This document provides an introduction to custom duty in India. It defines custom duty as an indirect tax levied on goods involved in international trade, with import duties charged on imported goods and export duties charged on exported goods. The document then outlines some of the key points around custom duty, including that it has existed since the Vedic period and is collected and controlled by the central government. It also discusses the types of custom duties charged in India as well as goods that are prohibited from import or export for various policy objectives.

1. CUSTOM DUTY
PRESTNTED BY:
SHWETHA C.S.
I MCOM
UNDER GIUDENCE OF:
SUNDAR B.N
Asst Prof., Course Co-ordinator
GFGCW HNP

2. CONTENTS
 INTRODUCTION TO CUSTOM DUTY
 MEANING OF CUSTOM DUTY
 PROHIBITION OF IMPORT & EXPORT US 11
 TYPES OF CUSTOM DUTY.
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3. INTRODUCTION
According to custom duty act 1962
Custom duty is an indirect tax, that exists since
Vedic period, Custom duty is collected on import,
in India the impose of custom duty and collection
of custom duty in the hand of the central
government, and even the receipt of revenue from
custom duty belongs to central government.
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4. MEANING
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Customs duty is a kind of indirect
tax which is levied on goods of
international trade. Duties levied in
relation to imported goods are
referred to as import duty and duties
levied on the export goods are called
export duty.

5. PROHIBITIONS OF IMPORT
AND EXPORT U/S 11
The central govt through custom act
prohibits or restricted illegal import and
export of the country.
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6. OBJECTIVES OF PROHIBITIONS
( ILLEGAL IMPORT AND EXPORT)
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In order to maintain
security of India
For maintenance of
public order
Prevention of
smuggling

7. OBJECTIVES OF PROHIBITIONS
( ILLEGAL IMPORT AND EXPORT)
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Prevention of shortage
of goods
Prevention of serious
injury to the economy
Prevention of surplus of
any agricultural product

8. OBJECTIVES OF PROHIBITIONS
( ILLEGAL IMPORT AND EXPORT)
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Maintenance of standard
for the classification goods
in international trade
Prevention of serious
damage to the domestic
industries
Protection of patents,
trademarks and copy right

9. EXPORT PROHIBITED GOODS
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Books containing
diagram, showing
border area of
India
Export of beef
Chilli &
Vegetables
Humans skeleton
Wood and Wood
product

10. IMPORT PROHIBITED GOODS
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Dummy
Pistols
Fictions
stamps
Negative
films
Drugs Explosives

11. TYPES OF CUSTOM DUTY
Basic custom duty (BCD) U/S 12
Countervailing duty (CVD) U/S 3(3)
Additional custom duty or Special CVD U/S 3(1)
Protective duty U/S 6&7
Anti dumping duty U/S 9(A)
Education Cess duty on custom duty U/S 126
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12. MCQ Questions
1. Custom Act, 1962 extend to ………….?
a. Whole of India excluding Jammu & Kashmir
b. Whole of India
c. Whole of India excluding Jammu & Kashmir and Union Territories
d. Whole of India excluding Jammu & Kashmir and Special economic
Zones.
Ans: Whole of India .
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2. Custom Station means………?
a. Any custom port
b. Any custom Airport
c. Any international courier terminal
d. All of the above
Ans: All of the above

14. 3. “Export goods” means ………..?
a. Any goods which are to be taken out of India.
b. Any goods which are to be taken out of India to a place
outside India
c. Which exporter Desires to take outside India
d. Non of the above
Ans: Any goods which are to be taken out of India to a
place outside India.
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Reference
Topic: custom duty
Retrived from :-
https://www.business-standard.com/about/what-is-
customs-duty

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