CHAPTER-HEADS
Contents I-9 Section-wise Index I-31 Glossary (Acronyms) I-35 INTRODUCTION TO CUSTOMS DUTY 1 TYPE OF CUSTOM DUTIES 20 CLASSIFICATION OF GOODS 61 PRINCIPLES OF CLASSIFICATION OF GOODS 91 VALUATION FOR CUSTOMS DUTY 105 METHODS OF VALUATION FOR CUSTOM 132 VALUATION OF EXPORT GOODS 147 ASSESSMENT IN CUSTOMS 151 ADMINISTRATIVE SET UP OF CUSTOMS 164 CUSTOMS PROCEDURES 173 IMPORT PROCEDURES 201 EXPORT PROCEDURES 243 CUSTOMS BROKER 260 BAGGAGE 272 CUSTOMS PROCEDURES FOR COURIER AND POST 284 EXEMPTION FROM CUSTOMS DUTY 293 INTERPRETATION OF EXEMPTION NOTIFICATION 300 SPECIFIC EXEMPTIONS IN CUSTOMS 304 REMISSION, RE-IMPORTS AND RE-EXPORTS 323 DEPARTMENTAL ADJUDICATION 336 DEMANDS OF CUSTOMS DUTY AND INTEREST 344 INTEREST FOR DELAYED PAYMENT OF CUSTOMS DUTY 357 DEMANDS FOR UNDERVALUATION OF CUSTOMS DUTY 361 DEMANDS FOR SUPPRESSION, WILFUL MISSTATEMENT OR COLLUSION 368 RECOVERY OF DUES 371 I-5
REFUND OF CUSTOMS DUTY AND INTEREST 378 WAREHOUSING IN CUSTOMS 393 ENFORCEMENT POWERS OF CUSTOMS OFFICERS 423 PENALTIES FOR NON-PAYMENT CUSTOMS DUTY 453 OTHER PENALTIES IN CUSTOMS ACT 457 CONFISCATION IN CUSTOMS 472 MISCELLANEOUS PROVISIONS IN CUSTOMS LAW 486 CRIMINAL OFFENCES IN CUSTOMS 499 SETTLEMENT COMMISSION 511 PROOFS IN ADJUDICATION AND PROSECUTION 523 APPEALS - GENERAL PROVISIONS 530 DEPARTMENTAL APPEAL AND REVIEW 546 FIRST APPEAL AND REVISION 554 APPEAL TO TRIBUNAL 561 POWERS AND LIMITATIONS OF TRIBUNAL 577 APPEAL TO HIGH COURT AND SUPREME COURT 581 : OVERVIEW OF FOREIGN TRADE POLICY 2023 587 : GENERAL PROVISIONS RELATING TO IMPORTS AND EXPORTS 600 : IMPORT OF GOODS 616 : EXPORT OF GOODS 627 : DISTRICT AS EXPORT HUB 638 : ADVANCE AUTHORISATION 642 : DFIA 670 : GEM AND JEWELLERY UNITS 674 : RoDTEP AND RoSCTL 690 : EPCG AND PROJECT IMPORTS 694 : EOU/EHTP/STP/BTP 708 : DEEMED EXPORTS 737 : QUALITY COMPLAINTS AND TRADE DISPUTES 745 : CROSS BORDER TRADE IN DIGITAL ECONOMY (E-COMMERCE) 749 : SCOMET 752 : MISCELLANEOUS PROVISIONS IN FTP 760 : DUTY DRAWBACK 776 : SPECIAL ECONOMIC ZONES 795 : FT(D&R) ACT AND RULES 838 : INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC) 847 I-6
APPENDIX 1 : 857 APPENDIX 2 : 864 APPENDIX 3 : 961 APPENDIX 4 : 1111 APPENDIX 5 : 1115 APPENDIX 6 : 1117 APPENDIX 7 : 1190 APPENDIX 8 : 1204 APPENDIX 9 : 1215 SUBJECT INDEX 1219 LIST OF NOTIFICATIONS i I-7
APPENDICES
CONTENTS Chapter-heads I-5 Section-wise Index I-31 Glossary (Acronyms) I-35 1 INTRODUCTION TO CUSTOMS DUTY 1.1 1 1.2 7 1.3 10 1.4 15 1.5 17 2 TYPE OF CUSTOM DUTIES 2.1 20 2.2 21 2.3 23 2.4 24 2.5 25 2.6 27 2.7 31 2.8 31 2.9 32 2.10 32 2.11 35 2.12 54 2.13 57 2.14 58 2.15 58 I-9
I-10 2.16 58 2.17 59 3 CLASSIFICATION OF GOODS 3.1 61 3.2 65 3.3 66 3.4 69 3.5 77 3.6 84 3.7 85 4 PRINCIPLES OF CLASSIFICATION OF GOODS 4.1 91 4.2 97 4.3 98 4.4 101 4.5 103 5 VALUATION FOR CUSTOMS DUTY 5.1 105 5.2 107 5.3 108 5.4 109 5.5 109 5.6 123 5.7 125 5.8 128 5.9 129
