Customs_Roles_and_concept_in_India The Customs Act of 1962 defines customs duty in India and gives the government the authority to impose duties on imports and exports, prohibit the import and export of products, establish procedures for import and export, prosecute offenders, and impose other sanctions. Customs duty, a type of indirect tax, is charged on all imported commodities and some items that are exported outside of the country. Import tariffs and export duties are terms used to describe taxes imposed on the import and export of products, respectively. Customs taxes are imposed on the import and export of commodities all over the world in order to generate income and/or protect domestic institutions from foreign competitors. Custom duties are taxed on consumers for harmful products such as tobacco and alcohol to discourage public use. Customs duty is levied as per the value of goods or dimensions, weight, and other such criteria according to the goods in question. If duties are based on the value of goods, then they are called ad valorem duties, while quantity/weight-based duties are called specific duties. Compound duties on goods are a combination of value as well as various other factors. Finance Minister of India, Nirmala Sitharaman has announced the Union Budget on 1 February 2023, where she has mentioned some changes in customs duty and here are the following changes: The concessional duty on lithium-ion cells will be continued for another year Custom duty of camera lenses reduced to 2.50% Custom duty on open cells of LED TV panels reduced to 2.50% Custom duty reduced for camera lenses of mobile phone Customs fees are assessed based on the worth of the goods, or on a specified or ad valorem basis. Rule 3(i) of the 2007 Customs Valuation (Determination of Value of Imported Commodities) Rules establishes the value of goods. This regulation bases the worth of imported products on the transaction value after it has been modified in accordance with Rule 10's guidelines. Items must be valued using alternative methods in accordance with the following hierarchy if there is a lack of quantifiable or objective data regarding the valuation factors, the valuation conditions are not met, or there are questions regarding the accuracy or truth of the declared value as per Rule 12 of the Valuation Rules 2007. Comparative Value Method which compares the transaction value of similar items (Rule 4 and Rule 5) Deductive Value Method which uses the sale price of item in importing country (Rule 7) Computed Value Method which uses the costs related to fabrication, materials and profit in production country (Rule 8) Fallback Method which is based on the earlier methods with higher flexibility (Rule 9) Online Custom Duty Online custom duty is available from ICEGATE or Indian Customs Electronic Commerce/Electronic Data Interchange (EC/EDI) Gateway. This portal allows E-Filing services to clients of the Customs Department including trade and cargo

1. Customs Roles
and concept in
India
Presenter Name
202225800004 Sunny A Bhonsle
202225800035 Harshil D Modi
202225800050 Gautam S Rupavatiya
202225800063 Hemangi A Sitapara
202225800065 Raj B Thakkar

2. Topics
1. What is
Customs
2. Types of
Custom Duty.
2022 & 2023
Major update in
Duty
3. Custom
Payment
4. Customs
Valuations
5. Custom
Bound Area &
Types
Presentation Title
Customs Roles and concept in India 2

3. What is Customs
Duty ?
• Customs duty, a type of indirect tax, is
charged on all imported commodities and
some items that are exported outside of the
country.
Customs Roles and concept in India 3

4. What is Customs
Duty ?
• Customs duty is levied as per the value of
goods or dimensions, weight, and other such
criteria according to the goods in question. If
duties are based on the value of goods, then
they are called ad valorem duties, while
quantity/weight-based duties are called
specific duties
Customs Roles and concept in India 4

5. Custom Duty in
India
• The Customs Act of 1962 defines customs
duty in India and gives the government the
authority to impose duties on imports and
exports, prohibit the import and export of
products, establish procedures for import
and export, prosecute offenders, and impose
other sanctions.
Customs Roles and concept in India 5

6. Types of Customs
Duty
• Customs duties are levied almost universally
on all goods imported into the country.
• Export duties are levied on a few specified
goods.
• Import duties are not levied on a few items
including lifesaving drugs/equipment,
fertilizers, food grains etc.
Customs Roles and concept in India 6

7. Customs Roles and concept in India 7
Types of custom duty Rates Applicable
Basic Customs Duty (BCD)
0 to 100% (depending upon the HS code and its
origin)
On all goods imported in India. Actual fee depends
on:
•Type of goods
•Region imported from
•What these products made from
Some goods are exempted from BCD such as
lifesaving drugs
Special Additional Duty (SAD) 4.00%
On imported goods which are equivalent to the
locally produced good subject to sales tax.
Calculated on total
value of good.
Countervailing Duty (CVD) 0% to 12% (depends upon the goods)
On goods that received tax benefits or subsidies in
the country of manufacture. This duty prevents
advantage of these goods over locally produced
goods.
Social Welfare Surcharge (SWS) 10%
Introduced in 2018 to support government social
welfare project, which replaces Education
Chesses.

