About Customs and Excise Division:
The customs and excise division is one of the four divisions under the Department of Revenue and Customs and it is responsible for overall administration of indirect taxes which includes collection of taxes on traded goods and facilitation of international trade. The Customs and Excise division is headed by the Collector comprises of four Sections namely Tariff and Technical Section, Preventive and Enforcement Section, Legal Affairs Sections and Excise Section. The details organization structure can be found at>>>>>
Major Milestones in history Customs and Excise Division:
1996: Bhutan Customs Rules and regulations and Customs Tariff Schedule 1996;
2000: Sales Tax, Customs & Excise Act of kingdom of Bhutan 2000 (78th Session of NA);
2002: Bhutan Automated Customs System (July 2002)
2002: Bhutan became member of World Customs Organization (WCO) (February 2002);
2003: Became member of WCO- Regional Intelligence and Liaison Office (RILO);
2006: Contracting party of International Convention on Harmonies Commodity Description and Coding System, WCO.
2006: Indirect Tax Manual (Sales Tax and Customs);
2014: Bhutan became the 96th Contracting Party of Revised Kyoto Convention on simplification
and harmonization of customs procedures
A respected and responsible Customs and Excise services contributing towards Nation Building
Efficient collection and protection of Customs and Excise Duty, Sales Tax and other related taxes, and facilitation of legitimate trade and commerce.
• A well performing and ethical Customs officers acting with civility and impartiality to all its clients.
• Assess our action and take responsibility for those actions
• Believe in our vision, proud of our profession services and exert extra effort
To promote honest and transparent environment, ensure efficient assessment and collection of duties and taxes and facilitate legitimate trade and commerce.
• To simplify and streamline the Customs procedures.
• To provide efficient services to the importers, exporters and taxpayers.
• To facilitate speedy and smooth customs clearance by applying risk management.
• To create public awareness and encourage tax compliance.
• To levy correct amount of tax and duties.
• To implement law, rules and regulations in a uniform manner.
• To prevent import and export of restricted and prohibited goods.
• To become the nation’s supplier of international trade information and provide reliable, timely and comprehensive import/export statistics and other information related to trade and travel.
Functions of Customs and Excise Division
The Division is entrusted with conflicting roles and responsibilities- enhancing revenue by facilitating legitimate trade and travel on one hand, and identifying, disrupting and dismantling the entities that threaten the legitimate flow of trade on the other. It also enforces the laws of other allied agencies. Therefore, there is greater need to balance a high level of compliance with revenue objectives and regulatory requirements while facilitating the legitimate movement of goods and people across borders. Apart from uniform application and implementation of Sales Tax, Customs and Excise Act of the Kingdom of Bhutan 2000, and the rules thereto, there are some critical responsibilities such as customs clearance, revenue collection, vigilance and control, supervision of warehouse, compilation of trade statistics, trade facilitation etc.
The four main types of indirect taxes are:
i. Customs Duty (CD)
The Customs duty is levied at the point of entry on the goods imported from Third countries and the tariff rates range from 0 – 100%. The specific duty rate is also applied on some of the industrial raw materials. In case of goods imported from SAFTA member countries, the Customs Duty is levied based on the preferential tariff rates as agreed by SAFTA member countries.
ii. Excise Duty (ED)
Excise duty is levied on certain notified domestically manufactured products. Currently excise duty is levied only on alcoholic beverages. It is levied on ad-valorem basis and the rates are 30%, 60% and 75% on the ex-factory price.
iii. Sales Tax (ST)
Sales Tax is levied on import of goods from India as well as from countries other than India. It is levied at the point of entry except on beer which is levied at the point of sale. The sale tax range from 0 – 100% and levied on Free on Board (fob) value of imported goods. Out of 8 RRCOs only 6 RRCOs are involved in collection of Sale Tax at the point of entry as import transactions are not taking place at RRCO Bumthang and Mongar.
IV. Green Tax (GT)
Green tax is levied on import of goods from India as well as from countries other than India. It is levied at the point of entry on motor vehicles, petrol and diesel. The green tax range from 5% to 30% and levied on Free on Board (fob) value of imported goods. Out of 8 RRCOs only 6 RRCOs are involved in collection of green tax at the point of entry as import transactions are not taking place at RRCO Bumthang and Mongar
Regional Offices and checkposts
Checkpost Interior Checkpost Seasonal Checkpost Airport/ Customs House
Gelephu Gelephu, Sarpang Chubarthang, Shachamthang Panbang NA
Paro NA NA NA Customs Office, Airport
Phuentsholing Phuentsholing, Lhamoizingkha, Rinchending Bhutanghat NA
Samdrup Jongkhar, Phuntsho Rabtenling, Jomotshangkha, Rinchenthang Pinchinang Samrang, Chowki NA
Samtse, Gomtu, Pugli, Bindu, Tashijong, Jitti, Sipsu NA Hourey Khola NA
Thimphu NA NA NA Foreign Post Parcel
TOTAL 15 4 5 2