PROJECT

PRESENTATION
Presented By Juliana Silva
 INTRODUCTION
Custom duty is a form of indirect tax. It is levied by the
central government on the import of goods and export of
goods from India through Air,Water and Land Route.
The word Customs means the habitual practice or course
of action that repeat in like [Link] duties on
export and import of goods are levied from the traditional
times by all the countries
 SOURCES OF CUSTOM
LAW
THE FOLLOWING ARE THE SOURCES OF CUSTOM LOSS IN INDIA:
1) THE CUSTOM ACT 1962 IT EXTENT TO THE WHOLE OF INDIA AND SAVE AS OTHERWISE
PROVIDED IN THE SET IT APPLIES ALSO TO ANY OFFENCE OR CONTRAVENTION THERE
UNDER COMMITTED OUTSIDE INDIA BY ANY PERSON.
2.) THE CUSTOM TARI GF ACT, 1975 : IT CONTAINS THE PROVISIONS RELATING TO
VARIOUS TYPE OF CUSTOMS DUTIES AND THE CLASSIFICATION OF IMPORTED AND
EXPORTED GOODS.
3.) RULES FROM CUSTOMS ACT, 1975 : THE SECTION 156 OF THE CUSTOM ACT 1962
EMPOWERS THE CENTRAL GOVERNMENT TO MAKE RULES . SUCH RULES MAY BE
PROVIDED FOR MATTERS RELATING TO MANNER OF DETERMINING THE VALUE OF
IMPORTED GOODS/ EXPORTED GOODS.
4.) REGULATIONS UNDER CUSTOMS ACT, 1975 : THE CBI C
( CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) IS
EMPOWERED UNDER SECTION 157 OF THE CUSTOM ACT TO
MAKE REGULATIONS TO CARRY OUT THE PURPOSE OF THE
ACT.
5.) CIRCULARS : THE CBIC CAN ISSUE CIRCULARS
INSTRUCTIONS OR DIRECTIONS FOR THE PURPOSE OF
UNIFORMITY IN CLASSIFICATION OF GOODS OR WITH
RESPECT TO THE LEVEL OF DUTY THEREON.
 TYPES OF GOODS
THE CUSTOMS ACT PROVIDES PROVISIONS FOR DUTIES ON IMPORT AND EXPORT OF
GOODS. THE SECTION 2(22) OL THE CUSTOMS ACT GIVES THE INCLUSIVE
DEFINITION OF GOODS. THE TERM "GOODS" INCLUDES

(A) VESSELS, AIRCRAFTS AND VEHICLES

(B)STORES:
(C) BAGGAGE:
(D) CURRENCY AND NEGOTIABLE INSTRUMENTS; AND
(E) ANY OTHER KIND OF MOVABLE PROPERTY
THE FOLLOWING TYPES OF GOODS HAVE BEEN CLASSIFIED UNDER VARIOUS SECTIONS OF CUSTOMS
ACT

(1) IMPORTED GOODS: THE GOODS BROUGHT TO INDIA FROM A PLACE OUTSIDE INDIA ARE REFERRED TO AS
IMPORTED GOODS

(2) PROHIBITED GOODS: THIS MEANS ANY GOODS THE IMPORT OR EXPORT OF WHICH IS SUBJECT TO ANY
PROHIBITION UNDER THIS ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORCE BUT DOES NOT INCLUDE
ANY SUCH GOODS IN RESPECT OF WHICH THE CONDITIONS SUBJECT TO WHICH THE GOODS ARE
PERMITTED TO BE IMPORTED OR EXPORTED, HAVE BEEN COMPLIED WITH

(3) COASTAL GOODS: THESE ARE THE GOODS, OTHER THAN IMPORTED GOODS, TRANSPORTED IN A VESSEL
FROM ONE PORT IN INDIA TO ANOTHER

