THE INDIAN CUSTOMS ACT OF 1962: (13TH

December, 1962)

Section # 1: Short title, extent and commencement

Section 1 of the Indian Customs Act, 1962 is the introductory section that provides the title,
extent, and commencement details of the Act.

Title: The title is mentioned as ‘’The Customs Act, 1962”.

Extent: It specifies the geographical extent of the Act, indicating the territories to which the law
applies.

It extends to the whole of India and it also applies to any offence or contravention thereunder
committed outside India by any person

Commencement: This part states when the Act came into force, i.e., the date on which its
provisions officially became applicable.

It shall come into force on the date appointed by the Central Government by notification in the
Official Gazette. (1st February, 1963).

Section # 2: Definitions
 Section 2 of the Indian Customs Act, 1962 provides definitions of various terms used in
the Act.
 It elucidates the meanings of key terms to ensure clarity and precision in the
interpretation and application of the legislation.
 This section serves as a foundational reference for understanding the language and scope
of the Act.

Definitions of the important terms used in the INDIAN CUSTOMS ACT, 1962:

So, according to the document 44 important terms are described in the Act.
 1. Adjudicating authority: means any authority competent to pass any order or decision
under this Act. In the Indian Customs Act, 1962, the adjudicating authority is responsible
for determining customs violations. It holds the power to impose penalties, confiscate
goods, and ensure compliance. The authority follows a hierarchical structure, with the
Commissioner of Customs or Additional Commissioner often serving as the initial
adjudicator.

1A. Aircraft: In the Indian Customs Act, the adjudicating authority oversees the
import/export of aircraft. It ensures compliance, assesses duties, and addresses violations,
applying customs regulations specific to the aviation sector.

1B. Appellate Tribunal: In the adjudicating authority of the Indian Customs Act,
1962, Appellate Tribunal serves as a higher body for appeals. It reviews decisions
made by lower authorities, providing a platform for individuals dissatisfied with
customs rulings to seek redress and justice in customs-related matters.

2. Assessment: In the Indian Customs Act, "assessment" refers to the determination of

customs duty on imported or exported goods, considering their classification, valuation,
and applicable rates.
a) Tariff classification: Tariff classification involves assigning a specific code to goods
based on the Harmonized System, determining applicable customs duties and
facilitating international trade.
b) Value of goods: The value of goods in the context of the Indian Customs Act is
determined based on their transactional value, considering factors like price paid or
payable and related expenses.
c) Exemption of duty and taxes: involves specific goods or categories being relieved
from customs duties or taxes, as outlined in the Indian Customs Act.
d) Exemption based on quantity, weight, or volume in the Indian Customs Act allows
certain goods to be relieved from customs duties or taxes depending on specified
quantitative criteria.
 e) Determining the origin of goods in the Indian Customs Act involves identifying the
country of origin, impacting eligibility for preferential treatment, and influencing
tariff rates.
f) Further it includes other specific factors influencing duties, taxes, or sums payable on
goods, including provisional assessment, self-assessment, re-assessment, and
instances where the assessed duty is nil.
3. Baggage: In the Indian Customs Act, "baggage" refers to goods accompanying a person
entering or leaving the country, typically for personal use, including clothing, personal
effects, and travel souvenirs. Baggage is subject to specified allowances and duty
considerations as outlined in the Act to regulate customs procedures for travelers.

3A. beneficial owner: "beneficial owner" refers to the person who ultimately enjoys the
benefits of ownership or control over the imported or exported goods.

4. Bill of Entry: In the Indian Customs Act, a "bill of entry" is a legal document submitted
by an importer or their agent, providing details about the imported goods, enabling
customs authorities to assess and clear the consignment. (Referred to Section # 46)
5. Bill of Export: In the context of the Indian Customs Act, a "bill of export" is a legal
document submitted by an exporter or their agent, providing details about the exported
goods, facilitating customs procedures and ensuring compliance with regulations.
( Referred to Section # 50)
6. Board: refers to the Central Board of Indirect Taxes and Customs (CBIC), a key
administrative authority overseeing the implementation of customs laws and policies at
the national level.
7. Coastal goods: refer to goods transported from one port in India to another port in India
through coastal waters. Coastal goods movement is subject to specific regulations and
concessions outlined in the Act.

7A. Commissioner (Appeals): refers to an official appointed to hear appeals against

decisions made by lower customs authorities. The Commissioner (Appeals) reviews cases and
provides a forum for individuals dissatisfied with earlier rulings to present their arguments and
seek redress.
8. Principal Commissioner of Customs or Commissioner of Customs:
The "Principal Commissioner of Customs or Commissioner of Customs" in the Indian
Customs Act is a high-ranking official responsible for overseeing customs operations,
enforcement, and decision-making within a designated jurisdiction.
9. Conveyance: "conveyance" refers to any vehicle, vessel, or aircraft used for transporting
goods or passengers and is subject to customs regulations and duties.
10. Customs airport: under the Indian Customs Act is an airport designated for the arrival
and departure of international flights, where customs procedures and regulations are
enforced for goods and passengers.
11. Customs area: under the Indian Customs Act refers to a designated space where customs
authorities enforce regulations, inspect goods, and conduct related activities, often
encompassing ports, airports, and other specified locations.
12. Customs port: in the Indian Customs Act is a designated seaport or airport where
customs authorities regulate the import and export of goods, ensuring compliance with
customs laws and procedures.
13. Customs station: in the Indian Customs Act is a designated location, like a port, airport
international courier terminal or foreign post office where customs officers perform
duties related to the import, export, and regulation of goods and passengers.
14. Dutiable goods: means any goods which are chargeable to duty and on which duty has
not been paid. These are items subject to customs duties upon importation, with their
classification, valuation, and applicable rates determining the duty payable.
15. Duty: means a duty of customs leviable under this Act.
16. Entry: In the Indian Customs Act, "entry" refers to the submission of a prescribed form
containing details of imported or exported goods, initiating the customs clearance
process.
17. Examination refers to the physical inspection of goods by customs authorities to verify
their description, quantity, and conformity with declared information for customs
clearance purposes.
18. Export: refers to the act of sending goods out of India to a foreign destination, subject to
customs regulations and procedures.
 19. Export goods in the Indian Customs Act are commodities intended for shipment to a
foreign destination, subject to customs regulations and procedures governing the
outbound movement of goods from India.
20. Exporter: is an individual or entity involved in sending goods out of India to a foreign
destination, engaging in export transactions subject to customs regulations and
procedures.

20A. foreign post office: refers to an office outside India designated for handling postal items
and subject to customs regulations for the clearance of international mail.

21. Foreign-going vessel or aircraft: refers to a ship or aircraft intended for international
travel, subject to customs regulations applicable to goods and passengers departing or
arriving in India and includes:
a) any naval vessel of a foreign Government taking part in any naval exercises
b) any vessel engaged in fishing or any other operations outside the territorial waters of
India
c) Any vessel or aircraft proceeding to a place outside India for any purpose whatsoever.

21A. Fund: means the Consumer Welfare Fund established under section 12C of the Central
Excises and Salt Act, 1944. It typically refers to funds collected through various customs duties
and fees, serving as financial resources for customs administration and related purposes.

22. Goods: include

a) vessels, aircrafts and vehicles
b) stores
c) baggage
d) currency and negotiable instruments and
e) any other kind of movable property
f) Import: refers to bringing goods into India from a foreign country, subject to
customs regulations and duties.
23. Arrival manifest, import manifest, or import report: in the Indian Customs Act is a
document detailing the particulars of goods arriving by a vessel or aircraft, providing
crucial information for customs clearance.
 24. Imported goods: refer to items brought into India from a foreign country, subject to
customs regulations, assessment, and applicable duties.
25. Importer: in the Indian Customs Act is an individual or entity involved in bringing
goods into India from a foreign country, undertaking customs procedures and complying
with relevant regulations.
26. India: In the context of the Indian Customs Act, "India" refers to the territory of the
Republic of India, including its territorial waters and airspace.
27. Indian Customs Waters: include the territorial waters extending up to the contiguous
zone, providing the jurisdiction for customs regulation and control.

