Full formBusiness & Corporate
EXDstands forExport Duty
Full Form of EXD
What is EXD?
Export Duty (EXD) is a tax imposed by a country on goods and services that are shipped out of its borders to foreign markets. In India, export duty is levied by the central government under the Customs Act, 1962, primarily to regulate the outflow of certain commodities, conserve domestic supplies, and generate revenue. It is commonly applied to raw materials, agricultural produce, and essential items like iron ore, steel, and rice, especially when domestic prices are high or shortages loom. The duty amount varies based on the product, its global demand, and government policy. Export duty is a tool for trade policy, helping manage balance of payments and protect local industries from excessive foreign competition. For students of commerce, economics, and business, understanding export duty is crucial for competitive exams like UPSC, SSC, and MBA entrance tests, as it appears in sections on taxation, international trade, and government policies. In practice, exporters must pay the duty at the time of customs clearance, and failure to comply can lead to penalties or seizure of goods.
EXD का फुल फॉर्म
निर्यात शुल्क
Example
The Indian government recently increased the export duty on parboiled rice to ensure adequate domestic supply and control inflation.
EXD — frequently asked questions
What is the full form of EXD?
The full form of EXD is Export Duty, a tax on goods leaving India.
How does export duty affect Indian exporters?
Export duty increases the cost of shipping goods abroad, reducing profit margins for exporters but helping stabilize domestic prices of essential commodities.
Which Indian government department handles export duty?
The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, administers export duty through customs authorities at ports.