I-11 6 METHODS OF VALUATION FOR CUSTOM 6.1 132 6.2 133 6.3 141 6.4 142 6.5 143 6.6 144 6.7 145 7 VALUATION OF EXPORT GOODS 7.1 147 7.2 148 7.3 150 8 ASSESSMENT IN CUSTOMS 8.1 151 8.2 152 8.3 155 8.4 156 8.5 159 8.6 161 8.7 162 8.8 res judicata 163 9 ADMINISTRATIVE SET UP OF CUSTOMS 9.1 164 9.2 170
10 CUSTOMS PROCEDURES 10.1 173 10.2 185 10.3 187 10.4 193 10.5 199 10.6 200 11 IMPORT PROCEDURES 11.1 201 11.2 206 11.3 207 11.4 214 11.5 217 11.6 217 11.7 220 11.8 220 11.9 223 11.10 230 11.11 237 11.12 237 11.13 240 11.14 240 12 EXPORT PROCEDURES 12.1 243 12.2 246 12.3 254 12.4 258 I-12
13 CUSTOMS BROKER 13.1 260 13.2 264 13.3 270 14 BAGGAGE 14.1 272 14.2 275 14.3 278 14.4 280 14.5 281 15 CUSTOMS PROCEDURES FOR COURIER AND POST 15.1 284 15.2 289 16 EXEMPTION FROM CUSTOMS DUTY 16.1 293 16.2 293 16.3 296 16.4 296 16.5 298 17 INTERPRETATION OF EXEMPTION NOTIFICATION 17.1 300 17.2 300 17.3 301 I-13
17.4 302 17.5 302 18 SPECIFIC EXEMPTIONS IN CUSTOMS 18.1 304 18.2 304 18.3 311 18.4 318 19 REMISSION, RE-IMPORTS AND RE-EXPORTS 19.1 323 19.2 327 19.3 328 19.4 329 19.5 331 19.6 332 20 DEPARTMENTAL ADJUDICATION 20.1 336 20.2 338 20.3 340 21 DEMANDS OF CUSTOMS DUTY AND INTEREST 21.1 344 21.2 347 21.3 348 21.4 349 21.5 350 21.6 351 I-14
21.7 352 21.8 352 21.9 353 21.10 355 22 INTEREST FOR DELAYED PAYMENT OF CUSTOMS DUTY 22.1 357 22.2 359 22.3 360 23 DEMANDS FOR UNDERVALUATION OF CUSTOMS DUTY 23.1 361 23.2 362 23.3 365 23.4 366 24 DEMANDS FOR SUPPRESSION, WILFUL MISSTATEMENT OR COLLUSION 24.1 368 24.2 368 24.3 370 24.4 370 25 RECOVERY OF DUES 25.1 371 25.2 371 25.3 373 25.4 374 I-15
25.5 375 25.6 377 26 REFUND OF CUSTOMS DUTY AND INTEREST 26.1 378 26.2 382 26.3 384 26.4 386 26.5 386 26.6 387 26.7 387 26.8 388 26.9 389 26.10 390 26.11 392 26.12 392 27 WAREHOUSING IN CUSTOMS 27.1 393 27.2 397 27.3 402 27.4 404 27.5 407 27.6 414 27.7 418 27.8 420 27.9 421 28 ENFORCEMENT POWERS OF CUSTOMS OFFICERS 28.1 423 28.2 425 I-16
28.3 429 28.4 432 28.5 438 28.6 440 28.7 442 28.8 451 29 PENALTIES FOR NON-PAYMENT CUSTOMS DUTY 29.1 453 29.2 454 30 OTHER PENALTIES IN CUSTOMS ACT 30.1 457 30.2 458 30.3 461 30.4 462 30.5 464 30.6 466 30.7 466 30.8 467 30.9 468 30.10 470 30.11 470 30.12 471 31 CONFISCATION IN CUSTOMS 31.1 472 31.2 477 31.3 481 31.4 485 I-17
32 MISCELLANEOUS PROVISIONS IN CUSTOMS LAW 32.1 486 32.2 490 32.3 492 32.4 495 33 CRIMINAL OFFENCES IN CUSTOMS 33.1 499 33.2 499 33.3 502 33.4 503 33.5 506 34 SETTLEMENT COMMISSION 34.1 511 34.2 512 34.3 513 34.4 514 34.5 516 34.6 520 34.7 520 34.8 522 35 PROOFS IN ADJUDICATION AND PROSECUTION 35.1 523 35.2 524 35.3 524 35.4 526 35.5 527 35.6 528 I-18
