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Central Excise and Customs

Both Excise and Customs duties are indirect taxes in nature. That means the producer or seller who pays the tax to the government is expected to try to recover or shift the tax by raising the price paid by the buyer. Excise Duty is an inland tax on the sale or production for sale of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.


A tax levied on imports (and, sometimes, on exports) by the customs authorities of a country to raise state revenue, and/or to protect domestic industries from more efficient or predatory competitors from abroad.

Customs duty is based generally on the value of goods or upon the weight, dimensions, or some other criteria of the item (such as the size of the engine in case of automobiles).

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