1. Advisory services on Excise & Customs
2. Duty, valuation & classification related matters under Excise & Custom laws
3. Preparation of petitions and representations before the Competent Authorities;
4. Reply to show cause notices,;
5. Preparation and representation of appeal before Commissioner (Appeal), Settlement Commission, CESTAT (Tribunal), High Court and Supreme Court of India

What is Custom Duty?

Customs Duty’ refers to the tax imposed on the goods when they are transported across the international borders. The objective behind levying customs duty is to safeguard each nation’s economy, jobs, environment, residents, etc., by regulating the movement of goods, especially prohibited and restrictive goods, in and out of any country.  Customs duties form a significant source of revenue for India. The principle statute under which they are imposed is the Customs Act, 1962 (hereinafter Act).

Charge of Customs Duty:

Duties of custom are levied under section 12 of the Act on goods imported into or exported from India. The rates of duty are specified under the Customs Tariff Act, 1975 (hereinafter Tariff Act) or under any other law for the time being in force. For instance, special duties of custom may be levied under Finance Acts.

Types of custom duties:

Customs duties are charged almost universally on every good which are imported into a country. These are divided into:-

1. Basic Customs Duty (BCD)
2. Countervailing Duty (CVD)
3. Additional Customs Duty or Special CVD
4. Protective Duty,
5. Anti-dumping Duty
6. Education Cess on Custom Duty

Custom duty calculation:

The Customs duties are computed on a specific or ad valorem basis. In other words, it is calculated on the value of goods. Such value is determined as per the rules laid down in the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. The valuation of such item is done through the following method:-

• Rule 4 & 5 – Comparative value method that compares the transaction value of identical or similar items
• Rule 7 – Deductive value method that uses sale price of such good in the importing country
• Rule 8 – Computed value method that employs costs related to materials, fabrication, and profit in the country of production
• Rule 9 – The Fallback method that is based on previous methods with an element of higher flexibility.

What is Custom Clearance?

The meaning of Customs Clearance is that the goods have been legally granted entry into the country or exit from the country, after due payment of the customs duty. The business of importing and exporting goods is a lucrative one but involves multiple compliances. There are multiple documentations and procedural aspects that are involved when it comes to importing and exporting of goods and services. The government has assigned the Custom Department as the designated authority for implementing the policies that are related to import and export of goods/services, collection of customs duties and facilitating the movement of goods, people, and cargo in and out of the country. The offices of the customs department are located at all the airports, seaports and border gateways. Hence, the customs offices are located at the exit and entry points for movements of people and the commodities/cargo, in and outside of the country. The customs authorities have been given the powers similar to that of police departments and include confiscation of goods and making arrests.

Types of Custom Clearance: There are three types of Custom Clearance which are described below:

• International Custom Clearance
• Export Custom Clearance
• Import Custom Clearance