INTRODUCTION TO

CUSTOMS

Class - 1
MEANING OF CUSTOMS:
 The official department that administers and collects
the duties levied by a government on imported goods.
 The place at a port, airport, or frontier where officials
check incoming goods, travelers, or luggage.
HISTORY AND ORIGIN OF INDIAN CUSTOMS:
 There is historical evidence of imposition of import duty during the
ancient and medieval era, the development of organized taxation
on imports and exports to its present form, originated in 1786,
when the Britishers formed the first Board of Revenue in
Calcutta.
 In 1808, a New Board of Trade was established. The provincial
import duties were replaced by uniform Tariff Act
through Customs Duties Act, 1859 which was made applicable
all territories in the country.
 The general rate of duty was 10%, which was subsequently revised
to 7.5% in 1864. Several revisions in the Customs policy and tariff
took place during subsequent years, though such revisions were
mainly related to the textile products. Sea Customs Act was passed
by Government in 1878.
 The Indian Tariff Act was passed in 1894. Air Customs having
been covered under the India Aircrafts Act of 1911, the Land
Customs Act was passed in 1924.
 The Indian Customs Act, 1934, governed the Customs Tariff. 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were repealed by a consolidating and amending legislation entitled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repealed by the Customs Tariff Act, 1975(CTA).
CUSTOMS DUTY WHY?

 A tax levied on imports (and, sometimes, on exports)

by the customs authorities of a country to raise
state revenue, and/or
to protect domestic industries from more efficient or
predatory competitors from abroad.
 Customs duty is based generally on
the value of goods or upon the weight, dimensions, or
some other criteria of the item (such as the size of
the engine, in case of automobiles).
Central Board of Excise and Customs
Central Board of Excise and
Customs (CBEC) is a part of the
Department of Revenue under the
Ministry of Finance, Government of
India.
It deals with the tasks of
formulation of policy concerning levy
and collection of Customs & Central
Excise duties and Service Tax,
prevention of smuggling and
administration of matters relating to
Customs, Central Excise, Service
Tax and Narcotics to the extent
under CBEC's purview.
CENTRAL BOARD OF EXCISE AND CUSTOMS..

Ministry of Finance

Dept of
Dept of Dept of
Economic
Revenue Expenditure
affairs
International trade