Customs, as a major source of revenue, plays a very important role in the economy of our country. However, the functions of the Customs Department are not confined to the collection of revenue only. It has also many other important roles to play. During the British days and soon after, the country was importing even the daily requirements like pencils and paper. The exports consisted of mostly agricultural products. With the attainment of independence and introduction of policies with the object of substituting imports and concomitant regulations,the pattern of imports and exports has radically changed. In implementing the policies relating to international trade, the Customs department always has a crucial role to play. The role of the Customs is to act as a sentinel on the economic borders of the country.
The collection of revenue through Customs is known in this country, for the last 3000 years and laws for collection of revenue and punishments for violation thereof are indicated as early as in Kautilya’s "Arthasasthra". The modern system of taxation is, however, a British legacy. It was in England, during the days of King John, in the 13th Century, the ‘customary dues’ that were till then collected by local sheriffs and chieftains as protection money for the police service rendered to foreign traders came to be collected as revenue to the state . The other major forms of revenue viz. the Excise and Income Tax came to be conceived much later during the 17th Century.
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