36 APPEALS - GENERAL PROVISIONS 36.1 530 36.2 530 36.3 534 36.4 537 36.5 537 36.6 538 36.7 540 36.8 540 36.9 541 36.10 542 36.11 543 36.12 544 36.13 545 37 DEPARTMENTAL APPEAL AND REVIEW 37.1 546 37.2 551 37.3 552 38 FIRST APPEAL AND REVISION 38.1 554 38.2 554 38.3 556 38.4 558 39 APPEAL TO TRIBUNAL 39.1 561 39.2 563 39.3 564 I-19
39.4 565 39.5 566 39.6 573 39.7 574 40 POWERS AND LIMITATIONS OF TRIBUNAL 40.1 577 40.2 578 40.3 579 40.4 579 40.5 580 41 APPEAL TO HIGH COURT AND SUPREME COURT 41.1 581 41.2 583 41.3 584 41.4 586 41.5 586 42 OVERVIEW OF FOREIGN TRADE POLICY 2023 42.1 587 42.2 589 42.3 590 42.4 593 42.5 595 42.6 597 42.7 597 42.8 599 I-20
43 GENERAL PROVISIONS RELATING TO IMPORTS AND EXPORTS 43.1 600 43.2 602 43.3 605 43.4 606 43.5 607 43.6 607 43.7 608 43.8 609 43.9 609 43.10 612 43.11 612 43.12 614 44 IMPORT OF GOODS 44.1 616 44.2 618 44.3 620 44.4 620 44.5 623 44.6 623 44.7 624 44.8 625 44.9 625 44.10 626 44.11 626 45 EXPORT OF GOODS 45.1 627 I-21
45.2 628 45.3 629 45.4 631 45.5 634 45.6 636 45.7 636 45.8 637 45.9 637 46 DISTRICT AS EXPORT HUB 46.1 638 46.2 639 46.3 640 46.4 640 46.5 640 46.6 640 46.7 641 47 ADVANCE AUTHORISATION 47.1 642 47.2 643 47.3 644 47.4 644 47.5 646 47.6 647 47.7 647 47.8 648 I-22
47.9 648 47.10 648 47.11 649 47.12 649 47.13 649 47.14 650 47.15 650 47.16 651 47.17 651 47.18 653 47.19 657 47.20 660 47.21 660 47.22 661 47.23 663 47.24 664 47.25 666 47.26 667 47.27 667 47.28 Bona fide 669 48 DFIA 48.1 670 48.2 670 48.3 671 48.4 671 48.5 671 48.6 672 48.7 672 48.8 673 I-23
49 GEM AND JEWELLERY UNITS 49.1 674 49.2 675 49.3 676 49.4 679 49.5 681 49.6 682 49.7 682 49.8 683 49.9 683 49.10 684 49.11 684 49.12 685 49.13 686 49.14 687 49.15 688 49.16 689 49.17 689 50 RoDTEP AND RoSCTL 50.1 690 50.2 691 50.3 692 50.4 693 51 EPCG AND PROJECT IMPORTS 51.1 694 I-24
51.2 695 51.3 698 51.4 699 51.5 699 51.6 704 51.7 705 51.8 705 51.9 706 51.10 706 51.11 707 51.12 707 52 EOU/EHTP/STP/BTP 52.1 708 52.2 708 52.3 714 52.4 715 52.5 715 52.6 717 52.7 721 52.8 721 52.9 724 52.10 725 52.11 725 52.12 726 52.13 726 52.14 727 52.15 729 52.16 730 I-25
52.17 730 52.18 730 52.19 732 52.20 732 52.21 732 52.22 733 52.23 733 52.24 733 52.25 733 52.26 734 53 DEEMED EXPORTS 53.1 737 53.2 737 53.3 738 53.4 739 53.5 739 53.6 739 53.7 740 53.8 740 53.9 741 53.10 743 53.11 743 53.12 744 54 QUALITY COMPLAINTS AND TRADE DISPUTES 54.1 745 54.2 745 54.3 745 54.4 746 I-26
54.5 746 54.6 747 54.7 748 55 CROSS BORDER TRADE IN DIGITAL ECONOMY (E-COMMERCE) 55.1 749 55.2 749 55.3 750 55.4 750 55.5 750 55.6 751 56 SCOMET 56.1 752 56.2 753 56.3 754 56.4 754 56.5 755 56.6 758 56.7 758 57 MISCELLANEOUS PROVISIONS IN FTP 57.1 760 57.2 760 57.3 762 57.4 765 57.5 766 57.6 767 57.7 767 57.8 768 I-27