28A. International courier terminal: in the Indian Customs Act refers to a facility
designated for processing and handling international courier shipments, subject to customs
regulations and procedures.

28. Land customs station: is a designated location on the land border where customs
authorities regulate the movement of goods and passengers entering or leaving India.
29. Market price: refers to the prevailing value of goods in the open market, influencing the
assessment of customs duties based on transactional value.

30A. National Tax Tribunal: in the context of the Indian Customs Act refers to a
specialized tribunal established to adjudicate on matters related to customs duties and other tax
issues at the national level.

30AA. Notification: means notification published in the Official Gazette and refers to an
official announcement or decree issued by the government to convey changes, exemptions, or
regulations affecting customs duties, procedures, or other relevant matters.

30B. Passenger name record information: means the records prepared by an operator of
any aircraft or vessel or vehicle or his authorized agent for each journey booked by or on behalf
of any passenger

30. Person-in-charge: means

a) in relation to a vessel, the master of the vessel
b) in relation to an aircraft, the commander or pilot-in-charge of the aircraft
 c) In relation to a railway train, the conductor, guard or other person having the chief
direction of the train
d) In relation to any other conveyance, the driver or other person-in-charge of the
conveyance.
31. Prescribed: refers to actions or conditions specified and regulated by official rules,
orders, or provisions within the legislation.
32. Prohibited goods: refer to items banned from import or export, subject to legal
restrictions for reasons such as public safety, health, or national security.
33. Proper officer: is an authorized customs official responsible for enforcing customs laws,
assessing duties, and ensuring compliance with customs procedures and regulations.
34. Regulations: refer to detailed rules and provisions established by the government to
govern various aspects of customs procedures, duties, and compliance.
35. Rules: refer to specific and detailed guidelines established by the government for the
implementation and enforcement of various provisions related to customs duties,
procedures, and regulations.
36. Shipping bill: is a document submitted by the exporter to customs authorities, providing
details of exported goods for processing and clearance.
37. Stores: refer to goods, including provisions and equipment, kept on a vessel or aircraft
for its use during the journey, subject to customs.
38. Smuggling: refers to the illegal and clandestine transportation of goods, typically to
evade customs duties, taxes, or regulations, leading to legal penalties.
39. Tariff value: is the assessed value of goods used for customs duty calculation when the
declared value is unavailable or appears inadequate.
40. Value: refers to the monetary worth of imported or exported goods, crucial for the
assessment of customs duties and taxes.
41. Vehicle: refers to any conveyance used for transporting goods or passengers and subject
to customs regulations and duties.
42. Warehouse: is a designated facility where imported goods can be stored under customs
supervision before the payment of duties and taxes.
43. Warehoused goods: are imported items stored in a customs warehouse under official
supervision before the payment of duties, providing flexibility for deferred clearance.
 Section # 3: Classes of officers of customs
There shall be the following classes of customs officers:

1. Principal Chief Commissioners of Customs

2. Chief Commissioners of Customs
3. Principal Commissioners of Customs
4. Commissioners of Customs
5. Commissioners of Customs (Appeals)
6. Joint Commissioners of Customs
7. Deputy Commissioners of Customs
8. Assistant Commissioner of Customs
9. Other class of customs officers as may be appointed for the purposes of
this Act.
1. Principal Chief Commissioners of Customs: The Principal Chief Commissioner of
Customs is a high-ranking official in the Indian Customs department. Appointed by the
Central Government, they oversee customs operations, enforcement, and policy
implementation within their jurisdiction. Their role involves strategic planning, resource
allocation, and ensuring compliance with customs laws. They also handle adjudication,
dispute resolution, and play a crucial part in facilitating international trade while
safeguarding national interests. As top-tier officers, Principal Chief Commissioners of
Customs contribute significantly to the effective functioning of customs administration
across regions in India.
2. Chief Commissioners of Customs: Chief Commissioners of Customs are senior officers
appointed by the Central Government to lead and manage specific zones within the
Indian Customs department. Responsible for customs operations, enforcement, and
administration, they oversee the implementation of customs laws and policies within their
designated jurisdiction. Their role includes strategic planning, resource allocation, and
ensuring efficient trade facilitation. Chief Commissioners of Customs play a vital role in
maintaining border security, preventing smuggling, and fostering international trade
while adhering to regulatory compliance.
3. Principal Commissioners of Customs: Principal Commissioners of Customs are senior
officers appointed by the Central Government to lead specific customs zones. They
manage customs operations, enforcement, and policy implementation within their
jurisdiction. Responsible for strategic planning, resource allocation, and ensuring
compliance, they play a key role in facilitating international trade and maintaining border
security.
4. Commissioners of Customs: Commissioners of Customs are officials appointed by the
Central Government to oversee customs operations in specific areas. They manage
enforcement, compliance, and facilitate trade within their jurisdiction, contributing to the
effective functioning of the Indian Customs department.
5. Commissioners of Customs (Appeals): Commissioners of Customs (Appeals) are
appointed officials responsible for hearing appeals against customs decisions. Their role
involves reviewing cases, ensuring fair and impartial judgments, and providing a
platform for individuals dissatisfied with customs rulings to present their arguments.
Commissioners of Customs (Appeals) contribute to the resolution of disputes and the
transparent application of customs laws.
6. Joint Commissioners of Customs: Joint Commissioners of Customs are officials
appointed by the Central Government to assist in managing customs operations. Working
under higher-ranking officers, they contribute to enforcement, compliance, and
administrative functions within their designated areas. Their role involves supporting
strategic initiatives, ensuring regulatory adherence, and facilitating the smooth operation
of customs activities.
7. Deputy Commissioners of Customs: Deputy Commissioners of Customs are appointed
officials tasked with overseeing specific customs functions within their assigned areas.
Reporting to higher-ranking officers, they contribute to enforcement, compliance, and
administrative tasks. Their responsibilities include facilitating trade, conducting
inspections, and ensuring regulatory adherence. Deputy Commissioners play a key role in
the day-to-day operations of customs activities, supporting the overall goals of the Indian
Customs department.
8. Assistant Commissioner of Customs: Assistant Commissioners of Customs are
appointed officials responsible for assisting in customs operations and administration.
 Working under higher-ranking officers, they contribute to enforcement, compliance, and
trade facilitation within their designated areas. Their role involves conducting
inspections, processing documentation, and supporting the efficient functioning of
customs activities. Assistant Commissioners play a crucial part in the implementation of
customs laws and regulations, contributing to the overall objectives of the Indian
Customs department.

Section # 4: Appointment of Customs Officers

1. Central Government Authority: The appointment of officers of customs is vested in the
Central Government, granting it the authority to designate individuals for various
positions within the customs department.
2. The Board (Central Government) may authorize a Principal Chief Commissioner of
Customs or Chief Commissioner of Customs or a Principal Commissioner of Customs or
Commissioner of Customs or a Joint or Assistant Commissioner of Customs or Deputy
Commissioner of Customs to appoint officers of customs below the rank of Assistant
Commissioner of Customs or Deputy Commissioner of Customs.

These rules empower the Central Government to appoint and designate officers to effectively
carry out customs functions.

Section # 5: Powers of officers of customs

1. The Board (Central Government) may impose powers and may discharge the duties
conferred or imposed on him under this Act.
2. An officer of customs may exercise the powers and discharge the duties conferred or
imposed under this Act on any other officer of customs who is subordinate to him.
3. Commissioner (Appeals) shall not exercise the powers and discharge the duties conferred
or imposed on an officer of customs other than those specified in (section # 108).

