Reply: Under Article II:2(a) of the GATT 1994, Members are allowed to impose a charge on the imported products equivalent to internal taxes applied on like domestic products.
Unlike the basic customs duty, the additional customs duty is a charge equivalent to an internal tax (i.e. the Central Excise duty) applied to like domestic products. In most cases central excise duty is based on transaction value. However in the case of few notified packaged commodities, central excise duty is charged on the basis of the maximum retail sale price less the abatement. Therefore, when such notified packaged goods are imported, they are charged to additional customs duty on the same basis.
