Learning Outcomes

Students will get to know

evolution of custom law before
• independence
Students will get to know
evolution of custom law after
• independence
 Customs meaning

• The word customs means a

habitual practice or course of
action that is repeated in like
circumstances.
 Customs duty

• It is form of indirect tax which

is levied by Central Govt. on
import of goods and export of
goods from India through air
,water and Land route.
• Taxable event is import into or export from
India. Import of goods means bringing into
India of goods from a place outside India.
India includes the territorial waters of India
which extend upto 12 nautical miles into
the sea to the coast of India. Export of
goods means taking goods out of India to
a place outside India.
 Objective

• To restrict the imports for

conserving foreign exchange.
• To regulate export.
• To safeguard domestic trade.
• To protect the revenue of
resources.
 Objectives of customs duty
• To protect the industries in India from
unfair competition.
• To prevent the smuggling of goods
and activities related to the same.
• To prevent the dumping of goods.
 Constitutional power

• Custom Duty is imposed

under the Indian Customs
Act formulated in 1962 by
the Constitution of India
under the Article 265.
 History of Indian Customs
• The Custom Duty in its present form dates back to 1786, when Bruisers
formed the first Revenue Board in Calcutta. In 1808, a new Trade
Board was introduced for export and import of goods from India. Once
again, in 1859 Customs Duties Act was introduced in which provincial
import duties were replaced by uniform Tariff Act and was applicable to all
Indian territories within the country.
• In the subsequent year several changes in the Custom Policy took places
and are as follow:
• Sea Customs Act was passed by Government in 1878.
• Indian Tariff Act was passed in 1894.
• Air Customs having been covered under the India Aircrafts Act of 1911,
• Land Customs Act was passed in 1924.
• After Independence, the Sea Customs Act and other allied enactments were
repealed by a consolidating and amending legislation entitled the Customs
Act, 1962 (CA). Similarly the Act of 1934 was repealed by the Customs
Tariff Act, 1975(CTA).
Impact of introduction of GST
on Customs

Import of goods or services

or both shall be deemed to
be inter-state supply
Impact of introduction of GST
on Customs

Import of services-
IGST on such services is
applicable under IGST Act.
Impact of introduction of GST
on Customs
Import of goods-
IGST on such goods is
applicable under Customs
Act 1962 read with Customs
Tariff Act 1975.
Impact of introduction of GST
on Customs
Export of goods or services-
Export is treated as zero
rated supply under IGST
Act 2017.
Customs duties subsumed by
GST

Countervailing Duty
Special Additional Duty
Customs duties not subsumed
by GST

Basic customs duty

Education cess
Anti-dumping duty
Safeguard duty
Protective duty
• Basic concepts used in Customs

..\customs duty\Custom Act-

definition.doc