Section 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 12 is the charging section for customs duty. It says that duties of customs are levied on goods imported into, or exported from, India at the rates specified under the Customs Tariff Act, 1975 or any other law, and that goods belonging to Government are treated no differently.
This article follows the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check any later Finance Act changes to this section before acting.
Except as otherwise provided in the Act or any other law, duties of customs are levied on goods imported into, or exported from, India at the rates specified under the Customs Tariff Act, 1975 or any other law for the time being in force. Sub-section (2) says the same rule applies to goods belonging to Government as to goods not belonging to Government. The rates themselves are not in this Act.
Sub-section (1): the levy
Sub-section (1) reads, in substance: except as otherwise provided in this Act or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, on goods imported into, or exported from, India.
Take the words one at a time.
- "Except as otherwise provided in this Act or any other law": the levy is the general rule. Other provisions can exempt goods or change the charge. Section 25, which lets the Central Government exempt goods from duty by notification, is one such provision, and our article on section 25 explains it.
- "Duties of customs shall be levied": the word "shall" makes the levy mandatory unless an exception applies. Section 2(15) of the Act defines "duty" as a duty of customs leviable under the Act.
- "At such rates as may be specified under the Customs Tariff Act, 1975": the Customs Act does not carry a rate table. The rates are specified under the Tariff Act or any other law for the time being in force. This article quotes no rate, and none should be taken from this section.
- "On goods imported into, or exported from, India": the levy covers both directions. "Import" and "export" are defined in section 2 as bringing into India from a place outside India and taking out of India to a place outside India, and "goods" is defined widely, as our article on the definitions of goods, import and export shows.
The footnote in the copy records that the words "the Customs Tariff Act, 1975 (51 of 1975)" were substituted by Act 51 of 1975 (section 13) for "Indian Tariff Act, 1934 (32 of 1934)" with effect from 2 August 1976. That is only history; the reference to read is the one printed in the text.
If you are about to bring goods in or send goods out in your own name, you will need an Import Export Code before the customs work starts; our IEC registration service can set that up.
Sub-section (2): Government goods
Sub-section (2) says that the provisions of sub-section (1) apply in respect of all goods belonging to Government as they apply in respect of goods not belonging to Government. The footnote shows this sub-section was substituted by Act 30 of 1963 (section 2) with effect from 1 October 1963.
So public-sector purchases are not outside the net by reason of ownership. A department or a State-owned undertaking that imports goods is within the same levy, subject to any exemption that applies to it. Whether any exemption applies is a question for the exemption provisions and notifications, not for section 12.
Where section 12 sits in the chain
Section 12 is the first step in a chain:
| Step | Provision | What it does |
|---|---|---|
| 1. Charge | Section 12 | Duties of customs are levied at rates specified under the Customs Tariff Act, 1975 or any other law |
| 2. Value | Section 14 | Fixes the value of imported and export goods, by transaction value or tariff value |
| 3. Date | Sections 15 and 16 | Fix the date by reference to which the rate of duty and tariff valuation apply |
| 4. Assessment | Sections 17 and 18 | Self-assessment, verification, re-assessment and provisional assessment |
| 5. Exemption | Section 25 | Power to exempt goods from the whole or part of duty |
The articles on valuation under section 14 and on the relevant date for the rate of duty pick up from here. Section 12 states that duty is leviable; it does not tell you the value, the date or the exemption. For a plain explanation of the different duties charged on imports, see our posts on types of customs duty and on how customs duty is calculated. For how GST on imports sits alongside customs duty, see our post on IGST on imports.
"Dutiable goods" and when duty is not payable
Section 2(14) defines "dutiable goods" as goods chargeable to duty on which duty has not been paid. The expression is a status: goods are dutiable until duty is paid. Section 12 supplies the "chargeable" part. A few other provisions relieve duty in specific situations; for example, the Act deals with imported goods that are pilfered before clearance, which our article on sections 13 and 22 to 24 covers.
A worked example with invented names
Kaveri Foods Pvt. Ltd. imports a consignment of packaging machinery, and a State-owned dairy corporation, Deccan Dairy Federation, imports a similar machine for its own plant. Both bring goods into India, so both fall within sub-section (1). Deccan Dairy's ownership by the State does not take it out of the levy, because sub-section (2) extends the rule to goods belonging to Government. The rate on each consignment depends on what is specified under the Customs Tariff Act, 1975 or another law for the goods concerned, and any exemption that applies is a matter of section 25 and the notifications under it. The Act text does not decide the rate.
Need help getting set up to import or export?
Before any duty question arises, your business needs to be registered to trade across the border. Our IEC registration team can help you obtain the code and set up a clean starting point for customs documentation.
Key takeaways
- Duties of customs are levied on goods imported into or exported from India, except as otherwise provided in the Act or any other law.
- The rates are specified under the Customs Tariff Act, 1975 or any other law; the Customs Act itself carries no rate.
- Goods belonging to Government are treated as goods not belonging to Government for the levy.
- Value, date of rate and assessment are handled in later sections, 14 to 18.
- Exemptions come from section 25 and other provisions, not from section 12.
Read next
- Section 14: valuation of goods and transaction value
- Sections 15–16: relevant date for rate of duty and tariff valuation
- Section 25: power to grant exemption from duty
- Types of Customs Duty: BCD, IGST, Safeguard, Anti-Dumping
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.