Introduction - CBEC's Customs Manual 2025 - Customs

Chapter 1: Overview of Customs Functions 1. Introduction 1.1 Central Board of Indirect Taxes and Customs (CBIC or the Board), Department of Revenue, Ministry of Finance, Government of India deals with the formulation of policy concerning levy and collection of Customs, Goods and Services Tax (GST) and Central Excise duties, prevention of smuggling and administration of matters relating to Customs, Goods and Services Tax (GST), Central Excise, and Narcotics to the extent under CBIC s purview. The Board is the administrative authority for its subordinate organizations, including Customs Houses, Customs Preventive Commission rates, Central Goods and Services Tax (CGST) Commission rates and the Central Revenues Control Laboratory. 1.2 The important Customs related functions include the following: (a) Collection of Customs duties on imports and exports as per the Customs Act, 1962 and the Customs Tariff Act, 1975; (b) Enforcement of various provisions of the Customs Act, 1962 governing imports and exports of cargo, baggage, postal articles and arrival and departure of vessels, aircrafts etc.; (c) Discharge of agency functions and enforcing prohibitions and restrictions on imports and exports under various legal enactments; (d) Prevention of smuggling including interdiction of narcotics drug trafficking; and (e) International passenger clearance. 1.3 Customs functions cover substantial areas of activities involving international passengers, general public, importers, exporters, traders, custodians, manufacturers, carriers, port and airport authorities, postal authorities and various other government and semi-government agencies, banks etc. 1.4 Customs is continuously rationalizing and modernizing its procedures through adoption of EDI and global best practices. Also, as a member of the World Customs Organization, Indian Customs has adopted various International Customs Conventions and procedures including the Revised Kyoto Convention, Harmonized Classification System, GATT based valuation etc.