(4) TRANSIT GOODS: THESE ARE THE GOODS IMPORTED IN A CONVEYANCE AND MENTIONED IN THE IMPORT
MANIFEST OR THE IMPORT REPORT, AS THE CASE MAY BE, AS FOR TRANSIT IN THE SAME CONVEYANCE TO
ANY PLACE OUTSIDE INDIA OR TO ANY CUSTOMS STATION. THE PROPER OFFICE MAY ALLOW THE GOODS
AND THE CONVEYANCE TO TRANSIT WITHOUT PAYMENT OF DUTY. THESE ARE ALSO REFERRED TO AS
SAME BOTTOM GOODS.
Charging section ( Section
12)
THE DUTIES OF CUSTOMS SHALL BE LEVIED AT SUCH RATES AS MAY BE SPECIFIED UNDER THE CUSTOMS
TARIFF UT, 1975, OR ANY OTHER LAW FOR THE TIME BEING IN FORCE, ON GOODS IMPORTED INTO AND
EXPORTED FROM INDIA THESE PROVISIONS SHALL APPLY IN RESPECT OF ALL GOODS BELONGING TO
GOVERNMENT AS THEY APPLY RESPECT OF GOODS NOT BELONGING TO GOVERNMENT.

NOTE : IMPORT BY INDIAN NAVY, SPECIFIC EQUIPMENT REQUIRED BY POLICE, MINISTRY OF DEFENCE,
COSTAL GUARD ETC ARE FULLY EXEMPT FROM CUSTOMS DURY BY VIRTUE OF SPECIFIC NOTIFICATIONS
SUBJECT TO FULFILMENT VONDITIONS AND/OR PROCEDURE SET OUT IN THE SAID NOTIFICATIONS

THE RATES AT WHICH DUTIES OF CUSTOMS SHALL BE LEVIED UNDER THE CUSTOMS ACT, 1962 ARE
SPECIFIED IN THE FIRST AND SECOND SCHEDULES OF THE CUSTOMS TARIFF ACT, 1975.
TAXABLE EVENT IN CASE OF IMPORTS
(1) TAXABLE EVENT IN CASE OF IMPORTS
(A) IN CASE OF GOODS CLEARED FOR HOME CONSUMPTION: IMPORT OF GOODS
COMMENCES WHEN THEY CROSS THE TERRITORIAL WATERS, BUT CONTINUES AND IS
COMPLETED WHEN THEY BECOME PART OF THE MASS OF GOODS WITHIN THE
COUNTRY, THE TAXABLE EVENT BEING REACHED AT THE TIME WHEN THE GOODS
REACH THE CUSTOMS BARRIERS AND BILL OF ENTRY FOR HOME CONSUMPTION IS
FILED.
(B) IN CASE OF GOODS CLEARED FOR WAREHOUSING: IN CASE OF WAREHOUSED
GOODS, THE GOODS CONTINUE TO BE IN CUSTOMS BOND. HENCE, IMPORT TAKES
PLACE WHEN THE GOODS ARE CLEARED FROM THE WARE HOUSE. THE CUSTOMS
BARRIERS WOULD BE CROSSED WHEN THEY ARE SOUGHT TO BE TAKEN OUT OF THE
CUSTOMS AND BROUGHT TO THE MASS OF GOODS IN THE COUNTRY.
 TAXABLE EVENT IN CASE OF EXPORTS
(II) TAXABLE EVENT IN CASE OF EXPORTS

EXPORT OF GOODS IS COMPLETE WHEN THE GOODS CROSS THE TERRITORIAL WATERS
OF INDIA. IF SHIP SINKS WITHIN THE TERRITORIAL WATERS, EXPORT IS NOT
COMPLETE. HOWEVER THE DUTY HAS TO BE COLLECTED BEFORE SHIP LEAVES THE
PORT. THEREFORE, TAXABLE EVENT ARISES WHEN PROPER OFFICER MAKES AN ORDER
PERMITTING CLEARANCE TE ENTRY OUTWARD IS GRANTED AND LOADING OF THE
GOODS TAKES PLACE
 CUSTOM DUTY NOT LEVIABLE IN CERTAIN CASES

THE CUSTOMS DUTY SHALL NOT BE LEVIED ON THE FOLLOWING:

(A) NO DUTY ON PILFERED GOODS (SECTION 13)

