Customs Tariff, IGST Foreign Trade Policy (FTP) important practice areas for a Cost Accountant (CMA)

1. Three major areas of professional practice

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A. Customs Tariff & Customs Act, 1962

  • Customs classification (HSN/HS Code)
  • Basic Customs Duty (BCD)
  • Social Welfare Surcharge (SWS)
  • Valuation of imported and exported goods
  • Customs exemptions and notifications
  • Advance Ruling and classification disputes
  • Customs audits, assessments and appeals

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B. IGST on Imports & Customs

  • IGST on imported goods
  • Import IGST calculation
  • Input Tax Credit (ITC) on imports
  • Bill of Entry reconciliation
  • Reverse Charge Mechanism (RCM)
  • GST refund and export-related benefits
  • GST compliance for importers and exporters

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C. Foreign Trade Policy (FTP)

  • DGFT registration and IEC
  • Advance Authorisation Scheme
  • EPCG Scheme
  • RoDTEP Scheme
  • Export Promotion Capital Goods
  • Export obligations and compliance
  • SCOMET regulations
  • Import-export documentation

2. Important laws and regulations to master

AreaPrincipal legislation
CustomsCustoms Act, 1962
Customs DutyCustoms Tariff Act, 1975
Import IGSTIGST Act, 2017 – Section 5(1)
Import valuationCustoms Valuation Rules, 2007
Foreign TradeForeign Trade (Development & Regulation) Act, 1992
Foreign Trade PolicyFTP 2023 and amendments
Import-export classificationITC (HS) 2022
Export incentivesRoDTEP, Advance Authorisation, EPCG

3. Practical calculation of import duty

Illustrative example:

Assume the following import transaction:

ParticularsAmount
Assessable value₹10,00,000
Basic Customs Duty (10%)₹1,00,000
SWS (10% of BCD)₹10,000
IGST (18%)₹1,99,800
Total customs duty₹3,09,800

IGST calculation:

(10,00,000+1,00,000+10,000)18%

Illustrative total ₹3,09,800

Actual duty depends on applicable tariff classification, exemptions, trade remedies and notifications. Eligible import IGST may be available as ITC subject to GST provisions.

4. Important professional services you can offer

ServicePotential clients
HS Code classificationManufacturers and importers
Customs duty calculationImport-export businesses
Customs exemption advisoryIndustrial companies
Import IGST and ITC auditGST-registered importers
Advance Authorisation complianceExport manufacturers
EPCG compliance and redemptionCapital goods importers
RoDTEP advisoryExporters
DGFT licensingImporters and exporters
Customs audit and litigation supportTrading and manufacturing companies
Export documentation reviewExport houses