57.9 769 57.10 772 57.11 773 57.12 774 57.13 774 57.14 774 57.15 775 57.16 775 58 DUTY DRAWBACK 58.1 776 58.2 779 58.3 782 58.4 784 58.5 788 58.6 791 59 SPECIAL ECONOMIC ZONES 59.1 795 59.2 800 59.3 811 59.4 818 59.5 826 59.6 829 59.7 830 59.8 832 59.9 832 59.10 832 59.11 833 59.12 834 59.13 837 I-28
60 FT (D&R) ACT AND RULES 60.1 838 60.2 841 60.3 842 60.4 845 60.5 846 61 INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC) 61.1 847 61.2 850 61.3 850 61.4 851 61.5 853 61.6 853 61.7 853 61.8 854
APPENDIX 1 : 857 APPENDIX 2 : 864 APPENDIX 3 : 961 APPENDIX 4 : 1111 APPENDIX 5 : 1115 APPENDIX 6 : 1117 APPENDIX 7 : 1190 APPENDIX 8 : 1204 APPENDIX 9 : 1215 SUBJECT INDEX 1219 LIST OF NOTIFICATIONS i I-29
APPENDICES
INTRODUCTION TO CUSTOMS DUTY
Chapter
1.1 Brief Background of Customs Law
Veda
1 1
1.1-1 WTO and India World Trade Organisation
1.1-2 Scope and coverage of Customs Law
and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person
Parliament can enact Legislation with regard to extra-territorial aspects Union of India Mohit Minerals (P.) Ltd.
Liability of customs duty on goods imported into, or exported from, India
Imports by Government -
TRIPS iii WCO -
Para 1.1 2
Customs Act, 1962
Customs Tariff Act, 1975 -
Rules under Customs Act
Sukhdev Singh Bhagatram Sardar Singh
Notifications under Customs Act
Others are
Board Circulars
CBIC’s Customs Manual, 2023
a b c
1.1-3 Overview of Customs Act
3
1.1-4 Functions of Customs Department
Para 1.1
Activities and authorities involved in customs work
Integration with global customs practices
1.1-5 Common aspects of Customs and CGST
1.1-6 Extension of time limits prescribed under Customs Act and Customs Tariff Act due to Corona
janata curfew
-
-
-
-
1.1 4
Para
Provided
Supreme Court extends various timelines in view of Covid-19 suo motu
Cognizance for Extension of Limitation In re
1.1-7 Changes in Customs Law made vide Finance Act, 2023
Specified conditional customs exemption notifications will be valid without limit of two years
ab
-
5 Para 1.1
Manufacture in warehouse subject to section 65A of Customs Actsection 65A of Customs Act
Warehousing of imported inputs or removed from other warehouse on which IGST and GST Compensation Cess has been paid for purpose of manufacture in warehousevide -
Settlement proceedings lapse if order is not passed within one year --
a b c d e f g -
proviso vide
1.1 6
1.1-8 Foreign Trade Policy 2023 effective from 1-4-2023
Para
7 Para 1.2
1.2 Nature of Customs Duty
charging section on goods imported into, or exported from, India
Jain Brothers UOI
Customs Duty is leviable on free replacements and free supplies alsoNew Video Ltd. CCEchjay Industries
UOI
Import should be for ‘home consumption’, if goods imported for repairs and return, customs duty not payable
CC Aban Loyd Chiles Offshore Ltd.
