Strategic Tax Advisory

Customs Duty & Excise
Strategic Advisory

Import-export businesses pay 15-40% more in customs duty than necessary due to classification errors, missed exemptions, and unutilized schemes. Strategic customs planning—backed by deep regulatory expertise—can recover ₹50L-5Cr annually while strengthening compliance defensibility.

₹4.2 Cr
Largest Duty Savings
42 Years
Professional Experience
500+
Customs Cases Handled

Led by Kuppusami, M.Com, ICWAI, LL.B — with over four decades of professional experience handling complex customs matters, valuations, and disputes. Now architecting import-export strategies that withstand rigorous scrutiny.

The Hidden Cost of Reactive Customs Compliance

The Duty Overpayment Epidemic

Industry research shows 65-70% of importers overpay customs duty. For a company importing ₹100 Cr annually, a conservative 10% overpayment means ₹1.5 - 2 Cr lost annually. That's your profit margin paid unnecessarily to customs.

01

Classification Complexity

Same product, different HSN, massive duty difference. Brokers use the "safest" (highest duty) code to avoid disputes. You pay the price.

Risk: ₹50L - 3 Cr annually

Real Case: Electronics Importer

Standard Classification

18% Duty

"Display Modules"

Our Optimization

7.5% Duty

"Parts of Machines"

Difference on ₹25 Cr imports: ₹2.63 Cr annually. We obtained an advance ruling to secure the lower rate + recovered ₹5.26 Cr in retrospective refunds.

Product AuditTechnical DefenseAdvance Ruling
02

Missed Exemptions

Government issues 200+ exemption notifications. Brokers don't track them. If you don't claim it, you don't get it.

Risk: ₹30L - 1.5 Cr annually

The Compliance Gap

Case: Pharma Manufacturer. Imported APIs paying 10% duty. We discovered Exemption Notification 50/2017 (NIL duty for specific drugs).

  • Obtained FDA certificate for eligibility
  • Filed refund for past 12 months
  • Annual Saving: ₹1.2 Cr
Our Process: We review 200+ notifications against your portfolio to find every eligible rupee.
03

Unutilized Schemes

Advance Auth, EPCG, MOOWR, SEZ. 70% of eligible exporters don't use them optimally due to perceived "complexity."

Impact: ₹1 - 4 Cr Opportunity

Scheme Comparison For Clients

We model every scenario to find YOUR optimal mix.

Advance Authorization

Duty-free import of inputs

EPCG

0% duty on capital goods

MOOWR

Defer duty until domestic sale

SEZ

Complete tax holiday zone

04

Valuation Disputes

Rule 3(2) requires adding royalties, design acts, and tools provided free to supplier to transaction value. Most don't adds these, leading to huge demands + penalty.

Risk: ₹40L - 2 Cr Exposure

The "Add-Back" Trap

Common Triggers

  • • Royalty paid to supplier group
  • • Molds provided free to supplier
  • • Design work done in India

Our Defense

  • • Contract structuring review
  • • Arm's length justification
  • • Settlements (80%+ reduction)

Result: We recently settled a ₹1.74 Cr demand for an auto component manufacturer at just ₹28 Lakhs by proving royalty wasn't related to imported goods.

05

Audit Frequency

85% of companies importing >₹50 Cr face audit within 3 years. Without documentation, you are vulnerable.

The Kuppusami Advantage

Having handled 500+ complex valuation matters, Kuppusami knows exactly what documentation withstands scrutiny. We build your defense file before the audit notice arrives.

• Pre-Audit Health Check• Monthly Compliance• SCN Defense

Strategic Customs Management Framework

Customs isn't just clearing goods. It's a strategic cost center optimizable by 15-40% through classification engineering, scheme utilization, and rigorous audit defense.

Classification Optimization

We don't guess. We audit top 50 products, research alternative tariff lines, calculate differentials, and apply for advance rulings on material items.

Deliverable: 5-12% Duty Rate Reduction

Exemption Discovery

Systematic review of 200+ active notifications. Matching against your portfolio to find unclaimed benefits and filing refund claims for past misses.