8. Customs Roles and concept in India 8
Types of custom duty Rates Applicable
Anti-dumping Duty As per notification
Imposed to prevent dumping, which is an unfair
international trade practice where goods are sold
below market value, thereby damaging local
industry.
Compensation cess Depends upon product type
On goods such as tobacco, and pollution causing
goods such as coal and cars.
Safeguard Duty As per notification
Imposed by Indian Customs authorities on all
goods imported in Indian that are damaging local
producers.
Customs handling fee 1.00% Applied apart from other taxes as applicable.

9. 2022 & 2023 Major
update in Duty Union
Budget
Customs Duty Update in Union Budget 2022
Finance Minister Nirmala Sitharaman has announced the
Union Budget on 1 February 2022. In the budget speech,
• Exceptions are Introduced to allow duty free imports
on items like handicrafts, leather goods and apparel.
• After a detailed review of custom duty exemptions ,
more than 40 exemptions Proposed to gradually
phased out.
Customs Roles and concept in India 9
Customs Duty Update in Union Budget 2023
Finance Minister of India, Nirmala Sitharaman has
announced the Union Budget on 1 February 2023,
• The concessional duty on lithium-ion cells will be
continued for another year
• Custom duty of camera lenses reduced to 2.50%
• Custom duty on open cells of LED TV panels reduced to
2.50%
• Custom duty reduced for camera lenses of mobile
phone

10. Custom
Payment
Custom duty can be paid online by following the
steps given below:
Step 1: Access the ICEGATE e-payment portal
Step 2: Enter Import/Export code or login credential
supplied by ICEGATE
Step 3: Click on e-payment
Step 4: You can now see all the unpaid challans in
your name
Based on the worth of the goods or specified or ad
valorem basis and valued using alternative methods:
Customs Roles and concept in India 10

11. Custom
Payment
Step 5: Select the challan you want to pay and
select a bank or payment method
Step 6: You will be redirected to the particular
bank's payment gateway
Step 7: Make the payment
Step 8: You will be redirected to ICEGATE portal,
click print to save payment copy
Link :
https://epayment.icegate.gov.in/epayment/locationA
ction.action
Customs Roles and concept in India 11

12. Custom Duty Valuation
Comparative Value
Method: which
compares the
transaction value
of similar items
(Rule 4 and Rule
5)
Deductive Value
Method: which
uses the sale price
of item in importing
country (Rule 7)
Computed Value
Method : which
uses the costs
related to
fabrication,
materials and profit
in production
country (Rule 8)
Fallback Method:
which is based on
the earlier methods
with higher
flexibility (Rule 9)
12
• Based on the worth of the goods or specified
or ad valorem basis and valued using
alternative methods:

13. Latest Custom Duty Rates in India
Presentation title 13
Item Tariff Code (HSN)
Basic Customs Duty
From To
Air conditioners 8415 10 20
Aviation turbine fuel 2710 19 20 0 5
Bath, sink, shower bath, wash
basin, etc., made of plastic
3922 10 15
Colored gemstones that are cut
and polished
71 5 7.5
Compressors for refrigerators
and air conditioners
8414 30 00/8414 80 11 7.5 10
Diamonds which are broken, half-
cut, or semi-processed
71 5 7.5
Diamonds that are lab grown 71 5 7.5
Footwears 6401 to 6405 20 25
Household refrigerators 8418 10 20
Jewlery articles and their parts,
either of metal clad with precious
metal or of precious metal
7113 15 20

14. Customs Duty
Calculation
• ICEGATE portal - Indian Customs Electronic
Commerce/ Electronic Data Interchange
• The HS Code, 30-character limit for description,
choose origin country are required while operating this
calculator.
• You can obtain a chart that contains all the details
about the customs duty on a certain item by choosing
one.
• You can obtain a chart that contains all the details
about the customs duty on a certain item by choosing
one.
Presentation title 14

15. Custom Bound
Area & Types
“The Area under customs control where in
goods cannot be moved in or out without the
permission of custom department.”
• EXAMINATION
• ASSESSMENT
• CLEARANCE
• FORMALITIES
Customs Roles and concept in India 15

16. TYPES OF
CUSTOM
BOUNDED AREA
1. Public bounded warehouse
2. Private bounded warehouse
3. Special bounded warehouse
Customs Roles and concept in India 16

17. PUBLIC
BOUNDED
WAREHOUSE
• Available to anyone to wants to store
goods
• Licensed by the concerned customs
authorities to act as custodian
• Escrow to store goods until duty is paid by
the importers
• Examples of type B Customs warehouse in
Asian countries include central
warehousing corporation, Concor, State
Warehousing Corporation.
Customs Roles and concept in India 17

18. PRIVATE
BOUNDED
WAREHOUSE
• Only the administrator of the customs
warehouse
• Their own goods or specific goods stored
on behalf of others
• Only the specific licensed importers are
allowed to be stored their goods in the
warehouse.
Customs Roles and concept in India 18

19. SPECIAL
BOUNDED
WAREHOUSE
• Licensed by customs authorities to act as
custodian
• For the specific storage of goods
• Special storage facilities
Customs Roles and concept in India 19

20. Thank you