CUSTOM LAWS CHAPTER 1

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Custom Laws WHAT IS TAX:

CA. Raj Kumar

A compulsory Extortion of money :

KIND OF TAX: Basis Levied :-

Direct Tax

Indirect Tax

On Persons for Income Earned & Activities Conducted.

Incidence of Tax:-

Borne by the person on whom it is levied.

Example:-

Income

Tax,

Professional Tax etc.

Wealth

Tax,

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CHART-I Mumbai Custom Port (India) Liable to Import Duty,

A. USA CUSTOM PORT

IMPORT OF GOODS

eg.: BASIC CUSTOM DUTY --- & various kinds of Additional duties.

EXPORT OF GOODS Liable to export Duty: (on Few selected Articles) eg.: i. Leather Articles ii. Animal Skins iii. Steel Product vi. Iron ores. v. etc.

Custom = Import Duty, Duty Export Duty.

B.

BACK GROUND OF CUSTOM LAW: Legalise in British Period in 1786. Finally: * Sea Custom Act, 1878 * Indian Custom Aircraft Act, 1911 * Land Custom Act 1924 & Indian Tariff Act, 1934 (For Rates of Import Duty & Export Duty)

C.

ACT

Custom Act, 1962

Custom Tariff Act, 1975

Containing various provisions regarding:* Levy & collection of Duties. * Import – Export Procedure. * Prohibition on Import-Export * Appeal, Demand, Refund. * etc.: i.e. All the provisions.

For RATES OF IMPORT & EXPORT DUTY

SCHEDULE: 1

SCHEDULE-2

Rates of Import Duty

Rate of Export Duty

Standard Rate

Say : 10%

Preferential Rate

i.e. concessional Rate IF GOODS are imported from “MOST FAVOURED NATION”

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How to claim preferential rate: importer has to submit a proof as to country of origin. The certificate of origin is issued by department of commerce of exporting country. The certificate is provided by exporter to importer.

D.

Objective of Custom Law: 1. 2. 3. 4.

Economy management / Protect Domestic Industry. Collecting Revenue of Custom Duty. Regulating Import-Export. Etc. How to Protect? By Imposing Various Kind of Import Duties.

E.

Rates of Import duty: ( in Custom Tariff Act, 1975) S.No.

Code of Article

Description

Rate of Duty

i.

XX XX XX XX

………………………….

…………….

ii.

XX XX XX XX

………………………….

…………….

i.e.

Rate of Duty varies product wise. However * General Rate of Import Duty (BCD): 10% *

But on some Articles like Agriculture Implement (Equipments), Automobiles. (ROD: 100% to 200%)

WHY:

Draw-back of Higher Rate of Duty:……………

F.

Mode of Import-Export: By sea …………………..

Vessel

………………

…………………Port

By Air …………………..

Aircraft

………………

………………Airport

By Land Route …………..

Vehicles

……………..Land

Station

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CHART-2

(200 NM)

---------------------------

-----------------------------------------------------

------------------------------------------------------------------

(24 NM)

(12 NM)

0

Mumbai Custom Port

--------------

Q.

Significance of Territorial Water of INDIA (TWI); * It is Relevant to determine Import-Export.

Q.

Significance of “INDIAN CUSTOM WATER”: * Custom Officer can Exercise their power within Indian Custom Water i.e. Beyond TWI also.

Q.

Significance of Exclusive Economic Zone: (EEZ): * Relevant in case of Oil Rigs. * The Area (in EEZ/continental shelf) in which “Oil Rigs” located: shall be treated as a PART Of INDIA” (As per Maritime Zone Act, 1976)

Q.

Definition of India: As per Custom Act, 1962:  Land Part (Including J&K) 

TWI

As per Maritime Zone Act, 1976: The Area (in EEZ/continental shelf) in which Oil Rigs are located – shall be treated as a “PART OF INDIA”

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CHART: 3 Meaning of Some Technical Terms A.

Import-Export Code: * It is a Reference Number for Importer-Exporter to Import or Export the goods. * It is like a Registration Number. * Unloading Place. * Landing Place. * Approved Place. * WHARF/Quay.