Section # 6: Entrustment of functions of Board and

customs officers on certain other officers
The Central Government may, by notification in the Official Gazette, entrust either conditionally
or unconditionally to any officer of the Central or the State Government or a local authority any
functions of the Board under this Act.

Section # 7: Appointment of customs ports, airports,

etc.
1. The Board may, by notification in the Official Gazette, appoint:
a) The ports and airports which alone shall be customs ports or customs airports for
the unloading of imported goods and the loading of export goods or any class of such
goods + the places which alone shall be inland [container depots or air freight
stations] for the unloading of imported goods and the loading of export goods or any
class of such goods
b) The places which alone shall be land customs stations for the clearance of goods
imported or to be exported by land or inland water or any class of such goods
c) The routes by which alone goods or any class of goods specified in the notification
may pass by land or inland water into or out of India, or to or from any land customs
station from or to any land frontier
d) The ports which alone shall be coastal ports for the carrying on of trade in coastal
goods or any class of such goods with all or any specified ports in India.
e) The post offices which alone shall be foreign post offices for the clearance of
imported goods or export goods or any class of such goods
f) The places which alone shall be international courier terminals for the clearance of
imported goods or export goods or any class of such goods.
2. Any notification issued under this section (referring to a specific section of the law)
before the Finance Act of 2003 came into effect will be considered as if it was issued
under the updated version of the law introduced by the Finance Act of 2003. This means
the existing notifications will continue to be valid and effective until they are changed or
cancelled according to the amended law.
 Section # 8: Power to approve landing places and
specify limits of customs area
This section empowers the [Principal Commissioner of Customs or Commissioner of
Customs] to take certain actions:

1. Approval of Landing Places:

 The official has the authority to approve suitable locations within customs ports,
customs airports, or coastal ports for the unloading and loading of goods. This
allows for the regulated movement of goods at designated places.
2. Specification of Customs Area Limits:

 The official can define and specify the boundaries or limits of any customs area.
This involves outlining the areas where customs regulations and control will be
applied, facilitating effective supervision and enforcement.

Section # 9:
This section, which granted powers to declare places as warehousing stations, has been removed
(omitted) by The Finance Act, 2016. The omission means that, as of May 14, 2016, this specific
authority to declare places as warehousing stations is no longer in effect. The change reflects a
modification in the relevant law, and any references to this provision should consider its
omission.

Section # 10: Appointment of boarding stations

This section grants the [Principal Commissioner of Customs or Commissioner of Customs] the
authority to appoint a boarding station near a customs port. This station serves the purpose of
facilitating the boarding or disembarkation of officers of customs from vessels. The appointment
is made through an official notification in the Official Gazette, providing a designated location
for customs officers to board or leave vessels efficiently as part of their duties.
Section # 11: Power to prohibit importation or
exportation of goods
1. Subsection # 1 of this Section provides the Central Government the authority to prohibit,
through an official notification in the Gazette, either completely or subject to specific
conditions, the import or export of goods of a specified kind. This power is exercised when
the government deems it necessary for certain purposes outlined in sub-section # 2 of this
Section. The prohibition aims to regulate the movement of specific goods into or out of the
country, ensuring compliance with conditions set by the government for reasons mentioned
in the law.
2. Subsection # 2 of this Section outlines the Purposes and Reasons for which the Central
Government can prohibit the import or export of goods. Here's a simplified explanation:
1) Security and Order: To maintain India's security, public order, and decency.
2) Economic Stability: Preventing smuggling, shortages, and uncontrolled trade of gold or
silver to protect the economy.
3) Trade Balance: Conserving foreign exchange and balancing payments.
4) Industry and Agriculture: Supporting the establishment of industries and preventing
surplus in agriculture or fisheries.
5) International Standards: Maintaining standards for goods in international trade.
6) Protection: Safeguarding health, national treasures, and natural resources.
7) Intellectual Property: Protecting patents, trademarks, copyrights, designs, and
geographical indications.
8) Fair Trade Practices: Preventing deceptive practices in trade.
9) Government Trade: Enabling the State or State-controlled entities to conduct foreign
trade, excluding citizens if necessary.
10) Global Obligations: Fulfilling international obligations under the UN Charter and treaties
for peace, security, and compliance with laws.
11) Domestic Alignment: Ensuring compliance of imported goods with laws applicable to
similar goods produced in India.
 12) Diplomacy: Preventing the dissemination of documents that may harm relations with
foreign states or national prestige.
13) Legal Compliance: Preventing contravention of existing laws.
14) Public Interest: Any other purpose promoting the general public's interests.

These reasons give the government the flexibility to regulate trade for various essential purposes.

3. Subsection # 3 of this Section clarifies that any prohibition, restriction, or obligation related
to the import, export, or clearance of goods mentioned in other laws will be implemented
under the provisions of those laws. However, for this to happen, these restrictions must be
notified under the Indian Customs Act. The Central Government has the authority to make
exceptions, modifications, or adaptations as deemed necessary. In simpler terms, the customs
provisions will apply to other laws' restrictions only if the Central Government officially
notifies them under the Indian Customs Act, with possible adjustments as needed.

DETECTION OF ILLEGALLY IMPORTED

GOODS AND PREVENTION OF THE DISPOSAL
THEREOF

Section # 11A: Definitions

This section is about simple explanation of Defined terms:

1. Illegal Import:
Meaning: Importing goods against the laws of this Act or any other prevailing law.
Example: Bringing in goods in violation of customs regulations.
2. Intimated Place:
Meaning: "Intimated Place" is a location officially disclosed to customs authorities. It's a
place communicated to customs officials for specific procedures, like handling goods, as
outlined in the law. In simple terms, it's a spot formally shared with customs for
designated activities.
Example: A place disclosed to customs authorities for certain procedures.
 3. Notified Date:
Meaning: "Notified Date" is the specific day when an official announcement or
notification related to particular goods is issued under the law. It signifies the formal
communication of information regarding those goods, providing clarity on their status or
regulations. In simpler terms, it's the date of an official notification for specific goods.
Example: The day when an official announcement about particular goods is made.
4. Notified Goods: "Notified Goods" are items specified in an official notification issued
under the law. This announcement formally designates and communicates particular
goods, outlining regulations or restrictions applicable to them. In simpler terms, these are
goods explicitly mentioned and clarified through an official notification.
Example: Items explicitly mentioned in the official announcement under section 11B.

In essence, these definitions clarify terms used under this Section providing a clear
understanding of the focus on detecting and preventing the disposal of illegally imported goods.

Section # 11B: Power of Central Government to notify

goods
Section 11B empowers the Central Government to notify specific goods if it believes that special
measures are necessary to combat the significant illegal import, circulation, or disposal of such
goods. This notification, published in the Official Gazette, formally designates and
communicates the particular class or description of goods requiring heightened attention and
measures to prevent illicit activities.

Section # 11C: Persons possessing notified goods to

intimate the place of storage, etc.
Section 11C outlines the obligations for individuals dealing with notified goods, which are items
specified by the government due to concerns about illegal import or circulation.

Here's a breakdown:
 1. Ownership or Possession: Individuals with notified goods must, within seven days of
the specified date, inform the proper officer about the goods, their location, and
ownership details.
2. Acquisition of Notified Goods: Those acquiring such goods after the specified date must
notify the proper officer before acquisition and provide details after the acquisition.
3. Shifting of Goods: If one intends to move notified goods to a different place, they must
inform the proper officer beforehand.
4. Time Limit for Storage: After seven days from the specified date, storing notified goods
at any place other than the initially informed location is prohibited.
5. Transfer of Notified Goods: Transferring these goods requires a voucher as specified in
section 11F.
6. Transporting Notified Goods: Moving these goods (except sold or transferred ones)
requires a transport voucher specified by rules.

Section # 11D: Precautions to be taken by persons

acquiring notified goods
Section 11D outlines precautions for individuals acquiring notified goods, which are items
specified by the government due to concerns about illegal importation. Here's a breakdown:

1. Prohibited Acquisitions:

 No person can acquire notified goods (except by gift or succession) after the
specified date, unless certain conditions are met.

