PURPOSE OF CUSTOMS LAW

 

PURPOSE OF CUSTOMS LAW

INTRODUCTION

Customs Duty is levied when goods are transported across borders between countries. It is the tax that governments impose on export and import of goods. The objective behind levying customs duty is to safeguard each nation’s economy, jobs, environment, residents, etc., by regulating the movement of goods, especially prohibited and restricted goods, in and out of any country.

The primary purpose of customs duty is also to raise revenue, safeguard domestic business, jobs, environment and industries etc. from predatory competitors of other countries. Moreover, it helps reduce fraudulent activities and circulation of black money.

PURPOSE/ OBJECTIVES OF CUSTOM LAWS

1. To protect country’s economic interests with respect to international movement of goods
2. To safeguard domestic trade
3. To prevent smuggling and dumping of goods
4. To protect indigenous industries from unfair international competition
5. To keep a check on restricted items
6. To facilitate trade while simultaneously streamlining the process of import and export of goods.
7. To ensure security control for international supply chains
8. To implement and enforce the specific country’s legislation on import and export of goods.
9. To restrict imports and conserve foreign exchange
10. Facilitate implementation of laws relating to Foreign Trade Act, Foreign Exchange Regulation Act, Conservation of Foreign Exchange, Prevention of Smuggling Act, etc.

TYPES OF CUSTOM DUTY

1. Basic Customs Duty (BCD)
2. Countervailing Duty (CVD)
3. Additional Customs Duty or Special CVD
4. Protective Duty
5. Anti-dumping Duty