The Concept :-
It was an ancient “custom” that
whenever a merchant entered a kingdomwith his merchandise
,he had to make a suitable offering of gift to the king
.In course of time,the modern state formalised this
‘custom’into custom duty which the state
collect on goods imported into or ,or occassionally,exported
out of the frontier.Custom duty now formed a significant
revenue for all country.
Type of custom duties leviable:- In
India,custom duty are levied on the goods at the rate
specified in the schedule to the custom tarrif act,1975.Export
duties [second schedule] are levied at present on leather
only.But sweep of import duties is very wide,almost
universal,barring a few goods like food grain,fertilizer,life
saving drugs and equipement etc.
Import duty generally consist of following:-
1. Basic Duty:- It may be standard
rate or in the case of import from some countries,at
the preferential rate [section 2, CTA,1975].
2. Additional custom duty equal to central excise duty
leviable on like goods produced or manufacture in India.the
MRP based valuation prevaling under central Exise is
extended to customs also.
3. Additional duty of custom not exceeding 4% is levied
under section 3(5) of the CTA ,1975 in the budget 2005in
order to counter balance various internal taxes like
sales tax and VAT and to provide level playing field
to indegenous goods which have to bear the taxes.
4. Additional duty of customs at the rate of Rs.2 per
liter on imported motor spirit (petrol) and high speed
diesel oil.
5. National Calamity Contingent Duty (NCCD):- It is imposed at present @Rs.50 per m.t on
imported crude oil and @1% on polyester filament yarn,two-wheelers,motor
cars an multi utility vehicle.
6. Anti-dumping duty/safeguard duty for import of specified
goods with a view to protecting domestic industry from
unfair injury.
7. Additional duty on computers:- Additional
duty on CPU imported seperately will be 6% whereas computer
imported with CPU,Moniter,Mouse and Keyboard cleared
together as a set will attract 7% additional duty. [notification
no.38/2005-Cus]
8. Education Cess at the rate of 2% of aggeregate duties
of customs is leviable e.e.f 9th july 2004.
|