2. Conditions for Acquisition:

 Before acquiring such goods, the person must ensure that they are accompanied
by either the specified voucher or memorandum (as outlined in section 11F or
section 11G), or, in the case of self-imported goods, evidence showing customs
clearance.
 3. Reasonable Steps:

 When acquiring goods from someone other than a fixed-place dealer, the
individual must take reasonable steps, as specified by rules, to ensure that the
goods are not illegally imported.

Section # 11E: Persons possessing notified goods to

maintain accounts
Section 11E outlines the requirement for individuals dealing with notified goods to maintain
accurate accounts. Here's a breakdown:

1. Maintenance of Accounts:

 Individuals owning, possessing, controlling, or acquiring notified goods must

maintain a complete account, specifying the form and manner as per rules. This
includes details of acquisitions, disposals, and particulars of the other party
involved.

2. Place of Storage:

 The account must be kept at the place of storage of the notified goods to which
the accounts relate.

3. Exception for Existing Accounts:

 Individuals already maintaining accounts containing specified particulars need not

create a separate set if their existing accounts comply with the rules.

4. Manufacturing Usage:

 Individuals using notified goods for manufacturing other goods must maintain a
separate account for the notified goods used. This account should also be kept at
the intimated place.
Section # 11F: Sale, etc., of notified goods to be
evidenced by vouchers
Section 11F stipulates that, starting from the specified date, any sale or transfer of notified goods
must be documented with a voucher. This voucher, as specified by rules, serves as evidence for
every transaction involving the sale or transfer of these goods. In simple terms, it ensures that
there is a formal record for all dealings with notified goods, promoting transparency and
accountability.

Section # 11G: Sections 11C, 11E and 11F not to apply

to goods in personal use
Section 11G provides exemptions for certain scenarios related to notified goods in personal use.
Here's a breakdown:

1. Personal Use Exemption:

 Sections 11C, 11E, and 11F do not apply to notified goods used for personal
purposes by the individual who owns, possesses, or controls them.

2. Residential Premises Exception:

 The mentioned sections also do not apply to notified goods kept in a person's
residential premises for personal use.

3. Transfer of Goods in Personal Use:

 If someone in possession of such notified goods in personal use sells or transfers

them for a valuable consideration, they must issue a memorandum to the
purchaser or transferee containing specified particulars. Additionally, the goods
can't be moved from one place to another without this memorandum.
 PREVENTION OR DETECTION OF ILLEGAL
EXPORT OF GOODS

Section # 11H: Definitions

Section 11-H provides definitions for key terms used in this Whole Section of the Act. Here's a
breakdown:

1. Illegal Export:

 "Illegal export" refers to the act of exporting any goods in violation of the
provisions of this Act or any other prevailing law.

2. Intimated Place:

 "Intimated Place" refers to a location communicated or specified under Section

11J of the Act, serving as a designated place for certain activities or transactions.

3. Specified Area:

 "Specified area" includes Indian customs waters and an inland region, not
exceeding one hundred kilometers from any coast or border of India. The Central
Government may specify this area in consideration of its vulnerability to
smuggling through an official notification.

 Note: If part of a village, town, or city falls within a specified area, the entire
entity is considered part of the specified area.

4. Specified Date:

 "Specified date" in relation to specified goods means the date on which a

notification is issued under section 11-I concerning those goods in any specified
area.

5. Specified Goods:
  "Specified goods" are goods of any description specified in the notification issued
under section 11-I concerning a specified area.

Section # 11I: Power of Central Government to specify

goods
Section 11-I empowers the Central Government to specify certain goods if it deems it necessary
to address the significant issue of illegal export. If the government believes that special measures
are crucial for preventing illegal exports or detecting goods prone to such activities, it can issue
an official notification in the Gazette, specifying the class or description of goods to be covered
by these measures. This section essentially grants the government the authority to take targeted
actions against illegal exports by identifying and categorizing specific goods.

Section # 11J: Persons possessing specified goods to

intimate the place of storage, etc.
Section 11J outlines the procedures for individuals possessing specified goods within a specified
area. Here's a breakdown:

1. Intimation of Storage:

 Persons owning, possessing, or controlling specified goods with a market price

exceeding fifteen thousand rupees on the specified date must, within seven days,
inform the proper officer of the location where these goods are stored in the
specified area.

2. Intimation for Acquisition:

 Individuals acquiring specified goods within the specified area, either with a
market price exceeding fifteen thousand rupees individually or in combination
with other similar goods owned, possessed, or controlled, must, before
acquisition, inform the proper officer of the intended storage location.
  Note: Once intimation is submitted for specified goods, further intimation is not
required as long as the goods remain at the intimated place.

3. Shifting Intimation:

 If a person plans to move specified goods covered by subsections (1) or (2) to a

location other than the intimated place, they must inform the proper officer before
relocating.

4. Restriction on Storage:

 After seven days from the specified date, it is prohibited to store specified goods
covered by subsections (1) or (2) at any place other than the intimated place.

Section # 11K: Transport of specified goods to be

covered by vouchers
Section 11K of the Indian Customs Act, 1962, pertains to the transport of specified goods within
specified areas. Here's a concise explanation:

1. Transport Voucher Requirement:

 Specified goods cannot be transported into, from, or within a specified area, or

loaded on any animal or conveyance within that area, unless accompanied by a
transport voucher.

2. Exemption for Local Transport:

 No transport voucher is required for the transport of specified goods within a

village, town, or city if the market price of the goods does not exceed one
thousand rupees on the date of transport.

3. Central Government's Authority:

 The Central Government has the authority to specify, through official notification,
certain classes or descriptions of goods with a market price exceeding a notified
 sum. It may also direct that transport vouchers for such specified goods must be
countersigned by the proper officer.

Section # 11L: Persons possessing specified goods to

maintain accounts
Section 11L of the Indian Customs Act, 1962, deals with the maintenance of accounts by
individuals possessing specified goods within specified areas. Here's a concise explanation:

1. Account Maintenance Requirement:

 Individuals owning, possessing, or controlling specified goods with a market price

exceeding fifteen thousand rupees in a specified area must maintain a
comprehensive account in a specified form and manner.

2. Entry for Acquisition or Parting:

 Whenever there is an acquisition or parting with specified goods, individuals must

make entries in the account. The particulars of the person involved in the
transaction must also be recorded.

3. Account Location:

 The account must be kept along with the goods at the place of storage to which
the accounts relate. If the specified goods are used for manufacturing other goods,
a separate account for such use must be maintained at the intimated place.

4. Presumption in Case of Discrepancy:

 If, during a verification by a proper officer, the quantity of specified goods is

found to be less than the stock shown in the accounts, it is presumed (unless
proven otherwise) that the shortfall has been illegally exported, implicating the
person in the illegal export.
Section # 11M: Steps to be taken by persons selling or
transferring any specified goods
Section 11M of the Indian Customs Act, 1962, outlines the steps to be taken by individuals
selling or transferring specified goods within a specified area. Here's a concise explanation:

1. Verification of Purchaser's Identity:

 Individuals selling or transferring specified goods must obtain the signature and
full postal address of the purchaser unless payment is received by a cheque drawn
by the purchaser.

2. Additional Steps for Verification:

 Sellers must take other reasonable steps specified by rules to verify the identity of
the purchaser or transferee. Failure to trace the purchaser or identification of a
fictitious person may lead to the presumption, unless proven otherwise, of illegal
export involvement.

3. Presumption in Case of Non-Tracing or Fictitious Identity:

 If, following an inquiry by a proper officer, the purchaser or transferee is not

readily traceable or is deemed fictitious, it is presumed that the specified goods
have been illegally exported, and the seller is considered involved in such illegal
export.

4. Exemption for Petty Sales:

 The section does not apply to petty sales of specified goods if the aggregate
market price from such sales in a day does not exceed two thousand and five
hundred rupees.