(B) REDUCED DUTY ON DAMAGED GOODS (SECTION 22)

(C) REMISSION OF DUTY ON DESTROYED GOODS (SECTION 23(1)]

(D) NO DUTY ON RELINQUISHMENT OF THE TITLE TO THE GOODS [SECTION 23(2)]

 TYPES OF DUTIES
THE FOLLOWING ARE THE VARIOUS TYPES OF CUSTOMS DUTIES LEVIED WITH THE AUTHORITY OF LAW:

1. BASIC CUSTOM DUTY [SECTION 12]

2. INTEGRATED GOODS AND SERVICES TAX [SECTION 3(7)]
3. GST COMPENSATION CESS [SECTION 3(9)]
4. EDUCATION CESS & SECONDARY AND HIGHER EDUCATION CESS [PRIOR TO 2ND FEBRUARY, 2018]
5. SOCIAL WELFARE SURCHARGE [W.E.F. 2ND FEBRUARY, 2018]
6. ADDITIONAL DUTY OF CUSTOM
A). COUNTERVAILING DUTY IN LIEU OF EXCISE [SECTION 3(1)]
B.) ADDITIONAL DUTY
[Link] DUTIES
8. SAFEGUARD DUTY ( SECTION 8 B)
9. COUNTERVAILING DUTY ON SUBSIDIZED GOODS ( SEC 9)
10. ANTI DUMPING DUTY
[Link] CALAMITY CONTINGENT DUTY
 Basic custom duties
(1) BASIC CUSTOMS DUTIES [BCD]: IT IS THE MOST COMMON DUTY LEVIED ON ALMOST ALL IMPORTS AND SOME EXPORTS. IT
IS LEVIED UNDER SECTION 12 OF THE CUSTOMS ACT AND SECTION 2 OF THE CUSTOMS TARIFF ACT 1975 AS A PERCENTAGE
OF VALUE AS DETERMINED UNDER SECTION 14(1) OR (2) OF THE CUSTOMS ACT, 1962 THE RATES AT WHICH THE DUTIES ARE
IMPOSED MAY BE SPECIFIED UNDER THE CUSTOMS TARIFF ACT 1975 OR UNDER ANY OTHER LAW FOR THE TIME BEING IN
FORCE. THESE RATES ARE SPECIFIED IN THE FIRST SCHEDULE AND THE SECOND SCHEDULE OF THE CUSTOMS TARIFF ACT.
1975.

SCHEDULE 1 SPECIFIES THE GOODS LIABLE TO IMPORT DUTY, WHEREAS SCHEDULE II ENLISTS THE GOODS LIABLE TO
EXPORT DUTY. BUT THE CENTRAL GOVERNMENT HAS THE POWER TO REDUCE OR EXEMPT ANY GOODS FROM THESE DUTIES.
IN EXERCISE OF THESE POWERS, THE GOVERNMENT HAS NOTIFIED THAT IN CASE OF IMPORTS FROM PREFERENTIAL AREAS,
PREFERENTIAL RATE OF DUTY SHOULD BE APPLICABLE.
THUS, WE CAN SAY THAT THERE ARE TWO RATES OF BCD:
(A) STANDARD RATE
(B) PREFERENTIAL RATE.
 2. INTEGRATED GOODS AND SERVICE TAX
UNDER THE GST REGIME. ARTICLE 269A CONSTITUTIONALLY MANDATES THAT THE SUPPLY OF
GOODS/SERVICES/BOTH IN THE COURSE OF IMPORT INTO INDIA SHALL BE DEEMED TO BE SUPPLY IN THE
COURSE OF INTER-STATE TRADE OR COMMERCE FOR LEVY OF INTEGRATED TAX. THEREFORE, SUCH IMPORT
OF GOODS OR SERVICES WILL BE TREATED AS DEEMED INTER-STATE SUPPLIES AND WOULD BE SUBJECT TO
INTEGRATED TAX
3. GST COMPENSATION CESS:
GST COMPENSATION CESS IS LEVIED UNDER SECTION 8 OF THE GOODS AND SERVICES TAX (COMPENSATION TO
STATES) ACT, 2017. IT IS LEVIED ON SUPPLY OF THOSE GOODS AND SERVICES THAT HAVE BEEN NOTIFIED BY THE
CENTRAL GOVERNMENT, TO PROVIDE COMPENSATION TO THE STATES FOR LOSS OF REVENUE DUE TO THE IMPLE-
MENTATION OF GST.
THIS CESS IS NOT LEVIED ON ALL GOODS BUT ON LUXURY AND SIN GOODS LIKE PAN MASALA, TOBACCO ETC.

