CUSTOM DUTIES :Custom duties are the duties charged upon commodities on their importation into or exportation from

the country. It is the indirect tax which the importer or the exporter passes on to the ultimate customer.

TYPES OF CUSTOM DUTIES

Basic custom duties Additional duty of custom-the duty equal to the duty levied on goods manufactured in india, i.e the central exice duty, is also levied on goods imported in india. Special additional duty of customs Protective duty-to safeguard the interest of any industrial establishment in india Safeguard duty-this is also to protect the domestic industry from the threat of foreign goods flooding the Indian market. Countervailing duties-levy on goods coming from other country, which has subsidized by the government of that country Anti-dumping duty-to prevent the dumping of goods at the very low price in india,which will kill the domestic industry National calamity contingent duty-the government collects duties at various rates on different specific items for meeting the expenses in connection with national calamity.

TASKS ASSIGNED TO INDIAN CUSTOM

Collection of custom duties on import and export as per basic custom law. Enforcement of various provisions of custom act governing import and export of cargo, arrival and departure of vessels, aircraft etc. Enforcing various prohibitions and restrictions on import and export under custom act Prevention of smuggling International passenger processing

CONTAINER FREIGHT STATIONS(CFS) AND INLAND CONTAINER DEPOT(ICD)

These are facilities with public authority offering service for handling and temporary storage of import/export goods and empty containers carried under customs control with custom competent to clear goods for home use , warehousing, re-export etc. transshipment of cargos can also take place from such place.

FUNCTIONS

Stuffing of containers Transit operation by rail/road to and from service ports Custom clearance Temporary storage of cargo and containers Maintenance and repair of containers

CUSTOMS VALUATION
Customs Valuation is the process where customs authorities assign a monetary value to a good or service for the purposes of import or export. Custom duty is paid as a percentage of value called assessable value. The Central Government has been empowered to fix values for any product which are called Tariff Values. If tariff values are fixed for any goods, duties are to be calculated with reference to such tariff values. Recently tariff values have been fixed in respect of import of Crude Palm Oil, RBD Palm Oil, RBD Palmolein.
1.TARRIF VALUE-

2.TRANSACTION VALUE- The price actually paid or payable is the total payment made or

to be made by the buyer to the seller or for the benefit of the seller for the imported goods. It includes all payments made as a condition of sale of the imported goods by the buyer to the seller or by the buyer to a third party to satisfy an obligation of the seller.

ASSESSSMENTAssessment is ascertainment of value, tax etc. After importer/exporter entered any imported/exported goods these are subjected to assessment. TWO TYPES 1.FIRST APPRAISEMENT SYSTEM(first check procedure) - when the appraiser is not able to make assessment on the basis of documents submitted and deems that inspection is necessary. Goods are examined first and then these are assessed.

Generally carried out in following cases If complete documents are not submitted Goods are re-imported When importer himself request for examination of goods before payment of duty. Goods are to be tested for correct classification Goods are damaged or deteriorated and abatement is claimed

EXAMINATION OF GOODSExaminers carry out physical examination and quantitative checking like weighting, measuring etc. Selected packages are opened and examined on sample basis in custom examination yard. The examiner prepares examination repot.

2.SECOND APPRAISEMENT (risk assessment) Assessment is done on basis of documents submitted by importer and then goods are examined. It is done on selective basis on the basis of risk assessment. Initially assessment is done on the basis of documents , re-assessment can be done after examination or testing of goods ,if it is found any information supplied is not true.

HIERARCHY OF CUSTOMS

CENTRAL BOARD OF EXICE AND CUSTOMS

CHIEF COMMISIONER/DIRECTOR GENERAL

COMMISSIONER

ADDITIONAL/JOINT COMMISSIONER

DEPUTY/ASSISTANCE COMMISIONER

APPRAISER

EXAMINER