
Import Duty Calculation & FSSAI Import License Requirements for Food Products in India 2026
Understanding your landed cost before you place that purchase order can save you lakhs, whether you're importing machinery or navigating FSSAI import license requirements for food products in India. Import duty calculation isn't just about the Basic Customs Duty (BCD) rate you see on the DGFT website. The actual amount you pay includes multiple layers—Social Welfare Surcharge, IGST, cess, and handling charges—that can push your total duty liability to 40% or more of the CIF value.
This guide breaks down exactly how import duty works in India for 2026, with real HS codes, current rates, and a step-by-step calculation method you can use for any product.
When your shipment arrives at an Indian port, customs calculates duty on the CIF value—Cost of goods + Insurance + Freight up to the Indian port.
| Component | Rate |
|---|
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| Basic Customs Duty (BCD) | 0% to 150% depending on HS code |
| Social Welfare Surcharge (SWS) | 10% of BCD |
| Integrated GST (IGST) | 5%, 12%, 18%, or 28% |
| Compensation Cess | Varies (tobacco, automobiles, etc.) |
| Agriculture Infrastructure & Development Cess (AIDC) | Varies |
> Pro Tip: Always calculate duty on the CIF value, not the FOB value. Insurance and freight can add 8-15% to your base cost.
CIF Value Formula:
```
CIF Value = FOB Price + Freight Cost + Insurance Cost
```
Example: Machinery from Germany (HS Code 8479.89, BCD 7.5%)
Duty Calculation:
| Component | Amount (₹) |
|---|---|
| CIF Value | 11,10,000 |
| Basic Customs Duty (7.5%) | 83,250 |
| Social Welfare Surcharge (10%) | 8,325 |
| Assessable Value for IGST | 12,01,575 |
| IGST (18%) | 2,16,284 |
| Total Duty Payable | 3,07,859 |
| Total Landed Cost | 14,17,859 |
Your duty burden here is 27.7% of CIF value.
IGST replaced the old CVD and SAD system in 2017. Key points:
> Watch Out: You cannot claim BCD or SWS as input credit. Only IGST is recoverable.
All food product imports require FSSAI clearance under the Food Safety and Standards Act, 2006. FSSAI import license requirements food products India regulations mandate that importers obtain an FSSAI Import License before shipment arrival.
Key Compliance Requirements:
Non-compliance results in detention, destruction, or re-export costs. Food imports also attract IGST at applicable rates (5%, 12%, or 18%) plus BCD varying from 0% to 150% depending on the specific food category.
Before your shipment arrives, ensure you have:
Q1: What are the FSSAI import license requirements food products India importers must follow?
A: Importers must obtain a Central FSSAI License before importing food products. Requirements include compliance with Food Safety and Standards (Import) Regulations 2017, proper labeling with FSSAI logo and license number, minimum 60% shelf life remaining, and health certificates from exporting countries.
Q2: How is IGST calculated on imported food products?
A: IGST is calculated on the assessable value (CIF value + BCD +
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