Background
The Customs Act in India originated under colonial administration to regulate maritime trade and collect duties, and was comprehensively modernized after independence to support economic policy and border control. It establishes the legal framework for import and export procedures, valuation, classification of goods, and levy of customs duties. The Act empowers customs authorities to prevent smuggling, enforce prohibitions and restrictions, and ensure compliance with trade laws. Over time, it has evolved to align with global trade norms, tariff reforms, and digital customs processes. Today, it remains a core instrument for safeguarding revenue, facilitating legitimate trade, and protecting national security.
Applicability
The customs Act applies to the Entities falling within its purview.
Compliance Requirements under the Act in Accordance with the Regulations
Eligible exporters are entitled to self-seal their export containers by using an electronic seal.
Exporters have to obtain PAN based Business Identification Number(BIN) from Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export goods & opening current account in designated bank for crediting of any drawback amount & same has to be registered on the system.
Every person who is liable to pay duty on any goods shall, at the time of clearance of the goods, prominently indicate in all the documents relating to assessment, sales invoice, and other like documents, the amount of such duty which will form part of the price at which such goods are to be sold.
Importer of any goods, other than goods intended for transit/transhipment shall make entry by presenting electronically on customs automated system to proper officer a bill of entry for home consumption or warehousing or for ex-bond clearance for home consumption in Form I or II or III
Exporters must electronically submit a shipping bill for goods exported by vessel/aircraft and a bill of export (in the form specified in Annexures V, VI, VII, or VIII of Shipping Bill & Bill of Export(Form)Regulations) for goods exported by land, via the customs automated system.
The Shipping Bill and Bill of Export forms shall be in accordance with the specifications as laid down in Regulation 4 of Shipping Bill And Bill Of Export (Forms) Regulations, 2017
Clearance is required from proper officer for exportation of goods
Regulations regarding goods imported or to be exported by post or courier are specified in Section 84 of Customs Act 1962 and Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010, Exports by Post Regulations, 2018
Consignor of any coastal goods shall make an entry by presenting to proper officer a bill of coastal goods in the prescribed form 2)Every such consignor while presenting a bill of coastal goods shall, at the foot thereof, make and subscribe to a declaration as to truth of contents of such bill
ICEGATE allows entities to file necessary customs documents online and helps in streamlining customs clearance processes. It is Indian Customs Electronic Gateway, a digital platform for filing customs documents like Shipping Bills & Bills of Entry
The importer shall pay the import duty on imported goods as per Section 47(2) of Customs Act 1962
Customs clearance formalities must be completed for all goods imported into India
AD Code is 14digit numerical code which is essential to obtain from bank with which one has current a/c. A bank must be an authorized dealer of foreign currency in order to issue AD code. Exporters must register their AD Code with every port/airport from where they intend to ship their goods abroad
An AD Code is essential due to following reasons:
a)It is essential for customs clearance.
b)An AD Code registration with the customs enables an exporter to get the export benefits directly credited into current account of bank.
Penalty & Punishment
Any person who contravenes any provision of this Act or abets any such contravention or who fails to comply with any provision of this Act with which it was his duty to comply, where no express penalty is elsewhere provided for such contravention or failure, shall be liable to a penalty not exceeding four lakh rupees.
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