Page 125 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation Anand Thakur, Lovely Professional University

Notes Unit 6: Custom Clearance of Import and Export Cargo

CONTENTS
Objectives
Introduction

6.1 Procedure for Clearance of Imports Cargo
6.2 Custom Clearance of Export Cargo
6.3 Custom Valuation
6.4 The Harmonized System
6.5 Carnets
6.6 New Developments in Custom Clearance Procedure

6.7 Summary
6.8 Keywords
6.9 Review Questions
6.10 Further Readings

Objectives

After studying this unit, you will be able to:
Explain Procedure for clearance of imports cargo
Discuss Custom clearance of export cargo
Describe Custom valuation

Explain The harmonized system
Describe Carnets
Discuss New developments in custom clearance procedure

Introduction

The provisions under Section 12 of Customs Act 1962 have given the right to customs officials to
impose duty on imports as well as exports that originate from the country and go out of the
country. The Government of India has prescribed the rate of duty to be imposed under Customs
Tariff Act, 1975. Import duty is levied on almost all items in order to restrict unnecessary
imports and save precious foreign exchange for the nation, while export duty is levied only on
a few limited products, where there is scarcity of Indian products for domestic requirements and
the government wants to control the exports of such products or services so as to meet domestic
demands. This is done by imposing exports duty on goods and services that go out of the
country; thereby making such items expensive to international buyers.

!
Caution Raising revenue from customs is an important contributor to various expenses of
the Central Government and customs duty is one of the main contributors to exchequer.

120 LOVELY PROFESSIONAL UNIVERSITY