What Are The Objectives Of Custom Duty?

What are the features of custom duty?

The customs duty is calculated based on various factors such as the following:The place of acquisition of the good.The place where the goods were made.The material of the goods.Weight and dimensions of the good etc..

What is the purpose of customs taxes?

“Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country’s economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

What is the custom duty limit in India?

Alcoholic drinks and tobacco products imported in excess of free allowance are chargeable to custom duty at the rates applicable to their commercial imports as per the Customs Tariff Act, 1975. 6. Passengers normally resident of India who are returning from a visit abroad may carry Indian currency upto Rs. 25,000/-.

What is the custom limit in India?

exceed US $10,000/- or its equivalent Page 8 8 and/ or the value of foreign currency exceeds US $5,000/- or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India. 11.

What means exemption?

1 : the act of exempting or state of being exempt : immunity. 2 : one that exempts or is exempted especially : a source or amount of income exempted from taxation. Synonyms Example Sentences Learn More about exemption.

What are examples of customs?

Many customs are things that people do that are handed down from the past. Examples of it are: Ceremonies are a class of customary, collective action. In some countries bowing to older people is polite and respectful.

What is custom duty exemption?

The provisions of Section 25(2) of the Customs Act for exemption from Customs duty are applicable in respect of goods, which are of secret or strategic nature or are meant for being used for charitable purposes. … They should provide for payment of duty along with payment of price of the goods.

What is Customs Act in India?

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). … Duties of custom are levied under section 12 of the Act on goods imported into or exported from India.

What is difference between excise duty and custom duty?

Excise duty refers to the taxes levied on the manufacture of goods within the country, as opposed to custom duty that is levied on goods coming from outside the country.

Why do we need customs?

Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal, and hazardous items, into and out of a country.

What are the functions of Customs?

The functions of Customs Authoritiesrevenue collection (perhaps one of the most important and certainly the oldest function of Customs)collection of trade statistics.preventing illegal exports and imports (interdiction of prohibited substances, protection of cultural heritage)More items…

What is safeguard duty?

About Safeguard Duty. … Safeguards are a type of safety-valve built in to the WTO to protect domestic producers temporarily while they adjust in order to become more competitive with foreign producers.

What are the different types of custom duty?

Types of Customs DutyBasic Customs Duty. Basic custom duty is the duty imposed on the value of the goods at a specific rate. … Countervailing Duty (CVD) … Additional Customs Duty or Special CVD. … Safeguard Duty. … Anti Dumping Duty. … National Calamity Contingent Duty. … Education Cess on Customs Duty. … Protective Duties.

What is basic excise duty?

There are three main types of excise duty. Basic excise duty (BED) is charged on all goods except salt under Central Excises and Salt Act 1944, at the rates specified in Central Excise Tariff Act 1985.

How do I calculate excise duty?

Duty is charged to the alcohol content. This is calculated by multiplying the bulk litres by the ABV of the product. The excise duty is then obtained by multiplying this amount by the spirit duty rate.