Role of Customs in International Trade - Customs Act,1962, Indirect Tax Laws Video Lecture | Indirect Tax Laws - B Com

hello today we got to be talking about
the role of customs in international
trade
anybody have done any business which is
crossing a border knows there is a two
borders to cross one exiting from your
country which you are manufacturing of
goods or producing it and then entering
to another country so it is to another
custom or a border to cross and there
are two customs you are involves not one
custom and they all have got their own
regulations so it's actually impossible
to talk about the custom tariffs and
regulations in a global way because just
each one is different but they all
follow certain rules not the role of
custom itself is not just child checking
the goods and getting tariffs collecting
money they are there to to facilitate
trade to make it as easy as possible for
it to move I know they will be seen as
people who actually stop it no they they
try to get it to move as fast as
possible and obviously on behalf of the
government they would do their best to
collect the revenue according to the
tariffs and quotas also they are there
to come to to protect the community from
allowing the undesirable goods illegal
goods that is smuggling there are two
parts of one goods which are illegal to
come in narcotics and then there are
goods which have to pay tariffs and they
are coming under different quotas or
different names so they are there to
protect the community both from
dangerous goods to come into the country
and also Goods coming on the wrong coat
and are there to obviously secure the
national securities because obviously
they cover people as well as the goods
as you know so so don't don't look at
customs just as a barrier to another
there to facilitate a movement of the
goods as fast as possible considering
the job needs need to be done within the
NL to protect a community more effective
the customs work in any country it will
help actually there I'm enhance the
national competitiveness of that country
easier to move the goods can move in and
out of the country it makes it easier
for the investors and a businessman
people to work with that country now
regardless of which custom you you know
you we are facing which you know border
you are crossing there are some good
practices you can do to improve your
situation and movement and ease the
movement of your goods and that is by
its very simple actually provide as much
as possible accurate information that
that's the key to makes the remember the
custom officer doesn't even see you
doesn't know who you are is looking at
pieces of paper which are your
documentation your your shipping list or
packing list or your your invoice your
certificate of origin and different
inspection sheets so all those documents
they export are their custom officer is
gonna be looking at that's where he
starts he doesn't see you he doesn't
know who you are he doesn't want to know
who you are but he wants to see what are
they what are these goods in these packs
where is it coming from where is it
going to what's the intended use for it
and so on so you more of these
information you put on your invoice and
your documentation easier it is for them
to make a decision to move forward and
saw that you're good they really the
passport for your shipment for your
goods is your commercial invoice so it's
like your individual passport if you're
crossing a border and Border Agency
people look at your passport and is your
picture doesn't match your face or your
detail doesn't matter you would be
delayed at least your goods are the same
way so make sure your commercial invoice
is complete we have got under course
samples of these and you can see what we
mean by having their your commercial was
properly done now the next item which is
very important is your commodity
classification code now every country
their customs have got classifications
for goods and they can go very detailed
like is not like you know shirts men's
shirts it says men's shirts with fabric
so many percentage cotton so many of you
strangers risk us made like this flying
saucer so it really break them closer
you can get the classification goods to
your goods to sure describe your sure
easier it is for you to work out how
much the custom and tariffs and quotas
would be and also make it easier for the
custom officers to say yes the goods are
correctly classified or not if not they
will reclassify it for you so don't
don't don't try to remember they are
expert in these things I wouldn't try to
pull a fast one on them on your
documentation has to show who is the
consignee that's who is receiving the
goods
who is it sold to now they can be are
usually the same people because the same
person who paid for has got it but it
can be different so the consignee the
person who is receiving the boot can be
different from a person who paid for it
but it has to be clear there are certain
thing if you are operating in Europe and
UK for example you need to have a v80
number for the of the receiver
of the recipient of the consigning for
example there are a custom registration
numbers for example there are some codes
I mean like you have to look at in that
country what are the regulations there
but they are usually a v80 number in
Europe all over Europe and there is a
custom registration number which that
means that company is registered with
custom to bring goods into the country
and they are called differently in
different countries but that is
something you may include in your you
know shipping documents who is the
shipper that means who is sending the
goods so the customer wants to know who
is sending it who is receiving it so
identity of these two people has to be
very clear now then we come to the goods
themselves the value of the goods has to
be correctly put there undervalued you
know some people may under value the
goods to get a lesser tire sort of
custom duties it be careful about those
things because customer customs knows
about the custom prices of these they go
through you know thousands and thousands
of shipments every day so they can
override it and they can not only charge
you the correct amount of money also
they can find you as well or more so the
value of the goods have to be correctly
there if it is a sample or the goods
which are not sellable you can say
resale value is zero it has got a value
but there is no resale value for it and
customer AK may accept it and not charge
beautifully
also the description of the content the
goods
it has must definitely include what's
the product yeah what is it for what the
material is made of you know is it
cotton it is viscose is it steel iron
titanium you know they they they have
got a effect on the tariff so has to
have a clear description of the material
of the goods made the correct
classification of the product obviously
we talked about it the right codes were
the intended use of the product
yeah kitchen knife
it says that is this is a knife but it
is for kitchen and for cutting bread
although it can be used for many other
things like a can be a weapon but it is
not a weapon but you can have a knife
which is a hunting knife that means is
intended for hunting or you got a knife
which is for military that is a weapon
them so although is it's his knife but
it has got different intended use I'm
not gonna go to more example of that I
think you got the point on that one the
country of manufacture manufactured now
nowadays the goods can be moving around
quite a lot you have to find out what's
the definition of country of manufacture
in in the country which is sending the
goods and your own country as well so if
in your own country that is you get the
manufacture license that means although
I'm bring these pieces together
assembling it here now I can say made of
X made in X that means my country then I
can send it as a goods manufactured in
your country to the destination country
say your numbers and parts are very
important if he's up obviously if you
got sending apples for example doesn't
have a serial number the quantity and
the units of measure like you know is it
kilograms and or is it boxes and in each
box is so much and in each container is
so much so the quantities and units
which is measured has to be clear there
the value of per unit and value for
total has to be there
finally the country of origin obviously
you would have a certificate for that
this is that is the product is
originated in this country now there is
other things as well I mean if you're
exporting the goods it is quite possible
for some goods you need final
destination you need to have possibly
then certain booze the end user who is a
specific end user
what they're going to use it for you may
need export license there are many
products which have got more than one
use like knife we talked about so we
call it duality of use and so one
product can be acceptable under one
circumstance is to be shipped into the
country eggs and in another
circumstances in another usage situation
cannot be and that's we've got a product
which can be used for more than one
purpose so the duality of use in that
cases probably you need to go to the
appropriate organization in your country
to get the export license that's a
permission to send the goods out
otherwise the customer wouldn't let you
to send you out or the forwarder
wouldn't take it forward to the country
of destination so that was the taxation
there's a lot more about taxation but it
is very specific to the country which
you are operating but these information
already available either on internet in
UK you can go and find the codes and
tariffs and everything online and in
other countries if it's not online most
of them are they would have the books
for it so we can go and find it and
they're experts with regard to these
tariffs and clear and sort of custom so
eventually probably you would use an
expert but I mean it is important for
you to understand what you're doing is
wrong so I will suggest you do read
these tariffs books and the customs
regulations thank you very much