Customs & Foreign Trade Policy (FTP) Ready Reckoner

V. S. Datey

Customs & Foreign Trade Policy (FTP) Ready Reckoner, now in its 28th continuously maintained Edition, is a single-volume treatise that consolidates the entire body of Indian indirect tax law on cross-border trade into one work. It is the standard desk reference and has been the basis of written submissions, legal opinions, and departmental guidance for nearly three decades.

The book takes the reader through the full statutory edifice of India's Customs and trade regime—the Customs Act 1962; the Customs Tariff Act 1975 (both Schedules, including the CVD, Anti-Dumping, Safeguard, and CVD-on-subsidised-goods machinery); the Foreign Trade (Development & Regulation) Act 1992 and Rules thereunder; the Special Economic Zones Act 2005 and SEZ Rules 2006; the International Financial Services Centres Authority Act 2019; and the Foreign Trade Policy 2023 together with the Handbook of Procedures (HBP). It weaves into this structure the subordinate framework of valuation rules, baggage rules, courier regulations, customs broker licensing regulations, warehousing regulations, MOOWR, drawback rules, SEZ rules, RoDTEP/RoSCTL schemes, SCOMET controls, and the Provisional Collection of Taxes Act 2023.

The law stated is current as of the Finance Act 2026, and the text incorporates all consequential changes notified by the CBIC and the DGFT up to the cut-off, including the newly notified Baggage Rules, 2026 and the Customs Baggage (Declaration and Processing) Regulations 2026 (effective 2nd February 2026). The CBIC's Customs Manual 2025 (released in supersession of the 2023 Manual and updated to 1st February 2025) is cross-referenced throughout the book at the relevant paragraphs.

The Reckoner is designed for readers who need to work with both the underlying statute and the operating circulars simultaneously:

Tax Advisors, Chartered Accountants, Cost Accountants, Company Secretaries, and Advocates advising importers, exporters, freight forwarders, and Customs brokers on duty optimisation, classification, valuation challenges, refund claims, scheme eligibility (AA/DFIA/EPCG/RoDTEP/RoSCTL), and litigation at every appellate level

In-House Tax and Trade-Compliance Teams of manufacturers, trading houses, e-commerce operators, Free Trade Warehousing Zones, Status Holders, SEZ units, EOUs/EHTP/STP/BTP units, and IFSC entities

Customs Brokers (CBs/CHAs) and Logistics Professionals handling Bill of Entry and Shipping Bill filings, customs bonds, warehousing operations, drawback, and AEO compliance

Officers of the CBIC, DGFT, DRI, SVB, SEZ Development Commissioners, and IFSCA needing an organised, section-by-section reference to statute, rule, circular, manual, and case-law on any point of Customs or FTP practice

Trade Bodies, Exporters' Associations, Consultants, and Policy Researchers tracking FTA/PTA implementation, rules of origin, SCOMET dual-use controls, export promotion incentives, and ease-of-doing-business initiatives

Candidates Preparing for the CA Final, CS Professional, CMA Final, Departmental Examinations (Inspector/Superintendent/Appraiser), and LL.M. (Taxation) programmes, where Customs and FTP form part of the syllabus

The Present Publication is the 28th Edition | 2026, amended by the Finance Act 2026. It is authored by Mr V.S. Datey, with the following noteworthy features:

[Three-Tier Integrated Treatment at Every Paragraph] Statutory text (Act and section number) → subordinate legislation (rule, regulation, notification number and date) → administrative guidance (CBIC circular, CBIC Customs Manual 2025 chapter and paragraph, DGFT policy circular, MCI-DC(SEZ) instruction, RBI circular) → leading judicial authority. This four-layer citation density is the book's defining feature and is what allows it to be used directly in written submissions

[Extensive Case-Law Commentary] It is woven into the narrative at the point of discussion, drawing on Supreme Court Constitution Benches (M. Jhangir Bhatisha, J.V. Gokal), 3-member Supreme Court benches (Apar P. Ltd., Kiran Spinning Mills, Garden Silk Mills, LML, Jain Brothers), High Court Division Benches, CESTAT decisions, and recent pronouncements, including Union of India v. Mohit Minerals (P.) Ltd. on extra-territorial legislative competence

[Author's Editorial Notes and Interpretative Critique] Where the text draws attention to conflicting judgments, departmental positions that may not survive judicial scrutiny, or practical difficulties (e.g., commentary flagging that the Bombay High Court ruling in V.M. Salgaocar may not have had Section 16 brought to its notice)

[Paragraph-Numbered Drafting] It enables precise cross-referencing within the book and in opinions, replies to Show-Cause Notices, and written submissions before adjudicating authorities and Tribunals

