Indian Customs Laws

Indian Customs Laws

In an era of rapidly emerging global markets, tight budgets, and scarce resources, maintaining compliance with customs requirements while minimizing duty and related charges is critical to maintaining a competitive advantage.

We at Taxpert Professionals work with clients to deliver value and efficiency for their business, including:

  • Establishing and maintaining efficient cross-border operations keeping costs down to maintain strategic advantage
  • Ensuring compliance with local laws and regulations associated with cross-border trade
  • Customizing trade processes and controls to a business unit, company, or industry
  • Mitigating risk issues related to conducting cross-border business.

Indian Customs Act, 1962, levy and regulate the Customs Duties. Indian government levies duties on both import and export of goods along with their procedures, prohibitions, penalties etc. Matters pertaining to this duty fall under the CBEC (Central Board of Excise and Customs), a division of the Department of Revenue of the Ministry of Finance.

The duty levied depends on the value of the goods, its dimensions, and weight along with a lot of other criteria. While value-based duties are called Valorem duties, quantity-based duties are called specific duties. On the other hand, duties on values plus other factors are called compound duties.

Customs Duties are indirect taxes levied on the Import & Export of Goods into India. Consequently, the planning of Imports & Exports is very crucial for Business entity in India as the cost of duties levied may impact the feasibility of the business very seriously.

How Taxpert Professionals can assist you?

Advisory services

  • Advice on Classification and rate of Duty payable under Customs Tariff, the applicability of exemption/s or concessional rate of Duty notification as per the business operations.
  • Review/ advise of Export/ Import Controls over Sanctioned goods or entities or countries \ restricted goods or services and items notified under SCOMET List.
  • Audit Support Services to MNC\ Indian Businesses to provide assurance on compliance and gaps with Export/ Import Controls and Sanctions and assist in implementing a robust internal compliance programs.
  • Advice on a preferential trade agreement and tariff treatment reviews to ensure respective rates of duty have been applied to your goods
  • Assistance upon Initiation of Investigation; mid-term review and sun-set review to levy Anti-Dumping Duty, Safeguard Duty and Countervailing Duty by Director General of Trade Remedies.

Litigation support

  • Assistance in replying to show cause notices issued by Customs, Trade and Regulatory authorities and representation services for hearing before the revenue department.
  • Appeal before departmental appellate authorities and Appellate Tribunals/ Hon’ble Courts and arguing at the time of hearing.
  • Assistance in filing of cases before the Settlement Commission for settlement and arguing case at the time of hearing.
  • Filing of application for ruling by Authority for Advance Ruling and arguing case at the time of hearing.

Specialized Services

  • Due Diligence review of operations under Customs Laws and Foreign Trade Policy, Export/ Import Controls and Sanctions to operate in an efficient and compliant manner.
  • Representations before Central Board of Indirect Taxes and Customs (Board), Director General of Foreign Trade (DGFT), and various other Regulatory authorities seeking intervention and clarifications on key industry issues.
  • Assistance during and after raid or investigations by Customs and Regulatory authorities like Directorate of Revenue Intelligence, Enforcement Directorate, Narcotics Control Bureau to take a view on key issues and options to deal with high risk positions, briefing and debriefing of employees and discussions with authorities to close case.
  • Review of tenders and bids to assist in bidding process and negotiations thereafter to arrive at fair price, budget Tax costs, and aligning supply chain in terms of Bill of Material for supply.

Compliance Services

  • Assistance in obtaining Import Export Code number and Authorizations under various Export Promotion Schemes from DGFT for availing export incentives or Licenses for export/ import of restricted goods or technologies including items on the SCOMET List.
  • Approvals from Development Commissioner of SEZ or Director Software Technology Parks of India for change of implementation agency in case of merger, acquisition or takeover of an existing SEZ or EOU.
  • Review of various returns and performance reports to be filed before Tax and Regulatory authorities.
  • Assistance in seeking Equipment Type Approval, WPC License, NOC to import controlled substances, etc. from Regulatory authorities.

Special Valuation Branch Under Customs

Special Valuation Branch (SVB) is a branch that investigates Valuation | Pricing of imported goods imported by the related person.

Whenever a case is selected for investigation, the Importer is asked to furnish a bond covering the amount of difference in Tax paid as provisionally assessed and the Tax determined post completion of the investigation by the SVB. Usually, the bond is to be furnished for 1% of the Assessable Value of the goods imported, commonly known as extra duty deposit (EDD). Apart from the EDD, a questionnaire is issued to the Importer requiring submission of specified details and documents. The importer is required to furnish the reply along with relevant documents and details within 30 days of receipt of the questionnaire.

Each SVB order is valid for three (3) years and the importer is required to apply for renewal, post the expiry period.

How Taxpert Professionals can assist you?

  • Assistance in investigations by Special Valuation Branch of Customs (SVB) to determine arm’s length price in case of transactions with Associated Enterprises.
  • Review of relevant documents such as Pricing agreements, Bill of Entries, Invoices etc and drafting |submission of the reply to the questionnaire received from the SVB;
  • Assistance in execution of bond against EDD prior for submission with the valuation authority;
  • Obtaining the final Order-in-original from the authority | Evaluation of the Order and analysis of the takeaways for the applicant from the same.

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