Indian Custom Data – A boon for importers and exporters

Customs are compulsory payments to be made by importers for importing goods from foreign sources. They are payable by traders as well as individuals who purchase articles from foreign countries. This constitutes a main source of income for the Central Board of Excise and Customs – the authority that controls and regulates the indirect tax regime in India. Import duty is the quantum of money that an importer has to pay to the customs authorities at the destination port for importing goods by paying foreign currency.

Customs duty is charged in order to discourage people from relying in imports extensively and to encourage self-reliance. Further, if a country develops a tendency to import high volume of goods produced in foreign countries, it will result in an abnormal wastage of foreign exchange resources and will lead to an unfavorable economic condition.

India and the liberalization policy

The money that is paid by an exporter to the customs or excise authorities for obtaining export clearance of his outward bound goods are known as export duties. Sale of goods in foreign markets earns significant foreign exchange and strengthens the economical position of a country. Hence, most of the countries encourage their traders to engage in export oriented businesses while trying to restrict the imports of foreign goods. Indian custom data statistics prove that the amount of customs and export duty collections have increased significantly after the liberalization policy of 1991. Through the policy the country opened its doors to foreign companies to set up their businesses in India through exclusive tax concessions and trade promotion facilities. Rebates and grants were allowed to companies that set up business in backward and rural areas.

Indian Customs Data provides statistics of income earned by India through import duties in a particular year. Considering the increase in import duty collections after the liberalization, the government of India has increased the rate of import duty to increase its revenue collections. Although this has increased the rate of black market goods or goods on which import duty has not been paid, the government is still able to increase its import duty collections significantly. Indian customs data provides information to traders as to the nature of goods imported into the country during a specific period of time.

It also gives information about most imported goods, importer details, season during which goods are imported, etc.  They can be obtained directly from customs officials or from firms that supply this information. Getting customs data from customs authorities can be a time consuming affair and may take longer time than obtaining from export firms.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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