Meaning of CUSTOMS?

  • Customs is a Government authority or agency responsible for monitoring and regulating the import, export and transit of goods into and out of the country.
  • Customs authority does not only enforce their own laws but also apply other laws and regulations relating to import, export and transit of goods across borders.
  • Customs mandate is not only to collect revenue and stimulate the growth of legitimate international trade but also to combat fraudulent activities, protect society and the national territory, and secure international trade.


What does CUSTOMS DUTY mean and some basic facts?

  • A customs duty is a tariff or an indirect tax levied on the import and export of goods entering or leaving the country. In other words, Customs Duty is duties laid down in the Customs tariff schedule of the Bhutan Trade Classification 2017 to which goods are liable on entering or leaving the Customs territory.
  • In case of Bhutan, as to encourage export, there is no Customs Duty or any type of duties or indirect taxes levied on export.
  • Duties may be ad valorem or specific:
    • An ad valorem duty is a fixed percentage of the value of the goods that are being imported e.g. 10% of value X.
    • A specific duty is a duty of a specific amount of money that does not vary with the price of the goods but with its weight, volume, surface, etc. The specific duty stipulates how many units of currency are to be levied per unit of quantity (e.g. fuel could be charged at a specific duty of $ 24 per litter).
Download ----- Revenue Manual 2019 ----- Bhutan Trade Statistics 2018 -----