Customs Tariff Act, 1975

Customs Tariff Act, 1975

Customs Tariff Act, 1975 defines the duty or taxes that are levied on goods imported into India and goods exported out of India. The main purpose of the Act is to decide the rate of customs duty. The Act includes two types of schedules where schedule 1 includes the rates of duties on imports and schedule 2 includes the rates of duties on exports.

• Short title, extent and commencement.
  
  
  • This Act may be called the Customs Tariff Act, 1975.
    
    
  • It extends to the whole of India.
    
    
  • It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
    
    
• Duties specified in the Schedules to be levied.
  
  
• Duties specified in the Schedule to be levied. The rates at which duties of customs shall be levied under the Customs Act, 1962, (52 of 1962) are specified in the First and Second Schedules.
  
  
• Levy of additional duty equal to excise duty, sales tax, local taxes and other charges
  
  
  • Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article:
    
    Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, if a like alcoholic liquor is not produced or manufactured in any State, then, having regard to the excise duty which would be leviable for the time being in different States on the class or description of alcoholic liquor to which such imported alcoholic liquor belongs.
    
    Explanation— In this sub-section, the expression “the excise duty for the time being leviable on a like article if produced or manufactured in India” means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty.
    
    
  • For the purpose of calculating under subsections (1) and (3), the additional duty on any imported article, where such duty is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962, be the aggregate of—
    
    
    • the value of the imported article determined under sub-section ( 1) of section 14 or the tariff value of such article fixed under sub-section ( 2) of that section, as the case may be; and
      
      
    • any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include—
      
      
      • the duty referred to in sub-sections (1), (3) and (5);
        
        
      • the safeguard duty referred to in sections 8B and 8C;
        
        
      • the countervailing duty referred to in section 9; and
        
        
      • the anti-dumping duty referred to in section 9A:
        
        Provided that in case of an article imported into India,—
        
        
        • in relation to which it is required, under the provisions of the “Legal Metrology Act, 2009” * or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and
          
          
        • where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is
          
          
        • the goods specified by notification in the Official Gazette under sub-section (1) of section 4A of the Central Excise Act, 1944, the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under sub-section (2) of section 4A of that Act, or
          
          
        • the goods specified by notification in the Official Gazette under section 3 read with clause (1) of Explanation III of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, the value of the imported article shall be deemed to be the retail sale price declared on the imported articles less such amount of abatement, if any, from such retail sale price as the on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under (2) of the said Explanation.
          
          Explanation. — Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section.

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Foreign Trade (Development and Regulation) Act, 1992

Foreign Trade (Development and Regulation) Act, 1992 regulates import and export activities in India. Prior to this Act, the Imports and Exports (Control) Act, 1947 was exercised. The former Act was replaced by this new one to increase the power of the government in the growth and development of foreign trade. The following are the highlights of Foreign Trade Act, 1992:

Chapter I – Preliminary

Short Title and Commencement

• This Act may be called the Foreign Trade (Development and Regulation) Act, 1992.
  
  
• Sections 11 to 14 shall come into force at once and the remaining provisions of this Act shall be deemed to have come into force on the 19th day of June, 1992.

Definitions

In this Act, unless the context otherwise requires, –

• “Adjudicating Authority” means the authority specified in, or under, section 13;
  
  
• “Appellate Authority” means the authority specified in, or under, Subsection (1) of section 15;
  
  
• “conveyance” means any vehicle, vessel, aircraft or any other means of transport including any animal;
  
  
• “Director General” means the Director General of Foreign Trade appointed under section 6;
  
  
• “import” and “export” means respectively bringing into, or taking out of, India any goods by land, sea or air;
  
  
• “Importer-exporter Code Number” means the Code Number granted under section 7;
  
  
• “licence” means a licence to import or export and includes a customs clearance permit and any other permission issued or granted under this Act;
  
  
• “Order” means any Order made by the Central Government under section 3; and
  
  
• “prescribed” means prescribed by rules made under this Act.

