Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, andhazardous items, into and out of a country. The movement of people into and out of a country is normally monitored by immigration authorities, under a variety of names and arrangements. The immigration authorities normally check for appropriate documentation, verify that a person is entitled to enter the country, apprehend people wanted by domestic or international arrest warrants, and impede the entry of people deemed dangerous to the country.

Each country has its own laws and regulations for the import and export of goods into and out of a country, which its customs authority enforces. The import or export of some goods may be restricted or forbidden.[2] In most countries, customs are attained through government agreements and international laws. A customs duty is a tariff or tax on the importation (usually) or exportation (unusually) of goods. Commercial goods not yet cleared through customs are held in a customs area, often called a bonded store, until processed. All authorized ports are recognized customs areas.

At airports, customs is the point of no return for all passengers, once a passenger has cleared customs, they cannot go back.

CUSTOMS

Classification - Advise and guidance for classification of goods under appropriate Chapter Headings/Sub-Headings

Valuation - Advise and guidance in determining the assessable value for payment of Customs duty and other valuation matters.

Procedures - Advise and guidance on procedural issues relating to import/export of goods such as filing of Bills of Entry, Shipping Bills, setting up of Public/Private Bonded Warehouse etc.

Technical - Advise and guidance on technical issues like export promotion schemes/DEPB/Advance Licences/SION

Refund/Rebate/Drawback - Assistance in availing Refund/Rebate/Drawback of Customs duty/SAD (Special Additional Duty)

Investigation - Guidance and assistance to the importer/exporter during investigations by department at the time of import/export and by Anti-evasion field formations of the department.

Litigation - Preparing and filing of replies to Show Cause Notices, appeals before Commissioner (Appeals), CESTAT, High Court, Supreme Court, attending personal hearings and appearance before Courts.

Liaison - Interacting with the concerned department on behalf of the client for trouble shooting and ensuring smooth functioning of the affairs of the client.

Special Valuation Branch (SVB):-
is a Branch of the Custom House, specialising in investigating the transactions involving relationship between the supplier and the importer and certain other special features like Technical Collaboration between the parties, etc.
Special Valuation Branch’ (SVB) was created as an institution specializing in investigation of transactions involving special relationships between buyer - seller or those involving other special circumstances surrounding the sale of imported goods, both of which have a bearing on the assessable value. Detailed instructions were issued vide Circular Nos. 1/98 - Customs dated 1.1.98 and 11/2001-Customs dated 23.2.2001 subsequently modified by Circular No. 4 /2016 –Customs and Circular No. 5 /2016 –Customs dated 09.02.2016 prescribing the procedure to be observed by the Custom Houses for referring cases to Special Valuation Branches and time lines to be followed for finalizing such cases.
The Board has also decided that in order to ensure that only cases with significant revenue implications are taken up for SVB investigations, the following cases shall not be taken up for inquiries by SVBs: (i) Import of samples and prototypes from related sellers (ii) Imports from related sellers where duty chargeable (including additional duty of Customs etc.) is unconditionally fully exempted or nil. (iii) Any transaction where the value of imported goods is less than Rs 1 lac but cumulatively these transactions do not exceed Rs 25 lacs in any financial year.
Where any importer makes a declaration that the transaction is between ‘related persons’, as defined under Rule 2 (2) of CVR 2007, it would be necessary to examine whether or not the circumstances surrounding the sale of the imported goods indicate that the relationship has influenced the price. Accordingly, such transactions will require to be examined as to whether SVB inquiries are necessary.

1 Export Promotion Scheme:-
Foreign Trade Policy 2015-20 and other schemes provide promotional measures to boost India’s exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. Brief of these measures are as under:

1.1) Exports from India Scheme
i) Merchandise Exports from India Scheme (MEIS)
Under this scheme, exports of notified goods/ products to notified markets as listed in Appendix 3B of Handbook of Procedures, are granted freely transferable duty credit scrips on realized FOB value of exports in free foreign exchange at specified rate (2-5%). Such duty credit scrips can be used for payment of custom duties for import of inputs or goods, payment of excise duty on domestic procurement, payment of service tax and payment of custom duties in case of EO default.
Exports of notified goods of FOB value upto Rs 25, 000 per consignment, through courier or foreign post office using e-commerce shall be entitled for MEIS benefit.

ii) Service Exports from India Scheme (SEIS)
Service providers of notified services as per Appendix 3E are eligible for freely transferable duty credit scrip @ 5% of net foreign exchange earned.

