Customs duty from South Korea to India: Import Duty Guide

Key Takeaways

• The India-Korea Comprehensive Economic Partnership Agreement (CEPA), in force since 2010, gives preferential customs treatment on qualifying South Korean goods.
• Both countries are actively negotiating an upgrade to the original agreement, with the 12th round of talks held in New Delhi in May 2026 - not yet concluded as of this writing.
• The upgrade talks cover goods, services, investment, rules of origin, and new areas like digital trade and supply chains, following a Joint Declaration signed in April 2026.
• India’s imports from South Korea reached roughly $23.6 billion in India’s 2025 fiscal year, making Korea one of India’s top ten import sources.
• Both sides have set a target of doubling bilateral trade to $50 billion by 2030, partly motivated by India’s ongoing trade deficit with Korea.

South Korea-India Trade at a Glance

India’s imports from South Korea reached roughly $23.6 billion in India’s 2025 fiscal year, placing Korea among India’s top ten sources of imports - dominated by electrical machinery, iron and steel, mechanical machinery, plastics, and mineral fuels.

Is There a Trade Deal Between South Korea and India?

Yes - the India-Korea Comprehensive Economic Partnership Agreement (CEPA), in force since 2010, gives preferential customs treatment on qualifying South Korean-originating goods. The two countries are now actively working to deepen it: a Joint Declaration to pursue an upgrade was signed on 20 April 2026, and the 12th round of upgrade negotiations was held in New Delhi from 25-27 May 2026, covering goods, services, investment, rules of origin, sanitary and phytosanitary standards, and new sub-groups specifically addressing digital trade and supply chains (Press Information Bureau of India; Tribune India). The upgrade has not yet concluded or entered into force - the original 2010 CEPA remains what’s operative for now. Both countries have set a target of doubling bilateral trade to $50 billion by 2030, a goal explicitly linked to addressing India’s persistent trade deficit with Korea.

How Much Will You Pay Importing from South Korea to India?

For genuinely Korean-originating goods meeting CEPA’s rules of origin, expect a preferential Basic Customs Duty rate relative to standard MFN treatment - the exact reduction depends on the specific tariff line under CEPA’s schedule, which predates the ongoing upgrade talks and hasn’t changed yet as a result of them. Outside of CEPA-qualifying goods, India’s standard stack applies: Basic Customs Duty, a Social Welfare Surcharge equal to 10% of the BCD amount, and Integrated GST at 5-28% depending on category. India has no general duty-free threshold for commercial imports of any value.

Frequently Asked Questions

Is the India-Korea CEPA being renegotiated?

It’s being upgraded, not renegotiated from scratch - the original 2010 agreement remains in force while both sides work on a deeper version, with the 12th round of upgrade talks held in May 2026 and no conclusion yet as of this writing.

Why is an upgrade needed?

Both countries have cited India’s persistent trade deficit with Korea as a motivation, alongside a shared goal of doubling bilateral trade to $50 billion by 2030 - the upgrade talks specifically add areas like digital trade and supply chains that the original 2010 deal didn’t address.

How big is South Korea-India trade?

India’s imports from South Korea reached roughly $23.6 billion in India’s 2025 fiscal year, placing Korea among India’s top ten sources of imports.

What does South Korea mainly export to India?

Electrical machinery, iron and steel, mechanical machinery, plastics, and mineral fuels are South Korea’s largest export categories to India.