CA Final CUSTOMS | Most Expected Concepts Revision | CA Mahamood Shaik

追加: 2026-05-09

[00:00:00]Hello my dear CFNL students. I hope you guys are all doing good and I hope you guys are all perfectly fine. I do wish and hope that you guys are all perfectly preparing for your upcoming ID examination. So in this video I'm going to revise the most expected concepts from the customs part. So as you all are aware customs customs and FTP constitute for 20 marks of our syllabus and these customs and FTP is very huge but I have identified the concepts most expected concepts. When I say most expected concepts, these are the concepts from where almost all every attempt they ask a question. So like that I have identified the most expected concepts. I have prepared this notes and all these notes I will even upload it in the free resources section of my website. So we are going to revise quickly the most expected concepts from the CA final customs part which could easily fetch you somewhere around 10 to 13 marks.

[00:00:51]So on a worst scale also from the concepts whatever we are going to cover.

[00:00:54]So there will be a minimum of 10 to 15 marks of coverage will be there. So 10 to 15 marks of the coverage we are going to cover. We are not we are not going to take much of the time. So all the crisp concepts I have identified and those I'm going to bring it before you through this video. So please do watch this video till the end. Definitely it will help you out for answering the questions in the exam. So having said that let me start my discussion directly. So I have taken extract of all the important provisions here. Whatever important provisions are there I have extract of all of it. So everything this booklet I'm going to cover now as a part of this few hours. So first the most important thing which you have to clear about is sir what will be the relevant date? What is relevant date for determination of rate of duty and tariff value and what will be the relevant date for determination of exchange rate. These two are very important. Why? Because definitely you are going to get some valuation related question. In order to do the valuation properly, first we need to understand what will be the relevant rate of what will be the relevant date for determination of rate of duty and tariff value. What will be the relevant date for determination of exchange rate.

[00:01:56]These two we have to be very much particular about. So first we will talk about what will be the relevant date for determination of rate of duty and tariff valuation. So in case of imports section number 15 we'll talk about the relevant date for determination of rate of duty and tariff value. So section number 15 says that there could be two cases. Let us say for example if you are importing the goods after you have imported the goods directly you can clear the goods for home consumption or first you will file a into bill of entry and keep that goods in the warehousing. So in case if in case if you are clearing the goods directly for home consumption what will be the relevant date for determination of rate of duty and tariff valuation we have separate provision for that. In case if you are keeping the goods in the warehouse later from the warehouse if you clear the goods for home consumption in that case what will be the relevant date for determination of rate of duty and tariff valuation for both we have different provisions. So first we will talk about in those cases where you have imported the goods and you are directly clearing the goods for home consumption.

[00:02:46]You are not keeping them in the warehouse directly you are submitting a bill of entry for home consumption. So in that case which is the relevant date for determination of rate of duty and direct valuation. So in case if you are importing the goods by way of vessel I will explain a different order please do follow. In case if you are importing the goods by way of vessel, the relevant date for determination of rate of duty and tariff valuation will be date of filing of bill of entry or date of grant of entry inwards whichever is later. If you are importing the goods by way of vessel and you are directly clearing the goods for home consumption, what will be the relevant date? What is what do you mean by relevant date for determination of rate of duty? So the date uh the rate which is prevailing on which date I have to consider for the purpose of calculation of customs duty. So in case if you are importing by way of vessel date of filing of bill of entry or date of filing of entry inwards whichever is later that will be the relevant date for determination of rate of duty and tariff valuation. In case if you are importing the goods by way of land or aircraft. In case if you are importing the goods by way of vehicle that is by way of land or aircraft. In those cases entry invers will not be there but instead of entry inwards they will say date of filing of bill of entry or date of arrival of vehicle or aircraft whichever is later.

[00:03:49]So in case of vessel there will be entry inwards. So that's why date of presentation of bill of entry for home consumption or date of entry inwards whichever is later in case of land and aircraft there will be no entry inwards.

[00:03:58]So that's why they have told date of filing of bill of entry or date of arrival of vehicle or aircraft whichever is later that will become the relevant date for determination of rate of duty and tariff valuation. Sir what if the goods are warehoused like if you have opted for second option first you have you are importing thereafter you are filing the into bond bill of entry for warehousing. From the warehouse I will clear the goods for home consumption sir. For that case, what will be the relevant date for determination of rate of duty? In that case, no matter whatever is a mode of import, the relevant date will be date of presentation of bill of entry for home consumption. You will find that you will file that Xbond bill of entry for home consumption. No, for clearing the goods from the warehouse, you will find you will file an Xbond bill of entry for home consumption. So the date of filing of Xbond bill of entry for home consumption that will become the relevant date for determination of rate of duty and tariff valuation. So there could be other cases sir only two cases will be possible in case if I'm importing the goods either I will clear the goods for home consumption directly or I will keep them in the warehouse but there could be other cases also sir what are that other cases these are the other cases which where you are not following the official route for imports either you are doing smuggling by illegal means you are bringing the goods into India in all that cases relevant date will be date of payment of duty whenever you are making the payment of duty that on that date what is the rate prevailing what is the tariff valuation prevailing that will become applicable however these provisions will not become applicable for baggage and postal imports because for baggage and postal imports we have different different provisions. So this is what section number 15 says relevant date for determination of rate of duty and tariff valuation. Sir what about exports sir? Okay imports we have understood what is the relevant date for determination of rate of duty and tariff valuation. Sir what will be the relevant date in case of exports? So in case of exports they are very very straightforward here. In case goods are exported then relevant date for determination of rate of duty and tariff valuation will be date of let export order. Customs officer will give you let export order. So the date of that let export order will be considered as relevant date for determination of rate of duty and tariff valuation. That means whatever rate of duty which is prevailing on the date of that let export order that much amount of export duty you will be liable to pay that percentage of export duty you will be liable to pay in other goods that means here if you are trying to do some illegal means in that case relevant date will be date of payment of duty however these provisions are also not applicable in case of baggage and postal exports understood so this is what regarding section number 15 and 16 very important this compulsory one aspect will be there in the valuation chapter they will give you different dates date of presentation of bill of entry date of arrival or date of entry inwards different dates, different rates they will give. So you have to be very careful about it. So this is what regarding relevant date for determination of rate of duty. And one more thing which you have to determine is what is the relevant date for determination of exchange rate. So in relation to imports and export different dates will be there like uh entry invoice will happen on one date. You will file the bill of entry on one date.

[00:06:34]You will do the warehousing on one date.

[00:06:35]So like that multiple dates will be there. Which exchange rate I have to take? The exchange rate prevailing on which date I have to take. So in case of relevant date for determination of exchange rate in case of imported goods whatever rate of exchange which is prevailent on filing of bill of entry under 46 under section 46 whatever rate that is prevailing on date of filing of bill of entry under 46 either you are filing the bill of entry for home consumption or you are filing the bill of entry for warehousing. So on that date whatever is the exchange rate prevailing that you have to use it for the purpose of conversion of that foreign currency into INR. Whereas if it is export goods the exchange rate which you have to use will be the rate of exchange prevalent on the date of filing of the shipping bill. In case if you are doing the export by way of vessel or aircraft you will file a shipping bill.

[00:07:19]So whatever exchange rate that is prevailing on the date of filing of shipping bill that will be used for the purpose of conversion. In case if you are exporting the goods by way of vehicle the whatever exchange rate that is prevailing on bill of export. In case of export by vehicle you will not file any shipping bill. There will be something called bill of export. So whenever you are filing that bill of export on that date whatever exchange rate is prevailing that you have to take it. And one more important point you have to keep in mind. So they will give you different kinds of exchange rates in the question. In the question they will give you different kinds of exchange rate. They will tell you exchange rate notified by RBI, interbank exchange rate. They will say and also CBIC exchange rate they will say which rate you have to take. Always the rate notified by CBIC will be relevant.

[00:07:54]Always you have to take the rate notified by CBIC and dates I have already told you. So don't pay attention to RBA exchange rate interbank exchange rate like this. They will give you multiple exchange rates but only which exchange rate will be relevant for us.

