1. The Customs Act, 1962: The Customs Act.

1962 is the basic Act for levy and collection of customs duty in India. It contains various provisions relating to imports and exports of goods and merchandize as well as baggage of persons arriving in India. The main purpose of Customs Act, 1962 is the prevention of illegal imports and exports of goods. 2. The Customs Tariff Act, 1975: The Customs Duty is levied on goods imported or exported from India at the rates specified under the Customs Tariff Act, 1975.The Act contains two schedules - Schedule 1 gives classification and rate of duties for imports, while schedule 2 gives classification and rates of duties for exports Nature of Custom Duty: The levy of duty on imports and exports is subject matter of Union and the parliament derives power to make laws related to the duties of customs. The Customs Act, 1962 was enacted by the Parliament. Duties of customs shall be levied at such rates as may be specified Under the Customs Tariff Act, 1975 or any other law for the time being in force, on goods imported into or exported from India. Goods become liable to duty if there is import into and export from India. Type of customs duties: 1. Basic Customs Duty All goods imported into India are chargeable to a duty under Customs Act, 1962 .The rates of this duty, popularly known as basic customs duty. 2. Additional (Countervailing) Duty of Customs This countervailing duty is leviable as additional duty on goods imported into the country and the rate structure of this duty is equal to the excise duty on like articles produced in India. 3. Cesses Cesses are leviable on some specified articles of exports like coffee, coir, lac, mica, tobacco (unmanufactured), marine products cashew kernels, black pepper, cardamom, iron ore, oil cakes and meals, animal feed and turmeric. These cesses are collected as parts of Customs Duties. 4. Special Additional Duty of Customs 5. Anti Dumping Duty Often, large manufacturer from abroad may export goods at very low prices compared to prices in his domestic market. Such dumping may be with intention to cripple domestic industry or to dispose of their excess stock. This is called dumping'. In order to avoid such dumping, Anti Dumping Duty was levied. 6. Protective Duties This duty may be levied if Tariff Commission is of the opinion that the import of certain goods is causing injury to the interest of the Indian industry. 7. Export Duties

Goods exported from India are chargeable to export duty and the rate at which the duty is levied are given in the customs tariff act,1975 8. Duty on Bounty fed Article The Central Government may impose additional import duty in case a foreign country subsidizes its exporters for exporting goods to India. It would be equal to the amount of such subsidy or bounty.