With the rising prominence of international trade, there is a growing need for businesses to adhere to customs laws and seamlessly handle customs compliances to avoid any interruptions in business. Right from the incorporation of a business entity to obtaining registrations and operating your business, it is essential to stay compliant with the applicable laws and regulations to avoid any penal consequences. Reconfiguration of supply chains, certifications, investigations – let’s take a detailed look at what customs act advisory services encompass.
Customs Act Advisory Services – Detailed Overview
- General Advisory
Helping businesses seamlessly navigate through the complex international business environment. This involves consideration of several factors like transfer pricing, international tax, supply chain management and understanding of global trade practices.
- Implications of Laws and Regulations
Understanding the implications of various laws and regulations applicable to your export-import business. This normally includes the Customs Act and Rules thereunder, Foreign Trade Policy, Foreign Exchange Management Act and Regulations thereunder etc. Important parameters include understanding applicable taxes, time limits for exports/payments, valuation of goods etc.
- Investigation and Review Assistance
The government has placed assessments and compliances at various stages to ensure transparency in export and import transactions. Businesses need to have better internal controls to stay compliant with the changing requirements. There can be instances of enforcement actions like reviews and investigations administered by the customs house. Having skilled support and assistance through customs advisory services is important to navigate seamlessly through the investigation and review procedures.
- Certifications and Registrations
There are various certifications and registrations involved in an import-export business. This involves GST registration, Import-Export Code (IEC) registration, Authorised Economic Operator (AEO) registration etc. Businesses are required to identify the applicability of specific registrations, conduct eligibility assessments, file applications, liaison with the relevant authorities and adhere to the post-registration compliances.
- Supply Chain Reconfiguration
Businesses often need to reconfigure their supply chains to reap maximum benefits as per contemporary laws. It is important to engage experts having a thorough understanding of not only the applicable laws but also the modus operandi of international trade so that your business supply chain is well-aligned and operates smoothly. This assists in ensuring financial safeguards for your business, reducing tariff costs, availing of the benefit of international trade agreements etc.
- Dispute Resolution
Litigation and disputes can result in significant loss of time, resources and reputation. Disputes can occur between the transactional parties or even between the taxpayer and the customs and taxation department. In either case, it is important to present a strong case and avail of remedies swiftly to avoid prolonged litigation. Common subject matters in disputes and litigations often include customs classification, transfer pricing, valuation of goods, duty benefits under trade agreements, confiscation of goods, suppression of facts, mis-declaration etc.
- Refunds and Drawbacks
Taxpayers engaged in the export business often become eligible for refunds and drawbacks under different schemes. However, the process may take a lot of time and effort, especially when done haphazardly. It is important to be diligent while applying for a refund, understand the implications of provisions and regulations and swiftly resolve any queries that may occur. You can apply for refunds under the GST law or duty drawback to claim a refund of the import duties.
FAQ
If you are planning to start an import or export business or already doing one, the major laws you need to comply with include the Customs Act and regulations, Foreign Exchange Management Act and GST law and rules there under.
Best Customs advisory and compliance services are of utmost importance for any business engaged in import and export business. The international trade environment is filled with complexities at various stages and availing of expert professional services is important to seamlessly navigate through this environment.
Duty drawback basically involves a refund of the import duty paid at the time of import of goods for the purpose of re-export or usage in the goods meant for export.
Failing to comply with the requirement of customs laws, regulations and any other law applicable can significantly obstruct your business operations including the levy of significant fines and penalties.