[00:08:04]the the rate of exchange which is prevailing on which is notified by CBIC will be relevant for us. Okay. So this is one important provision which you have to keep in mind. Right. So then coming to the next point. So directly I will come to the valuation. So as I've told definitely there will be one question in which they will ask you to calculate the value along with that they will ask you to calculate the amount of customs duties along with CGST along with IGST and GST compensations as payable. So how to calculate that valuation sir? How to calculate the value of imported goods on export? very rarely they will ask a question but on valuation of imports there will be a compulsory question. So I'm going to explain to you what is the approach which you have to follow for the purpose of valuation of imports. So first in most of the cases they will directly give you FOB price in case if they are not giving you FOB price. If they are starting from the X factory price this will be the format which you have to follow. So first you have to take X factory price. First of all what is an X factory price? The price which is prevailing at the exporters factory gate that we call it as X Xactory price. So you take the X factory price to that you have to add transportation charges up to the exporter's port or I also call it as load port or airport from the exporter's factory till the exporters port you have to incur the traveling charges freight charges so that transport charges you have to add it then the resulting figure whatever you get that we call it as FAS price free alongside price to that once the goods have been taken to the exporter sport there the goods are required to be loaded in that vessel or aircraft so that loading charges you have to add loading and handling charges at the exporter sport or airport if you do that you will get the FOB price as given. You will arrive at the FOB price as per the question. But that FOB price to that FOB price you have to do some additions to that FOB price you are required to do some additions. You are required to do some additions under 10 subruule one of the customs valuation rules relating to imports and you are required to do some additions under 10 subruule two of the custom valuation rules relating to importation of goods.

[00:09:52]So once you have arrived at the FOB value as given, you are required to do some additions. So there are five additions which are required to be made under 10 subruule one and there are two additions which are required to be made under 10 subruule 2. So let us try to understand what are those five additions which are required to be made under 10 sub rule one to arrive at the FOB value as per customs. So once you arrive at the FOB value as per customs then we will do the additions under 10 subruule 2 which will be our accessible value which will be CF basically. So first let us see what and all are the additions which you are required to make under 10 subruule one. First one buyer incurred cost in relation to that input. If the buyer is incurring any cost, which cost sir cost in the form of commission and brokerage cost? If the buyer is incurring the cost, which kind of cost?

[00:10:34]So if the buyer is incurring commission and brokerage other than buying commission, other than buying commission, so other than buying commission means selling commission and selling brokerage only, you have to include it. Other than buying commission, you have to add. If the buyer is incurring any cost commission or brokerage or if any cost of containers, if the buyer is incurring any cost of containers, that also you have to add it. and cost of packaging both material cost and labor cost in relation to the packing whatever material cost which the buyer is incurring whatever labor cost which the buyer is incurring that also required to be added. So first addition which you are required to make it to the FOB price given is if the buyer is incurring any cost in relation to commission and brokerage other than buying commission very important buying commission you should not add it other than buying commission you have to add it then cost of containers which is incurred by the buyer cost of packaging both material and labor cost in relation to that packing which is incurred by a which is incurred by the buyer that should be added. Second one. So if the buyer is supplying any goods or services either on free of cost or at a reduced price even that also should be added. Even that also should be added. So if the buyer is supplying any goods or services either on free of cost basis or at a reduced price and what the buyer could supply free of cost or at a reduced cost or at a reduced price either it could be raw materials, parts or components which will be used in that final product or it could be tools, molds and dice. See when it comes to tools, mouths and dice here we have to here we have to add aortioned cost here we have to add aortioned cost so that for example if the buyer is sending you some tool which can be used for any number of items so you can't add directly that amount you have to aortion it on what basis you can aortion sir you can aortion it on the basis of contract quantity you can aortion it on the basis of first produced quantity or even you can aortion it on the ship quantity so like that on different basis you have to aortion it so whatever it is if the buyer is supplying any material parts or components free of cost or at a reduced price or if he's supplying any molds, tools and dice free of cost at a reduced price on this aortioned cost. Or if any material consumed if the buyer is supplying goods or if the buyer is supplying the materials which will be consumed during that production process either on free of cost basis or at a reduced cost that also you have to add it or buyer if he is supplying any engineering development art sketches design work which is incurred outside of India very very important. So engineering development art work sketches design development development expenses if the buyer is incurring outside of India then only it will be added. Sir what if engineering development art sketches design development charges are incurred in India that will not be added that will not be added. So here you have to be very important here it is very important point. If engineering development, art, sketches, design and development work is incurred outside of India that only will be added in case if the engineering development art sketches design and development work is happening in India that will not be added under 10 sub rule one clause B. So two things we have to add. One uh we have seen number one buyer incurred cost number two buyer is supplying any goods or services either on free of cost basis or at a reduced price to the seller. Then any royalty, royalty, license fee related to imported goods as a condition of sale as a buyer.

[00:13:36]In addition to the consideration, if you are required to pay any royalty, if you are required to pay any license fees in relation to the imported goods and that royalty or license fee, you are required to pay it as a condition of sale that has to be added. Now here you have to be very careful in the question. Sometimes they will give you royalty or license fee which is required to be paid in relation to the manufacturing of the goods should not be added. If you are paying any royalty or license fees in relation to the manufacturer then in relation to manufacturing of the goods in India that kind of royalty or license fee should not be added. Number two, in case if you are if you are paying any uh in case if you are paying any royalty or license fee in relation to uh distribution rights that also should not be added only which royalty royalty or license fees in relation to imported goods that two which you are paying it as a condition of sale that two points you have to very important which kind of royalty should not be added. Number one, royalty which you are paying it for the purpose of manufacturing that goods in India. Number two, royalty which you are paying paying it for distribution rights etc. That kind of royalty should not be added and it must be a condition of sale or any part of subsequent sale or disposal or use which is paid to the seller. So you are importing the article as a condition of sale. He told that whenever you are making any subsequent sale or subsequent use or subsequent disposal certain percentage has to be paid to the exporter that share of the subsequent sale disposal or use paid to the exporter should also be added. Not just that any other payment which you are making as a condition of sale not just the above any other payment post importation or pre-importation whatever it is any other payment which you are making which are doing it for the purp in relation to that condition of sale as a condition of sale that also should be added. So if you add these five items under 10 sub rule one to the FOB value which has been given then you will arrive at FOB price as per the customs.

[00:15:19]This figure we call it as FOB price as per the customs. So first you have to arrive at the FOB value as per customs.

[00:15:25]Now to this FOB value as per customs, you are required to make two additions under 10 subruule 2. You are required to make two additions under 10 subruule two. Sir, what are they? Number one, transport and handling charges.

[00:15:37]Transport and handling charges you have to add. Why? Because from the exporters uh from the exporter port the goods have to come to place of importation that is up to India's port or airport they have to come. So that transportation and handling charges you have to add along with that insurance also you have to add. So if you add the transport and handling charges and insurance then you will arrive at the CIF value that will be the accessible value for the purpose of computation of customs duty. But when it comes to adding of the transportation and handling charge when it comes to adding addition of the insurance charges there are some special provisions which you have to keep in mind. So one thing is uh first I'll start with transportation charges. When I say transportation charges it should also include ship deary charges. If there are any ship deary charges that also you can add it. Light ray charges barge charges.

[00:16:20]This also will be included in the transportation charges. If you are incurring any ship deary charges, light rate charges, barge charges, that also has to be added to the value under 10 sub rule one. So now when it comes to transportation charges, there could be a case where transportation charges are assertainable or there could be a case where transportation charges are not assertainable. There could be a case where transportation charges could be assertainable. There could be cases where transportation charges are not assertainable. In case if the transportation charges are not assertainable, you have to take the value as 20% of FOB value as per customs. So we will arrive at FOB value as per customs. No, this figure we will arrive at no. So on this figure 20% you have to calculate. So 20% of the FOB value as per customs you have to add when if the transportation and handling charges are not assertainable. Okay. So and whether it is happening by air, vessel or land whatever it is 20% of FOB value as per customs you have to add it.

[00:17:16]Okay sir, what if it is assertainable?

[00:17:18]If it is assertainable, that means if the transportation handling charges are all assertainable, in that case if it if the transportation is happening by way of vessel or vehicle, not by air. If the transportation is happening by vessel or air by the by of vessel or land and if the transportation charges are assertainable, actuals we will take.

[00:17:34]Actuals we will take. Whatever has been given in the question that we will take.

