A Study on Evolution of Customs Duty With Respect To Trade in Ancient India

Abstract: In ancient times a merchant entering the kingdom with goods had to make a gift in kind to continue the trade in that kingdom, in today's time this is formalised as Customs Duty.The sources of Indian customs laws can be traced back to numerous administrative, legal and historical frameworks and have evolved over time. These sources are deeply rooted in India's ancient history, cultural practices, and the later formalisation of laws during colonial rule especially by Britishers. Various rules and regulations of Ancient trade can be traced through religious texts, inscriptions, and the writings of travelers and scholars. Merchants were expected to pay taxes when crossing regional boundaries, including on tradables like grain, metals, textiles, and spices. The ancient trade routes, such as the Silk road and the maritime routes, connected India to several parts of the world. Customs laws played a significant role in regulating and facilitating trade in ancient India. These laws facilitated trade, protected the interests of the state, ensured fairness in the marketplace, and contributed to the prosperity of both the local economy and foreign trade which were enforced by a combination of royal administration, local officials, and merchant guilds. Today though Custom laws have been codified with Customs Act, 1962 and Custom Tariff Act, 1975, the ancient texts such as the Arthashastra and Manu Smriti provided the philosophical and legal foundation for many of these customs regulations.