Petty sale: A "petty sale" refers to a sale at a price not exceeding one thousand rupees.

Section # 11N: Power to exempt

Section 11N of the Indian Customs Act, 1962, grants the Central Government the authority to
provide exemptions for goods from the provisions outlined in above sections from 11A to 11M.
Here's a concise explanation:

1. Government Authority:

 The Central Government possesses the power to grant exemptions.

2. Exemptions for Goods:

 Exemptions may be provided for goods of any class or description.

3. Scope of Exemption:

 The exemptions may be absolute or subject to specified conditions as outlined in

the official notification.

4. Notification Process:

 The Central Government can issue a notification in the Official Gazette to

formalize the exemptions.

5. Public Interest Criteria:

 Exemptions are granted based on the Central Government's satisfaction of the

necessity in the public interest.

LEVY OF, AND EXEMPTION FROM, CUSTOMS

DUTIES

Section # 12: Dutiable goods

1. Levying Customs Duties:

 Duties of customs are imposed on goods imported into or exported from India.
 2. Rate Specification:

 The rates at which customs duties are levied are determined by the (Customs
Tariff Act, 1975), or any other applicable law.

3. Applicability to Government Goods:

 The provisions of this section apply uniformly to all goods, whether they belong
to the Government or not.

4. Customs Tariff Act, 1975:

 The Customs Tariff Act, 1975 (or any other relevant law) specifies the rates for
customs duties.

5. No Specified Exceptions:

 Duties are levied on goods unless there are specific provisions mentioned in the
Act or any other concurrent law.

Section # 13: Duty on pilfered goods

Section 13 of the Indian Customs Act addresses the situation where imported goods are pilfered
after unloading but before the proper officer clears them for home consumption or storage in a
warehouse. In such cases, the importer is not obligated to pay the duty applicable to these goods
unless they are recovered and restored to the importer after the incident of pilferage. This
provision aims to relieve the importer from duty liability for goods that have been pilfered during
the initial stages of the customs clearance process.

Section # 14: Valuation of goods

Section 14 of the Indian Customs Act pertains to the valuation of goods for customs purposes.
This section establishes the methodology for determining the customs value of goods, ensuring
transparency and fairness in the assessment process.
 1. Transaction Value: The value of imported and export goods is determined based on the
transaction value. This is the actual price paid or payable when the goods are sold for
export to India or from India, provided the buyer and seller are unrelated, and the price is
the sole consideration. The value includes amounts paid for various costs and services as
specified in the rules.

2. Additional Provisions:

 Rules may define circumstances deeming the buyer and seller related.

 Rules may determine the value when there is no sale, or buyer and seller are
related, or price is not the sole consideration.

 Rules govern acceptance or rejection of declared value when doubts arise,

determining the value for this section.

3. Tariff Values: The Board (Central Government) has the authority to fix tariff values
through official notification for specific imported/exported goods based on the observed
trends. Duty is then levied according to these tariff values.

4. Exchange Rate Consideration: The value calculations consider the exchange rate
prevailing on the date of presenting the bill of entry or shipping bill of export.

5. Explanation:

 Rate of Exchange: Determined by the Board or as directed, for converting Indian

currency to foreign currency or vice versa.

 Foreign Currency and Indian Currency: Definitions align with the Foreign
Exchange Management Act, 1999.

Section # 15: Date for determination of rate of duty

and tariff valuation of imported goods
This section ensures that the rate of duty and tariff valuation for imported goods is determined
based on specific events, such as the presentation of a bill of entry, clearance from a warehouse,
or the payment of duty. The exception accounts for situations where the bill of entry is presented
before the actual arrival of the importing vehicle or vessel. Baggage and goods imported by post
are exempt from these provisions.

1. Rate of Duty and Tariff Valuation:

 For goods entered for home consumption under section 46, the applicable rate of
duty and tariff valuation (if any) is determined on the date when a bill of entry for
such goods is presented.

 For goods cleared from a warehouse under section 68, the relevant rate of duty
and tariff valuation is determined on the date when a bill of entry for home
consumption is presented.

 For other goods, the rate of duty is determined on the date of payment of duty.

2. Exception for Bill of Entry Presentation:

 If a bill of entry has been presented before the entry inwards of the vessel, the
arrival of the aircraft, or the vehicle by which the goods are imported, the bill of
entry is deemed to have been presented on the date of such entry inwards or
arrival.

3. Exemption:

 The provisions of this section do not apply to baggage and goods imported by
post.

Section # 16: Date for determination of rate of duty

and tariff valuation of export goods
This section ensures that the rate of duty and tariff valuation for export goods is determined
based on specific events, such as the issuance of an order for clearance and loading by the proper
officer or the payment of duty. Baggage and goods exported by post are exempt from these
provisions.

1. Rate of Duty and Tariff Valuation:

 For goods entered for export under section 50, the applicable rate of duty and
tariff valuation (if any) is determined on the date when the proper officer issues an
order permitting clearance and loading of the goods for exportation under section
51.

 For other goods, the rate of duty is determined on the date of payment of duty.

2. Exception:

 The provisions of this section do not apply to baggage and goods exported by
post.

Section # 17: Assessment of duty

1. Self-Assessment:

 Importers (under section 46) or exporters (under section 50) are required to self-
assess the duty on their goods, except as provided in section 85.

2. Verification by Proper Officer:

 The proper officer can verify the entries and self-assessment, examining or testing
the goods if necessary.

 Cases for verification are primarily selected based on risk evaluation criteria.

3. Documentary Requirements:
  The proper officer may request importers, exporters, or others to produce
documents or information for ascertaining the duty.

4. Re-Assessment by Proper Officer:

 If the self-assessment is found incorrect, the proper officer may re-assess the duty
without prejudice to other actions.

 In cases where re-assessment differs from self-assessment and is not accepted in

writing by the importer/exporter, a speaking order must be passed within fifteen
days.

5. Transition Provision:

 Goods entered under section 46 or 50 before the Finance Bill 2011's assent
continue under the previous Section 17 provisions until that date.

Explanation:

 Importers/exporters entering goods before the Finance Bill 2011's assent adhere to the
previous Section 17 until that date.

Section # 18: Provisional assessment of duty

1. Conditions for Provisional Assessment:

 If the importer/exporter can't self-assess or if further examination is needed,

provisional assessment is allowed.

 The proper officer may direct provisional assessment when additional tests or
enquiries are deemed necessary.

2. Security Requirement:

 To proceed with provisional assessment, the importer/exporter must provide

security as deemed appropriate by the proper officer.

3. Finalization Process (Sub-section 1A):

  If documents or information are needed for the final assessment, the
importer/exporter must submit them within the prescribed time.

 The proper officer finalizes the provisional assessment within the specified time
and manner.

4. Adjustment of Payment:

 Once duty is finally assessed or re-assessed, the amount paid is adjusted.

 In case of a deficit or excess, the importer/exporter pays the deficiency or is

entitled to a refund.

5. Warehoused Goods:

 For warehoused goods, if the final duty exceeds the provisional duty, the importer
may need to execute a bond.

6. Interest on Payment Delay:

 Interest is levied on any amount payable to the Central Government from the first
day of the month of provisional assessment until payment.

7. Interest on Refund Delay:

 If a refundable amount isn't refunded within three months from the final
assessment date, interest is payable on the un-refunded amount.

8. Payment to Importer/Exporter:

 Refundable amounts and interest, instead of being credited to the Fund, are paid
to the importer/exporter in specific cases.

 Cases include duty and interest paid by an individual for personal use, duty borne
by the buyer, export duty, and specific drawbacks under sections 74 and 75.
Section # 19: Determination of duty where goods
consist of articles liable to different rates of duty
This section is about Determination of Duty for Goods with Different Rates:

 Calculation Method:

 For a set of goods with different rates of duty:

 Articles with duty based on quantity are charged accordingly.

