The consolidated and self-contained Customs Act, 1962 came into operation on December 13, 1962. repealing the earlier three Acts
- Sea Customs Act, 1878
- Land Customs Act, 1924 and
- the Aircraft Act, 1934
each one related to the particular mode of transportation. This whole Act provides the legal framework, guidelines, and procedures related to a particular mode of transportation. This broad Act provides the legal framework, guidelines, and procedures related to all situations emerging from the export and import trade transactions.
The primary objectives of this Act are to
- Regulate the genuine export and import trade transactions in keeping with the national economic policies and objectives,
- Check smuggling,
- Collect revenue,
- Undertake functions on behalf of other agencies,
- Gather trade statistics.
Details about the rate and nature of customs duty leviable on any item, as decided by the Central government, are specified in the First and second Schedule of the Customs Traffic Act, 1975 with regard to imports and exports, respectively.