[00:17:37]In case if you are importing the goods by air and actual transportation charges are assertainable also but you have to restrict it the amount which you are going to add it to the value should be restricted how much it is sir either actual transportation charges and loading and handling charges or 20% of the FOB value as per customs whichever is lower that means in case if you are importing the goods by air and if the transportation charges are assertainable but you can't add you should not add the complete actuals you have to compare so what is the actual fright or 20% of the FOB value as per customs whichever is lower that much amount it will be restricted only that much amount of transportation charges you are required to add it so that is what regarding how much transportation charges you are required to add this is where compulsory one question will come you have to be very careful about it so transportation charges once again I'm repeating if it is not assertainable well and good 20% of FOB value as per customs if it is assertainable then you have to check is the input is happening by air or vessel or land if the input is happening by way of vessel or land then actuals you have to add in case if it is happening by air you have to compare what is the actual fried loading and handling charges or 20% of the FOB value whichever is lower whichever is lower that much you are required to add it as a transportation charges then comes the insurance part insurance sir how much insurance I have to add here it is very simple if it is assertainable actuals here there is no restriction if the actual insurance charges are assertainable actual insurance charges we will add if it is not assertainable then we will take 1.125% of the FOB value as per customs then we will take 1.125% of FOB value as per customs here we are arriving here at no so FOB value as per customs like this here we are arriving at the value on this value 1.125% you will be required to add so this is what regarding insurance so and one more thing you have to keep in mind sometimes what what will happen is in the question they might say FOB value directly is not available FOB value plus insurance is available FOB value plus insurance charges are available but transportation cost is not assertainable in case if the transportation cost is not assertainable I told 20% of FOB you have to Sir, but I don't have FOB value. But I have FOB plus insurance price. Now what I should do? 20% of FOB plus insurance charges you have to take. So whatever value it is available FOB plus insurance on that you have to multiply 20%. Sir, I don't have FOB plus directly. I have FOB value plus transport and ride loading uh transport and loading and handling charges I have. But I don't have insurance. Insurance is not assertainable. I told that if insurance is not assertainable 1.125% of what FOB value said but I don't have FOB value but I have FOB value plus transportation charges take that value only. So take 1.125% of FOB value plus a transportation charges on that you have to multiply that 1.125%.

[00:20:16]Okay. So if you have FOB value exclusively available you use it. But in some cases these kind of situations also can be tested where FOB value plus insurance charges is available or FOB value plus uh transportation charges are available. In that case, whatever you are multiplying that you multiply it on that given value. Don't try to do extra math and extract the FOB value and then do the calculation part. All that is not required like this. You can multiply it on FOB plus other charges. Clear? So this is what the format here you need to keep in mind. And one more extra point I will tell you. One more extra point I will tell you here. Very important. This is where many students will often commit a mistake. ICI has taken one assumption.

[00:20:50]IC has taken one assumption. What is that is in case if you are taking transportation charges as 20% of FOB. In case if you are taking transportation charges as 20% of FOB, it includes transportation charges from exporter port to from exporters factory to the port. So let me put it this way. This is very important assumption. So IC has taken this assumption. If you you have to write your answer in line with it in case if you are calculating transportation charges as 20% of FOB you will get one figure no so that will be considered as a what is this here so you will take 20% of FOB right this 20% will be inclusive of freight from exporters factory fright from exporters factory to exporters port plus loading ing charges plus loading charges at exporter sport plus freight charges right from exporter sport till place of importation all put together the limit will be considered as 20%.

[00:22:11]The limit will be considered as 20%. So on this we have solved many questions also in our question bank. So this point you have to keep in mind. So whenever you are calculating the fright charges as 20% as FOB. So transportation charges if you are taking it as 20% of 20% of FOB. So what IC has taken an assumption is this 20% of FOB should be inclusive of these transportation charges. It should be inclusive of loading charges and even it will include transportation charges from exporter sport to the importer port. So how it will affect your answer is how it is going to affect your answer is. So let me give you one example just one minute just I will give you one simple scenario because this is where many students will commit a mistake. So that's why I wanted to explain one small part here. So let us say for example if you are calculating FAS price or let me put it this way if they have given in the question X factory price. So X factory price 1,000 and transportation charges from factory to exporter port 200. So then you will arrive at FAS. So 1 1200 then you will add loading charges. Then you will add loading charges.

[00:23:27]Let me change the fact here. Here answer will be slightly changing. So 1,000 rupees 80 rupees is the transportation charges from exporters factory to exporters exporters factory to exporters port. It will be,80. Loading charges are somewhere around 20. Now you will get 1100. This is FOB value as per customs.

[00:23:43]Let us say for example no additions are there under 10 sub rule one. So this will be FOB value. To that we will add fright. To that we will add fright. So fried is not assertainable. What we will do? 20% of 1100 we will take. No. So if I take 20% of 1100 how much I will get?

[00:23:58]220 I will get. This 220 you should not add. This 220 you should not add. Why?

[00:24:03]Because ICA especially ICA has taken assumption that when we are calculating that 20%, this is inclusive of right from this is inclusive of charges from the exporters factory till the place of importation. So that means from this 220 I have to exclude the transportation charges which I have already included from the exporters factory to the exporter support 80 you have to exclude it loading charges which have been incurred at the exporter port that I have to exclude it. So that 100 if you exclude it 110 only you have to add it here. this 110 only you have to add it here. So this is one important assumption which Isaiah has taken. We have solved n number of questions in our classroom. So this point you have to keep in mind when you are writing the answer. This is where you are going to lose the marks. Many students miss on the small adjustment. I hope you will remember this. Now coming to the next point so that's all these are the important points regarding valuation. So now we will try to proceed further with the subsequent discussion. Now accessessible value. So accessessible these are now coming to the different types of duties. The next discussion whatever we are going to have is various types of duties under customs act. What and all are the different types of customs duties which you will be liable to pay. So first you will arrive at the assessible value. Just now as I've told how to arrive at the assessible value.

[00:25:10]So we follow the above valuation rules and finally we will arrive at the assessible value. Now on this accessible value what and all are various kinds of customs duties which will be payable.

[00:25:19]First one you will be able to have basic customs duty. You are required to pay basic customs duty at a certain percentage. In most of the cases they say that basic customs duty is 10%. But need not be the case always basic customs duty need not be 10% but in majority of the cases they will say that customs duty is a 10% like that they will say. So this customs duty is required to be calculated on percentage of accessible value. So let us say for example you have 1 lakh rupees of uh you have 1 lakh rupees of accessible value.

[00:25:46]So let us say if they have given 10% as a basic customs duty. So this 10% you are required to calculate it on accessible value. So 10,000. Then next kind of duty it will be social welfare search charge. There will be something called social welfare search charge. And this social social welfare search charge is always fixed. It will be 10% on the basic customs duty. Not on the assessable value. It will be 10% of the basic customs duty. So what is the basic customs duty? 10,000 on that 10,000 1%.

[00:26:10]10% if I do the amount will come to 1,000 rupees. Okay. So this here I've given it wrong. So 1 lakh rupees is the value. 10,000 rupees is the customs duty. 10% on 10,000 it will come to 1,000 rupees. Thereafter there will be something called counterveailing duty under section 3 subsection 1 and 3 subsection 3. Sir what is this counterveailing duty? In case whatever articles you are importing if those the same article is manufactured in India if they attract excise duty to compensate for that excise duty. Now when you are importing that kind of article from outside of India they will also impose something called counterwilling duty under three subsection 1 and three subsection 3. What is the main objective? To counterbalance the excise duty which is leviable in India. You are importing such an article from outside of the country. If the same article is produced in India, it is liable for excise duty. If the same article if you are importing from outside of India, it might become cheap, it might become cheaper. So to compensate for that what the Indian government will do to counterbalance that excise duty which will be levied in India. They will impose something called counterailing duty or even additional duty also they will use it. So counterailing duty or additional duty they will impose to counterbalance the excise duty and it will be a certain percentage. They will tell you in the question if at all they want to ask a question on counterweing duty they will tell you in the question what will be the percentage and that percentage you have to multiply in what on accessible value plus basic customs duty and social welfare search charge.

[00:27:28]So you take the assessable value to that you add basic customs duty to that you add the social welfare search charge you will arrive at one value that we call it as landed value in our example 1 lakh rupees is the accessible value basic customs duty 10,000 social welfare search charge 1,000 total it will come 1 lakh 11,000 on that 1 lakh 11,000 whatever percentage has been given that you have to multiply okay so counter valid duty will be will be applied as a percentage on the landed value so what is landed value it will be accessible value plus basic customs duty plus social welfare search charge all these three put together we call it as landed value on that landed value percentage will be given in the question that percentage you have to multiply. So currently excess duty is leviable on alcoholic liquor for human consumption and also five petroleum products and tobacco tobacco products. If you are importing these articles only there will be counterwilling duty. Then we have something called agricultural infrastructure development sess we call it only on few products only on few products they will impose something called aidc they will notify the products only on that notified products they will impose something called AIDC.

