Customs

Overview
FAQs

Items are either brought into or taken out of India via sea, air, or land. Additionally, goods may enter the country through postal parcels or as personal baggage when travellers arrive or depart. The Customs Act, established in 1962, serves to curb the unlawful import and export of goods. Furthermore, imported goods are levied with duties to safeguard domestic industries, minimize imports for the benefit of Indian companies, and maintain the stability of the Indian currency exchange rate.

The objectives of the Customs Act & Customs Duty are:

Limiting imports to preserve foreign exchange.
Safeguarding the import and export of goods to fulfill government policy objectives.
Regulating exports.
Coordinating legal provisions with other laws related to foreign exchange, such as the Foreign Trade Act and the Foreign Exchange Regulation Act.
Securing domestic trade.
Safeguarding revenue resources.
Protecting Indian industries from unfair competition.
Preventing the smuggling of goods and associated activities.
Preventing the dumping of goods.

Enquiry Form

FAQs

Frequently Asked Questions

What are the fundamental prerequisites for importing goods?

Anyone planning to import goods for commercial purposes must submit an application to the Directorate General of Foreign Trade and obtain an Importer and Exporter Code (IEC) number. In the case of 100% EOUs / EPZs, the IEC numbers are assigned by the Development Commissioner of the relevant Export Processing Zone. This number must be specified in the documents submitted to Customs for the clearance of imported goods. However, it is not required for the import of gifts and baggage. As of April 2001, the IEC will be replaced with the PAN number issued by the Income Tax authorities, serving as a uniform identification number for transactions with various government agencies such as Customs, Central Excise, etc.

Can importers/exporters clear their goods on their own, or do they need to hire an agent?

Importers/exporters have the option to personally clear their goods by submitting required documents after obtaining approval from the Asst. Commissioner/Deputy Commissioner overseeing the Import section. Alternatively, if an agent is appointed, they must hold a valid license issued by the Commissioner of Customs, and such agents are commonly referred to as Customs House Agents.

What is the time limit to clear the imported goods?

Imported goods must be either cleared for home consumption, warehoused, or transshipped within thirty days from the date of unloading the goods at a Customs station or within an extended time period as permitted by the appropriate officer (as per Section 48 of the Customs Act, 1962).