Why is Classification necessary for imports?

Classification is necessary for imports to determine

  • rate of duty,

(a) Different rates on different goods

(b) Applicability of import controls or restrictions (whether import of goods is allowed or not)

(c) Applicability of anti-dumping duty, safeguard duty etc.,(These customs duty are imposed only on certain types of goods)

(d) Benefits of duty exemption notifications.

(Certain goods are exempted by government by issuing exemption notification)

 

Why is Classification necessary for exports?

Classification is necessary for Exports to determine

  • Rate of duty
  • Amount of export benefits like drawback
  1. Indirect Tax
  2. Customs
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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