[00:28:24]So if the if the product which you are importing is liable for AADC they will give you a percentage on the question that percentage you have to multiply it on accessible value not on landed value on accessible value you have to multiply it clear everyone so first first category what is the first category basic customs duty there will be something called social welfare search charge to counterbalance the excise duty we have something called counterailing duty under three subsection 1 and three subsection 3 then we have something called AADC on notified products so now if you add it if you add this 1 plus 2 plus 3+ 4 so if you add basic custom duty social welfare search charge counterweing duty and AIDC you will get a customs duty excluding additional customs duties and IGST and compensation says excluding additional customs duty excluding IGST excluding compensation says whatever customs duty is there that you would have arrived it so if you do 1 + 2 + 3 + 4 right next so next category is additional customs duties sir what are additional customs duties there will be something called safeguard duty there will be something called safeguard duty if certain article is getting imported in large quantities which is having a impact act on the domestic industry.

[00:29:25]Then the government can take safeguard measures. They can take two kinds of safeguard measures. One is a tariff kota. They can impose something called tariff kota. That means they will put a restriction beyond this much quantity you can't import. Or alternatively what they can do is they will impose something called safeguard duty. They will impose something called what?

[00:29:42]Safeguard duty. So that safeguard duty also the percentage will be mentioned in the question itself. In case if they're asking you to calculate what is the safeguard duty, that percentage they will mention in the question itself. And that percentage you have to multi multiply it on either on assessible value or landed value that they will say it in the question. Once again if they are not saying anything take assessible value. If they're not saying anything take assessable value. State your assumption. Write your assumptions there. Okay. So safeguard duty will be generally a percentage which will that percentage will be given on the question. It will be multiplied either on the assessible value or landed value as mentioned in the question. If they're not mentioning anything, if they're only telling safeguard duty, you calculate on assessible value. State your assumption clearly. Okay. Next. Similarly, anti-subsidy duty. Sir, what is this anti-subsidy duty? So, what is this anti-ubsidi duty is? Let us say for example, there is one exporting country.

[00:30:28]Let us say China. There is an exporting country China is there. So, what is happening is uh China in China there is one exporter there's one manufacturer in China. Now, Chinese government is giving subsidy to this person. If he makes the export to India, if this exporter who is in China, if he's making the export to India, for that purpose, Chinese government is giving him a subsidy. So to make uh that exports very cost effective. So that's why what they're doing is in order to counterbalance that in order to counterbalance that the government will impose something called anti-subsidi duty. So if you read it here, anti-ub subsidy duty that also what is the purpose to counterbalance a subsidy given to exporter by their respective government. So there is an exporter in China. If that exporter is making the exports to India, Chinese government is giving him the subsidy is trying to compensate him. So automatically what will happen? If that respective government is giving the subsidy to him, he will export the goods to India at a very cheaper price. So those products will become very cheaper. When those products become very cheaper, people will start importing more domestic industry in India will get affected. So to counterbalance that this customs department will impose a duty called anti-subsidity duty. It will also be certain percentage. That percentage you will multiply it on either accessessible value or landed value as mentioned in the question. They will mention in the question as mentioned in the question you are required to multiply that percentage either on accessible value or landed value. Next there will be something called anti-dumping duty. Sir what is this anti-dumping duty when it will be imposed? So when anti-dumping duty will be imposed is let us say for example there is one exporter in China.

[00:31:59]That exporter is manufacturing one product. If he's selling that product in the domestic market if he's selling that product in China itself he's selling at $100 per unit. On the other hand, if he wants to sell that product to India, he's selling at $80 only. He's dumping it. He's dumping so much of quantity into India. So where he is selling that price. So once again, if you relate this example, there is an exporter in China, he's manufacturing one product. Let us say for example, he's manufacturing this mouse. So that exporter in China, a manufacturer in China, he's manufacturing the mouse. If he's selling that mouse in China itself, in his domestic country only, if he's selling, he's selling at $100. But if the same is exported to India, he's selling it at $80 only. So in these circumstances to counterbalance this, the government will impose something called anti-dumping duty. To prevent this dumping of goods into India, the government will impose something called dumping duty.

[00:32:49]Anti-dumping duty. Sir, how much sir anti-dumping duty? It will be lower of dumping margin or injury margin. How much amount of dumping anti-dumping duty will be imposed? Lower of either dumping margin or injury margin. Sir, what is dumping margin sir? dumping margin will be normal price minus export price. So that means in his local in the domestic market let us say for example he's in the domestic market he's selling at 80 $80 but he's exporting at uh sorry in the domestic market he's selling at $100 but he's exporting at $80. So now what is the dumping margin? $20 is the dumping margin. On the other hand injury margin sir what is injury margin?

[00:33:21]Selling price in India and the landed cost. Let us say for example if the same product is getting sold in India there it will be 110 in India. Whereas landed value of that article imported into India is let us say for example 95 is the landed value of that article into India. So what is the injury margin here? $15. So whichever is lower. So $15 will be lower here. That much will be imposed as a anti-dumping duty. Clear?

[00:33:44]So what is anti-dumping duty? The purpose you might have understood. But what will be the amount of anti-dumping duty? It will be lower of dumping margin or injury margin. Sir, what is dumping margin? Normal price minus export price.

[00:33:54]Sir, what is injury margin? It will be selling price in India minus landed cost of that article whichever is lower that much amount of anti-dumping duty will be imposed. So finally you will arrive at it. So if you take this a figure which contains customs duty excluding additional customs duty, IGST and compensations to that if you add safeguard duty, anti-dumping duty, anti-subsidity duty, you will arrive at total customs duty in excluding IGST and compensations. So you will arrive at total customs duty excluding IGST and compensation is that amount of customs duties you will get. Now two more taxes will be imposed. Not two, three taxes will be imposed. One is IGST. IGST also you are required to pay when you are importing the goods. Even you are liable to pay IGST also. Whatever rate of GST that will be applicable for the products in India, the same rate of IGST will also be imposed on the articles imported. So even you'll be liable to pay the IGST at the rate. So whatever is the rate applicable for that products in India, at the same rate you will be liable to pay IGST even on your imports also. Let us say a product will be applicable at 18% of IGST. So this 18% will be applied on what? This 18% will be applied on total accessible value and total customs duties. Here you you will have the total customs duties. No starting from here basic custom duty, social welfare, counterveailing, agricultural service, safeguard duty, anti-dumping duty, anti- subsidy duty.

[00:35:11]After adding all these duties, take the accessible value, add all these duties, you will get one value. on that value you are required to multiply the applicable rate of IGST they will arrive at the IGST figure okay then even GST compensation says also will become applicable sir how much amount of GST compensation says anyhow from 31st of March 2025 it is not there but it is relevant for May 26th attempt so for May 26th attempt if at all they give a question regarding they give a point regarding GST compensation says you have to calculate it so GST compensation says also will be imposed so whatever GST compensation says which is applicable for the product in India the same rate of GST compensation says you are required to pay it on imported articles also so let us say GST compensation says is 25% on what value sir on whatever value you are calculating IGST on whatever value you are calculating IGST on the same value you have to multiply the GST compensation S rate also on whatever value you are calculating IGST on the same value even you are required to calculate that GST compensation S percentage also by that you will arrive at the GST compensation S amount but here there is one important point you have to keep in mind here. There is one important point you have to keep in mind. Sir, what is that? For the purpose of value of value for IGST or GST compensation is one thing which you have to keep in mind is see normal value is accessible value plus all customs duties like the way we have calculated accessible value plus all customs duties. Accessible value plus B. So either that value either that value or in case if the goods are lying in the warehouse in the warehouse if any sale has happened before clearance for home consumption if the goods are sold in the warehouse. So that transaction value of the warehoused goods that transaction value of the warehoused goods whichever is higher on that value you are required to calculate the IGST percentage.

