Customs Duty Dubai to India: How It Works
Updated 9 September 2026
When a parcel arrives in India from the UAE, Indian customs charge import duty in three layers: Basic Customs Duty, a social welfare surcharge, and IGST. This guide explains each layer in plain English, shows a worked example, and links to the official source so you can check the exact rate for your product. All figures are indicative for 2026 — verify before you quote a landed price.
Read this first: every number below is an indicative 2026 estimate to show how the maths works. Real duty depends on your exact HS code and the value customs assign. Always confirm with Indian customs (CBIC) or a broker before committing.
How India import duty is built up
India does not charge one flat rate — it stacks three charges on top of each other, starting from the value of your goods including freight and insurance (the CIF value). The HS code of your product decides the percentages.
| Layer | How it is calculated | Typical 2026 range |
|---|---|---|
| Assessable value | Item value + freight + insurance (the CIF value in INR) | Base for everything below |
| Basic Customs Duty (BCD) | A % of the assessable value, set by the HS code | Commonly 10–20% for consumer goods |
| Social Welfare Surcharge (SWS) | 10% of the BCD amount | A surcharge on the duty, not the value |
| IGST | A % of (assessable value + BCD + SWS) | Usually 5%, 12%, 18% or 28% |
In order: customs first work out the assessable value in rupees (your item value plus freight and insurance). They apply Basic Customs Duty (BCD) as a percentage of that. They add Social Welfare Surcharge (SWS) at 10% of the BCD. Finally they charge IGST (Integrated Goods and Services Tax) on the running total. The three added together is your import duty. Exact BCD and IGST rates come from the product's HS code — see how to find it in our export documentation checklist.
The gift / de-minimis threshold
Do not assume a low-value parcel or genuine gift arrives duty-free. CBIC Circular 04/2020 removed the general exemption often described online as a ₹5,000 gift allowance for ordinary imports through post or courier.
A genuine gift may still be imported when otherwise permitted, but full applicable duty can be payable. Read the India gift customs guide and verify the current treatment for the exact goods before dispatch.
Worked example table
Here is roughly how duty scales with value for typical consumer goods. These are rounded estimates using a 10–15% BCD, 10% SWS and 18% IGST — your product may differ.
| Item value | Basis | Approx. total duty |
|---|---|---|
| AED 200 (~₹4,500) | Gift sent by courier | Duty may apply; no general courier gift exemption |
| AED 500 (~₹11,000) | BCD 10% + SWS + IGST 18% | ~₹3,000–3,500 |
| AED 1,000 (~₹22,500) | BCD 10% + SWS + IGST 18% | ~₹6,000–7,000 |
| AED 2,500 (~₹56,000) | BCD 15% + SWS + IGST 18% | ~₹18,000–20,000 |
AED to INR conversions are approximate and move with the exchange rate. Figures are illustrative for 2026 only.
IEC: personal vs commercial
Whether the receiver in India needs an Import Export Code (IEC) depends on why the goods are coming in. This is the line between a personal parcel and a commercial import.
- Personal / gift shipments to an individual generally do not need an IEC, but are still subject to duty above the gift threshold.
- Commercial shipments — goods for resale or business use — require the importer to hold a valid IEC issued by the DGFT (Directorate General of Foreign Trade), and usually a GST registration.
If you are selling to a business in India, confirm they have an IEC before you ship — clearance stalls without it.
How to keep duty predictable
You cannot avoid legitimate duty, but you can stop it becoming a surprise that kills the sale.
- Get the HS code right — it sets both the BCD and IGST rate. A wrong code means a wrong quote.
- Declare the honest value — under-declaring risks penalties and reassessment by customs.
- Use a preferential Certificate of Origin — under the UAE–India economic partnership, qualifying goods may attract lower BCD. See our Certificate of Origin guide.
- Decide who pays — shipping DDP means you cover the duty so your buyer is not surprised. Compare in our DDP vs DAP guide.
Note: this guide uses India as the worked example, but the same three-layer logic — import duty, local surcharges and import tax — applies to most destinations. Swap in the destination country's rates and thresholds.
Want a landed-cost estimate for your shipment?
Send us the item, value and destination and we will estimate the duty and total landed cost, prepare the paperwork, and ship it on discounted rates. We handle the HS code and Certificate of Origin for you.
Related guides: UAE export documentation checklist · Certificate of Origin (Dubai Chamber) · all guides