 Articles with duty based on value are charged at the highest applicable rate
if different rates apply.

 Articles without duty are charged at the rate applicable to valued articles.

 Provisions:

 Accessories and Spare Parts:

 Accessories, spare parts, or maintenance implements meeting specified

conditions are charged at the same rate as the associated article.

 Importer's Evidence:

 If the importer provides satisfactory evidence or if such evidence is

available, the duty for articles with different rates can be determined
separately based on their individual values.

Section # 20: Re-importation of goods

Goods imported into India after being exported are subject to applicable duties and any
conditions or restrictions that goods of similar kind and value are subjected to upon importation.

Section # 21: Goods Derelict, Wreck, etc.

All goods, including derelict, jetsam, flotsam, and wreck, entering or arriving in India are treated
as if they were newly imported, unless satisfactory evidence is presented to the proper officer to
establish their eligibility for duty-free admission under this Act.

Section # 22: Abatement of duty on damaged or

deteriorated goods
1. Conditions for Abatement: The Assistant Commissioner of Customs or Deputy
Commissioner of Customs may grant abatement of duty if it is established that:

 (a) Imported goods were damaged or deteriorated before or during unloading in

India.

 (b) Imported goods (excluding warehoused goods) were damaged after unloading
but before examination under section 17, due to accidental causes not attributable
to the importer's negligence.

 (c) Warehoused goods were damaged before clearance for home consumption due
to accidents not caused by the owner's negligence.

2. Calculation of Duty: The duty on the damaged goods is determined by applying the
same proportion to the original duty as the value of the damaged goods bears to the value
of the goods before damage.

3. Methods for Ascertaining Value: The owner can choose one of the following methods
to ascertain the value of damaged goods:

 (a) The proper officer determines the value.

 (b) The damaged goods are sold by public auction, tender, or any other agreed-
upon method and the gross sale proceeds are considered the value of the goods.
Section # 23: Remission of Duty on Lost, Destroyed, or
Abandoned Goods
1. Remission on Loss or Destruction:

 If it is established to the satisfaction of the Assistant Commissioner of Customs or

Deputy Commissioner of Customs that imported goods have been lost or
destroyed (excluding pilferage) before clearance for home consumption, the duty
on such goods shall be remitted.

2. Owner's Option to Relinquish Title:

 The owner of imported goods has the option to relinquish title to the goods at any
time before an order for clearance or deposit in a warehouse is made under
sections 47 or 60, respectively.

 Upon relinquishing title, the owner is relieved from the duty liability on those
goods.

3. Exception to Relinquishment:

 The owner cannot relinquish title to goods if an offense is suspected under this
Act or any other prevailing law.

 Relinquishment is not allowed for goods involved in potential legal violations.

Section # 24: Power to Make Rules for Denaturing or

Mutilation of Goods
The Central Government possesses the authority to formulate rules that allow, upon the owner's
request, the denaturing or mutilation of imported goods designed for multiple purposes. This
process aims to make these goods unsuitable for one or more of their intended purposes. Goods
subjected to denaturation or mutilation are then liable to duty at a rate applicable to their altered
form, as if they were initially imported in this modified state.
Section # 25: Power to Grant Exemption from Duty
1. General Exemption Authority (Sub-section 1):

 The Central Government, if satisfied in the public interest, can exempt goods
from customs duty through a notification in the Official Gazette.

 Exemption can be absolute or subject to specified conditions, either before or

after clearance.

2. Exceptional Circumstances Exemption (Sub-section 2):

 The Central Government, in exceptional cases, can grant special orders exempting
certain goods from duty.

 Circumstances warranting exemption must be explicitly stated in the special

order.

3. Clarification Through Explanation (Sub-section 2A):

 For clarifying the scope or applicability of notifications or orders issued under

sub-sections 1 or 2, the Central Government can insert explanations.

 These explanations, if added within a year of the original notification or order, are
deemed to be part of the original document.

4. Different Form or Method of Duty (Sub-section 3):

 Exemptions can involve levying duty on goods using a different form or method
than the statutory duty.

 The duty on such goods must not exceed the statutory duty.

 Explanation: "Form or method" refers to the basis (valuation, weight, etc.) for
levying duty.

5. Notification Effective Date (Sub-section 4):

  Notifications issued under sub-sections 1 or 2A come into force on the date of
issuance by the Central Government for publication in the Official Gazette.

6. Minimal Duty Collection (Sub-section 6):

 Irrespective of other provisions, no duty is collected if the duty amount is equal to

or less than one hundred rupees.

7. Exemption for Mineral Oils (Sub-section 7 & 8):

 Mineral oils (including petroleum and natural gas) extracted or produced in

specific maritime zones and imported before February 7, 2002, are deemed
exempt from customs duties.

 No legal proceedings or suits related to these mineral oils are allowed.

 Despite the exemption, no refunds are provided for customs duties paid on the
specified mineral oils.

Section # 25A: Inward Processing of Goods

1. Exemption Authority (Sub-section 1):

 The Central Government, upon satisfaction of public interest necessity, can grant
exemptions for specific goods imported for repair, further processing, or
manufacturing through a notification.

2. Conditions for Exemption:

 Exemption is subject to the fulfillment of the following conditions:

 (a) Timeframe for Re-export (Sub-section 1a):

 The goods must be re-exported within one year from the date of
clearance.

 (b) Identification in Export Goods (Sub-section 1b):

  The imported goods must be identifiable in the exported goods.

 (c) Other Specified Conditions (Sub-section 1c):

 Any additional conditions specified in the notification.

3. Notification Authority (Sub-section 1):

 Exemptions and conditions are communicated through a notification issued by the

Central Government.

By implementing these provisions, the section aims to facilitate the inward processing of goods
for specific purposes, encouraging repair, further processing, or manufacturing while
maintaining regulatory oversight through specified conditions and timeframes.

Section # 25B: Outward Processing of Goods

1. Exemption Authority (Sub-section 1):

 The Central Government, upon satisfaction of public interest necessity, can grant
exemptions for specific goods that are re-imported after being exported for repair,
further processing, or manufacturing through a notification.

2. Conditions for Exemption:

 Exemption is subject to the fulfillment of the following conditions:

 (a) Timeframe for Re-import (Sub-section 1a):

 The goods must be re-imported into India within one year from the
date of the order permitting clearance for export.

 (b) Identification of Exported Goods (Sub-section 1b):

 The exported goods must be identifiable in the re-imported goods.

 (c) Other Specified Conditions (Sub-section 1c):

 Any additional conditions specified in the notification.

 3. Notification Authority (Sub-section 1):

 Exemptions and conditions are communicated through a notification issued by the

Central Government.

By implementing these provisions, the section aims to facilitate the outward processing of goods,
allowing re-importation after exportation for specific purposes such as repair, further processing,
or manufacturing. The outlined conditions ensure regulatory compliance and control over the
process.

Section # 26: Refund of Export Duty in Certain Cases

This section outlines the conditions under which export duty, previously paid on exported goods,
can be refunded. The key criteria for eligibility are as follows:

1. Return of Goods (Sub-section a):

 The duty becomes refundable if the exported goods are returned to the person
who paid the duty, excluding cases of re-sale.

2. Re-importation Timeframe (Sub-section b):

 The duty becomes refundable if the exported goods are re-imported within one
year from the date of their initial exportation.

3. Application for Refund (Sub-section c):

 To avail the refund, an application must be submitted before six months elapse
from the date on which the proper officer issues an order for the clearance of the
re-imported goods.

Section # 26A: Refund of Import Duty in Certain

Cases
This section outlines the conditions under which import duty, previously paid on the clearance of
goods for home consumption, can be refunded. The key provisions are as follows:

1. Defective or Non-Conforming Goods (Sub-section 1a):

 The duty becomes refundable if the imported goods are found to be defective or
not in conformity with agreed specifications between the importer and the
supplier, provided the goods have not been worked, repaired, or used extensively
after importation, except when such use was essential for discovering defects or
non-conformities.