IMPORTATION Custom Port (USA)

B.

* FOB Value i.e. All Expenses upto this point will be included In FOB Value, Including Loading charges. CRUX.

Exporter’s Premises

* CIF Value i.e. Expenses upto this point will be included in CIF Value. * FOB Value + COT & COI * CIF Value is excluding Unloading charges & Expenses incurred After Unloading. CRUX.

Importer’s Premises

Q.1

What is FOB contract (In case of Import of Goods):

Ans.:

* Under FOB contracts Exporter is Responsible to leave the goods on Board (i.e. free on board) i.e. Leave in conveyance i.e. Delivery point origin Port. And only after that he is eligible for Payment. * In such contracts. COT & COI from Foreign Port to Indian Port i.e. (Origin Port to Destination Port) is Borne by the Importer Separately.

Q.2 What is “CIF” Contract: (In case of Import): Ans. * Under “CIF Contract” Exporter is Liable to leave the goods at Indian Custom Port i.e. Destination Port i.e. Delivery Point =Destination Port. And only after that he is eligible for Payment. * In CIF contract Importer is not required to pay COT & COI Separately I.e. CIF value is Inclusive of COT & COI. (Origin Port to Destination Port.) PRACTICE Please Note that:To Avail the Export Benefit following 2 conditions must be satisfied:i. ii.

Goods – must be Exported. + Payment – must be Received in Foreign Currency (In case of “FOB” Contract”) YES/NO

S.No.

Situation

1.

Goods sunk in TWI :* Whether: it is Export of Goods: * Whether: Payment will be received in F.C. Goods sunk Beyond TWI: * Whether: it is Export of goods: * Whether Payment will be received in F.C.

2.

Whether Export available?

Benefit

will

be

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Custom Laws S.No.

Situation

1.

Goods sunk in TWI :* Whether: it is Export of Goods: * Whether: Payment will be received in F.C. Goods sunk Beyond TWI: Whether: it is Export of Goods: * Whether: Payment will be received in F.C.

2.

CA. Raj Kumar

(In case of “CIF” Contract”) YES/NO Whether Export available?

Benefit

will

be

C.

Basis Objective of the Document ie Why to prepare / File.

Bill of Lading /Airway Bill /Delivery order. Importer is able to get the delivery of goods on the Basis of this document.

Who

This Document is prepared by the “Person In-charge” of the conveyance.

When

It is prepared after Loading of goods (i.e. at origin Port)

How

Electronically

What (Content of the document)

- Origin Port – detail. - Destination Port detail. - Goods Detail. - Prepaid / Post Paid etc.

Import General manifest / Import Report To provide Information to Indian Custom Port / Airport/ Land Custom Station: of the Arrival of conveyance. This Document is prepared by person in charge of the conveyance & filed to Indian Custom Port/Airport /Land Custom Station. - IGM is filed Before Arrival at Port / Airport. - Import Report can be filed within 12 hours of its arrival. Electronically

Bill of Entry. Imported goods are cleared from custom Department on the basis of this Document. This document is filed by Importer or his Authorized Agent (CHA) for clearance of goods from custom Department. - It is filed After filing of IGM/IR. - However sometimes it can be filed in Advance (for taking early Delivery). Electronically Importer’s detail, Exporter’s Detail, Goods details, duty detail, Rate Of Duty, Rate of Exchange etc.

BILL OF LADING

Custom Port (USA)

Exporter’s Premises

5 Fill Bill of Entry for clearance of goods With Bill of lading

Importer’s * Now master of Vessel issue a “Bill Premises Of Lading. * Bill of Lading is a document to the title Of goods. * & it is A negotiable document.  2 Copies of Bill of lading-forward to the Exporter By PERSON IN CHARGE & Exporter forward Copy - to Importer.

A bill of lading is a negotiable document, which is signed by the carriers of the cargo and it contains the following particulars (a) The port of shipment (b) Number of packages covered by the consignment (c) Marks and numbers on the packages (d) Name of the vessel. (e) Name of the consignee (f) Freight particulars-whether pre-paid or to be collected The bill of lading has to be surrendered to the carrier for the purpose of obtaining delivery. It is evidence of the title to the goods and transfer of the title can take place by its endorsement and delivery.

