index
1. CUSTOMS ACT – BASIC CONCEPTS AND DEFINITIONS .......................... 3
2. TYPES OF DUTIES ............................................................................... 20
3. VALUATION RULES ............................................................................ 35
4. COMPUTATION OF ASSESSABLE VALUE AND DUTIES .......................... 67
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, 1. CUSTOMS ACT – BASIC CONCEPTS AND DEFINITIONS
1. Customs means
a habitual practice or
course of action
that characteristically repeated in like circumstances
2. Customs duty levied on imports are exports of the goods.
Import
Export
3. Entry No. 83 of the List I to the Schedule VII of the Constitution empowers the Union
Government to legislate and collect duties on imports and exports of goods.
4. Accordingly, the Customs Act, 1962, effective from 1-2-1963 provides vide its section 12 for the
levy of duties on goods imported into or exported from India.
5. Source of Customs Law
a) Customs Act. 1962
The Customs Act contains the provisions governing the import and export duty imposed on
imports and exports of goods.
b) Customs Tariff Act. 1975
3
It contains rate of customs duty levied on imports or exports of a goods.
Page
SHRESHTA For CA and CMA | SHRESHTA Professional Courses | CMA Inter | P7B INDIRECT TAXATION
, c) Rules & Regulation
There are various rules and regulation has been issued. Few of them are
Customs Valuation (Determination of Value of Export Goods) Rules, 2007;
Customs Valuation (Determination of Value of Imported Goods) Rules, 2007;
Baggage Rules, 2016;
Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995; etc
6. Levy of Customs Duty
Applicability:
The Customs Act, 1962 extends to whole of India
Taxpoint:
India includes the territorial waters of India [Sec. 2(27)]
As per sec. 3 of the Territorial Water, Continental Shelf, Exclusive Economic Zone and Other
Maritime Zone Act, 1976,
territorial water extends to 12 nautical miles (1 nautical miles = 1.1515 miles = 1.852 km)
into the sea from the base line on the coast of India and include any bay, gulf, harbour,
creek or tidal river.
Further note that, India includes not only the surface of sea but also to the seabed and
subsoil underlying, and the air space over, such waters.
India has sovereignty in its territorial waters. That means all the provisions of the Customs
Act and rules and regulations are applicable in Indian Territorial Waters.
Meaning of terms
Baseline: It is lower water mark along the coast.
Exclusive Economic Zone of India (EEZI): The exclusive economic zone of India is an area beyond
and adjacent to the territorial waters, and the limit of such zone is 200 nautical miles from the
baseline.
Continental Shelf of India (CSI): The continental shelf of India comprises the seabed and subsoil
of the submarine areas that extend beyond the limit of its territorial waters throughout the
natural prolongation of its land territory to the outer edge of the continental margin or to a
distance of 200 nautical miles from the baseline, where the outer edge of the continental
margin does not extend up to that distance.
Chargeability [Sec. 12]
4
Page
SHRESHTA For CA and CMA | SHRESHTA Professional Courses | CMA Inter | P7B INDIRECT TAXATION
1. CUSTOMS ACT – BASIC CONCEPTS AND DEFINITIONS .......................... 3
2. TYPES OF DUTIES ............................................................................... 20
3. VALUATION RULES ............................................................................ 35
4. COMPUTATION OF ASSESSABLE VALUE AND DUTIES .......................... 67
1
Page
SHRESHTA For CA and CMA | SHRESHTA Professional Courses | CMA Inter | P7B INDIRECT TAXATION
, 2
Page
SHRESHTA For CA and CMA | SHRESHTA Professional Courses | CMA Inter | P7B INDIRECT TAXATION
, 1. CUSTOMS ACT – BASIC CONCEPTS AND DEFINITIONS
1. Customs means
a habitual practice or
course of action
that characteristically repeated in like circumstances
2. Customs duty levied on imports are exports of the goods.
Import
Export
3. Entry No. 83 of the List I to the Schedule VII of the Constitution empowers the Union
Government to legislate and collect duties on imports and exports of goods.
4. Accordingly, the Customs Act, 1962, effective from 1-2-1963 provides vide its section 12 for the
levy of duties on goods imported into or exported from India.
5. Source of Customs Law
a) Customs Act. 1962
The Customs Act contains the provisions governing the import and export duty imposed on
imports and exports of goods.
b) Customs Tariff Act. 1975
3
It contains rate of customs duty levied on imports or exports of a goods.
Page
SHRESHTA For CA and CMA | SHRESHTA Professional Courses | CMA Inter | P7B INDIRECT TAXATION
, c) Rules & Regulation
There are various rules and regulation has been issued. Few of them are
Customs Valuation (Determination of Value of Export Goods) Rules, 2007;
Customs Valuation (Determination of Value of Imported Goods) Rules, 2007;
Baggage Rules, 2016;
Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995; etc
6. Levy of Customs Duty
Applicability:
The Customs Act, 1962 extends to whole of India
Taxpoint:
India includes the territorial waters of India [Sec. 2(27)]
As per sec. 3 of the Territorial Water, Continental Shelf, Exclusive Economic Zone and Other
Maritime Zone Act, 1976,
territorial water extends to 12 nautical miles (1 nautical miles = 1.1515 miles = 1.852 km)
into the sea from the base line on the coast of India and include any bay, gulf, harbour,
creek or tidal river.
Further note that, India includes not only the surface of sea but also to the seabed and
subsoil underlying, and the air space over, such waters.
India has sovereignty in its territorial waters. That means all the provisions of the Customs
Act and rules and regulations are applicable in Indian Territorial Waters.
Meaning of terms
Baseline: It is lower water mark along the coast.
Exclusive Economic Zone of India (EEZI): The exclusive economic zone of India is an area beyond
and adjacent to the territorial waters, and the limit of such zone is 200 nautical miles from the
baseline.
Continental Shelf of India (CSI): The continental shelf of India comprises the seabed and subsoil
of the submarine areas that extend beyond the limit of its territorial waters throughout the
natural prolongation of its land territory to the outer edge of the continental margin or to a
distance of 200 nautical miles from the baseline, where the outer edge of the continental
margin does not extend up to that distance.
Chargeability [Sec. 12]
4
Page
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