Distinguish between Basic custom duty and Additional custom duty or Countervailing duty.

Difference between Basic custom duty and Additional custom duty or Countervailing duty Basic Custom duty It is levied under section 12 of Customs Act, 1962, and specified under section 2 of Customs Tariff Act, 1975. The Basic Custom duty is levied on Imported Goods at rate specified in First Schedule of Customs Tariff Act, 1975. Whereas, Basic Custom duty on Exported Goods is levied at rate specified in Second Schedule of Customs Tariff Act, 1975. Such duty is levied either on the basis of:(a) Transaction value u/s 14(1) or(b) Tariff value determined u/s 14(2) of the Custom Act, 1962 On the other hand, additional or countervailing duty (CVD) is levied u/s 3(1) of the Customs Tariff Act, 1975 and is equal to excise duty on like goods manufactured in India. After introduction of GST in India, Central Excise duties have been subsumed for goods covered under GST. IGST is levied on imported goods (if the imported goods covered under GST). Therefore, CVD is not applicable, in case of imported goods covered under GST.