Most goods leave India without paying any customs duty. Export duty is the exception: it falls only on a short list of items, and the list and the rates change by notification. So the first question is not "how much is the duty?" but "is my product on the list at all?"
This post explains how to answer that, how the duty is worked out when it does apply, and how it differs from GST on exports, which is where most of the confusion comes from. Our export duty calculator does the sum once you have the rate.
The short version
- Export duty applies only to goods listed in the Second Schedule to the Customs Tariff Act, 1975. If your tariff item is not there, the duty is nil.
- It is charged on the FOB value, not the CIF value. Freight and insurance to the buyer's port are not part of it.
- Exporting under a LUT does not remove it. A LUT affects IGST only.
- The IGST refund does not return it either. Export duty is a real cost of the shipment.
- The rate is whatever the current notification says. Rates are added, changed and withdrawn at short notice, so never reuse a rate from an old article.
Which goods are taxed
The Customs Act, 1962 allows duty on exports, and the Second Schedule to the Customs Tariff Act, 1975 lists the items and the rate for each. Nothing outside that schedule is charged.
In practice the list is short and moves with policy. Over the last few years the government has put export duty on, and later taken it off, items such as certain rice varieties, onions and iron ore, to manage domestic supply and prices. We have not listed current rates here because they would be out of date quickly. The reliable way to check is the three steps below.
How to check your product
- Find the HS code. Use our HSN/SAC Finder. Export duty is set against the 8-digit tariff item, so get the full code, not just the first four digits. See HSN codes: 4, 6 or 8 digits if you are unsure how many to use.
- Look the item up in the export tariff. Check the Second Schedule and the latest customs notifications on CBIC, or the duty calculator on ICEGATE.
- Check the date. Note the date of the notification that sets the rate and confirm it is still in force on the day your shipping bill is filed. A rate that applied last month may not apply now.
If the item is not listed, the export duty rate is 0%, and you are done with customs duty.
How export duty is calculated
For a duty charged as a percentage (ad valorem), the sum is one line:
Export duty = FOB value × export duty rate
The FOB value is the price of the goods at the Indian port, before overseas freight and insurance. Customs uses the transaction value, as set by the Customs Valuation (Determination of Value of Export Goods) Rules, 2007. If your invoice is in a foreign currency, it is converted at the rate CBIC notifies for exports. CBIC publishes a separate list for exports, so do not use your bank's rate.
If you invoice on CIF or CFR terms, take the freight and insurance off first:
| Invoice term | What the price includes | FOB value for duty |
|---|---|---|
| FOB | Goods loaded at the Indian port | The invoice value |
| CFR | FOB plus sea or air freight | Invoice value minus freight |
| CIF | FOB plus freight and insurance | Invoice value minus freight and insurance |
Unlike imports, there is no 10% Social Welfare Surcharge to add and no IGST on top of the duty. The calculator on this site does not include other charges such as cess, so check your notification for anything extra.
If the duty is a fixed amount per unit
Some items carry duty per tonne or per kilogram instead of a percentage. Then:
Export duty = quantity × duty per unit
If you want a percentage to use in a calculator, divide that amount by the FOB value and multiply by 100.
Worked example (illustrative rate)
The 10% rate below is invented to show the arithmetic. It is not the duty on any real product. Use the rate from the current notification for your item.
An exporter ships goods on a CIF invoice of ₹10,50,000. The invoice includes ₹40,000 of freight and ₹10,000 of insurance. The tariff item is on the export list at a notified 10%.
| Step | Working | Amount |
|---|---|---|
| CIF invoice value | ₹10,50,000 | |
| Less freight | − ₹40,000 | |
| Less insurance | − ₹10,000 | |
| FOB value | ₹10,00,000 | |
| Export duty | ₹10,00,000 × 10% | ₹1,00,000 |
What the exporter pays at the port then depends on the GST route, covered next:
| GST route | IGST at 18% | Paid at export | Refund later | Real cost |
|---|---|---|---|---|
| Under a LUT | Nil | ₹1,00,000 | Nil | ₹1,00,000 |
| Pay IGST, claim refund | ₹1,80,000 | ₹2,80,000 | ₹1,80,000 | ₹1,00,000 |
Either way the duty of ₹1,00,000 is a cost the exporter carries. Only the cash tied up in between is different. You can enter these same numbers in the export duty calculator to see this table.
Export duty is not the same as GST on exports
This is the part that trips people up. Two separate rules apply to the same shipment:
| Export duty | GST on exports | |
|---|---|---|
| Law | Customs Act and Customs Tariff Act | IGST Act and CGST Act |
| Applies to | Only goods in the Second Schedule | Every export of goods, which is zero-rated |
| Charged on | FOB value | Invoice value, if you choose to pay IGST |
| Can you avoid paying it? | No, if the item is listed | Yes, by exporting under a LUT |
| Refundable? | Not through the GST refund | Yes, IGST paid is refunded |
Exports of goods are zero-rated under GST. You have two choices: export under a LUT (Letter of Undertaking) and pay no IGST, or pay IGST and claim a refund. Neither choice touches customs duty. Our LUT & Export GST Refund Helper walks through both routes.
Who pays and when
The exporter named on the shipping bill pays export duty, before customs allows the goods to leave with the Let Export Order. Payment is made through ICEGATE or at an authorised bank. Export duty is charged on goods only, never on services.
In limited cases some of the duty can be refunded, for example when exported goods come back to India. Ask your customs broker before you claim one.
What the calculator does and does not do
Our calculator takes the FOB value and the duty rate you enter, and shows the duty, the IGST under either route, the total at export and the net cost after the IGST refund.
It does not look up the notified rate for your product, and it does not add cess or any other special charge. Get the rate from the notification and ICEGATE first, then enter it. For the import side of the same tool, see how import duty is calculated.
Summary
- Export duty applies only to items in the Second Schedule to the Customs Tariff Act, 1975. Most goods pay none.
- Find your 8-digit HS code, then check the current notified rate and its date.
- Duty is charged on the FOB value. Take freight and insurance off a CIF or CFR invoice first.
- A LUT removes IGST, not export duty. The IGST refund does not return export duty.
Sources
- CBIC: customs tariff, notifications and exchange rates
- ICEGATE customs duty calculator
- India Code: Customs Tariff Act, 1975 and Customs Act, 1962
This post is correct as of 4 November 2026. Export duty rates can change at any time through government notifications. Always check the rate for your product before you file a shipping bill. This is not legal advice.