2 DUTY EXEMPTION & REMISSION SCHEMES
These schemes enable duty free import of inputs for export production with export obligation. These scheme consists of:-

2.1) Advance Authorization Scheme
Under this scheme, duty free import of inputs are allowed, that are physically incorporated in the export product (after making normal allowance for wastage) with minimum 15% value addition. Advance Authorization (AA) is issued for inputs in relation to resultant products as per SION or on the basis of self declaration, as per procedures of FTP. AA normally have a validity period of 12 months for the purpose of making imports and a period of 18 months for fulfillment of Export Obligation (EO) from the date of issue. AA is issued either to a manufacturer exporter or merchant exporter tied to a supporting manufacturer(s).

2.2) Advance Authorization for annual requirement
Exporters having past export performance (in at least preceding two financial years) shall be entitled for Advance Authorization for Annual requirement. This shall only be issued for items having SION.

2.3) Duty Free Import Authorization (DFIA) Scheme
DFIA is issued to allow duty free import of inputs, with a minimum value addition requirement of 20%. DFIA shall be exempted only from the payment of basic customs duty. DFIA shall be issued on post export basis for products for which SION has been notified. Separate schemes exist for gems and jewellery sector for which FTP may be referred.

2.4) Duty Drawback of Customs/Central Excise Duties/Service Tax
The scheme is administered by Department of Revenue. Under this scheme products made out of duty paid inputs are first exported and thereafter refund of duty is claimed in two ways:
i) All Industry Rates : As per Schedule
ii) Brand Rate : As per application on the basis of data/documents

2.5) Rebate of Service tax through all industry rates
Refund of service tax paid on specified output services used for export of goods is available at specified all industry rates.

3 EPCG SCHEME
3.1) Zero duty EPCG scheme
Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to enhance India’s export competitiveness. Import under EPCG shall be subject to export obligation equivalent to six times of duty saved in six years. Scheme also allows indigenous sourcing of capital goods with 25% less export obligation.
3.2) Post Export EPCG Duty Credit Scrip Scheme
A Post Export EPCG Duty Credit Scrip Scheme shall be available for exporters who intend to import capital goods on full payment of applicable duty in cash.

4. EOU/EHTP/STP & BTP SCHEMES
Units undertaking to export their entire production of goods and services may be set up under this scheme for import/ procurement domestically without payment of duties. For details of the scheme and benefits available therein FTP may be required.

5 OTHER SCHEMES
5.1) Towns of Export Excellence (TEE)
Selected towns producing goods of Rs. 750 crores or more are notified as TEE on potential for growth in exports and provide financial assistance under MAI Scheme to recognized Associations.
5.2)Rebate of duty paid on excisable goods exported or duty paid on the material used in manufacture of such export goods may be claimed under Rule of 18 of Central Excise Rules, 2002. Rebate of duty on “export goods” and “material” used in manufacture of such goods.
5.3) Export of goods under Bond i.e. without payment of excise duty
Rule 19 of Central Excise Rules 2002 provides clearance of excisable goods for exports without payment of central excise duty from the approved factory, warehouse and other premises.
5.4) Market Access Initiative (MAI) Scheme
Under the Scheme, financial assistance is provided for export promotion activities on focus country, focus product basis to EPCs, Industry & Trade Associations, etc. The activities are like market studies/surveys, setting up showroom/warehouse, participation in international trade fairs, publicity campaigns, brand promotion, reimbursement of registration charges for pharmaceuticals, testing charges for engineering products abroad, etc.
5.5) Marketing Development Assistance (MDA) Scheme
Financial assistance is available for exporters having an annual export turnover upto Rs. 30 crores for trade fairs, buyer seller meets organized by EPC’s/ Trade promotion organizations.
5.6) Status Holder Scheme
Upon achieving prescribed export performance, status recognition as one star Export House, two Star Export House, three star export house, four star export house and five star export house is accorded to the eligible applicants as per their export performance. Such Status Holders are eligible for various non-fiscal privileges as prescribed in the Foreign Trade Policy.

In addition to the above schemes, facilities like 24X7 customs clearance, single window in customs, self assessment of customs duty, prior filing facility of shipping bills etc are available to facilitate exports.

