Thursday, October 9, 2008

Levy of Customs duties

Q:- Explain the provision of determination of duty under the customs act where goods consists of articles liable to different rates of duty.
Explain the procedure for assessment and collection of customs.

Ist step

for assessment and collection of custom duty:-
(a) Determination the rate of duty

Govt. of India fixes the rate of custom duty under CTA 1975 or any other law on goods imported.
(b) Clearance of goods:-

Clearance means transfer of goods from port or airport for home consumption or warehouse.

☻If goods are going for home consumption .It is duty of importer to pay his duty immediately
☻In case goods are going for depositing in warehouse .In such case duty is not collected but govt. can get written statement from assessee that he will pay when goods takes from warehouse for home consumption and pay interest rent and charge of store.
☻Treatment of derelict or wreck goods :-
When somebody export his derelict or wreck goods to India.
The Indian importer is liable to pay custom duty unless he wants to show the proof of goods are free from custom duty under act .
2nd Step of collection of custom duty
☻ duty of master of vessel

It is the duty of master of vessel to show the detail of goods in Import general manifest
☻ Duty of custom officer
It is the duty of custom officer to check IGM and its no. and permit master of vessel to land and unload the cargo.
☻ Duty of port trust:-
It is the duty of port trust to custody the imported goods .
☻Get the delivery of imported goods
Importer gives the bill of lading to master of vessel or port trust and obtain the delivery of goods
☻ Importer shows the bill of entry for clearance of goods for home consumption or for depositing in warehouse
☻ goods cleared for home consumption after duty is paid
☻ goods cleared for warehouse if importer takes the bonds of double of custom duty.
☻ organization

♦ Import department :- for check IGM
♦ Appraising department:- for making assessment
♦Dock examination center :- for physical examination of goods
♦ cash and account department :- for collection of duty
♦bond department :- For dealing of bonds when goods are sent to warehouse
3rd step of collection of custom duty
☻ Remission and abatement
Assessee will not pay duty on pilferage goods.
Pilferage means loss of goods due to pilferage means stealing in small quantities.
♦Pilferage before the arrival of goods into India. :- means no import so no pay the duty by assessee.
♦ Pilferage after the arrival into India but before custom examination :- Duty extinguished upto pilferage :
♦pilferage after examination :- duty is payable on pilferage .
4th step
☻ assessee is not pay duty on damaged goods and lost goods
5th step Power of central govt . to make rules for denaturing or multilation of goods.


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