The Customs Tariff Act, 1975
The Customs Tariff Act, 1975
The Customs Tariff Act, 1975 is a key legislation in India that governs the imposition of customs duties on goods imported into or exported from India. The Act provides the framework for classifying goods, fixing rates of customs duty, and regulating customs tariffs.
Purpose:
To levy and collect customs duties on imports and exports.
To regulate foreign trade by imposing tariffs that protect domestic industries or generate revenue for the government.
Key Features:
Classification of Goods:
The Act adopts the Harmonized System of Nomenclature (HSN) for the systematic classification of goods. This helps in applying the correct tariff rates.
Types of Customs Duties:
Basic Customs Duty (BCD): A standard duty on imports.
Additional Customs Duty (CVD): Compensates for local taxes on imported goods.
Safeguard Duty: Imposed temporarily to protect domestic industries from sudden surge in imports.
Anti-Dumping Duty: Levied on imports sold below fair market value to protect domestic industries.
Protective Duty: Designed to protect specific domestic industries.
Tariff Structure:
The Act specifies rates of duty on different categories of goods, which may be ad valorem (percentage of value) or specific (fixed amount per quantity).
Amendments:
The Act is amended periodically to adjust rates or add/remove items as per economic policies and international obligations.
Exemptions & Concessions:
Certain goods or importers may be exempted or offered concessional rates under various government notifications.
Table Summary: The Customs Tariff Act, 1975
| Aspect | Details |
|---|---|
| Purpose | To impose and regulate customs duties on imports and exports |
| Year Enacted | 1975 |
| Classification System | Harmonized System of Nomenclature (HSN) |
| Types of Customs Duties | Basic Customs Duty, Additional Customs Duty, Safeguard Duty, Anti-Dumping Duty, Protective Duty |
| Tariff Structure | Ad valorem or specific duties based on goods classification |
| Amendments | Periodic, based on economic policies and trade needs |
| Exemptions | Available under government notifications |
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