The Social Welfare Surcharge (SWS) is an additional charge imposed on imported goods. It contributes to funding various social welfare initiatives and programs.
Calculation: The SWS is calculated at the rate of 10% of the aggregate of customs duties, taxes, and cesses that are levied and collected under Section 12 of the Customs Act, 1962.
SWS is not calculated on the value of the imported goods but rather on the aggregate of all applicable duties, taxes, and cesses. If the aggregate of customs duties on an import is zero, then the SWS, despite not being explicitly exempted, would be 'Nil'. SWS is not refundable, and it must be paid in cash and cannot be refunded through duty credit scrips.
Purpose: The surcharge is designed to support the Indian government’s commitment to education, health, and social security.
Exemptions: Notably, the SWS is not charged on gold imports. Additionally, it shall not be levied on goods for which customs duty is exempted.
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