F O R E I G N

P O R T

Sec:30 Filing of IGM

Sec:34 Unloading under the supervision of Custom officer

Proper officer

Sec:32 Only those goods will be unloaded here which are mentioned in IGM

Sec 31 -Entry inward granted -(unloading permission)

Custodian Sec. 33 unloading at approved place.

B A R R I E R

C U S T O M

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IGM= Import General Manifest / Import manifest

Sec:29 Arrival ONLY at Custom Port or Airport.

Custom warehouse

Indian Custom Port

Import of Goods

Custom Laws CA. Raj Kumar

B A R R I E R

C U S T O M

-Pay duties of custom within 5 working days (GAR 7 Challan + DD/Cash) Otherwise liable for interest u/s 47(2). -PAY Ports dues including DEMURRAGE.

- Valuation declaration - Certificate of origin (if required).

- Bill of lading/ Airway Bill/ Delivery order - Invoice

Supportive document:-

Sec:46 File B/E for Home Consumption

IMPORTER’S PREMISES 10

Demurrage: A kind of fine imposed, if goods are not cleared within 3 days. B/E = Bill of Entry.

Designated Bank

Return

Verification of Assessment by P.O.

- Take delivery of goods

P.O. shall issue a clearance order u/s 47(1)

Custodian

Custom warehouse

Indian Custom Port

CLEARANCE OF GOODS FROM INDIAN CUSTOM PORT

Custom Laws CA. Raj Kumar

P.O.

clearance order u/s 68

: P.O. shall issue a

VARIFICATION of assessment

Assessment

VERIFICATION of

Designated Bank

Return

: P.O. shall issue a clearance order u/s 60

Transfer the goods to cust. w/h

Custodian

Custom/Bonded warehouse

Indian Custom Port

B A R R I E R

C U S T O M

IMPORTERS PREMISES

-Pay duties of custom & warehousing charges charges [No condition of 5 working days) i.e. Not liable for interest u/s 47(2). Supportive Cir. 15/2009]

File B/E for H/C u/s 68 (Green)

- Bond with Security & Surety etc.

- Bill of lading

File B/E u/s 46 for warehousing Supportive document:-

Take Delivery of goods Note: cancellation of bond u/s 73

Return

CLEARANCE OF GOODS FROM INDIAN CUSTOM PORT TOWare house - Home consumption, i.e. Indirect removal

Custom Laws 11

CA. Raj Kumar

)

C/O u/s 47(1)

B/E for H/C u/s 46 (

Custom warehouse

)

C/O u/s 68

B/E u/s 68 (

IMPORTERS PREMISES

)

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C.O. = Clearance Order

Indian Custom Port

C/O u/s 60

B/E u/s 46 (

Direct & Indirect Removal

Custom Laws CA. Raj Kumar

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Custom Laws

CA. Raj Kumar

Transit & Transshipment (Section 52-56) WHAT IS GOODS IN TRANS-SHIPMENT

CASE:1

100 U.S.A. PORT

Mumbai Cus. Port 100 Unload

UNIT

(CHETAK)

100

units

Re- Load in:

ANOTHER VESSEL (JALPARI)

I.G.M. DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : G.I.Tr. : G.I.Ts. : DETAILS: IN RESPECT OF KERALA CUS.PORT L.C. : G.I.Tr. : G.I.Ts. : -

CASE-2:

USA PORT

100 Unit (CHETAK)

20 UNIT B/E (H.C.)

M.C.P. 100 UNIT Unload

Kerala Port 80 Unit

80 UNIT Load in Another Vessel

80 Unit

I.G.M. DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : G.I.Tr. : G.I.Ts. : DETAILS: IN RESPECT OF KERALA CUS.PORT L.C. : G.I.Tr. : G.I.Ts. :

Kerala Port Unit Unload

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Custom Laws

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CASE-3:

