The Legal Zone

OBJECTIVES OF THE ACT

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:

(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.

Section 12 of the Custom Act provides that duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 or other applicable Acts on goods imported into or exported from India.

Customs Act, 1962 and Customs Tariff Act, 1975 are the two limbs of Customs Law in India which must be read with rules and regulations. The rule making power is delegated to the Central Government while the regulation making power delegated to the Central Board of Excise and Customs (CBEC).

There are a number of rules and regulation prescribed from time to time to carry the objective of the Act. Some of the rules and regulations are enumerated here as follows:

• Baggage Rules , 2016

• Customs , Central Excise Duties and Service Tax Drawback Rules,1995

• Re-Export of Imported Goods (Drawback of Customs Duties) Rules, 1995

• Customs Valuation (Determination of Price of Imported Goods) Rules, 2007

• Customs Valuation (Determination of Value of Export Goods) Rules, 2007

• Customs (Advance Rulings) Rules, 2002

• Customs (Appeals) Rules, 1982

• Customs( Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996

• Specified Goods (Prevention of Illegal Export) Rules, 1969

• Customs (Compounding of Offences) Rules, 2005

• Customs (Settlement of Cases) Rules, 2007

• Notified Goods (Prevention of Illegal Import) Rules, 1969

• Bill of Entry (Electronic Declaration) Regulations, 2011

• Customs (Provisional Duty Assessment) Regulations, 2011

• Customs House Agents Licensing Regulations, 2004