Crypto Payments, E-Commerce And 3D Printing Pose Challenges To Customs Act: CBIC

The Customs Act is adaptable and resilient in meeting the needs of the time, even in the face of new generational social, legal and technological challenges, according to Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs.

The act serves three functions—collection of revenue, border control and facilitating legitimate international trade in goods, said Johri, while speaking at an event commemorating the 60th year of the Customs Act of 1962.

Johri highlighted the change in role of customs from revenue generation to trade facilitation. The share of custom duties in the total indirect tax revenue was about 44% in 1990-91, before dropping to 26% in 2016-17 and 13-14% (excluding IGST) in the period post-GST implementation.

“Customs duty and law is no longer viewed as a source of revenue but meant to subserve other objectives,” he said.

Growth in taxes, particularly GST, has been buoyant with collections for November remaining above Rs 1.4 lakh crore for the ninth straight month.

The department has achieved a balance between enforcement and trade facilitation, which is seen from the drop in overall release time of cargo, he said.