Deliverable: ₹30L - 1.5 Cr Annual Savings

Scheme Strategy

Advance Authorization vs. Drawback vs. EPCG. We model all scenarios to recommend the optimal mix for duty savings and working capital efficiency.

Deliverable: 60-90% Reduction in Net Duty

Valuation Defense

Pre-emptive structuring of related-party transactions and royalty agreements to minimize add-back exposure. Technical legal defense against notices.

Deliverable: 80% Reduction in Demands

Audit Readiness

Continuous maintenance of classification dossiers, end-use certificates, and valuation proofs. When audit happens, we're ready.

Deliverable: Zero-Panic Audit Response

Who Benefits from Customs & Excise Advisory?

You're an Ideal Fit If:

  • Annual imports exceed ₹5 Cr OR annual exports exceed ₹10 Cr
  • Importing high duty-bearing goods (10%+ BCD)
  • Using multiple HSN codes (classification complexity)
  • Importing from related parties (risk of SVB notices)
  • Using duty savings schemes but uncertain if optimal

We're Probably Not Right If:

  • Occasional imports only (1-2 consignments/year)
  • Very low duty rates with no optimization scope
  • Annual import value under ₹2 Cr

Our Engagement Philosophy

Customs advisory should create 5-10x ROI minimum. If we can't project ₹50L+ annual savings, we'll honestly tell you to stick with your customs broker and basic compliance.

Questions & Answers

Common Customs Advisory Questions

Get clarity on duty optimization, refunds, and compliance strategies.

Depends on import volume and current compliance state. We provide specific projections during consultation.

Small Importers (₹5-20 Cr)

₹50L - 1.5 Cr Savings
Via classification optimization & exemption utilization.

Medium Importers (₹20-100 Cr)

₹1.5 - 4 Cr Savings
Via export schemes & audit defense.

Large importers (₹100 Cr+) typically see ₹4-15 Cr in annual optimizations through SEZ/EPCG planning.

Yes, within the limitation period (typically 1 year).

We routinely recover:

  • Wrongly paid duty (classification errors)
  • Missed exemptions (eligible but unclaimed)
  • Excess valuation (improper add-backs)
Typical Recovery: We file refund claims with comprehensive documentation to maximize approval rates, typically recovering ₹50L - 3 Cr for clients.

We provide STRATEGY, not transactional clearance.

We Handle (Strategy)

  • • Classification engineering
  • • Exemption strategy
  • • Valuation structuring
  • • Audit defense & litigation

Broker Handles (Execution)

  • • Daily bill of entry filing
  • • Physical cargo clearance
  • • Routine documentation

We advise → You implement through your existing broker → We monitor compliance.

This is where Kuppusami's 42 years of professional customs experience shines.

Our response protocol:

  • 48 HoursImmediate Assessment: Review notice, determine exposure, identify technical defenses.
  • Week 1-2Defense Prep: Compile documentation, draft legal submission, request personal hearing.
  • RepresentProfessional Representation: Attend hearing, present professional defense, negotiate settlement from strength.

Having handled 500+ complex customs matters, we know exactly what arguments work and what documentation stands up to scrutiny.

Depend upon your volume and consistency. We model both for you:

  • Advance Authorization: Best for consistent norms & large volumes. Zero duty upfront.
  • Duty Drawback: Best for variable inputs & smaller volumes. Simpler compliance but capital intense.

Real Example: Garment exporter with ₹10 Cr imports. Drawback meant ₹40L net cost + blocked capital. Switching to AA saved ₹38L annually. We run YOUR numbers to decide.

Start with a Customs Optimization Audit

90-Minute Customs Consultation Includes:

📋Import-export profile analysis
🔍Classification review (top products)
💰Exemption applicability screening
📊Scheme suitability assessment
⚖️Pending litigation evaluation
💡Projected duty savings estimate
No obligationCompletely confidentialMost discover ₹50L-3Cr opportunities