Customs and Foreign Trade Policy
Customs is the government agency that manages the import & export of goods, making sure trade laws are followed and collecting duties & taxes, it handles the process of bringing goods into a country, which includes paperwork, inspections, and duty assessments. It also manages the export process, including declarations & compliance with global trade rules.
Customs decide the value of imported goods to calculate duties & make sure items are classified under the right tariff codes. It enforces trade rules, collects tariffs, duties, & taxes on imports. Customs law helps stop illegal trade, smuggling, and protects borders, while also making it easier for goods to move across borders, supporting global trade.
Customs charges various Duties and Taxes such as, Ad Valorem Duty (based on the value of the goods), Specific Duty: (Based on the quantity or weight of the goods), Compound Duty (A combination of ad valorem and specific duties) Excise Duty (Taxes on specific goods produced within the country, often applied to luxury items and commodities like alcohol and tobacco).
Foreign Trade Policy
Foreign trade policy includes the rules, guidelines, and plans a country follows to handle its global trade, such as imports, exports, & relationships with other nations. Membership and participation in global trade organizations like the World Trade Organization (WTO) to promote and regulate international trade. The foreign trade are governed by National laws which is inclusive of international trade activities, including customs regulations, import-export controls, and compliance requirements and Trade agreements between two or more countries to facilitate and govern trade relations.
The foreign trade policy helps local businesses sell their products & services abroad while controlling what goods come into the country to protect local industries. It also boosts the global competitiveness of these industries with support & incentives. By which a favorable balance of trade by promoting exports and managing imports.
Foreign trade policy are imposed with taxes on imports to protect domestic industries and generate revenue and the limit to import and export are limited by quantity of specific goods. Financial support provided to domestic industries to enhance their competitiveness. Programs and schemes designed to encourage exports, such as tax exemptions, financial assistance, and marketing support.
Foreign trade policy is governed by Law of the Nation and WTO which promotes Trade agreements between two or more countries. Trade Facilitation Measures and Streamlining processes to reduce delays and costs associated with international trade and with the usage of Electronic Data Interchange (EDI) enhances the trade by investing in ports, transportation networks, and logistics services to support efficient trade.
Conclusion
The Customs and foreign trade policy are closely interconnected, with customs playing a key role in the implementation and enforcement of trade policy. With effective customs and trade policies can significantly influence a country’s economic growth, trade balance, and global competitiveness and with continuous adaptation to global trade dynamics, technological advancements, and geopolitical shifts is essential for optimizing customs and trade policy.