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Customs Act


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Customs Act

  1. 1. Customs Act 1962 AFTERSCHO ☺ OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  2. 2. Customs Act Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] , AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS
  3. 3. History … <ul><li>The first revenue organisation was established in 1786 – the first board of revneue was set up in Kolkata. </li></ul><ul><li>1808 – new board of trade was set up </li></ul><ul><li>First uniform tariff act (VII of 1859) was enacted </li></ul><ul><li>At that time rate of import duty was 10% advalorem and 4% on raw products. </li></ul>
  4. 4. History…. <ul><li>Mostly related to textiles, cotton, raw material etc. </li></ul><ul><li>The decisions were based on the interest of britishers and therefore, Indian interests were neglected. </li></ul>
  5. 5. After independence… <ul><li>Two main laws : </li></ul><ul><li>Customs Act 1962 </li></ul><ul><li>Customs Tariff Act 1975 </li></ul>
  6. 6. CCCN <ul><li>Customes Cooperation Council Nomenclature 1950 </li></ul><ul><li>(adopted from 1975) </li></ul><ul><li>Harmonised Commodity Description and Coding system (harmonised system) </li></ul><ul><li>It is a 6 digit code with headings at the 5 th and 6 th digits. It is a multi purpose nomenclature suitable for use in customes, tariffs, statistics, banking etc. </li></ul><ul><li>It reduces the difficulties in recording goods and in computerisation of the information </li></ul>
  7. 7. harmonised system <ul><li>97 chapters with rules, section notes, sub-heading notes etc. </li></ul><ul><li>Chapte 98 is for special needs like project import, laboratory, etc. </li></ul><ul><li>Chapter 99 is for exempted goods </li></ul><ul><li>Read with Baggage rules 1988, customs (provisional assessment) regulation 1963 and customes valuation (determination of price of imported goods) rules 1988. </li></ul>
  8. 8. Types of duties… <ul><li>Basic customs </li></ul><ul><li>Additional duties </li></ul><ul><li>Protective duty </li></ul><ul><li>Safeguard duty </li></ul><ul><li>Anti dumping duty </li></ul><ul><li>Countervailing duty </li></ul>
  9. 9. Basic duty … <ul><li>Section 12: </li></ul><ul><li>As a % of value (called Ad-valorem duty ) </li></ul><ul><li>The rates vary for different commodities from 8% to 16%, on some goods higher duty is levied (for example in agriculture goods). </li></ul>
  10. 10. Additional duty equal to countervailing duty … <ul><li>If you import liquor, and the excise duty on liquor is suppose 40%, then additional duty (counervailing duty) of 40% will be imposed on import of liquor (so that domestic industry is protected). </li></ul>
  11. 11. Additional duty equal to excise duty on raw materials used… <ul><li>Suppose you import plastic chair, the plastic granules are subject to excise of 12%, then additional duty of 12% will be imposed on plastic chairs to counterbalance the prices. </li></ul>
  12. 12. Protective duty… <ul><li>On the recommendation of the tariff commission, the government may impost protective duty on some goods to protect certain industries. For example, marble industry people are raising demand to impose protective duty on marble imported from China </li></ul>
  13. 13. Anti – dumping duty …. <ul><li>If any country is exporting goods to India at price less than the cost – then we have to put anti-dumping duty on those goods to protect our industry… </li></ul>
  14. 14. Pilferred goods… <ul><li>Duty is levied as per sec. 13. (pilferred goods means those goods which have be pilferred / stolen after unloading but before proper levy of duty). </li></ul>
  15. 15. Valuation of goods… <ul><li>As per section 14 and customes (amendment) act 1988. </li></ul><ul><li>The price at which they are ordinarily sold in normal course of business </li></ul><ul><li>(subject to the conditions …) </li></ul><ul><li>The buyer and seller must not have any interest in each-other’s business </li></ul><ul><li>Price should be the sole consideration </li></ul>
  16. 16. Rate of exchange… <ul><li>As determined by the board </li></ul><ul><li>As ascertained – as per the manner levied by the board </li></ul>
  17. 17. Valuation rules… <ul><li>Customes valuation rules (determination of price of imported goods) rules 1988 </li></ul><ul><li>(in confirmity to the GATT agreement and WTO) </li></ul>
  18. 18. Transaction value… <ul><li>The price actually paid or payable </li></ul>
  19. 19. GATT VALUATION CODE… <ul><li>A set of rules providing the method of valuation </li></ul><ul><li>Primary method - the simplest method – here we look at the transaction value and if transaction value cannot be ascertained (for example in gift, lease, hire etc.) follow other methods – alternate methods.. </li></ul>
  20. 20. Alternate method for valuation… <ul><li>If transaction value is not available – we go for transaction value of identical goods (rule 5) or transaction value of similar goods (similar goods as defined in rule 2 (e) = goods which are not alike in all respects, have like characteristics and like component materials, which enable them to perform the same functions and to be commercially interchangeable. ) </li></ul>
  21. 21. Computed value… <ul><li>As per rule 7A, the computed value of imported goods will be calculated on the basis of materials, fabrication, processing, profit, general expenses etc. </li></ul>
  22. 22. Residual method or fall back method .. <ul><li>It is similar to best judgement method of 1963 valuation rules. </li></ul><ul><li>When the value cannot be determined by any of the previous method – then it will be determined on the basis of best judgement possible. </li></ul>
  23. 23. Declaration by importer… <ul><li>The importer has to submit declaration in prescribed for under rule 10 of the valuation rules, in this declaration he has to give details about his relation with agent, buyer, and details about conditions of goods, packing cost, cost of goods, freight, insurance details etc. </li></ul>
  24. 24. Rejection of declared value… <ul><li>If there is doubt, the customs officer may reject the value declared by the importer </li></ul>
  25. 25. About AFTERSCHO☺OL <ul><li>PGPSE - World’s most comprehensive programme on social entrepreneurship – after class 12 th </li></ul><ul><li>Flexible – fast changing to meet the requirements </li></ul><ul><li>Admission open throughout the year </li></ul><ul><li>Complete support from beginning to the end – from idea generation to making the project viable. </li></ul>
  26. 26. Branches of AFTERSCHO☺OL <ul><li>PGPSE programme is open all over the world as free online programme. </li></ul><ul><li>Those who complete PSPSE have the freedom to start branches of AFTERSCHO☺OL </li></ul><ul><li>A few branches have already started - one such branch is at KOTA (Rajasthan). </li></ul>
  27. 27. Workshop on social entrepreneurship <ul><li>We conduct workshop on social entrepreneurship – all over India and out of India also - in school, college, club, association or any such place - just send us a call and we will come to conduct the workshop on social entrepreeurship. </li></ul><ul><li>These workshops are great moments of learning, sharing, and commitments. </li></ul>
  28. 28. FREE ONLINE PROGRAMME <ul><li>AFTERSCHO☺OL is absolutely free programme available online – any person can join it. The programme has four components : </li></ul><ul><li>1. case studies – writing and analysing – using latest tools of management </li></ul><ul><li>2. articles / reports writing & presentation of them in conferences / seminars </li></ul><ul><li>3. Study material / books / ebooks / audio / audio visual material to support the study </li></ul><ul><li>4. business plan preparation and presentations of those plans in conferences / seminars </li></ul>
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  30. 30. Pursue professional courses along with PGPSE <ul><li>AFTERSCHO☺OL permits you to pursue distance education based professional / vocational courses and gives you support for that also. Many students are doing CA / CS/ ICWA / CMA / FRM / CFP / CFA and other courses along with PGPSE. </li></ul><ul><li>Come and join AFTERSCHO☺OL </li></ul>