CUSTOMS DUTIES: SOUTH KOREA TO INDIA

Overview of Customs Duties from South Korea to India

Exporting goods from South Korea to India involves navigating a complex tariff structure designed to protect domestic Indian industries. India maintains one of the highest import tariff regimes globally, with an average duty rate of 35% on imported goods. Unlike many countries, India does not operate a de minimis threshold, meaning customs duties and taxes are levied on all imports regardless of value. Exporters from South Korea should be prepared for substantial landed costs when shipping to India, as the country applies multiple layers of duties and taxes calculated on the CIF (Cost, Insurance, and Freight) value of shipments.

General Duty Rates and Tax Structure

Duty Component	Rate	Details
Average Import Duty Rate	35%	Applied to CIF value; varies by product HS code
Goods and Services Tax (GST)	28%	Standard combined rate for imported goods
Basic Customs Duty (BCD)	0% - 100%	Varies by HS code and product origin
Countervailing Duty (CVD)	0% - 12%	Product-dependent surcharge
Special Additional Duty (SAD)	4%	Applied to selected imported goods
De Minimis Threshold	0 INR	No exemption; duties apply to all imports

Required Documentation for Export

• Commercial Invoice detailing product description, quantity, and CIF value
• Bill of Lading or Air Waybill for shipment tracking
• Packing List with detailed contents and weights
• Certificate of Origin to verify South Korean manufacture
• Product HS Code classification for tariff determination
• Import License or Import Authorization from Indian importer (if required by product category)
• Quality and safety certificates relevant to product type
• Insurance documents covering transit damage
• Customs Declaration Form (if applicable)

Important Regulations and Considerations

Tariff Classification: India's duty rates are highly product-specific and based on HS codes. The Basic Customs Duty can range from 0% to 100% depending on the product classification and origin. Accurate HS code classification is critical for calculating landed costs.

No De Minimis Exemption: India does not have a de minimis value threshold. This means that even low-value shipments will incur full customs duties and GST, making India an unfavorable market for low-cost items from a landed cost perspective.

GST Application: The 28% Goods and Services Tax comprises Central GST (CGST), State GST (SGST), and Integrated GST (IGST). This tax is applied in addition to import duties on the CIF value.

Special Duties: Certain product categories may face Countervailing Duty and Special Additional Duty. Compensation cess is charged on specific products such as tobacco, coal, and automobiles due to environmental or market protection concerns.

Non-Transparent Requirements: Indian import regulations are often non-transparent and unpredictable. Importers should verify current requirements with Indian customs authorities or hire a customs broker experienced in India trade.

Trade Agreements and Preferential Treatment

India maintains at least 13 bilateral and multilateral trade agreements that offer zero or significantly discounted duty rates for goods manufactured in participating countries. However, South Korea's specific preferential status under these agreements should be verified with the Department of Revenue, Ministry of Finance, Government of India.

As a World Trade Organization (WTO) member, India adheres to the Most-Favored-Nation (MFN) clause, which ensures that duty concessions granted to one WTO member are extended to all other members. Exporters should consult with customs brokers to determine if any preferential rates apply to their specific products.

Customs Authority: All customs matters are handled by the Department of Revenue, Ministry of Finance, Government of India. For specific tariff rates on your products, use India's Customs Info Database or contact qualified customs professionals.