USA PORT

111

100 Unit (CHETAK)

M.C.P. 100 UNIT Unload

20 UNIT

SRILANKA PORT

80 UNIT Load in Another Vessel

80 Unit

I.G.M. == DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : G.I.Tr. : G.I.Ts. : DETAILS: IN RESPECT OF SRILANKA CUS.PORT L.C. : G.I.Tr. : G.I.Ts. :

WHAT IS GOODS IN TRANSIT CASE:-1

U.S.A. PORT

100

Mumbai Custom Port

I.G.M. DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : G.I.Tr. : G.I.Ts. : DETAILS: IN RESPECT OF KERALA PORT L.C. : G.I.Tr. : G.I.Ts. :

100

Kerala Port 100 UNITS

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Custom Laws

CA. Raj Kumar

CASE:-2

U.S.A. PORT

100 Unit (CHETAK)

Mumbai Cus. Port 20 Unit Unload

80 CHETAK

Kerala Port 80 UNIT

& B/E File for H.C.(W)

.

I.G.M. DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : G.I.Tr. : G.I.Ts. : DETAILS: IN RESPECT OF KERALA PORT L.C. : G.I.Tr. : G.I.Ts. : -

CASE:-3 .

U.S.A. PORT

MUMBAI CUSTOM PORT

100 Unit (CHETAK)

Unload

I.G.M. DETAILS : IN RESPECT OF MUM-CUS-PORT L.C. : Unit G.I.Tr. : Unit G.I.Ts. : DETAILS: IN RESPECT OF SRILANKA PORT L.C. : Unit G.I.Tr. : G.I.Ts. :

80 CHETAK

SRILANKA PORT

Custom Laws

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CA. Raj Kumar

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Custom Laws

D Definitionss

C H A P T E R

1

Definittions

CONSTITU UTION OF INDIA: BASIC

CUSTOMS C

Union Listt; Entry No. 83 - Duties oof Customs in ncluding Export Duties..

DUTY (1) The dutiies of custom ms shall be levvied at such raates as may bee specified

(BCD)- SEC C. 12

under th he Customs T Tariff Act, 19975, on goodds imported in nto, or exported from, Indiaa. [NOTE: ALLL OTHER DUT TIES ARE IMP POSED UNDER R CTA, 1975]

(2) The prrovisions of sub-section ((1) shall apply in respectt of all goods belongin ng to Goveernment as tthey apply iin respect o of goods no ot belongin ng to Governnment.

ASSESSME ENT

INDIA – 2(227)

¾ Means, a process p of dettermining thee tax liability w with the provvisions of the Act. ¾ It includes: provisional assessment, sself-assesssment, re-aassessment an nd any order ment in which the duty asseessed is nil. of assessm

“Indiia” includes th he territorial waters w of Inddia.

INDIAN TERRITOR RIA L WATER:

¾ Indian Terrritorial water means: that pposition of seea which is addjacent to thee shores of a country. ¾ territorial water w extend upto 12 nautitical miles from the base lin ne on the coaast of India and include any bay, gullf, harbor, creeek or tidal riiver (1 Nauticcal mile = 1.1515 Miles orr 1.853 kms))

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Custom Laws

Definitions

INDIAN

Means: the waters extending into the sea upto limit of contiguous zone of India under section 5

CUSTOMS

of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Acts

WATERS

and includes: any bay(arms of the sea), gulf, harbor, creek or tidal river.

IMPORT

–

“Import”, with its grammatical variations and cognate expression, means:

2(23)

¾ bringing into India from a place outside India. TAXABLE EVENT THE TAXABLE EVENT: is the time at which: The goods REACH AT THE CUSTOMS BARRIER and The BILL OF ENTRY for HOME CONSUMPTION is filed u/s 46 OR 68.

GARDEN SILK MILLS LTD – 1999 – SC, KIRAN SPINNING MILLS -1999-SC

STORES:

-Stores means: Æ goods for use in a vessel or aircraft, Æ and includes: fuel and spare parts and other articles or equipment, whether or not for immediate fitting.

GOODS -2(22)

“Goods” includes:– (a) Vessels, aircrafts and vehicles; (b) Stores; (c) Baggage; (d) Currency and negotiable instruments; and (e) Any other kind of movable property. Jalyan Udyog-(Bom. HC): Even though the vessel is covered under the definition of ‘goods’ but, if the vessel enters the territorial waters merely as a conveyance. Then it cannot be suggested that the vessel was imported and accordingly no question of import duty.

