The term customs is not new for us. It was customary for a trader who brings the goods to a
particular kingdom to offer gifts to the King for allowing him to sell his goods in that kingdom.
The gifts given by the dealer to the king was nothing but a customary practice in those days.
In the modern days, these gifts are collected by the government of India in the form of Customs
Duty from the importer who imports the goods from a country outside India and from an exporter
who exports the goods to a county outside India.
As ancient customs, a merchant entering a kingdom with his goods had to make a suitable
gift to the king. In the course of time, this custom was formalized into Customs Duty. This is
collected on imports and exports.
The word ‘Customary’ is derived from ‘Customs’, which indicates that it is a very old tax
Taxes on goods were levied on various goods right from the Veda period