Custom duty

Customs duty is an indirect tax that is levied on all imported goods as well as just a few commodities that are exported out of the country. Export duties are known as export duties, whereas import duties are known as import duties. 

The Custom Duty In India

Customs duty is an indirect tax that is levied on all imported goods as well as a few commodities that are exported out of the country. Export duties are known as export duties, whereas import duties are known as import duties. Customs duties on commodity imports and exports are levied by countries all over the world to raise revenue and/or safeguard domestic institutions against predatory or efficient international competition.

The Customs Act of 1962 defines customs duty in India, allowing the government to charge duties on exports and imports, restrict the export and import of products, establish processes for importing and exporting goods, and impose penalties, among other things. 

The Central Board of Excise and Customs is in charge of all customs affairs (CBEC). The CBEC, in turn, is a section of the Ministry of Finance’s Department of Revenue. CBEC develops policies linked to customs duty collection and levying, customs duty evasion, smuggling prevention, and administrative judgments involving customs formations.

Customs tax is calculated based on the value of the items, as well as their size, weight, and other characteristics. Ad valorem duties are those that are based on the worth of commodities, whereas specified duties are those that are based on amount or weight. 

Customs Duty Types

Almost all items brought into the nation are subject to customs taxes. A few commodities are subject to export tariffs, as listed in the Second Schedule. A few commodities, such as life-saving pharmaceuticals and equipment, fertilisers, and food grains, are exempt from import tariffs. 

Basic Customs Duties include:

A basic customs duty is imposed on imported items that come within Section 12 of the Customs Act, 1962. These charges are levied at the rates outlined in the Customs Tariff Act of 1975’s First Schedule and are subject to the criteria outlined in Section 2 of the act

Customs Surcharges (Countervailing Duty (CVD)):

Section 3 of the Customs Tariff Act of 1975 imposes this charge on imported goods. It is the same as the Central Excise Duty charged on identical commodities manufactured in India. 

Protective Service:

Protective tariffs may be applied at a rate recommended by the Tariff Commissioner to protect domestic industry from imports.

Protective customs tax at the suggested rate may be levied under section 6 of the Customs Tariff Act if the Tariff Commission recommends it and the Central Government is convinced that prompt action is required to protect the interests of Indian business. 

Cess in Education:

This charge is 2%, while the higher education cess is 1% of the total customs duties.

With effect from 9-7-2004, a 2% education cess on imported products has been levied under section 91 read with section 94 of the Finance Act 2004.

Anti-dumping Tariffs:

If a good is imported at a price below fair market value, an anti-dumping duty may be imposed, but it is only for the difference between the export and normal prices (dumping margin).

It’s a tax on a country’s imports. The Central Government may levy an anti-dumping charge on any items shipped to India at less than their normal worth.

Safeguarding Obligation:

If the government believes that a rapid surge in exports would harm the domestic sector, it will levy a safeguard charge.

Customs Duty Online

ICEGATE, or the Indian Customs Electronic Commerce/Electronic Data Interchange (EC/EDI) Gateway, offers online customs duty. This site provides E-Filing services to Customs Department clients, such as trade and freight carriers, referred to as Trading Partners. Through e-mail, FTP, and web upload, ICEGATE provides services such as electronic filing of Bills of Entry, Shipping Bills, and other relevant messaging between customs and the trade partner.

Conclusion:

Customs duty is a type of indirect tax that applies to all items imported into the nation as well as a few commodities exported out of the country. Import duties are referred to as import duties, while export duties are referred to as export duties. Customs taxes on the import/export of commodities are levied by nations all over the globe to collect income and/or protect native institutions from predatory or efficient rivals from other countries.

Customs tax is assessed based on the value of the products, as well as their size, weight, and other characteristics. Ad valorem duties are based on the worth of commodities, whereas particular duties are based on quantity or weight.