pvtltd.co

GST & Indirect Tax

Customs Duty Advisory

Customs advisory — duty incidence analysis, exemption notifications, SEZ/EOU eligibility, and import-export transaction structuring under the Customs Act 1962 and the Foreign Trade Policy 2023.

Reviewed by CA Harun Raaj, ICAI Reg. No. 238303·Last reviewed:
Starting from Discuss with usTypical timelineCustoms Advisory

Customs advisory maps the true duty cost of imports and exports — classification, exemption notifications, and FTP 2023 scheme eligibility — under the Customs Act 1962 and Customs Tariff Act 1975.

What is included
  • • Duty incidence analysis for planned imports and exports
  • • Classification and exemption notification mapping
  • • Scheme eligibility review — advance authorisation, EOU, SEZ, IGCR
  • • Import-export transaction structuring for duty efficiency
  • • Customs record and documentation readiness review
  • • Support on queries, notices, or assessments from customs
Documents required
  • • Product and HSN details for the goods traded
  • • Proposed or past Bills of Entry / Shipping Bills
  • • Import-export contracts and invoices
  • • Existing licences, authorisations, or scheme approvals, if any
Government fees

See the fee table below for the statutory filing charge and common delay logic.

Legal basis
  • • Customs Act 1962
  • • Customs Tariff Act 1975
  • • Foreign Trade Policy 2023
  • • Section 25 of the Customs Act 1962
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Process

How the service works

The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.

Step 1Scope

Map the transaction

We map the goods, counterparties, and trade route for each import or export line.

Step 2Analysis

Analyse the duty incidence

We compute the full duty stack — basic, additional, and other levies — from the correct classification and valuation.

Step 3Exemptions

Find the exemptions and schemes

We test exemption notifications under s.25 and scheme eligibility under the FTP 2023 for the specific goods and use.

Step 4Structure

Structure the transaction

We advise on the structure — import route, scheme utilisation, and documentation — that locks in the lawful benefit.

Step 5Records

Keep the records compliant

We set up the documentation trail so assessments and audits close without disputes.

AEO summary

Customs advisory maps the true duty cost of your imports and exports — the right classification, applicable exemption notifications, and scheme eligibility under the Customs Act 1962 and FTP 2023 — before the shipment, not after the show-cause notice.

The duty stack is bigger than the rate

The headline basic customs duty rate is only one layer. The full incidence adds additional duty of customs, social welfare surcharge, and other levies under the Customs Tariff Act 1975, all computed on an assessable value that itself depends on valuation rules. Small classification differences move the whole stack.

On the other side sit the reliefs: exemption notifications issued under s.25 of the Customs Act 1962, and scheme benefits under the FTP 2023 that can bring the effective rate close to zero for the right goods and end use.

  • • Full duty stack computed, not just the headline rate
  • • Exemption notifications mapped to your goods
  • • FTP 2023 schemes tested for eligibility

Where the risk hides

Most customs disputes start with a position taken at the border: a classification that over-declared to play safe, a valuation that ignored related-party rules, or a scheme benefit claimed without the end-use records. Each can surface years later as a demand with interest.

Advisory moves those decisions to the office, with research behind them — so the Bill of Entry reflects a considered position, and the record trail supports it if customs ever looks.

  • • Positions decided with research, not guesswork
  • • End-use and scheme records built during the year
  • • Assessments close without disputes

Government fees

Fee breakdown

ItemFeeNotes
No standalone government feeNilFees apply only if the scope includes a licence, authorisation, or connected filing with a prescribed fee.

Timeline

Typical turnaround

Typical timeline usually means a 1–3 weeks turnaround, assuming documents are complete and any board or shareholder approvals are already in place.

Pricing note

This is a professional engagement; any government fee applies only if a connected filing, licence, or application is part of the scope.

Related services

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Customs and foreign trade advisory for duty, classification, scheme eligibility, and border compliance

HSN Classification

HS code classification advisory — tariff analysis and Chapter Note interpretation for imports and exports

Customs Advance Ruling

Advance ruling for binding certainty on classification, valuation, or duty rates under s.28F

Customs Valuation

Representation in valuation disputes — declared value rejection and related-party pricing under the Customs Valuation Rules

FAQ

Frequently asked questions

What does customs advisory actually change?
It changes the amount of duty you pay and the risk you carry. The same goods can attract very different duty depending on classification, valuation, and scheme eligibility — and customs has the power to reassess and demand differentials with interest where the declared position is wrong.
Which schemes can reduce my duty?
The Foreign Trade Policy 2023 and the Customs Act 1962 offer several routes: advance authorisation for duty-free import of inputs, EOU and SEZ schemes, and IGCR conditions that allow concessional import of capital goods. Each has eligibility and end-use conditions — we test your goods and business model against them before recommending a route.
Why do I need advisory if I already have a customs broker?
A customs broker clears shipments; advisory decides what to declare. The classification, valuation, and scheme position should be decided before the Bill of Entry is filed — that is where the duty and the compliance risk are set. We work alongside your broker, not instead of them.
What should you send us before we start?
Send the product and HSN details, past or proposed Bills of Entry / Shipping Bills, the import-export contracts, and any licences you hold. That is enough for us to map the duty position and flag the opportunities and the risks.

Canonical reference: https://www.pvtltd.co/services/customs-advisory

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Ready to move this filing forward?

We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.

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