[FTP Paragraph-Level Citation Throughout Chapters 42–61] This book maps the commentary directly to paragraphs of FTP 2023 (e.g., Para 4.09, 4.12(i)–(iv), 4.16, 4.20, 11.14) and Handbook of Procedures (e.g., Para 4.06, 4.07, 4.60), as well as to Customs notifications issued in the FTP machinery (e.g., Notification Nos. 21/2023-Cus, 24/2023-Cus dated 1-4-2023 with paragraph-level references)

[Cross-Comparison with the CGST Act at Multiple Points] It highlights where Customs and CGST share conceptual architecture (transaction value, related persons, unjust enrichment, short-levy recovery, advance ruling, search & seizure, arrest & prosecution), which is particularly useful for indirect tax practitioners handling both regimes

[Section-Wise Index to the Customs Act 1962] It runs across multiple pages, mapping every section (including inserted, amended, and omitted sub-sections, and lettered sections such as 2(28A), 11B, 11I, 28J, 56A, 151A) to the paragraph numbers where each is analysed. This enables section-first navigation from statute to commentary

[Glossary of Acronyms] It covers the full operating vocabulary of Customs and FTP practice.

[Comprehensive Subject Index] It is incorporated at the end for topic-first lookup

[Current CBIC Customs Manual, 2025 integration] The 2025 Manual (updated to 1st February 2025, superseding the 2023 Manual) is cited in the relevant paragraphs throughout, with chapter and paragraph references

The Reckoner is organised into 61 chapters and structured as follows.

Division A — Customs Law (Chapters 1–41)

Foundational Framework (Chapters 1–2)

Constitutional basis of Customs duty (Entry 83, List I), charging sections (Section 12 of Customs Act; Section 3 of Customs Tariff Act), taxable events for imports and exports, innocent passage under UNCLOS, duty on free replacements and free supplies, and the Provisional Collection of Taxes Act 2023

All duties of Customs: Basic Customs Duty, IGST on imports, Social Welfare Surcharge, Road and Infrastructure Cess, Additional Customs Duty under Sections 3(1)/3(3)/3(5), Anti-Dumping Duty, Countervailing Duty on subsidised goods, Safeguard Measures, NCCD, Education Cess, Export Duty, and the abolished GST Compensation Cess on imports

Classification (Chapters 3–4)

Customs Tariff Act architecture, the Rules for Interpretation (GIR), application of GIR in the Tariff, conflict between headings, classification of parts, HSN/ITC(HS), trade parlance theory, relevance of end-use, and burden of proof

Valuation (Chapters 5–7)

Transaction value, WTO Valuation Agreement, rate of exchange, inclusions and exclusions from assessable value, valuation of second-hand machinery and old motor cars, declaration obligations of importer, and the five successive alternative methods (identical goods, similar goods, deductive, computed, residual)

Valuation of export goods, rejection of declared value, and over-invoicing/mis-declaration.

Assessment and Administration (Chapters 8–9)

Self-assessment, provisional assessment and its finalisation, interest on provisional assessment, best-judgment assessment, the doctrine of no res judicata in taxation, administrative hierarchy, and the binding nature of departmental circulars

Procedures (Chapters 10–19)

General procedures for import or export by sea, air, and land; Customs stations, ICDs, AFSs, Special Notified Zone for rough diamonds, Indian sailing vessels (dhows)

Import procedures: Bill of Entry, valuation at assessment, payment under protest, relevant dates for rate and exchange, execution of bonds, clearance from the import policy perspective, post-self-assessment procedure, software imported through data communication, demurrage, storage pending clearance, and disposal of uncleared cargo

Export procedures: person-in-charge obligations, exporter obligations, 'let export' permission, and related procedures

Customs Broker licensing, suspension and revocation, and limited liability

Baggage: general free allowance, transfer of residence allowance, rates, control provisions, procedures—fully updated for the Baggage Rules 2026 and CBDPR 2026.

Courier and post imports/exports, e-commerce consignments, and the removed courier export value ceiling

Exemption from Customs duty, interpretation of exemption notifications (strict construction, purposive construction, and the intersection thereof), specific exemptions

Remission of duty, re-imports, and re-exports

Demands, Refunds, Recovery, and Warehousing (Chapters 20–27)

Departmental adjudication, demands under Section 28 (ordinary, undervaluation, and suppression/wilful misstatement/collusion routes), interest for delayed payment, recovery of dues under Section 142

Refund of Customs duty, interest on delayed refunds, and the doctrine of unjust enrichment

Warehousing: public and private warehouses, MOOWR (Manufacture and Other Operations in a Warehouse) scheme, bonded manufacturing, warehousing period, interest, transfer of warehoused goods (including the new Section 67 regime), removal for home consumption or export

Enforcement, Penalties, Confiscation, and Prosecution (Chapters 28–35)

Enforcement powers of Customs officers (search, seizure, summons, arrest)

Penalties for non-payment of duty, other penalties under the Customs Act, confiscation of goods and conveyances, miscellaneous provisions, criminal offences, proofs in adjudication and prosecution, and the Interim Board for Settlement

