Customs is where India’s trade regulation bites hardest. Every import and export is classified, valued and assessed, and the duty, the documentation and the compliance position can be revisited long after goods have cleared. For businesses trading along the India–UAE corridor, getting customs right is the difference between predictable landed costs and unexpected demands, holds and penalties.
ATB Legal advises importers, exporters, manufacturers and traders on India customs compliance and on the disputes that follow – classification and valuation, faceless assessment, related-party pricing, investigations and show-cause notices, and appeals through to the Tribunal. We act both to keep clearances clean and to defend demands when they come.
1. The India Customs Framework
Imports and exports are governed by the Customs Act 1962, administered by the Central Board of Indirect Taxes and Customs (CBIC). Goods are classified under the Customs Tariff Act 1975 using the Harmonized System of Nomenclature (HSN), and a typical import attracts several levies: Basic Customs Duty (BCD), IGST under the GST law, the Social Welfare Surcharge (generally 10% of the aggregate customs duties), and, on notified goods, the Agriculture Infrastructure and Development Cess (AIDC).
The combined effect of these levies – and the classification and valuation that drive them – determines the landed cost. ATB Legal advises on the duty position for specific goods and on the compliance steps that keep clearances predictable.
2. Classification & Valuation
Two questions drive almost every customs outcome: how goods are classified under the HSN, and how they are valued. Valuation is governed by the Customs Valuation Rules 2007, with transaction value – broadly the price paid or payable, adjusted as the rules require – as the primary basis. Where the importer and the overseas supplier are related, the import is referred to the Special Valuation Branch (SVB), which examines whether the relationship has influenced the price.
Classification disputes and SVB proceedings are among the most consequential customs issues, because they affect every consignment of a product line. ATB Legal advises on classification and valuation positions, on SVB references for related-party imports, and on evidencing the position so it holds up on audit.
3. Clearance, Faceless Assessment & Post-Clearance Audit
India assesses most imports through faceless, anonymised assessment – consignments are routed by the Risk Management System to remotely located officers rather than the port of entry. Clearance is not final: post-clearance audit allows customs to scrutinise classification, valuation and origin after goods are released, and to raise demands for any shortfall.
ATB Legal advises on clearance and documentation, on responding to faceless-assessment queries, and on post-clearance audits – including the recurring exposures that a single classification or valuation view can create across past imports.
4. Import/Export Compliance & Restricted Goods
Not all goods move freely. Under the ITC(HS) schedule, goods are Free, Restricted, Prohibited or channelled through State Trading Enterprises, and restricted items need a DGFT authorisation before import. Export controls, licensing and the Importer-Exporter Code sit with the DGFT regime, addressed on our DGFT and SCOMET page, and preferential duty under the India–UAE CEPA is addressed on our India–UAE CEPA page.
ATB Legal advises on whether goods are freely importable or restricted, on the authorisations required, and on the interface between customs clearance and the other approvals – product standards, licences and origin – that a consignment may need.
5. DRI Investigations & Show-Cause Notices
Customs enforcement in India is led, for significant matters, by the Directorate of Revenue Intelligence (DRI), which investigates suspected duty evasion and misdeclaration and issues show-cause notices under Section 28 of the Customs Act. Following a Supreme Court ruling in late 2024 restoring DRI officers’ authority to issue such notices, a large volume of demands has been revived – making a considered response to a DRI notice more important than ever.
ATB Legal advises on responding to DRI investigations and show-cause notices – the factual and legal reply, the classification or valuation defence, and the conduct of the adjudication – with the aim of resolving exposure at the earliest effective stage.
6. Duty Demands, Penalties & Disputes
A customs dispute typically crystallises in a demand: differential duty on a reclassification or revaluation, often with interest, penalty and, in some cases, confiscation or a redemption fine. These can arise at assessment, on audit, or from an investigation, and they frequently reach back across earlier consignments.
ATB Legal assesses the merits of a demand, frames the response, and pursues the available remedies – and, where the position is sound, defends it through to the Tribunal rather than conceding avoidable liability.
7. Appeals & Advance Rulings
Customs decisions can be challenged through a defined route: from the adjudicating officer to the Commissioner (Appeals), then to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), with further appeal to the High Court or Supreme Court on questions of law. For certainty before importing, the Customs Authority for Advance Rulings (CAAR) can rule on classification, valuation or origin questions in advance, with appeals from CAAR going to the High Court.