Refund:-

On import or export of goods, at times, it is found that duty has been paid in excess of what was actually leviable on the goods. Such excess payment may be due to lack of information on the part of importer/exporter or non-submission of documents required for claim of lower value or rate of duty. Sometimes, such excess payment of duty may be due to shortage/short landing, pilferage of goods or even incorrect assessment of duty by Customs. In such cases, refund of excess amount of duty paid can be claimed by the importer or exporter. If any excess interest has been paid by the importer/exporter on the amount of duty paid in excess, its refund can also be claimed. Section 27 of the Customs Act, 1962 refers in this regard. The refund of any duty and interest, can be claimed either by a person who has paid the duty in pursuance to an order of assessment or a person who has borne the duty. Any person claiming refund of any duty or interest, has to make an application in duplicate in the form as prescribed in the Customs Refund Application(Form) Regulations, 1995, to the jurisdictional Deputy/Assistant Commissioner of Customs. Such application is to be made before the expiry of six months from the date of payment of duty and interest. However, in case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, application for refund can be made before the expiry of one year from the date of payment of duty and interest.
The application for refund is required to be filed with documentary or other evidence including documents relating to assessment, sales invoice and other like documents to support the claim that the duty and interest was paid in excess, incidence of duty or interest has not been passed on by him to any other person, and the refund has not been obtained already.

Central Excise duty is an indirect tax levied on those goods which are manufactured in India and are meant for home consumption. The taxable event is 'manufacture' and the liability of central excise duty arises as soon as the goods are manufactured

CENTRAL EXCISE

Classification - Advise and guidance for classification of goods under appropriate Chapter Headings/Sub-Headings

Valuation - Advise and guidance in determining the assessable value for payment of Central Excise duty and other valuation matters.

Procedures - Advise and guidance on procedural issues like registration, filing of monthly/quarterly/half yearly returns etc.

Technical - Advise and guidance on technical issues like availment of Cenvat Credit on inputs,input services, capital goods, adjustment of excess paid duty, provisional assessment, remission of duty etc.

Refund/Rebate/Drawback - Assistance in availing Refund/Rebate/Drawback.

Preventive audits - Inspection of records on routine manner from the preventive and audit point of view.

Audit Support - Guidance and assistance during audit by providing clarifications on the queries raised and replying to audit paras/reports.

Investigation - Guidance and assistance to the unit/assessee during investigations by Anti-evasion field formations of the department.

Litigation - Preparing and filing of replies to Show Cause Notices, appeals before Commissioner (Appeals), CESTAT, High Court, Supreme Court, attending personal hearings and appearance before Courts.

Liaison - Interacting with the concerned department on behalf of the client for trouble shooting and ensuring smooth functioning of the affairs of the client.

Registration:-
Every person who manufactures or deals in excisable goods is required to obtain Central Excise Registration as per Rule 9 of the Central Excise Rules, 2002. The following categories of persons require registration:
• Every manufacturer of dutiable excisable goods;
• First and second stage dealers desiring to issue cenvatable invoices;
• Persons holding warehouses for storing non duty paid goods;
• Persons who obtain excisable goods for availing end use based exemption;
• Exporter - manufacturer under rebate/bond procedure; Export Oriented Units which have interaction with the domestic economy either through DTA sales or procurement of duty free inputs.

Exemption from Registration
• Persons manufacturing goods, fully exempted or chargeable to NIL rate of duty are not required to seek registration. However they should file the prescribed declaration in the beginning of every financial year. The following categories of persons are exempt from registration:
• Manufacturers of goods which are goods on the basis of value of clearance made in a financial year and remain under the exemption limit (SSI). In cases where the value of clearances in the current financial year exceeds Rs.90 lakhs the assessee has to file a declaration prescribed under Notification No. 36/2001-CE (NT), dated 26.6.2001 for getting exemption from the Central Excise registration;
• Persons who get their goods manufactured by others, except the persons who get certain textile items manufactured on job work;
• Persons manufacturing excisable goods under the customs warehousing procedures subject to certain conditions
• Wholesale traders or dealers of excisable goods (except first stage dealers, second stage dealer and depot);
• Job works of goods under Ch. 61 & 62 and 100% EOU. Deeming EOUs/EPZ units as registered is not applicable if such units are having clearances in or procurement from Domestic Tariff Area (DTA).