ANY ARTICLE WHICH IS IMPORTED INTO INDIA SHALL BE LIABLE TO THE GOODS AND SERVICES TAX COMPENSATION
CESS AT SUCH RATE, AS IS LEVIABLE UNDER SECTION 8 OF GOODS AND SERVICES TAX (COMPENSATION TO
STATES) CESS ACT. 2017, ON A LIKE ARTICLE, ON IT SUPPLY IN INDIA.
THE ASSESSABLE VALUE FOR LEVYING GST COMPENSATION CESS IS TO BE COMPUTED IN THE SAME MANNER AS
THE VALUE COMPUTED FOR IGST UNDER SECTION 3(10) OF THE CUSTOMS TARIFF ACT.
 4. Additional duty of Customs [Section 3(1)]: Countervailing Duty (CVD)

Any article which is imported into India is also liable to a duty equal to the excise duty for the time being
leviable on a like article if produced or manufactured in India. If the article is not produced or
manufactured in India, the duty of customs will be equal to the duty of excise that would be leviable on the
article, had it been produced in India. If the product is leviable with different rates, the highest rate would
be applicable. This duty is called as additional duty or countervailing duty This duty or tax or cess shall be
in addition to any other duty or tax or cess imposed under Customs Tariff Act or under any other law. The
value on which the duty is levied is assessable value plus the basic excise duty. However, after the
implementation of GST, very few articles which are covered under Central Excise Act will be levied with
additional duty of customs

[Link] Additional duty of Customs [Section 3(3)) Countervailing Duty (CVD)

This duty is levied by central Government to counter balance excise duty leviable on raw materials.
components and ingredients of the same nature as used in the production of imported articles. After
the implementation of GST it has no relevance now
 6 SPECIAL ADDITIONAL DUTY OF CUSTOMS [SECTION 3(5)]: (SPECIAL CVD-SAD)
THE CENTRAL GOVERNMENT HAS THE POWER TO LEVY DUTY TO COUNTER-BALANCE THE SALES TAX, VALUE
ADD ED TAX (VAT) LOCAL TAX OR ANY OTHER CHARGES FOR THE TIME BEING LEVIABLE ON A LIKE ARTICLE
ON ITS SALE. PURCHASE OR TRANSPORTATION IN INDIA. THIS DUTY IS IN ADDITION TO DUTY LEVIABLE
UNDER SECTION 3(1) AND 3) OF CUSTOMS TARIFF ACT. THE DUTY IS LEVIED BY NOTIFICATION IN THE
OFFICIAL GAZETTE, AT A RATE NOT EXCEEDING 4% OF THE VALUE OF IMPORTED ARTICLE AS SPECIFIED IN
THE NOTIFICATION

7. PROTECTIVE DUTIES
PROTECTIVE DUTIES ARE INTENDED TO GIVE PROTECTION TO THE DOMESTIC INDUSTRY IN INDIA. THIS
DUTY IS IMPOSED BY THE CENTRAL GOVERNMENT UPON THE RECOMMENDATION OF TARIFF COMMISSION
TO PROTECT THE INTEREST OF THE INDIAN INDUSTRY. THE RATE OF DUTY IS RECOMMENDED BY THE TARIFF
COMMISSION AND IMPOSED UNDER SECTION 6 OF THE CUSTOMS TARIFF ACT

