Customs Act was formulated in 1962 to prevent illegal imports and exports of goods. Customs duty are oldest form of taxation in India. Customs duties are old as international trade itself. Domestic production provides base for excise taxation and international trade are the basis for customs duties.
Import Duty of Taxable Event:It is the day of crossing of customs barrier and not on the date when goods landed in India and entered territorial waters.
Export Duty of Taxable Event: It is the day of crossing the customs barrier, but Export is complete when it crosses territorial waters.
All goods which are imported into India are chargeable to a duty under Customs Act, 1962. Some basic acts for levy and collection of customs duty contains various provisions related to imports and exports of goods as well as baggage of persons. The main purpose of Customs Act, 1962 is to prevention of illegal imports and exports. This act extends the whole of the India. Under this Act, goods exported from India are chargeable to export duty.