IMPORTED GOODS – 2(25)

“Imported goods” means ¾ any goods brought into India from a place outside India ¾ but does not include goods, which have been cleared for home consumption.

W/H

K.C.P.

EXAMPLE: TWI

M.C.P. I.G.

* Imported goods. * Coastal Goods

I.G. ID Paid IG

PROHIBITION

Absolute prohibition

Import or Export is Completely Prohibited Eg.: Uranium, Sandal, Wood etc.

Conditional Prohibition

The Commodity can be imported or Exported: on fulfillment a given condition. Eg.: - Tobacco in Excess 250 Gram. - Cigarettes in Excess 200 pieces. - Liquor in Excess of 2 Ltr. Can be imported only after obtaining license from Director General Foreign Trade.

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Custom Laws COASTAL GOODS -2(7)

Definitions

“Coastal goods” means: ¾ goods, other than imported goods, ¾ transported in a vessel, ¾ from one port in India to another port in India. Example- (1)-In case the goods are loaded from Bombay port to be cleared at Madras Port, then, such goods are known as costal goods. However, in case the goods are imported from London Port to be cleared at Kolkata Port and, in between, the vessel touches Bombay port, then such goods shall retain the characteristics of imported goods and will not become coastal goods. Example-(2): Goods imported at Chennai by a vessel from Singapore are unloaded, kept in Wharf and not cleared .Since they have not left customs area, they continue to be imported goods. If such goods are transshipped by another vessel to Vishakhapatnam they will not be called coastal goods. However, if the goods are cleared from customs area (by filling Bill of Entry and paying duty), brought to town and thereafter taken to be harbour for being sent to Vishakhapatnam by sea, then they cease to be imported goods and are therefore called coastal goods. Coastal goods do not attract customs duty since they are not imported goods.

DUTIABLE GOODS -2(14)

Dutiable goods” means any goods which are chargeable to duty and on which duty has not been paid. In associated Cement Companies Ltd. It was held that the expression “chargeable to duty on which duty has not been paid” indicates that, When duty is paid on any goods that are chargeable to duty, such goods cease to be ‘dutiable goods, Further, the goods on which no duty is leviable, and therefore no duty is payable, will not be regarded as dutiable goods.

“Prohibited goods” Means:-

PROHIBITED GOODS –2(33)

¾ any goods, the import or export of which is subject to any prohibition under this Act or any other law for the time being in force. But does not include:¾ any such goods in respect of which, the conditions, subject to which the goods are permitted to be imported or exported have been complied with.

IMPORTER 2(26)

-

“Importer”, in relation to any goods, Æ At any time, between their importation and the time when they are cleared for home consumption, Æ includes, ƒ ANY OWNER or ƒ any person HOLDING HIMSELF OUT TO BE THE IMPORTER.

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Custom Laws

Definitions

The term “importer” has been defined to include any person holding himself out to be a owner. If the invoice and the bill of entry are in the name of appellant and entire risk of goods is also shown to be that of the appellant, he is liable to be treated as owner for demanding the duty. The appellant cannot plead that the ultimate buyer for whom the goods were imported should be treated as importer. CASES

PARTICULARS

Exporter- Mr. A

Mr. B purchases goods and issue irrevocable Letter of credit in favour of Mr. A

Exporter- Mr. A

Mr. B purchases goods and issue irrevocable Letter of credit in favour of Mr. A ¾ Mr. B sell off the goods to Mr. C ¾ Mr.C files Bill of Entry with his import –export Code.

Exporter- Mr. A

Mr. B purchases goods and issue irrevocable Letter of credit in favour of Mr. A ¾ Mr. B approach a CUSTOM BROKER Mr. D for clearance of goods Mr. D (CHA) files bill of entry with import export code of Mr. B

Exporter- Mr. A

Mr. E, agent of Mr. A,-appoint to sale the goods sent by Mr. A

EXPORT -2(18)

WHO IS AN IMPORTER?

