The Customs Act,1962
The Customs Act, 1962
🔹 Objective:
The Customs Act, 1962 was enacted to consolidate and amend the laws relating to customs. It aims to regulate:
Import and export of goods
Levy and collection of customs duties
Prevention of smuggling
Enforcement of legal trade practices
🔹 Key Features:
| Feature | Description |
|---|---|
| Short Title | The Customs Act, 1962 |
| Extent | Applies to whole of India including its territorial waters, Exclusive Economic Zone (EEZ), and airspace |
| Administered by | Central Board of Indirect Taxes and Customs (CBIC) |
| Duties Covered | Basic Customs Duty (BCD), IGST on imports, Anti-dumping Duty, Safeguard Duty, etc. |
| Goods Covered | All import/export items including baggage, conveyances, prohibited items |
🔹 Important Sections of the Act
| Section | Description |
|---|---|
| Section 2 | Definitions (e.g., dutiable goods, smuggling, baggage, etc.) |
| Section 12 | Levy of Customs Duties on goods imported/exported |
| Section 14 | Valuation of goods (Transaction Value or Reference Value) |
| Section 17 | Assessment of duty by customs officer |
| Section 20 | Duty on pilfered goods |
| Section 23 | Remission of duty on lost/damaged goods before clearance |
| Section 25 | Power to grant exemptions from customs duty (by notification) |
| Section 30-41 | Procedures for import and export (e.g., entry, unloading, warehousing) |
| Section 45 | Responsibility of custodian of imported goods |
| Section 46-50 | Filing of Bill of Entry (imports) and Shipping Bill (exports) |
| Section 72 | Recovery of duty on improperly warehoused goods |
| Section 108 | Powers of Customs Officer to summon persons for inquiry |
| Section 110 | Seizure of goods, documents, and conveyances |
| Section 112-114 | Penalties for improper imports, exports, or smuggling |
| Section 135 | Punishment for customs-related offences (including imprisonment) |
🔹 Types of Customs Duties
| Type of Duty | Description |
|---|---|
| Basic Customs Duty (BCD) | Levied on all imports unless exempted |
| Countervailing Duty (CVD) | Compensates for excise duty on local products |
| Anti-dumping Duty | Imposed to counteract goods sold below market price |
| Safeguard Duty | Imposed to protect domestic industry from sudden surges in imports |
| IGST on Imports | GST applicable on imports, collected along with BCD |
🔹 Customs Procedures (Simplified Flow)
| Step | Description |
|---|---|
| 1️⃣ | Importer files Bill of Entry |
| 2️⃣ | Goods are examined and assessed |
| 3️⃣ | Duty is calculated and paid |
| 4️⃣ | Customs clearance granted |
| 5️⃣ | Goods released to importer |
Similarly, for exports:
Shipping Bill is filed
Goods are inspected
Export duty (if applicable) is paid
Clearance granted for shipment
🔹 Enforcement & Penalties
Customs officers have powers to search, seize, arrest, and prosecute.
Penalties include monetary fines, confiscation of goods, and imprisonment (up to 7 years for major offences).
🔹 Recent Developments (as of 2024-25)
Increased automation and digitization of customs processes via ICEGATE.
Enhanced use of risk management systems to ease clearance.
Implementation of faceless assessment to ensure transparency.
Integration with GST and e-way bill systems for better tracking.
✅ Summary Table of the Customs Act, 1962
| Area | Summary |
|---|---|
| Name of Act | The Customs Act, 1962 |
| Objective | Regulation of imports, exports, and collection of customs duties |
| Scope | All of India, including territorial waters and EEZ |
| Administered by | CBIC under Ministry of Finance |
| Main Duties | BCD, CVD, IGST on imports, Anti-dumping & Safeguard duties |
| Key Procedures | Filing of Bill of Entry/Shipping Bill, Assessment, Clearance |
| Penalty Provisions | Fines, confiscation, imprisonment for offences |
| Notable Sections | Sections 2, 12, 14, 17, 25, 108, 110, 112, 135 |
| Modern Features | E-filing, Risk Management System, Faceless Assessment |
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