THE PROTECTIVE DUTY SHALL BE EFFECTIVE ONLY UP TO THE DATE AS SPECIFIED IN THE NOTIFICATION,
INCLUSIVE OF THAT DATE. THE DUTY ONCE LEVIED MAY BE ALTERED, RESCINDED REDUCED OR INCREASED
BY NOTIFICATION IN THE OFFICIAL GAZETTE. THE NOTIFICATION IMPOSING PROTECTIVE DUTY SHOULD BE
INTRODUCED IN THE PARLIA MENT BY WAY OF BILL AND SHOULD BE PASSED WITHIN 6 MONTHS. IF THE
BILL IS NOT PASSED WITHIN 6 MONTHS IT SHALL CEASE TO HAVE FORCE.
 8. ANTI-DUMPING DUTIES [SECTION 9A]
WHEN LARGE MANUFACTURERS FROM ABROAD, EXPORTS ITS GOODS TO INDIA AND SELL THEM AT BELOW
THE NOR MAL VALUE OF SUCH ARTICLES SOLD IN THE DOMESTIC MARKET OF THE EXPORTER, IT IS TERMED
AS DUMPING. THE DOMESTIC MARKET IN INDIA MIGHT BENEFIT IN THE SHORT RUN BECAUSE THEY WILL
HAVE ACCESS TO CHEAPER PRODUCTS BUT IN THE LONG RUN THIS WILL DAMAGE OUR INDUSTRIES.
IN ORDER TO AVOID DUMPING AND TO PROTECT DOMESTIC INDUSTRY, THE CENTRAL GOVERNMENT CAN
IMPOSE ANTI-DUMPING DUTY UNDER SECTION 9A OF THE CUSTOMS TARIFF ACT. IT IS A VALID ACTION BY
ANY NATION TO MITIGATE THE UNFAIR TRADE PRACTICES OF OTHER NATIONS AND THEREFORE, HAS THE
APPROVAL OF INTERNATIONAL
9. SAFE GUARD DUTY

UNDER SECTION 8B OF CUSTOMS TARIFF ACT, THE CENTRAL GOVERNMENT CAN IMPOSE THE SAFEGUARD DUTY

IF IT IS SATISFIED THAT.

(A) ANY ARTICLE IS IMPORTED INTO INDIA IN INCREASED QUANTITIES,

(B) SUCH INCREASED IMPORTATION IS CAUSING OR THREATENING TO CAUSE SERIOUS INJURY TO DOMESTIC
INDUSTRY
10. EDUCATION CESS AND SECONDARY AND HIGHER EDUCATION CESS ON CUSTOMS DUTY (PRIOR TO 2ND
FEB RUARY, 2018)
EDUCATION CESS (EC): AN EDUCATION CESS OF CUSTOMS HAS BEEN IMPOSED ON IMPORTED GOODS WEF.
9-7-2004 UNDER SECTION 91 READ WITH SECTION 94 OF THE FINANCE ACT, 2004. IT IS CONSIDERED AS A
DURY OF CUSTOMS. IT IS NOT LEVIABLE ON ALL THE CUSTOMS DUTY. THE RATE OF EDUCATION CESS IS 2%
SECONDARY AND HIGHER EDUCATION CESS (SHEC): IN ADDITION, THE SECONDARY AND HIGHER
[Link]
OF 1% OF THE TOTAL DUTIES OF CUSTOMS HAS BEEN IMPOSED ON IMPORTED GOODS UNDER SECTION 136
READ WITH SECTION 139 OF THE FINANCE ACT. 2007. THIS DUTY IS PAYABLE W.E.F. 1-3-2007. JUST LIKE
EDUCATION CESS, SECONDARY AND HIGHER EDUCATION CESS IS ALSO NOT LEVIABLE ON ALL DUTIES OF
CUSTOM