“Export”, with it’s grammatical variations and cognate expressions, means: TAKING OUT to a place outside India. ¾

EXPORT GOODS: 2(19) EXPORTER 2(20)

“Export goods” means any goods, which are to be taken out of India to a place outside India.

-

¾

“Exporter”, in relation to any goods, at any time between their entry for export and time when they are exported,

¾ includes any owner or any person holding himself out to be the exporter. CONVEYANCE -2(9)

“Conveyance” includes a Vessel, an Aircraft and a Vehicle.

Foreign going vessel : Includes Part Applicable on the Vessel / Aircraft : Not Engaged in Caring Goods/Passenger

(a)

NAVAL VESSEL OF “USA GOVT”.: MCP EEZ

TWI

STORE SUPPLIER

USA Port

(b)

IN CASE OF “OIL RIGS”: MCP EEZ

(b1)

TWI

STORE SUPPLIER

IN CASE OF “FISHING VESSEL”:

MCP EEZ

TWI

STORE SUPPLIER

USA Port

(c) MCP EEZ USA Port

TWI

STORE SUPPLIER

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Custom Laws

Definitions

VEHICLE -2(42),

“Vehicle” means: conveyance of any kind used on land and includes a railway vehicle.

FOREIGN

“Foreign-going vessel or aircraft” means ¾ any vessel or aircraft for the time being engaged in the carriage of goods or

GOING VESSEL / AIRCRAFT -

passengers,

2(21)

¾ between any port or airport in India and any port or airport outside India, ¾ whether touching any intermediate port or airport in India or not,

And includes (i)

Any naval Vessel of a foreign Government, taking part in any naval exercises.

(ii)

Any Vessel engaged in Fishing or Any Other Operations OUTSIDE THE TWI ;

(iii)

Any Vessel or Aircraft, proceeding to a place outside India FOR ANY PURPOSE.

Analysis of – FGV/A Significance of concept of FGV/A: Under Excise, supply of stores to FGV/A is treated as export entitling the supplier to related export benefits. Under Customs also, it is treated as Export. Thus, the supplier shall be entitled to benefit of DUTY DRAWBACK in relation to such supply and eligible for other export benefits.

MEANS PART- Vessel or Aircraft-engaged in carrying goods / passengerCASES Whether- it is Foreign Going Vessel? Mumbai Port to USA Port USA Port

to

Mumbai Port

Mumbai Port

to

Kerala Port

to

USA Port

Aban Loyd Chilies Offshore Ltd. v. UOI [2008] 227 ELT 24(SC): M.impThe Supreme Court in the case of Aban Loyd Chiles Offshore Ltd. (2008) was addressing the issue as to whether oil rigs engaged in the exclusive economic zone/ continental shelf outside the territorial waters of India are ‘foreign going vessels’. The Supreme Court held that the definition of ‘foreign going vessel’ cannot be read in isolation and has to be read along with the Maritime Zones Act, 1976.

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Custom Laws

Definitions

The Court held that -The Central Government is empowered to extend any enactment in force in India to such zones through a notification. However, by virtue of such notification, the continental shelf or exclusive economic zone cannot become a part of the territory of India. CRUX- IN SIMPLE WORDS “OUTSIDE THE TERRITORIAL WATER OF INDIA” SHALL BE INTERPRETATED AS “OUTSIDE THE EEZ” [FOR OIL RIGS PURPOSE ONLY] PERSON IN CHARGE –

“Person-In-Charge” means, a. In relation to a vessel ---- the master of the vessel;

2(31)

b. In relation to an aircraft ---- the commander or pilot-in-charge of the aircraft; c. In relation to a railway train ---- the conductor, guard or other person having the chief direction of the train; d. In relation to any other conveyance ---- the driver or other person-incharge of the conveyance.

