Value (INR) | Details |
|---|---|---|
| Cost of Shoes (CIF Value) | ₹10,000 | Cost, Insurance, and Freight combined. |
| Basic Customs Duty (15%) | ₹1,500 | 15% of ₹10,000. |
| Social Welfare Surcharge | ₹150 | 10% of Basic Customs Duty. |
| IGST (18%) | ₹2,067 | 18% of ₹11,650 (CIF + Duty + SWS). |
| Total Import Duty | ₹3,717 | Total taxes and duties for import. |
Factors That Affect Import Duty on Shoes in India
- Type of Footwear:
- Leather shoes often have higher duties due to their premium nature.
- Non-leather footwear like PVC or rubber shoes may attract lower duties.
- Trade Agreements:
- Import duties may be reduced under Free Trade Agreements (FTAs) with countries like ASEAN, Japan, or Korea.
- Origin Country:
- Shoes imported from countries with favorable trade relations enjoy reduced tariffs.
- Material and Usage:
- Industrial or safety footwear may have lower duties compared to luxury or designer shoes.
Customs HS Code for Footwear
India classifies footwear imports under specific HS Codes (Harmonized System Codes). These codes determine the applicable duties:
| HS Code | Footwear Type | Basic Customs Duty |
|---|---|---|
| 6403.20.00 | Leather shoes | 15% |
| 6404.19.00 | Sports shoes | 10% |
| 6402.91.00 | Rubber or plastic shoes | 10% |
| 6405.90.00 | Other footwear types | 20% |
Tips to Reduce Import Costs
- Leverage Trade Agreements:
- Import from countries with FTAs to benefit from reduced duties.
- Proper HS Code Classification:
- Use accurate HS codes to avoid penalties or higher duties.
- Bulk Imports:
- Importing in bulk can reduce shipping costs, lowering the overall expense.
- Hire a Customs Agent:
- Work with a customs expert to ensure smooth and cost-effective import processes.
FAQs About Import Duty on Shoes in India
1. How much is the duty for leather shoes?
Leather shoes typically attract a 15% Basic Customs Duty in India.
2. Are there any exemptions for importing shoes?
Certain trade agreements or government policies may offer exemptions for specific shoe categories or sourcing countries.
3. How is the import duty calculated?
Import duty is calculated on the CIF value (Cost, Insurance, and Freight), plus additional taxes like IGST and SWS.
4. Are duties different for safety footwear?
Yes, safety or industrial footwear often has lower duties to promote imports for workplace safety.
Conclusion
So, how much is import duty on shoes in India? The duty typically ranges between 10% and 20%, depending on the type of footwear and material. Additional taxes like IGST and SWS apply, making it essential to understand the full cost structure before importing. By leveraging trade agreements and working with customs experts, importers can effectively manage costs and bring quality footwear into India.
