1.

Protective duties: Protective duties are recommended by Tariff commission to Central

Government when immediate action is necessary to protect interests of Indian industry.
2. Countervailing duty on subsidised goods: If other countries pay any subsidy directly or
indirectly to their exporters for exporting goods to India, Central Government can impose
countervailing duty upto the amount of such subsidy under section 9 of customs Tariff
Act.
3. Anti-Dumping duty on dumped articles: A large manufacturer from a foreign country
may export goods at lower prices compared to prices in his home market. This may be
done to cripple Indian domestic market or dispose of their excess stock. This kind of
activity is called ‘dumping’. The Central Government can avoid this kind of dumping by
imposing anti-dumping duty upto ‘margin of dumping’ on such articles. Margin of
dumping means the difference between ‘normal value’ and export price.

VALUATION OF GOODS UNDER CUSTOMS ACT

Most of the customs duties are advalorem. Goods are to be valued of purposes of customs
duty assessment. The customs valuation rules, 1988 follow th GATT provision for valuation of
goods. Imported goods are to be valued in a accordance with rules for customs valuation made
by the Central Government under Section 14(1A).

Fundamental Elements determine Customs value

The important ingredients as per Section 14(1) to determine the value of goods for
customs purpose are as follows:
1. Price ordinarily offered: The price at ehich such or similar goods are ordinarily sold or
offered for sale.
2. Price for delivery: The price for delivery at the time and place of importation and
exportation.
3. Price in the course of internation trade: Price in the course of international trade refer to
price during the movement of goods from one country to another.
4. No interest in each other’s business: the buyer and seller should have no interest in the
business of each other.
5. Price to be the sole consideration: The price should be the sole consideration for the sale
or offer for sale.
6. Rate of exchange: Price shall be calculated with reference to rate of exchange which is
determined by the Central government.