ATB Legal advises on the appeal strategy and represents importers through the objection, appeal and advance-ruling processes – choosing, where it helps, to fix the position prospectively through an advance ruling rather than litigate each consignment.
8. Our Process
A typical engagement runs in four steps: a review of the goods, the classification and valuation, and the trade flow; advice on the compliance position before goods move, including SVB and any authorisations; support at clearance and on faceless-assessment and audit queries; and representation in investigations, demands and appeals when they arise. Corridor matters are coordinated with our UAE customs team. Remote handling is available throughout.
Frequently asked questions
What duties apply to imports into India?
Most imports attract Basic Customs Duty, IGST under the GST law, the Social Welfare Surcharge (generally 10% of the aggregate customs duties), and, on notified goods, the Agriculture Infrastructure and Development Cess. The total depends on the product’s classification and value, and preferential rates may apply under the India–UAE CEPA. We advise on the duty position for specific goods.
How are imports classified and valued in India?
Goods are classified under the Harmonized System (HSN) in the Customs Tariff Act, and valued under the Customs Valuation Rules 2007, primarily on transaction value. Both drive the duty and are common sources of dispute, so we advise on the position and on evidencing it before goods move.
What is the Special Valuation Branch (SVB)?
Where an Indian importer and its overseas supplier are related, the import is referred to the SVB, which examines whether the relationship influenced the price. We advise on SVB references – the submissions, the evidence and the renewals – for related-party imports, which are common in corridor group structures.
What is faceless customs assessment in India?
India routes most import assessments through a faceless, anonymised system, with consignments allocated by the Risk Management System to remotely located officers rather than the port of entry. We advise on responding to faceless-assessment queries and on resolving the issues that hold up clearance.
Can the DRI issue customs show-cause notices after the 2024 Supreme Court ruling?
Yes – following a Supreme Court ruling in late 2024 restoring the Directorate of Revenue Intelligence’s authority to issue show-cause notices under Section 28, DRI notices are being pursued and previously revived demands taken forward. A considered, timely response matters, and we advise on it.
How is a customs duty demand appealed in India?
Yes – through the appeal route: the Commissioner (Appeals), then CESTAT, with further appeal to the High Court or Supreme Court on questions of law. We assess the merits, frame the response, and represent the importer through the process.
What is a customs advance ruling (CAAR)?
A ruling from the Customs Authority for Advance Rulings on a classification, valuation or origin question, obtained before importing, which gives certainty and avoids repeated disputes; appeals from CAAR lie to the High Court. We advise on whether an advance ruling is worthwhile and on obtaining it.
Are some goods restricted from import into India?
Yes. Under the ITC(HS) schedule goods may be Free, Restricted or Prohibited, and restricted items need a DGFT authorisation. We advise on whether goods are freely importable and on the authorisations and approvals required (see our DGFT and SCOMET page).
Can preferential CEPA duty be claimed on imports into India?
Yes, where the goods meet the CEPA rules of origin and the proof-of-origin and CAROTAR requirements are satisfied. The origin position must be defensible, not merely papered – this is covered on our India–UAE CEPA page.
Can you coordinate India customs with the UAE side of a shipment?
Yes – with offices in both, we coordinate India customs with UAE clearance and origin advice so a corridor shipment is handled consistently end to end, in one relationship.
⭐ Representative Experience (anonymised)
An importer facing a reclassification demand on a product line was advised through the show-cause and adjudication process, with the classification position evidenced and defended on appeal.
A group importing from a related overseas supplier was advised on its Special Valuation Branch reference, aligning the transfer-pricing and customs-valuation positions.
A corridor business was advised on a DRI investigation into past consignments, with the response framed to resolve the exposure at adjudication.
🏆 How we work
- Full-cycle customs – classification, valuation and SVB, clearance and audit, investigations and appeals – not just one stage.
- Dispute-capable – DRI investigations, show-cause notices, duty demands and CESTAT appeals handled, not only routine clearance.
- Related-party fluent – SVB and the customs-valuation and transfer-pricing interface for group imports.
- Certainty options – CAAR advance rulings used to fix classification or valuation prospectively where it avoids repeated disputes.
- Corridor coverage – India customs coordinated with UAE clearance and CEPA origin in one relationship.