Customs

Custom Consultants,Custom Consultancy Services

Types of Customs Duties Leviable:- In India, customs duties are levied on the goods at the rates specified in the Schedules to the Customs Tariff At, 1975. The taxable event is import into or export from India. Export duties (Second Schedule) are levied at present on a limited number of items, such as leathers, iron ores and concentrates and chromium ores and concentrates only. But sweep of import duties is very wide, almost universal, barring a few goods like food grains, fertilizers, life saving drugs and equipments, etc.

Import duties generally consist of the following types:

1.Basic Duty: It may be at the standard rate or, in the case of import from some countries, at the preferential rate. [Section 2 of Customs Tariff act, 1975].

2.Additional Customs Duty: Additional Customs Duty equal to central excise duty is leviable on like goods produced or manufactured in India. The MRP based valuation prevailing under Central Excise is extended to Customs also. Now the value for calculating the additional duty equal to the excise duty , in respect of commodities covered under the Standards of Weights and Measures Act and rules made thereunder and by notification issued under Section 4A of the Central Excise Act, would be the declared retail sale price, less the amount of abatement allowed under the notification. In case of alcoholic liquors, the additional duty is chargeable at a uniform rate specified by the Central Government irrespective of the varying rates in force in the States.

3.Additional Customs Duty of Customs: Additional Duty of Customs not exceeding 4% (1% for articles of Jewellery) was levied under Section 3(5) of the CTA, 1975 in the Budget 2005 in order to counter balance various internal taxes like Sales Tax and VAT and to provide a level playing field to indigenous goods which have to bear these taxes. This additional duty has been extended to all import goods in the Budget 2006. However, goods which are exempted from State VAT, BCD on M.F.N. basis and CVD, import by EOUs, Kerosene for PDS LPG for domestic supply and certain precious metals have been exempted from this duty [See Notification Nos.19/2006-Cus and 20/2006-Cus. For complete list]. Goods which avail of Nil preferential rate of Customs duty under any FTA/PTA etc. would not generally be eligible for exemption from the 4% duty. Value base for this additional duty will not be included in the assessable value for levy of education cess on imported goods. Manufacturers will be able to take credit of this additional duty for payment of excise duty on their finished products.

4.Additional Duty of Customs is leviable at the rate of Rs.2/- per litre on imported motor spirit (petrol) and high speed diesel oil.

5.National Calamity Contingent Duty (NCCD)- It is imposed at present @ Rs.50 per M.T. on imported crude oil and @ 1% on Mobile phones, two wheelers, motor cars and multi-utility vehicles.

6. Anti-dumping duty/safeguard duty- With a view to protecting domestic industry from unfair injury, Anti-dumping duty /safeguard duty is imposed on import of specified goods. It would not apply to goods imported by a 100% EOU and units in FTZ and SEZ. But exemption is not available to EOU if imported goods as such or finished goods are cleared in DTA.

1.Submission of bill of entry and shipping bill- (i) The work of examination of goods (usually done on a percentage basis), classification, valuation, checking from import licence point of view and assessment of duty is a present attended to in the Custom House by Appraisers and Examiners of Customs. The work is divided among different commodity groups on functional basis and each group is placed under the charge of an Assistant Commissioner.