The most common customs disputes GP handles are: classification disputes — where the customs authority classifies goods under a tariff heading carrying a higher rate of duty than the heading the importer has used; valuation disputes — where customs rejects the transaction value declared by the importer and substitutes a higher value; and duty exemption disputes — where customs denies an exemption claimed under a notification or a Free Trade Agreement, typically on the grounds that the goods do not meet the conditions of the exemption (including country-of-origin requirements for FTA benefits).
For exporters, GP advises on duty drawback claims, RODTEP (Remission of Duties and Taxes on Exported Products) scheme benefits, advance authorisation scheme compliance, and EPCG licence conditions. For manufacturers, GP advises on the customs duty implications of manufacturing changes, the classification of intermediate goods, and the management of customs bonded warehouse and job-work arrangements. GP also defends importers and exporters in DRI (Directorate of Revenue Intelligence) investigations — which can result in duty demands, penalties, and seizure of goods.
Pre-import classification advisory — confirming the correct HSN heading for the goods before the import, identifying any classification ambiguities, and establishing the appropriate heading through advance ruling where necessary. Post-import classification dispute management — responding to the department's classification proposal, preparing the written submission to the adjudicating authority, and conducting the CESTAT appeal where the adjudication is adverse. GP maintains a database of CESTAT and Supreme Court classification rulings to support every advisory assignment.
Defence of the declared transaction value against customs valuation challenges — where the customs authority proposes to substitute the transaction value with a higher value using one of the alternative valuation methods (identical goods, similar goods, computed value, deductive value, or fall-back method). GP challenges valuation proposals that are not supported by the specific grounds prescribed in the Customs Valuation Rules — and demonstrates that the transaction value between the importer and the related seller reflects an arm's-length price consistent with the industry.
Advisory on eligibility for reduced duty rates under India's Free Trade Agreements (ASEAN, India-Japan CEPA, India-Korea CEPA, India-UAE CEPA, India-Australia ECTA, and others) — the country-of-origin requirements, the value addition tests, and the certificate of origin documentation required for each FTA. GP advises importers on the origin compliance requirements for the specific goods being imported and defends FTA benefit denials where the origin documentation is adequate and the goods genuinely meet the origin criteria.
Advisory on eligibility for duty exemptions under Customs notifications — including the end-use conditions, the licensing requirements, and the documentation conditions that must be satisfied for the exemption to apply. Where customs has denied an exemption on the grounds that a condition has not been met, GP challenges the denial before the Commissioner (Appeals) and CESTAT — demonstrating that the condition is met on the facts or that the condition is procedural and its non-compliance does not disentitle the importer to the substantive exemption.
Defence in Directorate of Revenue Intelligence investigations — which target suspected misdeclaration of goods, undervaluation, diversion of duty-free imports, and evasion of anti-dumping duty. GP advises on the statement recording process, the documents that must be produced and those that are privileged, the goods detention and seizure challenge, and the show cause notice response. DRI investigations frequently result in duty demands, penalties, and in serious cases, prosecution under the Customs Act.
Representation as an interested party in DGTR (Directorate General of Trade Remedies) anti-dumping investigations — on behalf of domestic producers seeking anti-dumping duty against dumped imports, and on behalf of importers challenging the imposition or continuation of anti-dumping duty. GP also advises on anti-circumvention investigations and sunset reviews. The DGTR's final findings are published as recommendations to the government — which issues the anti-dumping duty notification after acceptance of the recommendation.
The Advance Ruling Authority allows an importer or exporter to obtain a binding ruling on the classification, valuation, or duty liability of goods before the goods are imported — providing certainty on the duty cost before committing to a transaction. An advance ruling is binding on customs authorities for the specific goods and the specific importer or exporter who obtained the ruling. GP advises on the advance ruling application and represents clients before the Advance Ruling Authority where the department's preliminary view is adverse.
