Page 31 - ELT_1st August 2020_Vol 373_Part 3

INDIAN CUSTOMS LAW —
RECOMMENDATIONS FOR A REVAMP

By
Prabhakar K.S.
TAX PROFESSIONAL, FOUNDER, SHREE TAX CHAMBERS

Peace, commerce and honest friendship
with all nations - entangling alliances with none.
― Thomas Jefferson
Introduction
In light of COVID-19 a question may be asked if it is not the right time to
overhaul the six decades-old the Customs Act, 1962 and Rules. This is the right
time to align the existing Customs regime with the best international practices. In
the World Bank’s ‘Ease of Doing Business Ranking 2019’ – Trading Across Bor-
ders, India has climbed to 68th rank which rose from 80th position in 2018 and
had earlier we had been on the 46th. However, in its other report ‘Overall Logis-
tics Performance Index – OLI 2018’, India has slipped to 44th rank from the 35th
in 2016. At this juncture, the country should revisit the old Customs Law. The
following brief note is an attempt to draw the due attention of the Central Gov-
ernment to a few important Customs issues.
Central Government’s latest proposal
On 1st February, 2020, the Hon’ble Finance Minister while presenting
her first full-fledged Union Budget for 2020-21 has proposed to review the Cus-
toms Laws, exemptions granted and other issues and accordingly, on 20th July,
2020, the Central Government has sought stakeholders’ comments
(https://innovate.mygov.in/suggestions-for-review-of-existing-customs/) under two
broad heads to review the existing -
(1) Customs Laws and Procedures
(2) Customs Exemption Notifications, by on or before 21st August, 2020.
( A692323 )
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