Custom Import Duty in India and its question

Meaning of Custom Duty:- Custom duty is an alternative of indirect tax and is applicable on all goods imported and few which are exported out of the country. Duties imposed on import of goods are termed as import duty while the duties imposed on the exported goods are termed as export duty. Countries throughout the world levy custom duties on both import as well as export to generate revenues and to shield the domestic institutions from predatory or efficient competitors from other countries. Custom duties are imposed as per the value of the goods or dimensions, weight and other such criteria according to the goods in question.

Custom Import Duty in India

Custom duty in India:- Custom duty in India is imposed under the Indian Customs Act formulated in the year 1962 by the Constitution of India under the Article 265. It enables the Government to levy duty on exports and imports, prohibit import and export of goods, procedures which are to be implemented for importing/exporting of goods, offences/penalties etc. All the matter related to the custom duty fall under the Central Board of Excise and Customs (CBEC) which is a division of the Department of Revenue of the Ministry of Finance.

Objectives Custom Duties:- 

Custom duty is levied for the following purposes:-
  • Restricting Imports for conserving foreign exchange.
  • Protecting Indian Industry from undue competition.
  • Prohibiting imports and exports of goods for achieving the policy objectives of the Government.
  • Regulating export.
  • Co-coordinating legal provisions with other laws dealing with foreign exchange such as Foreign Trade Act, Foreign Exchange Regulation Act, Conservation of Foreign Exchange and Prevention of Smuggling Act, etc.

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