Journal Press India^®

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Customs duties are imposed to raise revenue for the government. Apart from the revenue function, import duties provide a protective barrier for domestic industries. Radical reforms have been introduced in the import tariff since 1991. These reforms were necessary because the customs tariff had become, over the years, very complicated in terms of multiple rates, innumerable exemptions, excessive controls, and elaborate procedures. These infirmities of the customs tariff often led to delays, harassment, corruption, and litigation. Moreover, rationalisation and simplification of the customs duties was needed to move towards a market economy, freedom of trade, and opening up the Indian economy to the outside world. The country has moved towards moderate rates of taxation with a view to improve compliance and reduce litigation.

Keywords

Customs duties, Reforms, Rationalisation, Export duties

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