1.2-1 Taxable Event for Import duty
import into, or export from India
Gramophone Company of India Birendra Bahadur Pandey
Indian Airlines CC
Kiran Spinning Mills CC
-
Garden Silk Mills Ltd UOI
Kiran Spinning Mills (Supra)
‘mixing up with mass of goods in the country’
‘taxable event’
Taxable event in case of warehoused goods
UOI Apar P Ltd. Kiran
Spinning Mills CC
LML CCE
CC SJK Steel Corporation
Mangalore Refinery CCE
State Trading Corporation State of Tamilnadu
Hotel Ashoka ACCT
Taxable event when goods cross customs barrier CC HPCL
Date of filing bill of entry is relevant for deciding duty liability
whichever is later
-
not
Jhangir Bhatisha UOI * Dhiraj Lal R Vohra UOI - Bharat Surfactants (P.) Ltd. Para 1.2 8
M
Definition subject to context unless the context otherwise requires if context otherwise requires
No duty for innocent passage
innocent passage
Special provision prevails over general provision
Interpretation consistent with international convention should be favoured
Gramophone Co. of India Ltd. Birendra Bahadur Pandey ratio
Sales tax analogy
1.2-2 Taxable
J Gokal and Co. (P.) Ltd. Assistant CST member Constitution Bench).
of exports UOI Rajindra Dyeing and Printing Mills
event in case
CC Sun Exports
UOI UOI Apar Pvt Ltd. Apar P Ltd. UOI Apar Pvt. Ltd Kiran Spinning Mills CC
UOI `9 Para 1.2
B K Wadeyar Daulatram Rameshwarlal V M Salgaocar
Para 1.3
[Really, as per section 16 of Customs Act, ‘relevant date’ for export duty is date on which clearance for export is permitted by customs officer. May be this was not brought to notice of High Court].
CC Narayan Bandekar & Sons
Narayan Bandekar and Sons CCE
Kineta Minerals CCE VSL Mining Products CC
Lucas TVS Padi ACC
Spares Corporation State of AP -
Spares Corporation State of AP
Burn Standard Co. ACCE
Pride Foramer UOI
Aban Lloyd Chiles UOI
Not a Sale in course of import, if property passes in exclusive economic zone B G Exploration State of Gujarat
Sale
1.3 Territorial Waters and customs waters
from shore to vessel in sea is sale within State Raj Shipping State of Maharashtra
-
10
British India Steam Navigation Co Ltd. Shanmughavilas Cashew Industries
World Tanker Carrier Corpn SNP Shipping Services P Ltd International Convention
Continental shelf’
Extension of Income Tax Act, Customs Act and Excise Act to designated areas in EEZvide
Vide
-
Exclusive economic zone
-
vide 11 Para
1.3
Earlier, vide MF(DR) circular No. 17/2002Cus dated 13-3-2002, it was stated that mineral oil produced within territorial waters are leviable to central excise duty. This circular has been rescinded, probably because though Customs Act has been extended but Central Excise Act has not been extended
Reliance Industries Assessing Authority
Essar Oil CC
Extension of Code of Criminal Procedure to EEZ
Republic of Italy UOI
1.3-1 Indian Customs Waters
Exclusive Economic Zone under section 7
-
Aban Lloyd Chiles UOI Pride Foramer UOI
Aban Lloyd Chiles UOI Burn Standard Co. ACCE
CCE Aban Lloyd Chiles Offshore
Para 1.3 12
The Customs Act was extended only upto contiguous zone upto 29-3-2018contiguous zone of India
1.3-2 Territorial waters belong to State Government or Central Government ?Territorial waters within jurisdiction of State Government for GST
Constitutional provisions
13 Para 1.3
