Cabinet approves Agreement between India and UK on Customs Cooperation

April 28, 2021

On April 28, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi approved the agreement signed between Government of India and the Government of UK. The agreement was signed on Customs Cooperation and Mutual Administrative Assistance in Customs matters.
India and UK have been signing several trade related agreements after the latter moved out of European Union.

About the Agreement

The Agreement will provide a legal framework to share intelligence and information between the customs department of the two countries.
It will help to ensure if Customs laws are abided.
It will also help in prevention and investigation of custom offences.
Also, the agreement will help in exchange of information about origin of goods traded between the countries, customs value, tariff classification, etc. It is important to learn about these information as they are included in the calculation of customs duty.

How are Customs Duties calculated in India?

The Customs Duties are calculated based on the following factors:

Place of acquisition of goods
Place where the goods were made
Material of the goods
Dimensions and Weight of the goods

Customs Duty in India

The Customs Duty in India is imposed under Customs Act, 1962 and Customs Tariff Act, 1975. The Indian Tariff System is based on the Harmonised System of Nomenclature.