Import Duty on Garments in India from Bangladesh Tariff Rates & Compliance

Overview: India provides preferential market access to garments imported from Bangladesh under the SAFTA agreement, which typically results in a zero percent Basic Customs Duty. While basic tariffs are waived, importers are still required to pay the Integrated Goods and Services Tax (IGST) and applicable surcharges. This tax structure is designed to facilitate regional trade while maintaining parity with India's domestic tax framework.

• Ad Valorem: This duty is calculated as a percentage of the total value of the garments. It is the primary method for assessing duty when SAFTA exemptions are not applicable.

• Specific Duty: A fixed monetary amount charged per unit or weight of the garment. It serves as a floor price to prevent the undervaluation of imported apparel.

• Compound Duty: This is a combination of both a percentage-based rate and a fixed per-unit rate. It is applied to ensure a minimum level of protection for domestic manufacturers.

• Section 301: These are trade enforcement duties primarily used in US trade policy. They do not apply to the trade corridor between India and Bangladesh.

• Antidumping: This duty is imposed when garments are exported to India at prices lower than their normal value. It is used to protect the Indian textile industry from unfair pricing practices.

• Excise: Previously a tax on manufacturing, this has been replaced by IGST for imports. It ensures that imported garments are taxed similarly to those produced within India.

• MPF: This is an administrative fee used in other countries like the US. India does not charge a specific Merchandise Processing Fee on garment imports.

• HMF: This fee is used in the US for port maintenance. In India, port-related costs are handled via terminal charges rather than a specific Harbor Maintenance Fee.