A. Types of Duties

Customs duty is leviable on import of goods into India or export from India. Export duties are levied occasionally and it is the import duties, which constitute the bulk of the customs law. Import duty rates are specified in the Schedules to the Customs Tariff Act, 1975. The import duties generally consist of the following.

1. Basic duty — It may be at the standard rate or in the case of import from some countries, at the preferential rate.
2. Additional customs duty — This is equal to the Central Excise duty leviable on the product manufactured in India and if the said product is not manufactured in India then on like product manufactured in India.

   Explanation to section 3(1) to Customs Tariff Act, 1975 — In this sub-section, the expression “the excise duty for the time being leviable on a like article if produced or manufactured in India” means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty.

3. Countervailing duty — This is leviable to offset the disadvantage to like Indian goods leviable to high excise duty.
4. Special additional duty on customs — This is leviable in order to provide a level playing filed to indigenous goods, which have to bear sales tax, local tax and other charges and this duty can be passed on along with CVD in lieu of CE as CENVAT Credit to the buyer.
5. Anti-dumping/Safeguard duty — This is leviable with a view to protecting domestic industry from unfair injury.

   As per section 46, the importer shall file the bill of entry. The rate of duty and the value prevailing on the date of filing of bill of entry shall be the basis for levy of duty.

B. Assessment

The work of examination of goods, classification, valuation, checking from import licence point of view and assessment of duty is done by the Customs Appraiser. In case the goods are required to be tested or there is any dispute regarding classification, valuation, import licence requirement, provisional assessment/clearance, subject to execution of bond with prescribed security, of the goods is permissible.

C. Valuation

Unless a tariff value is notified, the valuation has to be as per section 14 of the Customs Act, 1962 read with the Customs Valuation Rules, 1988.

In terms of the aforesaid, the value is the transaction value. In order for the price to be the transaction value, the following conditions have to be satisfied.

• It should be the price at the time of importation
• It should be the price at the place of importation; and
• It should be the price at which such or like goods are ordinarily sold. The word ordinarily implies exclusion of special or extraordinary circumstances which are specified in Rule 4(2) of the Customs Valuation Rules, 1988

D. Rate of exchange for Customs Valuation

Bill of entry for home consumption or warehousing can be presented 30 days before expected date of arrival of vessel. Exchange rate as applicable on date of presentation of Bill of entry under section 46 as prescribed by CBEC should be considered.

E. Export Promotion Schemes

Various relaxation/concessions are provided by the EXIM Policy in respect of import for the purpose of export. Consequently, in order to give effect to such concessions prescribed by the Commerce Ministry, notifications are issued under the Customs Act, 1962 by the Ministry of Finance. It is these notifications which permit duty-free imports, or imports at concessional rate subject to the conditions prescribed therein.

F. Project Import

Project import provides for import of different types of machineries and their spares for initial set up or substantial expansion at concessional rate of duty by classifying the same under Chapter 98.01 even if they fall under different chapters.

G. EPCG Scheme

Capital goods which can be imported under project import can be imported under EPCG scheme. The export obligation will be 8 times the duty saved i.e., difference between concessional rate under project import and rate applicable under EPCG scheme.

H. Self-Sealing Procedure for Exporters

Implementation of electronic sealing for containers by exporters under self-sealing procedure has been prescribed by circular 26/2017-Cus dated 1-1-.2017, 36/2017-Cus, dated 28-8-2017 and 37/2017-Cus dated 20-9-2017. The revised procedure of the CBEC vide Circular No. 41/2017-Customs dated 30 October 2017 has been notified and the said procedure is to be finally implemented from 8th November 2017.