Chapter II – Power of Central Government to Make Orders and Announce Export and Import Policy

Powers to Make Provisions Relating to Imports and Exports

• The Central Government may, by Order published in the Official Gazette, make provision for the development and regulation of foreign trade by facilitating imports and increasing exports.
  
  
• The Central Government may also, by Order published in the Official Gazette, make provision for prohibiting, restricting or otherwise regulating, in all cases or in specified classes of cases and subject to such exceptions, if any, as may be made by or under the Order, the import or export of goods.
  
  
• All goods to which any Order under sub-section (2) applies shall be deemed to be goods the import or export of which has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) and all the provisions of that Act shall have effect accordingly.

Continuance of Existing Orders

All Orders made under the Imports and Exports (Control) Act, 1947 (18 of 1947), and in force immediately before the commencement of this Act shall, so far as they are not inconsistent with the provisions of this Act, continue to be in force and shall be deemed to have been made under this Act.

Export and Import Policy

The Central Government may, from time to time, formulate and announce, by notification in the Official Gazette, the export and import policy and may also, in like manner, amend that policy.

Appointment of Director General and His Functions

• The Central Government may appoint any person to be the Director General of Foreign Trade for the purposes of this Act.
  
  
• The Director General shall advise the Central Government in the formulation of the export and import policy and shall be responsible for carrying out that policy
  
  
• The Central Government may, by Order published in the Official Gazette, direct that any power exercisable by it under this Act (other than the powers under sections 3, 5, 15, 16 and 19) may also be exercised, in such cases and subject to such conditions, by the Director General or such other officer subordinate to the Director General, as may be specified in the Order.

Chapter III – Importer-exporter Code Number and Licence

Importer-Exporter Code Number

No person shall make any import or export except under an Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General.

Suspension and Cancellation of Importer-exporter Code Number

• Where-
  
  
  • any person has contravened any law relating to Central excise or customs or foreign exchange or has committed any other economic offence under any other law for the time being in force as may be specified by the Central Government by notification in the Official Gazette, or
    
    
  • the Director General has reason to believe that any person has made an export or import in a manner gravely prejudicial to the trade relations of India with any foreign country or to the interests of other persons engaged in imports or exports or has brought disrepute to the credit or the goods of the country,
    
    the Director General may call for the record or any other information from that person and may, after giving to that person a notice in writing informing him of the grounds on which it is proposed to suspend or cancel the Importer-exporter Code Number and giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice and, if that person so desires, of being heard, suspend for a period, as may be specified in the order, or cancel the Importer-exporter Code Number granted to that person.
    
    
• Where any Importer-exporter Code Number granted to a person has been suspended or cancelled under sub-section (1), that person shall not be entitled to import or export any goods except under a special licence, granted, in such manner and subject to such conditions as may be prescribed, by the Director General to that person.

Issue, Suspension and Cancellation of Licence

• The Central Government may levy fees, subject to such exceptions, in respect of such person or class of persons making an application for a licence or in respect of any licence granted or renewed in such manner as may be prescribed.
  
  
• The Director General or an officer authorised by him may, on an application and after making such inquiry as he may think fit, grant or renew or refuse to grant or renew a licence to import or export such class or classes of goods as may be prescribed, after recording in writing his reasons for such refusal.
  
  
• A licence granted or renewed under this section shall –
  
  
  • be in such form as may be prescribed;
    
    
  • be valid for such period as may be specified therein; and
    
    
  • be subject to such terms, conditions and restrictions as may be prescribed or as specified in the licence with reference to the terms, conditions and restrictions so prescribed.
    
    
• The Director General or the officer authorised under sub-section (2) may, subject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel any licence granted under this Act:
  
  
  • Provided that no such suspension or cancellation shall be made except after giving the holder of the licence a reasonable opportunity of being heard.
    
    
• An appeal against an order refusing to grant, or renew or suspending or cancelling, a licence shall lie in like manner as an appeal against an order would lie under section 15.