Goods can be stored in a customs bonded warehouse under a duty bond — deferring the payment of customs duty until the goods are removed from the warehouse for home consumption. This is a significant cash flow benefit for importers of high-value goods with long sales cycles. GP advises on the customs bonded warehouse licensing requirements, the bond and sureties required, the permitted period of warehousing, and the conditions on re-export of warehoused goods (which are duty-free where the goods have not been used in India).
Where the DRI or the customs authority has seized imported goods on suspicion of misdeclaration or evasion, the importer can apply for provisional release of the goods on execution of a bond and a bank guarantee. GP files provisional release applications immediately on seizure — ensuring the importer's business is not disrupted by the goods being held pending the adjudication. Where the seizure is unjustified, GP challenges it before the Commissioner (Appeals) and applies to the High Court for an order directing immediate release.
The most cost-effective customs advice is given before the goods are imported — confirming the classification, checking the FTA origin documentation, and reviewing the valuation for compliance with the Customs Valuation Rules. An advance ruling for a regular import stream eliminates the classification uncertainty that triggers disputes. GP provides pre-import advisory as a standard service for clients with significant customs duty exposure.
CESTAT is the primary appellate forum for customs disputes — and effective representation before CESTAT requires familiarity with its procedural rules, the case law, and the technical classification and valuation arguments that the bench engages with. GP has represented importers and exporters before CESTAT's Mumbai, Delhi, and Chennai benches in classification, valuation, and exemption disputes across a wide range of goods categories.
DRI investigations are won or lost at the investigation stage — the statement recorded from the importer's representative, the documents produced, and the explanation provided to the DRI officers. GP advises clients on DRI investigation procedure from the moment the DRI officers arrive at the premises — ensuring the rights are exercised, the statements are accurate and complete, and no inadvertent admissions are made that strengthen the department's case.
Represented a capital goods importer before CESTAT Mumbai in a classification dispute — customs had reclassified the imported industrial equipment from the heading the importer had used (carrying 5% basic customs duty) to a different heading (carrying 15% BCD), resulting in a demand of Rs.18 crore for the past three years of imports. GP prepared the classification appeal with the technical specifications of the goods, the HSN explanatory notes for the two competing headings, and CESTAT and Supreme Court precedents on the classification of similar equipment. CESTAT upheld the importer's classification, set aside the demand, and confirmed the correct duty rate.
Defended an importer of manufactured goods from the UAE who had claimed the reduced duty rate under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Customs denied the benefit on the ground that the certificate of origin did not include the specific statement required under the CEPA rules of origin for the goods. GP argued before the Commissioner (Appeals) that: the required statement was contained in the accompanying commercial invoice, which together with the certificate of origin formed the complete origin documentation; the goods clearly met the value addition test on the face of the bill of materials; and the denial of the FTA benefit on a purely procedural ground where the substantive origin requirement was met was disproportionate. The Commissioner (Appeals) restored the FTA benefit.
Acted for an importer of consumer electronics whose shipment was detained by DRI officers at Mumbai customs on suspicion of undervaluation. GP filed a provisional release application the same day, securing the goods' release on a bond and bank guarantee. GP simultaneously prepared a comprehensive valuation defence — producing the purchase invoices, the related party relationship disclosure, and an independent transfer pricing analysis demonstrating that the declared transaction value was consistent with the arm's-length price for the goods. The DRI accepted the arm's-length evidence and dropped the undervaluation demand.
GP's customs and trade duties practice covers the complete spectrum from pre-import classification advisory and FTA origin compliance through CESTAT appeals and High Court challenges — with specialist capability in DRI investigation defence and anti-dumping proceedings.
For manufacturers whose customs duty exposure is affected by their SEZ or advance authorisation arrangements — the customs practice is integrated with GP's SEZ advisory practice and the broader indirect tax team.
The classification hierarchy, the rules of interpretation, and the three most common classification disputes — with a guide to preparing a CESTAT classification appeal.
Read Insight →The origin rules under India's major FTAs (UAE CEPA, ASEAN, Korea CEPA, Australia ECTA) and the practical documentation required to claim and defend FTA tariff benefits.
Read Insight →Whether you need advisory before a transaction or are already in dispute with customs or the SEZ authorities — speak to GP today.