2. Identification of Goods (Sub-section 1b):

 The duty becomes refundable if the goods are identified to the satisfaction of the
Assistant Commissioner of Customs or Deputy Commissioner of Customs as the
ones originally imported.

3. Drawback and Disposal (Sub-section 1c and 1d):

 The importer is eligible for a refund only if they do not claim drawback under any
other provisions of the Act.

 The duty becomes refundable if the goods are exported, the importer relinquishes
their title to the goods and abandons them to customs, or if the goods are
destroyed or rendered commercially valueless within a prescribed period, not
exceeding thirty days from the date of clearance.

Note: The period of thirty days can be extended by the Principal Commissioner of Customs or
Commissioner of Customs for up to three months, upon sufficient cause.

4. Refund Application (Sub-section 2):

 An application for the refund of duty must be submitted within six months from
the relevant date, which varies based on the circumstances:

 For exported goods, it is the date on which the proper officer permits
clearance and loading for export.
  For goods where the title is relinquished, it is the date of relinquishment.

 For goods destroyed or rendered commercially valueless, it is the date of

destruction or rendering commercially valueless.

5. Exceptions (Sub-section 3):

 No refund is allowed for perishable goods or goods that have exceeded their shelf
life or recommended storage-before-use period.

6. Board's Authority (Sub-section 4):

 The Board has the authority to specify additional conditions, subject to which the
refund under sub-section (1) may be allowed, through notification in the Official
Gazette.

Section # 27: Claim for Refund of Duty

This section outlines the procedure for claiming a refund of customs duty or interest paid. Here
are the key points:

1. Application for Refund (Sub-section 1):

 Any person can apply for a refund of duty or interest paid by them or borne by
them.

 The application must be made to the Assistant Commissioner of Customs or

Deputy Commissioner of Customs.

 The application should be submitted in the prescribed form and manner.

 The application must be made before the expiry of one year from the date of
payment of duty or interest.

Note: The limitation of one year does not apply if duty or interest has been paid under protest.

2. Supporting Documentation (Sub-section 1A):

  The application must be accompanied by documentary or other evidence,
including documents referred to in Section 28C, to establish that the duty or
interest claimed was collected from or paid by the applicant, and the incidence of
such duty or interest has not been passed on to any other person.

3. Computation of Limitation (Sub-section 1B):

 The period of limitation of one year is calculated based on different scenarios:

 For goods exempt from duty by a special order, from the date of the issue
of such order.

 When duty becomes refundable due to a judgment, decree, order, or

direction, from the date of such judgment, decree, order, or direction.

 For provisional duty payment under Section 18, from the date of
adjustment after the final assessment or re-assessment.

4. Refund Order (Sub-section 2):

 If the Assistant Commissioner of Customs or Deputy Commissioner of Customs

is satisfied that the duty or interest paid is refundable, they may make an order
accordingly.

 The amount determined to be refundable shall be credited to the Fund.

Note: The amount may be paid to the applicant instead of being credited to the Fund under
specific circumstances outlined in Sub-section 2.

5. Specific Instances for Payment to Applicant (Sub-section 2):

 The duty and interest paid may be paid to the applicant if it is relatable to various
situations, including duty paid by the importer or exporter, duty on imports for
personal use, duty borne by the buyer, export duty, drawback of duty, and other
specified circumstances.
Note: The Central Government can specify additional classes of applicants for whom the duty
may be paid, subject to the condition that the incidence of duty or interest has not been passed
on.

6. No Refund Contrary to Legal Decisions (Sub-section 3):

 Despite any legal decisions or provisions, no refund shall be made except as

provided in Sub-section 2.

7. Parliamentary Approval for Specific Cases (Sub-section 4):

 Notifications specifying additional classes of applicants for whom duty may be

paid must be laid before each House of Parliament.

 The Central Government must seek approval, and Parliament can modify or direct
the cessation of the notification.

8. Rescinding of Notifications (Sub-section 5):

 The Central Government can rescind any notification issued under Sub-section
2(f) at any time by notification in the Official Gazette.

This section ensures a structured process for claiming refunds, taking into account various
scenarios and providing safeguards against misuse.

Section # 27A: Interest on Delayed Refunds

This section addresses the payment of interest in cases where the duty ordered to be refunded
under Section 27 is not refunded within a specified period. Here are the key points:

1. Interest on Delayed Refunds (Section 27A):

 If the duty ordered to be refunded under Section 27(2) is not refunded within three
months from the date of receiving the refund application under Section 27(1),
interest shall be paid to the applicant.
  The interest rate is determined by the Central Government and is not below five
per cent and not exceeding thirty per cent per annum.

 The interest is calculated on the duty amount from the date immediately after the
expiry of three months from the date of receiving the refund application until the
date of actual refund.

2. Special Provision for Pre-1995 Applications (Proviso):

 For applications made before the date on which the Finance Bill, 1995 receives
the assent of the President, if the duty ordered to be refunded is not refunded
within three months from such date, interest shall be paid from the date
immediately after three months from that date until the actual refund.

3. Explanation on Refund Orders (Explanation):

 In cases where an order of refund is made by the Commissioner (Appeals),

Appellate Tribunal, or any court against an order of the Assistant Commissioner
of Customs or Deputy Commissioner of Customs under Section 27(2), the order
passed by the higher authority is deemed to be an order passed under that sub-
section for the purposes of determining interest under this section.

Section # 28: Recovery of Duties, Interest, and

Penalties
This section outlines the procedures for recovering duties, interest, and penalties in cases where
they have not been levied, paid, or have been short-levied, short-paid, or erroneously refunded.
The section is divided into several sub-sections:

1. Initiation of Recovery (Sub-sections 1 and 4):

 The proper officer has a period of two years (for general cases) or five years (in
case of collusion, willful misstatement, or suppression of facts) from the relevant
date to initiate recovery proceedings.
  The relevant date varies depending on the situation, such as the date of order for
goods clearance, provisional assessment adjustment date, refund date, or payment
date.

2. Notice and Consultation (Sub-sections 1 and 4):

 The proper officer issues a notice to the person liable for duties, interest, or
penalties.

 Before issuing a notice, the proper officer must hold pre-notice consultation with
the person, as prescribed.

3. Voluntary Payment (Sub-section 1):

 The person liable may voluntarily pay the amount of duty, interest, or part-
payment based on their own ascertainment or the one determined by the proper
officer before the notice is served.

4. Exclusion of Small Amounts (Proviso in Sub-section 1):

 The proper officer shall not serve a notice if the amount involved is less than
rupees one hundred.

5. Informing Proper Officer (Sub-section 2):

 If the person pays duty and interest voluntarily, they inform the proper officer in
writing to avoid the issuance of a notice.

6. Determining Shortfall (Sub-section 3):

 If the amount paid falls short of the actual amount payable, the proper officer
issues a notice for the remaining amount within two years from the date of
information.

7. Additional Circumstances (Sub-section 7A):

 The proper officer may issue a supplementary notice under prescribed

circumstances.
 8. Determination Period (Sub-section 9 and 9A):

 The proper officer determines the amount of duty or interest within six months or
one year, depending on the nature of the case.

 Extensions are possible under specified conditions.

9. Recovery After Determination (Sub-sections 10 and 10A):

 Upon determining the duty, the person liable pays the determined amount along
with interest, irrespective of whether interest is specified separately.

 A special provision allows the recovery of excess refunded amounts along with
interest.

10. Power of Assessment (Sub-section 11):

 Officers appointed before July 6, 2011, are deemed to have the power of
assessment under Section 17.

11. Explanations:

 Relevant Date: Specifies dates for different situations.

 Transition Provisions: Clarify the application of Section 28 before and after

specific legislative events.