Appellate Machinery (Chapters 36–41)

Departmental appeal and review, First Appeal (Commissioner Appeals) and revision, appeal to CESTAT, powers and limitations of the Tribunal, and appeals to the High Court and the Supreme Court

Division B — Foreign Trade Policy (Chapters 42–61)

Policy Framework (Chapters 42–46)

Overview of FTP 2023, general provisions relating to imports and exports, IEC/e-IEC, RCMC, status holder certification, import of goods, export of goods, and the District as Export Hub initiative

Export Promotion Schemes (Chapters 47–51, 58)

Advance Authorisation—eligibility, Standard Input-Output Norms (SION), self-declaration norms, minimum value addition (15% general, 50% tea, 25% spices, G&J sector separately), mandatory spares, ineligible categories, accounting of inputs, pre-import conditions, duties exempted (BCD, Additional Duty, Education Cess, Anti-Dumping, CVD, Safeguard, Transition Product Specific Safeguard, IGST, Compensation Cess), admissibility of drawback, actual-user condition, free-of-cost supply by foreign buyer, domestic sourcing via ARO/Invalidation Letter, SEZ sourcing, and currency for realisation

DFIA (Duty Free Import Authorisation)

Gem and Jewellery Units

RoDTEP and RoSCTL remission schemes

EPCG and Project Imports

Duty Drawback—All Industry Rates, Brand Rates, claim procedure, drawback on re-export, and other drawback provisions

Export-Oriented Entity Regimes (Chapters 52, 59, 61)

EOU/EHTP/STP/BTP—setup, entitlements, personal carriage, fast-track clearance for Status Holders, DTA sale, routine procedures

Special Economic Zones—Chapter 59 covers SEZ policy, setting up units, routine operations, supplies from DTA to SEZ and vice versa, Developer/Co-Developer provisions, criteria for SEZ approval (minimum investment of ₹250 crore or net worth ₹50 crore for sector-specific; ₹1,000 crore or net worth ₹250 crore for multi-product), sub-contracting, boundary wall requirements, EEFC account entitlement for developers, FDI reduction norms, State policies, labour laws, exemption from cesses and duties, exemption from stamp duty under the Indian Stamp Act, GST provisions applicable to SEZ, and Free Trade Warehousing Zones (FTWZ)

International Financial Services Centre (IFSC)—regulatory background, IFSCA, financial services regulation, insurance, leasing, bullion, securities market, and education sector regulations

Specialised Regimes and Controls (Chapters 53–57, 60)

Deemed Exports—categories of supply, deemed export by main/sub-contractors, refund of Terminal Excise Duty, drawback on deemed exports, risk management, penal action for mis-declaration

Quality Complaints and Trade Disputes—CQCTD mechanism

Cross-Border Trade in Digital Economy (E-Commerce)—courier/post exports, E-Commerce Export Hubs (ECEHs), Dak Niryat Kendras

SCOMET—categories and licensing jurisdiction, export of SCOMET items, DTA-to-SEZ/EOU supplies, export of imported SCOMET items, outreach programmes, voluntary self-disclosure

Miscellaneous FTP Provisions—transitional arrangements, trade facilitation, ease of doing business, time-bound DGFT services, grievance redressal, Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs), Generalised System of Preferences (GSP), Duty-Free Tariff Preference (DFTP) for LDCs, Certificates of Origin, TRQ under FTA/CECA, Rules of Origin (non-preferential), Approved Exporter Scheme (AES) for self-certification.

FT (D&R) Act and Rules—scheme of the Act, DGFT powers, penalty and adjudication, penalties for violation of FTP, continuation of proceedings against companies under the Insolvency Code

The book follows a deliberate concept-to-compliance-to-enforcement progression:

Division A (Customs Law—Chapters 1–41) opens with the conceptual framework (nature, taxable event, classification, valuation), moves through transactional compliance (import, export, baggage, warehousing, exemptions), and culminates in the full enforcement and appellate cycle (demands, refunds, adjudication, penalties, prosecution, appeals up to the Supreme Court)

Division B (FTP—Chapters 42–61) begins with the FTP 2023 framework and general import/export policy, then sequences the export promotion instruments (Advance Authorisation, DFIA, EPCG, RoDTEP/RoSCTL, Duty Drawback), the entity-based regimes (EOU/EHTP/STP/BTP, SEZ, IFSC), and the specialised regimes (SCOMET, Deemed Exports, E-Commerce exports). It closes with the FT (D&R) Act and ancillary enforcement machinery

Within each chapter, the content is broken into numbered paragraphs and sub-paragraphs , each dealing with a discrete proposition of law or a specific compliance point. This enables the reader to navigate directly to the relevant paragraph without wading through continuous narrative

Navigational aids include:

Chapter-heads at the front

Detailed Contents at sub-paragraph level

Section-wise Index to the Customs Act 1962.

Glossary of Acronyms

Subject Index at the end