Cenvat Credit is a scheme where the manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service.

CENVAT credit is also available in respect of duty paid on capital goods, which include machinery, plant, spare parts of machinery etc. in other words, instead of paying cash towards central excise on shipment of goods, the exporter can adjust the excise duty paid on the inputs and machinery. Virtually, CENVAT CREDIT is like a credit balance in bank account that can be adjusted towards the excise duty payable.

Under CENVAT Credit scheme, the benefit of excise duty on inputs is available, instantaneously, when the inputs reach the factory. There is no need to establish any linkage between the inputs and goods manufactured. In case of capital goods, 50% benefit is available in the current year of purchase and balance in the next year. This balance can be adjusted against the duty payable but is not refunded. So, it is desirable to utilize this balance, at the earliest.

SERVICE TAX

Classification - Advise and guidance for classification of services under appropriate service type.

Valuation - Advise and guidance in determining the correct taxable value for payment of Service Tax.

Procedures - Advise and guidance on procedural issues like registration, filing of returns etc.

Technical - Advise and guidance on technical issue like availment of Cenvat Credit on inputs, input services, capital goods, adjustment of excess paid duty etc.

Refund/Rebate/Drawback - Assistance in availing Refund/Rebate/Drawback.

Preventive audits - Inspection of records on routine manner from the preventive and audit point of view.

Audit Support - Guidance and assistance during audit by providing clarifications on the queries raised and replying to audit paras/reports.

Investigation - Guidance and assistance to the unit/assessee during investigations by Anti-evasion field formations of the department.

Litigation - Preparing and filing of replies to Show Cause Notices, appeals before Commissioner (Appeals), CESTAT, High Court, Supreme Court, attending personal hearings and appearance before Courts.

Liaison - Interacting with the concerned department on behalf of the client for trouble shooting and ensuring smooth functioning of the affairs of the client.

SEZ-EOU-STP-EHTP

Procedure - Advise, guidance and assistance on procedural issues to units and developers for preferring applications and obtaining permissions for setting up SEZ-EOU-STP-EHTP

Technical - Advise, guidance and assistance on technical issues concerning obtaining permissions for conducting operations and in other miscellaneous matters.

Laisoning - Follow up of application for conducting operations and other miscellaneous permissions and co-ordinating with Board of Approval, Development Commissioner, Director (STP) etc.s

Litigation - Preparing and filing of replies to Show Cause Notices, appeals before Commissioner (Appeals), CESTAT, High Court, Supreme Court, attending personal hearings and appearance before Courts

Liaison - Interacting with the concerned department on behalf of the client for trouble shooting and ensuring smooth functioning of the affairs of the client.

Foreign trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP).

FOREIGN TRADE POLICIES: Policies enacted by the government sector of a domestic economy to discourage imports from, and encourage exports to, the foreign sector. The three most common foreign trade policies are tariffs, import quotas, and export subsidies.

The Foreign Trade Policy, 2015-20, is notified by Central Government, in exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) [FT (D&R) Act], as amended. The Foreign Trade Policy (FTP), 2015 - 2020, incorporating provisions relating to export and import of goods and services, shall come into force with effect from the date of notification and shall remain in force up to 31st March, 2020, unless otherwise specified. All exports and imports made up to the date of notification shall, accordingly, be governed by the relevant FTP, unless otherwise specified.

Directorate General of Foreign Trade (DGFT):-
Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade. Right from its inception till 1991, when liberalization in the economic policies of the Government took place, this organization has been essentially involved in the regulation and promotion of foreign trade through regulation. Keeping in line with liberalization and globalization and the overall objective of increasing of exports, DGFT has since been assigned the role of “facilitator”. The shift was from prohibition and control of imports/exports to promotion and facilitation of exports/imports, keeping in view the interests of the country.
Organizational Set-up:This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports. The DGFT also issues scrips/authorisation to exporters and monitors their corresponding obligations through a network of 36 regional offices and an extension counter at Indore.

Only when tangible goods and products are sold, VAT can be imposed CST (Central Sales Tax) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.

VAT (Value Added Tax) is a form of indirect tax imposed only on goods sold within a particular state, which essentially means that the buyer and the seller needs to be in the same state. Only when tangible goods and products are sold, VAT can be imposed.

CST (Central Sales Tax) ) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.