Customs

Import and export goods are to be classified according to the Tariff Item number mentioned against item in the Customs Tariff. This is a unique 8-digit code for all items based largely on the international System viz., Harmonized System of Nomenclature adopted by almost all countries. Onus to establish tariff classification of goods is on the Department. A 3-judge Bench of the Supreme Court has laid down the following parameters for determination of classification of goods:-

Import duties generally consist of the following types:

(a) HSN along with Explanatory Notes provide a safe guide for interpretation of any entry.

(b) Equal importance to be given to Rules of Interpretation of the Tariff.

(c) Functional utility, design, shape and predominant usage have also got to be taken into account.

Exemptions: The Central Government has the power under Section 25 of customs Act, 1962 to exempt in public interest, specified goods from levy of customs duty by issue of notifications or in circumstances.

Baggage: (Baggage is an aspect of customs network through which common man going abroad or returning from abroad comes in contact with customs.