Customs is an authority which is in charge of the collection and safeguarding of custom duties. It is also responsible for controlling the flow of products in and out of a particular country. Customs duty is a tax or tariff that is levied on the import and export of products. The rules and regulations vary from country to country. The main purpose of this duty is to prevent and eliminate illegal import and export of goods.
There will be no incentive for people to purchase imported products if they are at the same price as the domestic products. But that is not the case. In today’s world the replacement of domestic goods with goods that are imported, consume a large amount from the wages of domestic people. Current import duty rates are flying very high and this makes it very difficult to buy such goods.
India also has some laws that are there for the collection of customs duty. The duty exemption scheme that has been implemented recently, has given relief to the importers, who import products that are required for production of export goods.
Exporting of goods requires less investment in comparison to import of goods. As the current import duty rates are very high, India should expands their export business so as to gain some profit also.
High import duty rates are very disadvantageous and can also make a nation bankrupt. Exporting of goods is very essential as it is way of earning foreign exchange. This is the reason why so much importance is given to exporting of goods also.
There are many benefits with respect to duties imposed on goods used in the manufacturing of goods that have to be exported and also on the finished product. These benefits come under the Central Excise law. Such benefits are either available as clearances of finished products or their inputs under a bond, or in the form of some rebate. The rebate of the duty on the inputs or the finished product is granted to the exporter, provided all the conditions are met and all the documents are complete.