Before floating a business of importing and exporting, one needs to have a cognisance of customs data and customs duty which is levied by the Government. Customs duty is basically a tax or duty or payment which has to be made to the government for facilitating import and export of goods and commodities. It is levied on certain items. It is generally realised as a percentage with respect to the volume of goods and services exported or imported.
Customs duty is levied by the customs which is a department under Ministry of Commerce controlling and regulating the flow of commodities like animals, personal items etc. in and out of the country. They form a major part of the revenue of the government. The data regarding the custom duties levied on different goods plays an important role in deciding the importing or exporting good for the trader. Several customs data are available on the custom duties levied on the different commodities. There are custom duties levied on import and export of live animals. The live animals include live horses, asses, mules and hinnies which do most of the mechanical, loading and transportation work. The custom duties of poultry, sheep and goats are also made available. The customs data also includes the duties levied on trade of fish, molluscs and other aquatic species.
Custom duties are levied on live trees and other plants, edible vegetables and certain roots and tubers, edible fruits and nuts; on other crops like coffee, tea, mate and spices, cereals, milling industry's products like malt, starches and on oilseeds and oleaginous fruits. Some items are traded in large amounts and thus the customstake proper care of the transactions and no illegal methods of trading or smuggling take place. The trade of prepared foods like sugar confectionery, beverages, cocoa preparations, preparations of vegetable as well as meat, tobacco manufactured products, prepared cereals are also charged under custom duty by the Customs. Mineral products like ores and slag, chemical products, plastics and articles, leather materials, wood products, textiles and textile articles, umbrellas, stone articles, cement, plaster, precious stones, base metals and base metal articles and many other commodities are charged under customs duty.
The customs data is helpful in ways to new businessmen so that they can ponder and deliberate on the commodities they want to trade in. The trader has to follow some definite rules and stipulation. Some exemptions are granted to the traders on the custom duties on some commodities like the Accessories Rules 1963, Notice of Short Export Rules 1963, prevention of export and import of specified goods 1969, and Customs Rules 1975 etc.