11. SOCIAL WELFARE SURCHARGE (SWS) ON IMPORTED GOODS (W.E.F. 2 FEBRUARY, 2018).

ACCORDING TO SECTION 110(1) OF FINANCE ACT, 2018, "THERE SHALL BE LEVIED AND COLLECTED, IN ACCOR
DANCE WITH THE PROVISIONS OF FINANCE ACT, 2018, A DUTY OF CUSTOMS, TO BE CALLED A SOCIAL WELFARE
SURCHARGE." IT SHALL BE LEVIED ON THE GOODS SPECIFIED IN THE FIRST SCHEDULE TO THE CUSTOMS
TARIFF ACT, 1975, BEING THE GOODS IMPORTED INTO INDIA. THIS SURCHARGE SHALL BE UTILIZED FOR THE
PURPOSE OF FINANCING THE EDUCATION, HEALTH AND SOCIAL SECURITY.
 [Link] AND INFRASTRUCTURE CESS (RIS) ON IMPORTED GOODS (W.E.F. 2 FEBRUARY, 2018)

ACCORDING TO SECTION 111(1) OF FINANCE ACT, 2018. THERE SHALL BE LEVIED AND COLLECTED, IN
ACCORDANCE WITH THE PROVISIONS OF FINANCE ACT, 2018, A DUTY OF CUSTOMS, TO BE CALLED A
ROAD AND INFRASTRUCTURE CESS ON THE GOODS SPECIFIED IN THE SIXTH SCHEDULE, BEING THE
GOODS IMPORTED INTO INDIA AT THE RATES SPECIFIED IN THE SAID SCHEDULE FOR THE PURPOSE OF
FINANCING INFRASTRUCTURE PROJECTS. THE ROAD AND INFRASTRUCTURE CESS IS LEVIED AS DUTY OF
CUSTOMS 19 PER LITRE ON MOTOR SPIRIT (PETROL) AND HIGH SPEED DIESEL (HSD) IMPORTED INTO
INDIA FOR THE PURPOSE OF FINANCING INFRASTRUCTURE PROJECTS. IT MAY BE NOTED THAT THIS
RATE 29 PER LITRE HAS BEEN AMENDED FROM 8 PER LITRE VIDE NOTIFICATION NO 18/2019-CUSTOMS
DATED 5TH JULY 2019

13. NCCD NATIONAL CALAMITY AND CONTINGENT DUTY.

THIS DUTY HAS BEEN IMPOSED UNDER SECTION 134 OF THE FINANCE ACT, 2003. THIS DUTY IS
IMPOSED ON PRODUCTS LIKE PAN MASALA, CHEWING TOBACCO AND CIGARETTES.
 METHODOLOGY 1
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Duis vel dolor ante. Nullam feugiat egestas elit et
vehicula. Proin venenatis, orci nec cursus tristique, nulla
risus mattis eros, id accumsan massa elit eu augue.
Mauris massa ipsum, pharetra id nibh eget, sodales
facilisis enim.
 METHODOLOGY 2
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consectetur adipiscing elit. consectetur adipiscing elit.
Duis vel dolor ante. Nullam Duis vel dolor ante. Nullam
feugiat egestas elit et feugiat egestas elit et
vehicula. Proin venenatis, vehicula. Proin venenatis,
orci nec cursus tristique, orci nec cursus tristique,
nulla risus mattis eros, id nulla risus mattis eros, id
accumsan massa elit eu accumsan massa elit eu
augue. augue.
 RESULT 25
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consectetur adipiscing elit. 20

Duis vel dolor ante. Nullam

15
feugiat egestas elit et vehicula.
Proin venenatis, orci nec 10

cursus tristique, nulla risus 5

mattis eros, id accumsan
massa elit eu augue. 0
Item 1 Item 2 Item 3 Item 4 Item 5
 CONCLUSION
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Duis vel dolor ante. Nullam feugiat egestas elit et
vehicula. Proin venenatis, orci nec cursus tristique, nulla
risus mattis eros, id accumsan massa elit eu augue.
Mauris massa ipsum, pharetra id nibh eget, sodales
facilisis enim.
RECOMMENDATION
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elit. Duis vel dolor ante. Nullam feugiat egestas elit
et vehicula.

Lorem ipsum dolor sit amet, consectetur adipiscing

elit. Duis vel dolor ante. Nullam feugiat egestas elit
et vehicula.
 QNA
SESSION
THANK
YOU