[00:37:04]IGST percentage able to understand? So either take this assessible value and add all the customs duties or in case if the goods are lying in the warehouse and the goods are sold when the goods are still lying in the warehouse the transaction value at which the warehouse goods are sold. So that transaction value you have to compare either accessessible value plus all customs duties or last transaction value in case if the warehouse goods are sold multiple times at the last transaction value you have to take or transaction value of that warehoused goods whichever is higher that value you have to take on that you have to multiply the applicable rate of IGST the same thing will become applicable for GST compensation sis but this comparison you are required to do only when the goods are still lying in the warehouse and before clearance for home consumption that sale of warehouse goods is happening so in that case you have to compare that accessible value plus all customs duties or transaction value of the warehouse to goods whichever is higher on that you will be liable to pay the amount of GST compensations as well as IGST but this comparison once again I'm telling this comparison you are required to do only when the goods are lying in the warehouse and they are sold before clearance for home consumption clear next apart from all this there will be something called special additional duty at the rate of certain percentage on accessible value plus uh this total customs duties and this special additional duty will be imposed to counterbalance VAT in India. In case if you are importing some article and if that article is liable for VAT in India, local sales tax in India to counterbalance that even special additional duty also will be imposed at a certain percentage they will give you in the question. So that percentage you have to multiply it on accessible value plus total customs duties. However, currently this special additional duty will become applicable only on that five petroleum products. So whatever that five petroleum products are there so on that five petroleum products they will be imposing that special additional duty. very rarely they will ask a point regarding special additional duty but IGST GST compensation says that is going to be very very important clear so these are all the various kinds of customs duty and the manner of calculation of all that customs duties I hope you are all able to recollect the provisions now coming to the next important concept see there are some concessions so under customs act we have some concessions especially in case of import in certain circumstances the importer will be given some concessions or relaxation ations.

[00:39:15]Four such sections are there where concessions will be given to the importer. One is section number 13 which is talking about pilferage. Then we have 23 subsection one talking about remission. 23 subsection 2 talking about relinquishment. Then we have section number 22 talking about abatement. So let us try to understand when each of this will become applicable. First of all coming to section number 13. Sir what is section number 13? Pilferage.

[00:39:36]Sir what is pilferage? Petty theft. So you have imported the goods and after the goods are unloaded. After the goods are unloaded but before passing an order for clearance. Before passing an order for clearance for home consumption or before passing an order for warehousing.

[00:39:51]The goods are imported and the goods are unloaded at the port or airport and after unloading but before passing an order for home consumption or before passing an order for warehousing. If there is any petty theft which has taken place. If any small quantities have stolen, you have imported some goods in that petty theft has happened then in that case what will happen is the importer will not be liable to pay the amount of customs duty on that small quantity which has been stolen. Let us say for example if you are importing some thousand quantity of the mobile phones from abroad. The goods have reached the vessel has reached the port and the goods are unloaded. After unloading but before passing an order for clearance for home consumption or warehousing some 10 quantity are stolen.

[00:40:29]So now as an importer you'll be liable to pay the amount of customs duty only on 990 quantity. On the 10 quantity you are not liable to pay the amount of customs duty sir. But who will pay the amount of that customs duty on the 10 quantity which has been stolen?

[00:40:41]Custodian. Who will pay? Custodian has to pay. So on that pilfridge importer will not be liable to pay any customs duty but the custodian will be liable to pay the amount of customs duty. But one important thing you have to remember timing. Sir when that thefty should have taken place after unloading but before before passing an order for clearance for home consumption or B or warehousing. So in that cases you will not be liable to pay amount of customs duty on the small quantity which has been stolen but custodian will pay it.

[00:41:06]But here one point you have to remember in case if at a later point of time that stolen goods are found out and if they are restored to the importer in case if the stolen goods are found out and later if they are getting restored to the importer on restoration if the goods are found later and they are restored to the importer then the duty will become payable then they will be liable to pay.

[00:41:24]So let us say for example the 10 quantity whatever has been stolen later it was recovered and now they are restoring it to the importer at that point of time importer will be liable to pay the amount of 10 quant liable to pay the customs duty on the 10 quantity which has been restored. One important point you have to remember here let us say for example if in the exam they're asking a question the goods are warehoused. You have filed a into bond bill of entry and the goods are kept in a warehouse. In the warehouse petty theft happened in the warehouse piliferage happened. Can the person can the importer when he's filing the Xbond bill of entry can he claim that concession under section number 13? Not possible. Not possible. Why? Because section 13 clearly says the timing the goods should have been pifered after unloading. But before passing an order for home consumption or before passing an order for warehousing. So once the goods have been moved to warehouse after that pillif section section 13 benefit will not become applicable. The goods should have been pillifered either before uh either before passing an order for clearance for home consumption or before passing an order for warehousing.

[00:42:17]So this point you have to remember.

[00:42:19]Thereafter we have 23 subsection one which is remission. Sir what is remission? Remission means refunding it back. Remission means refunding refunding the amount of customs duty paid. So remission when it will become applicable. Remission will become applicable when there is a total loss.

[00:42:34]Pilfra petty theft that means majorly quantity is available but small theft has taken place. But section 23 subsection one remission will come into picture when the goods are completely stolen. When the complete when the goods are completely destroyed beyond recovery they destroyed. Let us say for example after the goods have been unloaded uh at the time of uh unloading or after unloading some fire accident has happened because of the fire accident entire goods whatever you have imported got burnt. So some calamity has happened because of which the goods are completely destroyed. So in those cases what will happen is whatever amount of customs duty you have paid that you can claim the refund of it. So remission 23 subsection one when it will become applicable when there is a total loss of the goods which is beyond recovery and when it should have happened. Timing is also very important. Before actual physical clearance. Here they are not saying here they are not saying before passing an order for clearance. But in fact what do they say here? Before actual clearance. Before actual clearance. That means before you are actually clearing the goods for home consumption. That means this destruction should have h could have happened either in the customs area or even the destruction could have happened in the warehouse also. You have you have filed a into bond bill of entry and move the goods to the warehouse. in the warehouse if the destruction has happened then also you will be eligible to claim the refund of the customs duty whatever you have paid under 23 subsection 1. Okay.

[00:43:47]So you have to pay that important attention to the terminology here. So when that destruction should have happened it should have happened before actual clearance not before passing an order before actual clearance before actual physical clearance for home consumption. That means even when the destruction happens in the customs area or in the destruction is happening in the warehousing also you can claim the refund of the taxes remission under 23 subsection one. So what will be the impact here under 23 subsection one if the importer has paid the make the payment of any customs duties that will be refunded back to him and one point you have to remember here that loss must be due to natural causes fire or flood or accident or or it have been complete goods have been stolen something like that. So the loss should be due to natural causes or accidents, some unavoidable accidents and all. And here will there be any possibility of restoration? No. Here restoration concept itself will not become applicable. Why? Because goods are completely destroyed. Beyond recovery they are destroyed. There is no question of restoring the goods back to the importer. So this is what regarding remission. Now we have 23 subsection two which will talk about relinquishment.

[00:44:44]Sir, what do you mean by relinquishment?

[00:44:46]Giving up the title. Giving up the title. Let us say for example you have imported the goods. After you have imported the goods let us say whatever goods you have imported those are not according to the contract those are not those are not not usable for you those are not suitable for you or the goods are there some damage has happened they are no longer fit for your purposes so in those circumstances what you can do is you can relinquish your title to the goods you can say that I no longer want these goods keep the uh customs department you only keep them so that we call it as relinquishment so because of the relinquishment also what will happen is when you are when you are giving up your title on the imported goods you will not be liable to pay any customs duty. Customs department will not ask you to pay any amount of customs duty because you are giving up your title.

[00:45:25]You are saying I don't want the title of the goods. So that is what 23 subsection 2. So when when relinquishment will become applicable when uh abandonment of title, you are abandoning your title.

[00:45:35]You are saying I no longer want this goods. I don't have any ownership of the goods. I'm giving away my ownership of the goods. So the goods are actually there but you don't no longer need them.

[00:45:43]There could be any number of reasons.

