INTRODUCTION AND BASIC CONCEPTS OF CUSTOMS LAW

Customs Act, 1962:

The Customs Act, enacted by the parliament of India in year 1962. Extended whole of India also any
offences are contravention committed there under outside India by any person.

There are XVII Chapters and 161 Sections under Customs Act, 1962.

Customs Tariff Act, 1975:

The Customs Tariff Act means statutory provisions for levy of Customs Duty. CTA 1975 enacted by
parliament in the 26th year of the republic of India.

There are 13 sections and 98 chapters. However, 98 Chapters are divided into 21 Sections.
The Import Duty levied Under Customs Act, 1962 of First Schedule of Customs Tariff Act 1975 and
Export Duty levied Under Customs Tariff Act, 1975 of Second Schedule.

After going through this part, you will be able to understand:

 Meaning and objects of Customs duty

 Definitions and Concepts
 Scope and coverage of Custom Law
 Types of custom Duties
 Rate of Custom Duties applicable

INTRODUCTION

Custom Duty is an indirect tax, imposed under the Customs Act formulated in 1962. The power to enact
the law is provided under the Constitution of India under the Article 265, which states that ―no tax shall
be levied or collected except by authority of law‖. Entry No. 83 of List I to Schedule VII of the
Constitution empowers the Union Government to legislate and collect duties on import and exports. The
Customs Act, 1962 is the basic statute which governs entry or exit of different categories of vessels,
aircrafts, goods, passengers etc., into or outside the country. The Act extends to the whole of the India.
Customs Act, 1962 just like any other tax law is primarily for the levy and collection of duties but at the
same time it has the other and equally important purposes such as:

Purpose of Customs Act

(i) Regulation of imports and exports

(ii) Protection of domestic industry;
(iii) Prevention of smuggling;
(iv) Conservation and augmentation of foreign exchange and so on.

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