The following describes in a nutshell about customs procedures during import of goods:
A. Assessment
1. Verification of restrictions/prohibitions (in Export-Import policy of Directorate General of Foreign Trade). Pls refer to classification below.
Restricted items need license from DGFT or other agencies. For example, drones of particular size are restricted and can be imported under DG Civil Aviation license. Used rubber tyres/scrap is restricted and can be imported with permission from Ministry of Environment and Forests and satisfying other requirements like Pollution Control Board approved manufacturing unit etc.
Prohibited items are not to be allowed under any circumstances and are liable for absolute confiscation. Examples include endangered species, parts/skin of wild animals etc.
The policy of restrictions/prohibitions is given under foreign trade policy, Schedule I for imports and Schedule II for exports. You can view them at below links.
(open https://www.dgft.gov.in/, go to policies tab, then ITC(HS) Policy Indian Trade Classification (Harmonised System))
https://dgft.gov.in/sites/default/files/gnote2017.pdf
https://www.dgft.gov.in/sites/default/files/read_0.pdf
https://www.dgft.gov.in/basiccontent/itchs-schedule-1-import-policy-2017
Sample chapter given below:
https://www.dgft.gov.in/sites/default/files/Chapter%2001.pdf
https://www.dgft.gov.in/itc-hs-schedule-2-export-policy
2. Classification of goods to fix the applicable customs duty rate(tariff).
The goods are kept under different chapters(2 digit), heading(4 digit) and tariff item numbers(8 digit), which is uniform across most of the countries, including India. This is called HSN- Harmonised System of Nomenclature. For classification for duty purpose, pls see the following link.
http://www.cbic.gov.in/htdocs-cbec/customs/cst1819-010219/cst1819-0102-idx
sample chapter
http://www.cbic.gov.in/resources//htdocs-cbec/customs/cst1819-010219/Chap%2060.pdf;jsessionid=B40223B5CA47F3B91BD7FC605EF84155
The above link will give ad-valorem(certain percentage of value of goods) rate as well as specific rate(fixed amount per unit-kg/litre etc.). This will be basic customs duty. In addition to this, cesses and IGST(Integrated goods and service tax) which is applicable to domestic goods will also be applicable to imported goods at same rate. Pls check IGST rates at following web page of CBIC. You can avail Input Tax Credit of IGST paid on imported goods.
http://www.cbic.gov.in/htdocs-cbec/gst/index
3. Valuation of goods.
Normally, the transaction value, i.e. the price actually paid or payable is taken as goods. In case of doubt regarding transaction value or suppression of actual transaction value, Assessing Officer redetermines value of goods for the purpose of duty collection as per Valuation Rules given below.
Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2007
{Notification No. 94/2007 - Customs (N.T.) as amended by Notification No. 91/2017 - Customs (N.T.) dated 26th September, 2017}
http://www.cbic.gov.in/htdocs-cbec/customs/cs-act/formatted-htmls/cs-rulea1
In ceratain cases, value of goods is fixed by Govt, and the same is used for assessment of duty. Eg. Tariff value for crude palm oil, for Areca nuts, for Gold etc.
After assessment is complete, Bill of Entry is sent to examination section.
B. Physical Examination
The containers/bulk cargo is examined by customs officials to ensure that the goods are same as the ones declared in Bill of Entry (mostly filed online using icegate website). In case of mis-declaration or concealment, the goods become liable for confiscation.
Examination involves inspection(verifying marks and number on packages), verification of goods with respect to description, quantity, quality and fitness(eg. food items), and conceal ment of any other goods that are not declared in Bill of Entry.
After examination, out of charge is given.
C. Preventive checks.
The preventive officer at Customs Area gives permission to bring goods into customs area from Vessel/Aircraft and the gives permission to take them out after assessment and examination.
A. Assessment
1. Verification of restrictions/prohibitions (in Export-Import policy of Directorate General of Foreign Trade). Pls refer to classification below.
Restricted items need license from DGFT or other agencies. For example, drones of particular size are restricted and can be imported under DG Civil Aviation license. Used rubber tyres/scrap is restricted and can be imported with permission from Ministry of Environment and Forests and satisfying other requirements like Pollution Control Board approved manufacturing unit etc.
Prohibited items are not to be allowed under any circumstances and are liable for absolute confiscation. Examples include endangered species, parts/skin of wild animals etc.
The policy of restrictions/prohibitions is given under foreign trade policy, Schedule I for imports and Schedule II for exports. You can view them at below links.
(open https://www.dgft.gov.in/, go to policies tab, then ITC(HS) Policy Indian Trade Classification (Harmonised System))
https://dgft.gov.in/sites/default/files/gnote2017.pdf
https://www.dgft.gov.in/sites/default/files/read_0.pdf
https://www.dgft.gov.in/basiccontent/itchs-schedule-1-import-policy-2017
Sample chapter given below:
https://www.dgft.gov.in/sites/default/files/Chapter%2001.pdf
https://www.dgft.gov.in/itc-hs-schedule-2-export-policy
2. Classification of goods to fix the applicable customs duty rate(tariff).
The goods are kept under different chapters(2 digit), heading(4 digit) and tariff item numbers(8 digit), which is uniform across most of the countries, including India. This is called HSN- Harmonised System of Nomenclature. For classification for duty purpose, pls see the following link.
http://www.cbic.gov.in/htdocs-cbec/customs/cst1819-010219/cst1819-0102-idx
sample chapter
http://www.cbic.gov.in/resources//htdocs-cbec/customs/cst1819-010219/Chap%2060.pdf;jsessionid=B40223B5CA47F3B91BD7FC605EF84155
The above link will give ad-valorem(certain percentage of value of goods) rate as well as specific rate(fixed amount per unit-kg/litre etc.). This will be basic customs duty. In addition to this, cesses and IGST(Integrated goods and service tax) which is applicable to domestic goods will also be applicable to imported goods at same rate. Pls check IGST rates at following web page of CBIC. You can avail Input Tax Credit of IGST paid on imported goods.
http://www.cbic.gov.in/htdocs-cbec/gst/index
3. Valuation of goods.
Normally, the transaction value, i.e. the price actually paid or payable is taken as goods. In case of doubt regarding transaction value or suppression of actual transaction value, Assessing Officer redetermines value of goods for the purpose of duty collection as per Valuation Rules given below.
Customs Valuation (Determination of Value of Imported Goods) Amendment Rules, 2007
{Notification No. 94/2007 - Customs (N.T.) as amended by Notification No. 91/2017 - Customs (N.T.) dated 26th September, 2017}
http://www.cbic.gov.in/htdocs-cbec/customs/cs-act/formatted-htmls/cs-rulea1
In ceratain cases, value of goods is fixed by Govt, and the same is used for assessment of duty. Eg. Tariff value for crude palm oil, for Areca nuts, for Gold etc.
After assessment is complete, Bill of Entry is sent to examination section.
B. Physical Examination
The containers/bulk cargo is examined by customs officials to ensure that the goods are same as the ones declared in Bill of Entry (mostly filed online using icegate website). In case of mis-declaration or concealment, the goods become liable for confiscation.
Examination involves inspection(verifying marks and number on packages), verification of goods with respect to description, quantity, quality and fitness(eg. food items), and conceal ment of any other goods that are not declared in Bill of Entry.
After examination, out of charge is given.
C. Preventive checks.
The preventive officer at Customs Area gives permission to bring goods into customs area from Vessel/Aircraft and the gives permission to take them out after assessment and examination.