[00:45:44]might be the goods as I have told goods are not not according to the quality which you have ordered or goods might be some different goods which the importer has sent so quality is inferior whatever could be the reason so in case if you are relinquishing but this also when you can relinquish when you can relinquish till what point of time you have the right to relinquish before passing an order here also before passing an order for clearance for home consumption or before passing an order for warehousing once order for clearance for home consumption or once order for warehousing has been passed there is no way you are going you are coming and saying no no I no longer want these goods you can't say that so before passing an order for home consumption or before passing an order for warehousing you could relinquish your goods in case if you are relinquishing you are no longer liable to pay the GST but one important point you have to you have to keep in mind you cannot relinquish if you have committed any offense you can't relinquish if you have committed any offense let us say for example you are importing the drugs narcotic narcotic drugs you are importing which is prohibited now the goods have come to the customs area then the customs authorities have found out that you are importing the drugs now you can't go and say there no no I'm relinquishing me I am relinquishing my title I'm no longer the owner of these goods I am no longer the owner of this drugs you only keep it like that can I say and escape my liability no why because here you have committed an offense if you have committed any offense so then you can't do the relinquishment you have to face the consequences and in case if you are relinquishing the title what you should do is you should endorse the document of title in favor of the commissioner of customs you will have document of title the bill of leading arway bill will be there right that you have to endorse it in favor of the commissioner. So you have to transfer the title completely to that customs authorities. So that is what regarding relinquishment.

[00:47:20]Then we have something called section number 22 abatement. What do you mean by abatement? Reduction in the amount of customs duty payable. Sir when I can get that abatement. So they say that when there is a damage or deterioration.

[00:47:32]Goods are there but the goods are damaged or they're deteriorated because of passage of the time or something or because of some contamination goods are deteriorated. So either goods are damaged. It could be a physical damage or they could have been deteriorated.

[00:47:44]That means they might have been spoiled.

[00:47:46]Let us say for example you are importing some eatable items. Let us say you are importing some dry fruits because of water contamination during the voyage because of the water contamination they have lost their quality deterioration has happened or let us say for example you have imported the goods at the time of unloading some damage has happened some damage the goods are cracked or something like that because of it there will be a reduction in the value. So in case if you are importing the goods and those imported goods either have suffered some damage or deterioration then you can claim abatement then you can claim the reduction of the customs duty. But here is one important thing we have to keep in mind sir when that damage or deteration should have taken place before or during unloading. Before unloading or at the time of unloading either there could be a damage or deteration. At the time of unloading or before unloading there could be a damage or deteration or damage after unloading but before deterriation. The goods are unloaded but before examination by the proper officer then the damage could have happened or even the damage could have taken place in the warehouse also you have kept the goods in the warehouse. You have passed an into bond bill of entry and kept and moved the goods to the warehouse. In the warehouse also the damage could have happened. So very important things you have to keep in mind. See deterioration is permitted only in one case. Deteration either before or during unloading. Whereas damage is permitted either before or during unloading, after unloading but before examination or even damage could have happened in the warehouse also. But but deterioration should take place only before or during unloading. If after unloading deterriation happens then there is no way you can claim the abatement under section number 22. If you have kept the goods in the warehouse then the deterriation happened then also no way you can claim the section number 22. So deteration is permitted either before unloading or during unloading.

[00:49:22]But damage at any time it could happen.

[00:49:23]It could be before unloading, during unloading or it could be after unloading or it could be even in the warehouse also. So in these circumstances you can claim abatement. So importer what will be the consequence if you claim the abatement? Your customs your customs duty payment will be proportionally reduced. Proportionately it will be reduced. So how it will be proportionately reduced? So let us say for example you are importing total 1 cr worth of goods. Let us say you are importing total 1 cr worth of goods. On this total 1 cr worth of goods let us say you are liable to pay customs duty amounting to some 10 lakh rupees. Some 10 lakh rupes of customs duty are required to pay. But these goods whatever you are importing they have either been damaged or deteriorated. Now after damage what is the value? What is the value of the damaged goods?

[00:50:02]Initially if the goods are in proper condition the value is once here. Now the goods are damaged. No when the goods are damaged or deteriorated its value will get reduced or not. So let us say after the damage or deterioration the value of the goods are coming to 60 lakh rupees only. So now you will be liable to pay the original customs duty into value of the damaged goods 60 lakh rupees divided by value of the original quantity that is 1 cr rupes. So you will be liable to pay only 6 lakh rupees of customs duty only you will be liable to pay 6 lakh rupees of customs duty. The balance 4 lak is your abatement.

[00:50:32]Abatement means discount. The abatement is four lakh discount. Abatement is four lakhs. Here the customs duty payable is 6 lakh rupees. So like this proportionately they will reduce it. But one thing you have to keep in mind you can claim abatement under section number 22 only when that accident because of which damage or deteration is happening that should not be due to negligence of the importer or his employee or his agent even employee also will be added here. So because of whatever reason the damage or deteration is happening that should not be because of the negligence of either importer or his agent or his employee completely beyond out of his control that damage or deteration should have taken place. Clear? So these are the four cases four important cases where concessions will be given to the importer. Section 13 pilerage section 23 subsection 1 remission 23 subsection 2 relinquishment section number 22 abatement so what is more important here is timing is going to be very very important as I have told you when what is permitted the timing is going to be very very important so please be careful about this timing so when that event should have happened in order to claim that concession so for pifage one time limit is there for remission one timing is there relinquishment one timing is there abidatement another timing is there so if I recolct it once again pifage that petty theft should have happened before passing an order for clearance for home consumption or warehousing. So remission should have happened before actual clearance for home consumption.

[00:51:46]Relinquishment once again before passing an order for clearance for home consumption or warehousing. 22 abatement so before unloading after unloading even in the warehouse also damage case but deterioration only before unloading or during unloading. Clear? Right. So this is what regarding uh some concessions which are important from the examination point of view. So one more last thing which I wanted to cover very often where they ask the question is baggage rules.

[00:52:10]In the baggage rules also very frequently these days they are asking the question let us try to comprehensively cover the baggage rules.

[00:52:15]So what is baggage first of all? So that luggage passenger's luggage either accompanied or unaccompanied. So whether that baggage you are bringing it along with you that luggage is coming not with you it could come even before also even after also. So whatever it is the baggage the passenger's luggage that we call it as baggage.

[00:52:35]Now whenever a person is coming into India or whenever a person is living out of outside of India he will bring some luggage and all right. So for that luggage especially when a person is coming into India in the baggage whatever his articles he's bringing regarding that some rules are there. So some articles in the baggage are exempted. You are not liable to pay for you are not liable to pay customs duty for some items in your baggage. For some items you are required to pay the baggage and for that baggage duty payment also there will be some uh special provisions there are some concessions also available. There are some concessions also available. So let us try to understand what is that allowances what are exempted how much uh you are liable to pay and all. We will try to have a quick look at it. But first of all what will be the rate of customs duty on the baggage? The rate of customs duty on the baggage is going to be 35% customs duty rate. Along with that you will have 10% of social welfare search chart. to total it will come to 38.5%.

[00:53:27]The effective rate of baggage is going to be 38.5%. You in case if you are liable to pay customs duty on your baggage you'll be liable to pay that customs duty at the rate of 38.5% except a few articles. On few articles you'll be liable to pay 110%. On few articles you'll be liable to pay 110%.

[00:53:43]What are that few articles on which you'll be liable to pay 110% is firearms, cartridges of firearms greater than 50, cigarettes greater than 100 sticks or cigars greater than 25 or tobacco greater than 125 g. So on these three articles, firearms, cartridges of firearms greater than 50, cigarettes greater than 100 sticks, cigars greater than 25 or tobacco greater than 125 g.

[00:54:04]This is the third category of the product that is tobacco related products. On these articles, you'll be liable to pay 110% of the customs duty.

[00:54:11]But usually what you have to remember is in usual cases you'll be liable to pay the customs customs duty on your baggage at the rate of 38.5% you are liable to pay. Now what are the elevances? First there is something called general duty-free allowance which is given under rule number three and rule number four.

[00:54:26]There is something called general duty-free allowance. So the customs department will let you take the goods up to with certain concessions. What are they? Now there are two rules actually.

[00:54:36]Rule number three will talk about if you are a person coming from other than Nepal, Bhutan or Myanmar. Whereas rule number four says if you are importing the goods, if you are coming from if you are arriving from Nepal, Bhutan, Myanmar, in that case what will be the relevance? So we'll try to understand in both the cases. Remember one thing if it is infant if it is infant. Who is infant? Infant means less than 2 years.

[00:54:56]Infants for infants what is allowed duty free is only used personal effects. Here also used personal effects. For infants it will be only used personal effects.

[00:55:07]So whatever used personal effects are there that only will be allowed to be allowed to be in the baggage without payment of any duty. So for infants only used personal effects. Whereas in case first we will talk about in all first we will talk about other than Nepal, Bhutan, Myanmar, Nepal, Bhutan, Myanmar.

