Custom and Excise Regulations

“Imports & exports in India is/are primarily governed by the Customs Act of 1962 respectively. Having said that for want of knowledge and due to lack of legal awareness the Importers in India are largely dependent upon their Forwarding Agents or CHAs for the import of goods in India. There are a lot of applicable laws upon Importers and Importers are subject to legal liabilities which they have to fulfil. It empowers the government to levy and collect customs duties and also provides for various measures to prevent the illegal import and export of goods. Here are some key aspects of the Customs Act in India, Majorly at airport people come with the prohibited items like Drugs, Gold, Diamonds and many more. A country’s trade policy is incomplete without trade agreements.

As per Customs Act
By virtue of clause 110 of the Finance Act of 2020, Chapter VAA and section 28DA were added to the Customs Act of 1962. The new clause, among other things, requires an importer to perform basic due diligence to ensure that the claimed originating criteria are met, and that simply submitting a Certificate of Origin may not be adequate. The importer must have relevant origin-related information for this purpose. In the event of a doubt about the provenance of goods, the importer will now be the first point of contact, shifting from a G2G to a B2G model. Section 28DA further allows for foreign authorities to verify a claim’s origin, a temporary suspension of preferential treatment, and conditions in which a claim or certificate can be denied.

Arbitration Clause
An Arbitration Clause will be included in the importer agreement. The location of the arbitrations must be specified in the arbitration clause. The agreement must also state whether the parties choose ad hoc arbitration or institutional arbitration. Whether the arbitration will be conducted by a single arbitrator or by an odd number of arbitrators.

A Bill of Entry: A Bill of Entry is a legal document that describes the goods being imported. It’s a crucial document since customs officers need it to confirm the contents of a cargo and any restrictions that may apply. It’s a legal document that shows the country’s total outward remittance, which is regulated by the customs department.

Bill of Landing: When products are delivered to a predefined location, it serves as a shipment receipt. It is used to transport goods by sea. The distinction between the Bill of Lading and the Airway Bill must be understood by the importer.

Commercial invoice: It is given to a customer by a supplier in order to provide complete data of commercial transactions between the two parties. It’s a crucial document that the customs office uses to determine the value of products and maintain track of them. The invoice is a document that specifies the terms of delivery of goods. It also serves as proof of sale. It is needed to prove your case in the evidence stage. Before importing items, make sure you have a legally binding commercial invoice.

Airway Bill: It serves as proof of receipt of goods and that the shipment was delivered in good condition to the recipient. It serves as a freight bill that is billed along with supporting paperwork. It must be presented in order to clear import customs. It is used to carry things via air.

Import licensing: Import licencing protects enterprises involved in international trade from legal problems and financial losses. In a nutshell, it’s a way for an importer to start a business on a global scale. It serves as the foundation of the import process.

Cargo Insurance: The value of your goods can be protected by insuring them against any losses that may occur while they are in transit. It serves as a protective shield, ensuring safety and security. The items must be insured against theft, fire, and accidental damage by the importer.

Certificate of Origin: This is a crucial document since it can help decide if certain items are eligible for import or whether they are subject to duties. It is used to track the country of origin of imported goods. The origin certificate is attached to imported items.

–