The significance of this definition isÆ He is responsible for submitting Import Manifest and Export Manifest. Æ He is responsible to ensure that the conveyance comes through approved route and lands at approved place only. Æ He has to ensure that goods are unloaded after written order, at proper place. Loading also has to be only after permission. Æ He has to ensure that conveyance does not leave without written order of Customs authorities. Æ He has to penalised for giving false declaration and statement SMUGGLING: 2(39):

Smuggling”, in relation to any goods, means any act or omission which will render such goods liable to confiscation under section 111 or section 113. Under section 111 provisions have been made for confiscation of goods in case of improper importation and Under section 113 provisions have been made for confiscation of goods in case of improper

exportation. CUSTOMS AREA -2(11)

¾

“Customs area “means: the area of a Customs Station;

¾ And includes: any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities.

CUSTOMS STATION -

A warehouse in which dutiable imported goods are kept u/s 59 of Customs Act is under the lock & key of the customs authorities. In this sense, it is an extension of customs area. “Customs station” means: any Customs Port, Customs Airport or Land Customs

2(13)

Station.

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Custom Laws Customs port -2(12)

Definitions

“Customs port” means: any port appointed (by CBEC) under sec 7(a), to be a customs port and includes a place appointed (by CBEC) under sec 7(aa), to be an inland container depot.

Customs Airport -2(10)

“Customs Airport” means any airport appointed (by CBEC) under sec 7, to be a customs airport, and

includes a place appointed under section 7 (aa) to

be an air freight station. Land Customs Station -

“Land customs station” means any place appointed under sec 7, to be a land

2(29)

customs station.

Inland Container Depot/ Container Freight StationÆ The logic behind such a provision is the desire of an importer to take delivery of goods from a nearest place or the desire of the exporter to load the goods at his factory for the purpose of export. The Inland Container Depots have been appointed in cities like New Delhi, Coimbatore, Bangalore, Surat, Jaipur, Hyderabad etc. Æ ICDs have been appointed at various places ICD/CFS essentially function like a dry port. ICD/CFS functions as common user facility offering all services for customs clearance like any other port. It has facilities for handling and temporary storage of imported/export goods and empty containers. Æ These are carried to/from ICD under customs transit by any mode of transport. All activities related to clearance of goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit take place from such stations,Æ Exporter has to submit shipping bill at the container depot. Export containers can be sealed at the depot. Normally, the containers will not be examined at the gateway port. However, checking may be done if seal is damaged or there is some information or doubt. These containers are moved from ICD s to ports/airports by way of railway wagons/trucks. Æ Conventional mode of shipment was to pack the goods in cases .Such cases can be of varying sizes and weights, due to which their handling and storage in ships is difficult. Hence modern trend in sea or air freight is to use containers. Æ These containers are usually quite big – upto size of a truck. Goods are stuffed in the containers and then the whole container is loaded/ unloaded with the help of crane. This also reduces chances of damage during handling of cargo.

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Custom Laws

Definitions

Container Freight Station (CFS) Æ CFS is a place where containers are stuffed, unstuffed and aggregation /segregation of cargo takes place. Æ The container Freight Station (CFS) is normally located in a customs station or adjunct to a customs station. The CFS can handle exclusively export cargo or import cargo or both .Generally, a CFS is taken as extended arm of Port or ICD.

TARIFF VALUE:

Tariff value in relation to any goods, means: the tariff value fixed in respect thereof under section 14 (2).

Description of goods Gold Silver ENTRY-

Tariff value (US $) 375 per 10 grams 512 per kilogram

This is a term used in relation to goods. The following constitute entry:Imported Goods : Filling B/E u/s 46.

MARKET PRICE

Export Goods

: Filing Shipping Bill u/s 50. (In case of vessel and Aircraft) : Filing Bill of Export (in case of vehicle) u/s 50

Postal Parcel Baggage

: Label affixed to or declaration accompanying the parcel u/s 82. : Baggage Declaration u/s 77.

In relation to any goods, means: the wholesale price of the goods in the ordinary course of trade in India.

CUSTOM OFFICERS: SECTION: 3

(a) Principal Chief Commissioners of Customs; (b) Chief Commissioners of Customs; (c) Principal Commissioners of Customs; (d) Commissioners of Customs; (e) Commissioners of Customs (Appeals); (f) Joint Commissioners of Customs; (g) Deputy Commissioners of Customs; (h) Assistant Commissioners of Customs; (i) such other class of officers of customs as may be appointed for the purposes of this Act.”