[00:55:22]So in case of infants in both the cases it will be only used personal effects that they can bring in the baggage without any duty. So first we will talk about this case. If a person is coming from other than Nepal, Bhutan, Myanmar.

[00:55:32]If the person is an Indian resident or a foreigner residing in India or a tourist of Indian origin three persons Indian resident or foreigner residing in India or tourist of Indian origin for these people what is the duty free allowance?

[00:55:46]First used personal effects no limit all your used personal effects like your clothes wear variables etc. So your used personal effects no limit no value limit used personal effects are completely duty free you are not you are not liable to pay anything on that travel so travel so also duty free and any other article excluding the articles in ex number one up to a value of 50,000 rupees you are not liable to pay the amount of customs duty so used personal effects duty-free travel soveners duty free no limit apart from that if any other articles are there excluding the articles which are mentioned in NXj excluding the articles mentioned in annexure one excluding these articles whatever other articles are there that you can bring them duty-free up to a value of 50,000 rupees. So what are that goods which are mentioned in an exjger one. So if you you have to remember this list firearms cat ridges of firearms greater than 50 crigs of firearms greater than 50 that means let us say for example if I'm if I'm bringing 75 cages out of that 50 cages you can keep it in the general general relevance 50 up to 50 it will come here but only whatever excess more than 50 it is there it will only be falling under an extra one that will not be counted into that general free allowance of 50,000 rupees.

[00:56:59]Okay. And similarly, cigarettes greater than 100 sticks, cigars greater than 25 or tobacco greater than 125 g that will not be allowed for general duty-free allowance. Here also I will give you an example. Let us say you are bringing cigars some costly cigarettes you are bringing. You are bringing let us say 30 cigarettes you are bringing up to 25 that can be claimed here up to 35 that can be considered for the purpose of general duty-free elements. Whatever excess five quantity is there that will not be included in the general duty-free elements. Understood? Not just that alcoholic liquor or wines greater than 2 L. So alcoholic liquor or wine up to 2 L that can be considered here that can be considered in the general free allowance of 50,000 rupees more than 2 L that will not be considered in general duty free allowance on that you will be liable to pay the amount of customs duty.

[00:57:43]Similarly, gold, silver in any form other than ornaments other than jewelry.

[00:57:47]Sir, what will be other than jewelry?

[00:57:49]Like raw gold you are bring or raw gold you are bringing uh this gold biscuits you are bringing. So that will also be not conclude not included in the articles of that general duty free allowance. Similarly flat panels LCD LED or plasma televisions. So six products in anger one six products what are they?

[00:58:05]Firearms, cartridges or firearms greater than 50, cigarettes greater than 100 sticks or cigars greater than 25 or tobacco greater than 125 g. Alcoholic liquor or wines greater than 2 L, gold or silver in any form other than ornaments, flat panel, LCD, LED, plasma television. So these will not be allowed for general duty-free allowance. Apart from that, all other articles you can bring it under general duty-free allowance up to 50,000 rupees. If value of all other articles exceeds a 50,000 rupees on that value which has exceeded 50,000 rupees you will be liable to pay the amount of customs duty at the rate of 38.5%.

[00:58:38]Clear? Able to understand sir? What if it is a foreign tourist? What if a person is coming from other than Nepal, Bhutan, Myanmar but he is a foreign tourist everything will remain the same.

[00:58:48]Used to personal effects no limit travel so no limit articles excluding NX German articles up to a value of 15,000. How much? Up to a value of 15,000 rupees only will be permitted. So for foreign tourist only 15,000 general free all events apart from used personal effects and travel soers for other than foreign tourist 50,000 rupees clear. Next other case in case if the person is coming from Nepal, Bhutan, Myanmar whoever could be the person whoever could be the person used personal effects exempted travel so no limit articles excluding NXj one up to a limit of 15,000 rupees only up to a limit of 15,000 rupees only. In case if the if the person is coming from Nepal, Bhutan or Myanmar by way of land through land if he is coming only used personal effects travel so there is no limit of that 15,000 for other articles even you are bringing 100 rupees also 200 rupees also you'll be liable to pay the amount of customs duty if you are coming by way of land from Nepal Bhutan Myanmar only used personal effects and travel soets other articles are not permitted that means permitted but not duty-free in case if you are coming by other than land then used personal effects travel soets and articles excluding NXJ1 up to a value 15,000 rupees you are not required to pay the amount of customs duty in your baggage. Understood? Clear? So this is what general duty free elements talking about rule number three and rule number four. Okay. So we have covered it. So then along with that what are the products in NX 1 also I have covered.

[01:00:07]There is something called NX2. I will come back to that later. Next we have rule five jewelry. Jewelry relevance.

[01:00:12]Sir will jewelry not come under used to personal effect? No. No it should never come. They have clearly told that in case of in used personal effect definition jewelry will not be included.

[01:00:21]So for jewelry we have separate allowances. Rule number five talks about it. So if you are a gentleman and you are a passenger residing abroad for more than one year. This allowance will become applicable only if you are a passenger residing abroad for more than one year. You should be residing in abroad for more than one year. Then only you can enjoy that rule five elements.

[01:00:37]What is it? If you are a gentleman jewelry up to a weight of 20 g with a value cap of 50,000 rupees. So there is two limits actually. Weight related limit is also there. Value is also there. So up to 20 grams or value cap of 50,000 rupees for a gentleman. In case of a lady passenger jewelry up to a weight of 40 g 40 g with a value cap of up to 1 lak. Now you have to be very careful. Let us say for example if a gentle this anyhow this weight related restrictions will not become applicable now because uh per gram the rate has increased so much today. Yes or no? So these are some old limits but I will tell you a typical scenario. Let us say if a gentleman is bringing 18 g of jewelry 18 g of jewelry up to a value of 45,000 up to a value of 40 whose value is 45,000. So how much will be the jewelry allowance? 45,000 rupees. Why?

[01:01:24]Because it is well within the limit. Let us say one person is bringing let me put it this way.

[01:01:30]One person is bringing some 25 g of jewelry up to and whose value is let us say for example whose value is 80,000 whose value is 80,000. So now I have to calculate the proportionate value of 20 g. So what will be the value of 20 g? So 80,000 into 25 divided by 20. So 85 thou 80,000 into 25 divided by 20 if I do it I will get an value sorry into 20 divided by 25. So sorry. So 80,000 into 20 divided by 25. If I do it I'm getting somewhere around 57,000. Is it so correct only just one minute here calculator is 64,000 I'm getting so 20 g of gold value is 64,000 but I have a maximum cap of how much 50,000 so how much I can how much is duty free allowance 50,000 rupees is only duty free allowance so out of 80,000 rupees only 50,000 is duty free duty free allowance remaining 30,000 rupees will be dutyable but this 30,000 can I add it in the general duty free allowance yes can I claim Claim general duty-free elements if available.

[01:02:40]Yes, for this you can claim that general duty free elements along with other articles you can mix it up. Okay. So for a gentleman jewelry up to a weight of 20 g rupees 20 g with a value cap of 50,000 for a lady passenger jewelry up to 40 g with a value cap of 1 lakh rupees.

[01:02:55]Understood? So up to this limit let us say for example within 20 g only if you are bringing let us say lady passenger is there she is bringing 1 lakh 20,000 worth of gold and weight is let us say for example 30 g only but maximum she can claim how much up to a value cap 1 lakh rupees so 1 lakh rupees only she can claim it as jewelry allowance under rule five s that excess 20,000 is there no is it dutable yes sir can I claim general duty free allowance under rule four if available yes you can claim general duty duty free allowance under rule four for this that within that 50,000 rupees within that 15,000 rupees of limit you can claim it here. But one important condition many students often miss is uh for in order to avail that rule number five jewelry all relevance the passenger must be residing abroad for more than one year. Passenger must be residing abroad for more than one year from any country. When you are residing abroad for more than one year then only you can claim the jewelry allowance under rule number five. So then we have rule number six. In addition to general elevance in addition to rule number four and five rule number three, rule number four or rule number five the person will also enjoy some special elevances under rule number six.

[01:03:55]But who can enjoy that special relevance? A person who is engaged in a profession abroad or who is a transferring or not both guys. A person who is engaged in a profession abroad.

[01:04:04]You are engaging you are engaging in some profession abroad or a person who is transferring his residence to India.

