Customs duty is a tax which a state collects on goods imported or exported out of the boundaries of the country. It forms a significant source of revenue for all countries especially in developing countries like India. In India, customs duties are levied on the goods and at the rates specified in the schedules to the Customs Tariff Act, 1975.

Objective Or Role of Indian Customs:

  • To impose and collect the customs duty on imports and exports of goods from India.
  • Apart from earning revenue, customs duty also aims to restrict imports for conserving foreign exchange,
  • Prohibit imports and exports of goods for achieving the policy objectives of the Government and regulate exports.
  • For the protection of the domestic industry and facilitating trade, a strict import control regime was implemented with the provisions of Customs clearance.
  • Prevention of smuggling including prohibition of narcotics drug trafficking.