TMI BlogIntroductoryX X X X Extracts X X X X X X X X Extracts X X X X ..... of items and the rates of duties which are leviable have been specified in two schedules to the Customs Tariff Act, 1975 . The first Schedule to the said Act specifies the various categories of import items in a systematic and well considered manner, in accordance with an international scheme of classification of internationally traded goods - termed 'harmonized system of commodity classification'. Different rates of duties are prescribed by the legislature on different commodities/group of commodities mentioned in the first Schedule. The duties are levied both on specific and ad-valorem basis, while there are few cases where at times specific-cum-ad valorem duties are also collected on imported items. Second Schedule to Customs Tariff Act, 1975 incorporates items subject to exports duties and rates thereof. 3. Where ad-valorem duties (i.e., duties with reference to value) are collected, which are the predominant mode of levy, the value of the goods has to be determined for customs duty purposes as per provisions laid down under Section 14 of the Customs Act and the Customs Valuation (determination of prices of imports goods) Rules, 1988 issued thereunder. These p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loaded in a Customs area remains in their custody till these are cleared for home consumption, or are warehoused or transhipped as provided in the law. With the growth of containerized traffic the facility of customs clearances at the interior centres in the country has been provided by opening various Inland Container Depots (ICDs) which act like Dry Ports. The goods also move to these internal Dry ports where they remain with the appointed custodian till these are customs cleared. The custodian after taking over the goods from the carrier, arranges its proper storage and safety and allows clearance to the importers only after they fulfill all the customs formalities, pay up requisite duties and other charges/fees and discharge various other obligations before their goods are allowed entry into the country and the customs have given clear permission for clearance out of customs area. 8. Various port trusts and other authorities in the public and private sectors handle the import and export cargo when kept in their custody at various ports, international airports/ICDs. The cargo handling and custody at the international airports is generally entrusted to International airpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for giving detailed information to customs about goods in their vessels/air crafts which have been brought in at any port/airport for unloading at that particular port/international airport as also that which would be carried further for other ports/airports. Declarations of such cargo has to be made in a prescribed form (which is termed 'Import General Manifest'). This declaration/filing of IGM has to be made within 24 hours of entry of the vessel at the customs station. In the case of imports through Land Custom Stations the person in charge of the vehicle has to give similar import report. Since the cargo clearance formalities are linked generally with the availability of this information about cargo being brought by a vessel for unloading at any port, provisions have also been made in law for prior filing of IGMs if all details of relevant cargo for any port are available even before the vessel arrives. The final manifest can be filed again after arrival of the vessel. 12. Unless, the aforesaid details and IGM have been furnished in the prescribed form, no unloading of cargo can be undertaken from any vessels/air crafts/vehicles in normal circumstances. After the manifest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is known as rummaging staff generally on selective basis taking due note of the past history of the vessel, the area/country from which the vessels are arriving, the intelligence report etc. 15. The preventive staff of the customs also keep a very careful vigil in the port areas for checking any illegal activities and develop intelligence to guard against any possible attempts of unauthorized removals from the docks and unloading of unmanifested cargo etc. Customs Clearance of cargo: 16. Before any goods imported and kept with the custodians as mentioned earlier can be cleared for home consumption in the country immediately - or for warehousing and customs clearances as and when needed etc., the importers have to comply with prescribed customs clearance formalities. Essentially, these involve presentation of certain documents along with a prescribed application (normally termed 'bill of entry', which gives essential particulars in relation to imported goods, its country of origin, particulars of vessel/aircraft etc.) seeking clearance of goods for home consumption/warehousing etc. The importer either himself handles the import clearance documents vis-a-vis Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and clearance formalities, separate staff for checking assessment related work is posted in the custom houses as well as in the premises where the goods are stored pending customs clearance; the later said officers undertake checking of nature of goods, valuation and other part of declaration, or draw samples as may be ordered by the scrutinizing officers of the Custom House/Cargo Complexes/ICDs. 19. In majority of the cases the assessment is completed and duties also paid without prior examination. If no discrepancies in relation to the nature of goods, quantity, value etc., are observed at the time of examination of the cargo by the appraising officers in the dock/cargo complex etc., out of Customs control orders are issued, and thereafter goods can be cleared after discharging any other fees/charges etc., of the custodians. 20. Where prior examination, at times becomes necessary before assessment is finalized or permissibility of import determined, goods are got examined first after filing of Bill of entry and other documents. Based upon the report of the examining staff, duties etc., are assessed and if there is no prohibition etc., on payment of duty the goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of smuggling or commercial frauds by unscrupulous parties. Smuggling Other Violations and Penal Provisions: 24. Unscrupulous parties do attempt to evade the duties leviable and bypass various prohibitions/restrictions in relation to imports by attempting to bring the goods into the country from places other than the notified ports/airports/Land Custom Stations without reporting or presenting the goods to customs. Similar attempts are made to take out goods out of the country unauthorizedly. This is essentially what is termed 'smuggling' and customs officers have very important role to play in ensuring that they detect any such attempts of smuggling into or out of the country and take appropriate action both against the goods as well as against the persons involved in smuggling or violation of various restrictions/prohibitions for personal gains at the cost of exchequer unmindful of various other harmful effects which the prohibited and sensitive goods may have, if these are allowed entry into the country. Strict penalties in relation to the goods/persons - involving seizure/absolute confiscation of the prohibited goods, fines and penalties on the persons involved in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntry which are sensitive and otherwise prohibited/restricted or where substantial duties may be involved which are sought to be evaded by non-declaration/mis-declaration to Customs. Similarly, though duties are not very relevant for outgoing passengers, Customs have to ensure that outgoing passengers do not smuggle out foreign currency, antiques or other wildlife prohibited items or narcotics drugs or psychotropic substances - and this later part, i.e., checking of drug smuggling is becoming of considerable importance in recent years. The customs have also to ensure enforcement of various other allied laws before any goods carried by the passengers on person, in hand bag or accompanied baggage enter into the country or get out of the country. Import/Export by Post/Courier: 29. Another important role performed by Customs, though not very visible, is necessary coordination with Postal authorities and giving customs clearances after appropriate checking on selective basis of various goods coming by post parcels, etc. They have to ensure that these postal mail/packets/parcels enter into the country following the provisions of the Customs Act. The goods brought by parcels u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uary, 2002 and there may be substantial further speeding up of the customs clearance work in not distant future. 31. Customs in this country are committed in its Citizen Charter, to provide to trade industry time bound and speedy cargo clearance facility, quick redressal of grievance, and inculcating in its officers' sense of service with stress on courtesy, understanding, integrity. objectivity and transparency. Steps are afoot to further professionalize Customs to be able to render efficient and prompt service to our clients almost at par with those rendered by other customs services in developed countries. 32. It is difficult to have a manual which could cover all aspects of the customs functions in one place or to explain the changes contemplated taking due note of demand of trade industry and in tune with international practices. But an attempt is made in the following chapters, briefly to further explain some of the more important aspects and areas of work of Customs for the benefit of all concerned - with focus on the importers/exporters and the concerned agencies including the international passengers and general public. Considering the importance the country ..... X X X X Extracts X X X X X X X X Extracts X X X X
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