[01:04:09]Anyone not both. It is not a cumulative condition. Either you are a person uh you are carrying out some profession abroad or you are transferring your residence to India. He will be allowed duty free duty-free clearance of personal and household articles other than those mentioned in NXjier 1 or NXjier 2 but including articles mentioned in NXJ 3 up to an aggregate value as given below. So that means what they're telling in case if you are if you are engaging in some professional abroad India now you are coming to India or if you are transferring your residence to India in that case in addition to your general allowances in addition to your jewelry allowances in addition to all that even you can claim elements for personal and household articles other than those mentioned in NXj 1 or NXJ 2 including NX 3. NX 3 you need not remember just you have to remember what you cannot claim under rule six. NXjier 1 you can't claim even the goods which are mentioned in NXjier 2 also you can't claim for relevance under rule six sir what is that nxjar one we have already covered NX 1 is firearms cartridges of firearms greater than 50 cigarettes greater than 100 sticks or cigars greater than 25 or tobacco greater than 125 g and alcoholic liquor or wines greater than 2 L gold or silver in any form other than ornaments flat panel LCD LED plasma or televisions apart from that enexia 2 even these are also not permitted for free duty-free elements under rule number six so what are articles in NX2 color television video home theater system dishwasher domestic refrigerator of capacity above 300 L up to 300 L permitted above 300 L you can't claim elements under rule six deep freezer video camera plus combination with one or more so video camera with a TV receiver or sound recording or reproducing apparatus video reproducing apparatus cinematographic films of 35 mm and above gold or silver in any form other than ornaments gold or silver in any form other than ornaments So here it is double entry actually here anyhow we have covered gold or silver in any form other than ornaments once again they're trying to say it here. Okay. So apart from these articles apart from this Nexure 1 and two other personal and household items you can import it duty-free but only rule number six elements will be permitted for two persons if you are a person engaged in profession abroad or if you are transferring your residence to India but there are limits. There are limits. So if your duration of stay abroad if you are staying abroad from 3 months up to 6 months that means if you are staying up to 3 months only if your stay outside of India is within 3 months only then you can't claim any allowance under rule six your minimum period of stay should be 3 months to claim to claim this allowance under rule six. So your stay is more than 3 months but up to from 3 months up to 6 months 3 months to 6 months you are you can import those articles you can bring that articles as baggage duty-free up to a value of 60,000 up to a value of 60,000 and condition should be you should be Indian passenger and you can't bring NXj 1 Nj 2 apart from NX 1 and NX2 remaining goods you can bring remaining personal and household items next if you are staying in abroad from 6 months up to 1 year if he stay exactly 6 months will he fall under first or second exact Exactly 6 months will fall in the second case. 5 months 29 days he will fall under first case. Exactly 6 months of stay he will come to the second case. So if your stay abroad is 6 months up to 1 year then up to 1 lakh rupees of those articles apart from an extra one and two you can import personal and household articles you can bring it as a baggage without any duty and condition should be Indian passenger. If your minimum stays if you have a minimum stay of one year during the preceding two years. So if you are staying minimum 1 year abroad then you can bring these articles duty-free up to a value of 2 lakh rupees. But the condition is Indian passenger should not have availed this concession in the preceding 3 years. In the last 3 years you should not have availed any elements under rule six. You should not have claimed any allowance under rule six in the past 3 years. If that condition has been fulfilled and if you are staying for minimum one year abroad. Now when you are coming if you are a person engaging in profession abroad or if you are transferring your residence to India in that case you can bring that household and personal articles in your baggage apart from NXJ 1 and two up to a value of two lakh rupees but what is the condition here my dear students you should not have claimed this exemption you should not have availed this concession up to in the preceding three financial years in the preceding 3 years sorry okay so Indian passengers should not have availed this concession in the preceding 3 years then we have minimum stay of 2 years if you are such a person who is staying in abroad for minimum 2 years now you are transferring your residence to India. In that case, you can you can bring that articles into your baggage your personal and household articles apart from an exe one and two up to a total value of 5 lak rupees. Up to a total value of five lakh rupees.

[01:08:27]But some conditions are there. So some conditions are there. What are condition? Minimum stay should be 2 years abroad immediately preceding the date of his arrival on transfer of residence. So minimum before that date of arrival before preceding the date of his arrival minimum stay of 2 years must be there in outside of India. Sir, minimum 2 years. In between should I not come? No. In between you should come.

[01:08:47]Shortfall up to 2 months in stay abroad can be compensated by DCAC of customs if early return on account of terminal leave or vacation availed by passenger or any other special circumstances for recorded reasons. So first thing you have to stay for a minimum period of 2 years. But in case shortfall is there let us say for example if you are staying for 1 year 10 months only that 2 months can be condoned that 2 months can be accepted by AC or DC. If you could prove that you are early written that means 2 months early you are returning because of your terminal leave or vacation you have availed and any other special circumstances for recorded reasons he can compensate 2 months of shortfall or total stay in India on short visit during the two preceding years should not exceed 6 months. So they are asking me to stay minimum 2 years no sir for that 2 years should I never come to India? No you can you can come to India you can come for a short visit like some wedding is there some vacation is there something is there you will come to India no the total stay in India on the short visit during the two preceding years should not exceed 6 months whatever short visits for that you have come to India no so that short visit duration should not exceed 6 months so principal commissioner or commissioner may condone short visits in excess of 6 months in special circumstances for reasons to be recorded in writing if you are able to pro let us say for example during the 2 years period of stay outside of India you came for short visit to India but the period has exceeded 6 months. If you could prove a valid reason to them, they can condone the delay. Next one, passenger has not availed this concession in the preceding 3 years. One more condition, you should not have availed this exemption. You should not avail this concession in the preceding 3 years. For this, there is no special condition, no relaxation, you should not have claimed this in the preceding 3 years. That's all understood. So this is what rule number six allowances where if you are a person engaged in profession abroad or if you are transferring your residence to India, you can bring your personal and household articles as a package without any duty without any duty subject to certain limits. And you should bring articles other than those mentioned in anxier 1 or anjure 2. That means if you wanted to bring an exjure 1 or anxier 2 that you can't allow any that you can't get any uh allowance under rule six that will not be duty-free. And what are the value limits? If you are staying for a 3 months to 3 months to 6 months up to 60,000 6 months up to 1 year 1 lakh 1 year to 2 years 2 lakh more minimum stay of 2 years 5 lakh rupees of compensation you can claim but some additional conditions are there. So these are the additional conditions. Okay. Right. So apart from that currency if you are bringing currency under customs act currency also will be considered as goods. Under GST currency is not goods but under customs act currency will be considered as goods. Can you bring currency? Yes but as per FEMA guidelines it will be governed by the FEMA regulations and all. Next crew baggage sir what about crew baggage sir? Crew means what? This pilot air hostess these people also will bring along with them some goods and all. Sir will the same baggage rules become applicable? No. For crew baggage we have separate rules. In case of crew uh they can uh they can uh a termination of engagement for example if the crew's engagement is getting terminated let us say for example a pilot is there if his engagement is getting terminated now he's bringing the goods then normal baggage rules will become applicable till now whatever we have seen all that baggage rules will become equally applicable when when the crew when they are finally paid off on termination if your engagement is getting terminated and now you are relieving of your duties at that time if you want to bring the baggage then normal baggage rules will become applicable whereas in case of other crew that means if your contract has not yet terminated. If your engagement is not terminated in case of other crew that means your engagement is still in force.

[01:12:03]So in that cases in other crew petty items only chocolates, cheese, cosmetics etc. These kind of articles for personal or family use up to a value of 1500 per trip less than or equal to 1500 per trip they will permit you. But in case if your termination if your engagement has terminated now you are bringing the goods as a baggage normal baggage rules will become applicable. when your engagement has not yet terminated in all other cases upon each visit you will be allowed only 1,500 rupees of duty-free baggage understood that's all here so these are the baggage rules where very often we are finding the question so that's why I thought of revising it quickly clear so that's all these are some important areas which I have identified on which very frequent questions will be tested so I thought of revising it so it will be a valuation in your preparation I hope you all have recollected your provisions of the customs so from here easily you can expect from whatever 1 hour time we have spent it here, you can easily expect somewhere around 10 to 12 marks. So, hope this video would have helped you out. In case if you find this video informative, kindly kindly do consider sharing with your friends as well. Take care everyone. Bye. All the very best for your ID exam.