Bringing Gold, Phones or Liquor to India? Read This Customs Guide First

The Customs Act of 1962 was a law promulgated in India for regulating the import and export of goods with the objective of collecting customs duties by the government, preventing smuggling, and controlling border movements of goods.

Objectives:

• Imposing and collecting customs duties on imported and exported goods.
• Regulation of import and export of goods according to the policy of the nation.
• Prevention of smuggling and illegal trade.
• Ensuring compliance with foreign trade and other applicable laws.

Key Points:

• Customs duty is payable whenever goods enter India (import) or leave India (export).
• This empowers the customs officers to inspect goods, check documents and, if necessary, seize goods.
• Certain goods are prohibited or restricted for importation or exportation.
• Duty evasion or smuggling will attract penalty and prosecution.
• It also provides the mechanism for appeals and resolving disputes.

FAQs – Customs Act, 1962

1. What is the Customs Act, 1962?

It is an Indian law that regulates import, export, and customs duties and prevents smuggling.

2. Why is customs duty present in India?

For government revenue, protection of domestic industries from the cheap or illegal goods.

3. Who collects customs duty in India?

Central Board of Indirect Taxes and Customs (CBIC) through the customs officers.

4. When does customs duty become payable?

When goods are either imported into India or when certain goods are being exported as per law.

5. How does one compute the amount of customs duty?

It depends on the type of goods, their value, quantities and rates of duty as per the Customs Tariff Act.

6. Are all imported goods taxed?

Not all; some are exempt, such as certain medicines and imports for charitable purposes.

7. What's the consequence of not paying customs duty?

Goods may be seized, and fines and criminal prosecution may ensue.

8. May customs officers open my luggage?

Yes, they have the right to do so if they suspect undeclared goods or restricted/prohibited ones.

9. Smuggling, under the Customs Act, means What?

It means to bring goods secretly into or out of India to evade duty or violate import/export laws.

10. Can customs without notice seize my goods?

Yes, if there are indications of smuggling or non-payment of duties.

11. What would be my method of clearing my goods from customs?

By filing a Bill of Entry for imports or a Shipping Bill for exports and the payment of duties.

12. What are Prohibited goods?

Goods that cannot be imported or exported – narcotics, counterfeit currency, and anything made from endangered wildlife, to name a few.

13. What are restricted goods?

Goods that need special licences to be imported/exported (for example, firearms and certain chemicals).

14. Can I appeal customs decisions?

Yes, first to the Commissioner, and then further up.

15. What is the penalty for smuggling?

May constitute fines, goods can be seized, and imprisonment of 7 years or more.

16. Does the Customs Act apply to imports made by e-commerce?

Yes, any products purchased online are subject to customs duty and checks.

17. Can I bring gold into India without paying duty?

Only to the extent of the free allowance; any additional weight is dutiable.

18. By what measures do customs officers value goods?

They follow the Customs Valuation Rules based on transaction value with costs related to that value.

19. Can customs check postal and courier packages?

Yes, if there are suspicions of undeclared or prohibited items.

20. How to avoid customs problems?

Declare all goods honestly, pay duties, and comply with the import/export provisions.