Customs and FTP

Customs duty would be in vogue for the foreseeable future as it has been there for centuries.
This duty is to regulate the trade by barring and monitoring the import of goods into India. The
levy includes Basic Customs duty, Anti-dumping duty, Safeguard duty and the like. However,
the Additional duties of Customs, which are in common parlance referred to as Countervailing
Duty (CVD) and Special Additional duty of Customs (SAD) which was equivalent to Central
excise and VAT respectively, has been replaced with the levy of Integrated Goods and
Services Tax (IGST), barring a few exceptions. On the exports side, export would be treated
as zero-rated supply. Under zero-rated supply IGST paid on export goods or the input tax
credit proportionate to the goods and services consumed in goods exported under bond / LUT
would be refunded. There are certain exceptions on imports of petroleum products and pan
masala that attract levy of countervailing duties even after the GST regime.
Foreign Trade Policy is of interest to those who import and export goods. Merchandise
Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) are two
promotional schemes for exports of merchandise and services introduced in the Foreign Trade
Policy 2015-20. Many of the exporters are unaware of the benefits available which is upto 7%
of the export value for certain goods/services. The knowledge could lead to effective
procurement at lower cost also.
To provide an enhanced learning opportunity to the members and other stakeholders, the
Indirect Taxes Committee of ICAI has revised “e-Background Material on Customs and FTP”
and has also come up with an updated background material for the same. This Background
Material has been specifically designed to provide an in-depth knowledge of provisions
pertaining to Customs Law and Foreign Trade Policies in a very practical and simplified
manner to the members.