The Custom Duty Imposed For Imported Cosmetics.

Customs duty is a type of indirect tax that is imposed on both the exported as well as imported goods and services. The tax that is imposed on imports of goods and services is called import duty and the tax imposed on the export of goods is called an export duty. The Government of India charges these taxes at the time of import and export of goods and services for raising money to protect the home establishments from the rivals from other countries.

Lately, the Indian Government has made some alterations in the whole tax system of the nation. GST was introduced which is a new tax collection system that is a location-based tax that implies that the customer is required to pay when they will be using any goods or services. Before this new system, there were multiple taxes like service tax, value-added tax, central excise etc. that were imposed on several goods and services. After GST these multiple taxes have been replaced by one single tax system.

Some of the common trading partners of India for importing cosmetics are Belgium, China, Korea, France. When cosmetics are imported from these countries custom duty is imposed. Recently there was an increase in customs duty that is imposed on imported cosmetics. This enhancement has been done with a clear motive to discourage companies from importing products from outside India and rather use goods manufactured in India.

Now have a look at custom import duty that is imposed on the various cosmetic product:The customs import duty that is imposed on Lip make up preparations is 10% under HS Code 33041000.IGST for the cosmetic product is 18% and the overall duty for this product is 29.8%.

The custom duty imposed on eye make-up preparations is about 10% and the IGST for the eye makeup product is about 18%, thus making the overall duty of the above product about 29.8% along with the import policy.

Custom import duty on other products is 10% under HS code 330449190 and IGST for the cosmetic product is 18% thus the same 29.8% along with the import policy.

Thus, these are the regulations of custom duty that are imposed for imported cosmetics as per cosmetic regulatory compliances. To obtain the cosmetic license a manufacturer has to abide by all rules and regulations that have been framed for maintaining consumer safety.