सीमा शुल्क अधिनियम, 1962
India's customs legislation — import/export duties, valuation, classification, customs procedures, bonded warehouses, anti-dumping/safeguard duties, smuggling provisions, adjudication, CESTAT appeals, and trade facilitation under AEO and faceless assessment.
Basic Customs Duty (BCD): Section 12 — levied on import value. Rates as per Customs Tariff Act, 1975 (aligned with HSN classification). Social Welfare Surcharge (SWS): 10% on BCD. IGST on imports: Collected as customs duty under Section 3(7) of Customs Tariff Act — calculated on assessable value + BCD. Anti-dumping duty (Section 9A): On imports at less than normal value causing material injury to domestic industry. Directorate General of Trade Remedies (DGTR) investigates, Finance Ministry notifies. Valid for 5 years (extendable by sunset review). Countervailing duty (Section 9): Against subsidised imports. Safeguard duty (Section 8B): Temporary protection against import surge. Agriculture Infrastructure Development Cess (AIDC): On specified imports. Education Cess: Abolished under GST but some legacy items remain.
Section 14 — Transaction value: Price actually paid or payable. Based on WTO Customs Valuation Agreement (CVA). Customs Valuation Rules, 2007: Six sequential methods — (1) Transaction value, (2) Transaction value of identical goods, (3) Transaction value of similar goods, (4) Deductive value, (5) Computed value, (6) Residual/fallback. Additions to transaction value (Rule 10): Commissions, brokerage, packing costs, royalties/licence fees, assists (moulds, tools, engineering), transport/insurance to port of importation. Classification: Customs Tariff Act aligns with WCO Harmonised System Nomenclature (HSN). General Rules for Interpretation (GRI 1-6). Country of Origin: Rules of Origin for preferential tariff under FTAs (ASEAN, SAFTA, Japan CEPA, etc.). Certificate of Origin required. CAROTAR, 2020: Customs Administration of Rules of Origin under Trade Agreements Rules — importer due diligence for origin claims.
Import procedure: Bill of Entry (Section 46) → Self-assessment → Risk Management System (RMS) → Examination (if selected) → Out of Charge (Section 47). Export procedure: Shipping Bill (Section 50) → Let Export Order (Section 51). ICEGATE: Electronic filing of customs documents. Faceless Assessment: Assessment by officers at National Assessment Centres (NACs) — jurisdiction-free, risk-based. Authorised Economic Operator (AEO): Tiers T1, T2, T3 — accredited importers/exporters get: deferred duty payment, simplified procedures, direct port delivery/entry, reduced bank guarantees. Section 65 — Bonded warehouses: Goods stored without duty payment until ex-bonded for domestic consumption. Manufacturing in bond permitted (Section 65). Duty drawback (Section 74-75): Refund of duty on re-export or duty paid on inputs used in exported goods.
Section 111 — Confiscation of improperly imported goods: Imported contrary to prohibitions, not corresponding to entry, concealed. Redemption fine in lieu of confiscation (Section 125). Section 112 — Penalty: On any person involved in improper importation. Section 114AA: Penalty for use of false/incorrect material (equal to duty sought to be evaded). Section 135 — Smuggling: Criminal offence — imprisonment up to 7 years + fine. COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Activities Act): preventive detention. Section 28 — Recovery of duties: 2 years (normal), 5 years (fraud/collusion/suppression). Appeals: Commissioner (Appeals) → CESTAT (Customs, Excise and Service Tax Appellate Tribunal) → High Court → Supreme Court. Settlement Commission: Abolished post-2021; replaced by Interim Board for Settlement.
This guide is for educational purposes. For advice specific to your situation, consult a qualified customs/trade law practitioner.
Customs valuation disputes, anti-dumping investigations, classification issues, AEO applications, and CESTAT appeals.