This section establishes a comprehensive framework for the recovery of duties, interest, and
penalties, ensuring due process and providing avenues for voluntary compliance.

Section # 28A: Power not to Recover Duties Not

Levied or Short-Levied as a Result of General Practice
This section provides the Central Government with the authority to refrain from recovering
duties that were not levied or were short-levied due to a generally prevalent practice. The key
provisions are outlined below:
 1. Government's Satisfaction (Sub-section 1):

 The Central Government may, based on its satisfaction:

 Identify a practice that was or is generally prevalent concerning the levy of

duty on imported or exported goods.

 Determine that such goods were or are liable to duty either not levied or
short-levied as per the prevailing practice.

2. Government Notification (Sub-section 1):

 The Central Government, through an official notification, can direct that the entire
duty or the excess duty (beyond what was levied due to the prevalent practice)
need not be paid for the goods affected by this practice.

3. Handling of Duty Paid (Sub-section 2):

 If such a notification is issued, any duty paid on the goods, or the excess duty
paid, which would not have been paid if the notification had been in force, will be
processed in accordance with the provisions of sub-section (2) of section 27.

4. Refund Application (Sub-section 2 - Proviso):

 To claim a refund for the duty or excess duty, a person must submit an application
to the Assistant Commissioner of Customs or Deputy Commissioner of Customs.

 The application, made in the prescribed form referred to in section 27(1), must be
submitted within six months from the date of the notification issued by the
Central Government.

Section # 28AA: Interest on Delayed Payment of Duty

This section outlines the provisions related to the payment of interest on delayed payment of
duty. Here's a breakdown of the key points:

1. Liability for Interest (Sub-section 1):

  Any person liable to pay duty under Section 28 is also liable to pay interest,
irrespective of whether the payment is made voluntarily or after the determination
of duty under Section 28.

2. Interest Rate Fixation (Sub-section 2):

 The Central Government has the authority to fix the interest rate through an
official notification in the Official Gazette.

 The interest rate must be not less than ten percent and not exceeding thirty-six
percent per annum.

 Interest is calculated from the first day of the month succeeding the month in
which the duty should have been paid or from the date of an erroneous refund, up
to the date of actual payment of such duty.

3. Exception to Interest Payment (Sub-section 3):

 No interest is payable in certain circumstances, specifically when:

 The duty becomes payable due to an order, instruction, or direction issued

by the Board under Section 151A.

 The entire amount of duty is voluntarily paid in full within forty-five days
from the date of the Board's order, instruction, or direction.

 Importantly, this exception is applicable only if there is no reservation of

the right to appeal against the payment at any subsequent stage.

Section # 28AAA: Recovery of Duties in Certain Cases

This section outlines the provisions for the recovery of duties in cases where an instrument
issued under the Foreign Trade (Development and Regulation) Act, 1992 has been obtained
through collusion, willful misstatement, or suppression of facts. Here's a breakdown of the key
points:

1. Grounds for Recovery (Sub-section 1):

  If a person obtains an instrument (such as a scrip, authorization, license, or
certificate) under the Foreign Trade (Development and Regulation) Act, 1992
through collusion, willful misstatement, or suppression of facts.

 The instrument is utilized by a person other than the one to whom it was issued
under the provisions of this Act or related rules/notifications.

 In such cases, the duty related to the utilization of the instrument is deemed never
to have been exempted or debited, and recovery of this duty is initiated.

2. Recovery Process (Sub-section 3):

 The proper officer serves a notice on the person, to whom the instrument was
originally issued, giving them thirty days to show cause as to why the specified
amount (excluding interest) should not be recovered.

 After considering the response, if any, the proper officer determines the amount of
duty or interest (or both) to be recovered, not exceeding the amount specified in
the notice.

 An order is passed to recover the specified amount, and the person originally
issued the instrument must repay this amount within thirty days from the date of
receiving the order, along with any interest due.

3. Interest on Recoverable Amount (Sub-section 2):

 The person from whom duty is to be recovered is also liable to pay interest, as
fixed by the Central Government under Section 28AA.

 Interest is calculated from the date of utilization of the instrument until the date of
actual recovery of the duty.

4. Limitations and Exclusions (Sub-sections 4 and 5):

 If an order determining the duty has already been passed under Section 28, no
order to recover the duty shall be passed under this section.
  If the person fails to repay the specified amount within the specified thirty-day
period, recovery is initiated in the manner laid down in Section 142(1).

Section # 28B: Duties Collected from the Buyer to be

deposited with the Central Government
This section of the Act establishes the obligation of a person liable to pay duty under the
Customs Act, who has collected any amount in excess of the assessed or determined duty on
goods, to promptly deposit the surplus amount with the Central Government. Here's a simplified
overview:

1. Collection of Excess Amount (Sub-sections 1 and 1A):

 Any person liable to pay duty, who collects an amount exceeding the duty
assessed or determined on goods, must immediately pay this surplus amount to
the Central Government.

 Similarly, if any person collects an amount representing duty on goods that are
wholly exempt or subject to nil rate of duty, that excess amount must also be
promptly deposited with the Central Government.

2. Notice and Determination (Sub-sections 2 and 3):

 If the required amount is not deposited, the proper officer can issue a notice to the
person liable, asking them to show cause why the specified amount should not be
paid to the credit of the Central Government.

 After considering the representation, if any, made by the person, the proper
officer determines the amount due (not exceeding the specified amount in the
notice).

3. Adjustment and Surplus (Sub-sections 4 and 5):

  The amount paid to the credit of the Central Government is adjusted against the
duty payable by the person when the assessment or other proceedings for duty
determination are finalized.

 Any surplus amount remaining after adjustment is either credited to the Fund or
refunded to the person who bore the incidence of that amount.

 The person eligible for a refund can apply under Section 27 for the refund of the
surplus amount within six months from the date of the public notice issued by the
Assistant Commissioner of Customs.

Section # 28BA: Provisional Attachment to Protect

Revenue in Certain Cases
This section empowers the proper officer, with the prior approval of the Principal Commissioner
of Customs or Commissioner of Customs, to provisionally attach the property of a person
involved in proceedings under specific sections (28, 28AAA, or 28B) if it is deemed necessary to
protect the interests of revenue. Here's a simplified explanation:

1. Provisional Attachment (Sub-section 1):

 During the ongoing proceedings under sections 28, 28AAA, or 28B, if the proper
officer believes that provisional attachment is necessary to safeguard revenue
interests, they can issue a written order to provisionally attach the property of the
person on whom a notice is served under the relevant section.

 This attachment is subject to rules established under section 142.

2. Duration of Provisional Attachment (Sub-section 2):

 The provisional attachment is effective for a period of six months from the date of
the order made under sub-section 1.
  The Principal Chief Commissioner of Customs or Chief Commissioner of
Customs can, for recorded reasons, extend this period by further periods, not
exceeding two years in total.

 If an application for case settlement under section 127B is made to the Settlement
Commission, the time from the application date until the order under section
127C is excluded from the specified period.

INDICATING AMOUNT OF DUTY IN THE PRICE

OF GOODS, ETC., FOR PURPOSE OF REFUND

Section # 28C: Price of Goods to Indicate the Amount

of Duty Paid Thereon
This section mandates that any individual responsible for paying duty on goods must, during the
clearance of those goods, clearly display the amount of duty paid. This indication is required to
be prominent in all relevant documents, including those related to assessment, sales invoices, and
similar records. In simpler terms, when goods are being cleared, the documents associated with
the transaction must conspicuously show the amount of duty paid, and this duty amount is
considered a part of the selling price of the goods.

Section # 28D: Presumption that Incidence of Duty has

been Passed on to the Buyer
This section establishes a legal presumption that an individual who has paid duty on certain
goods under this Act is considered to have transferred the entire burden of that duty to the buyer
of the goods. Unless the person can provide evidence to the contrary, it is assumed that they have
passed on the complete impact of the duty to the purchaser. In essence, the section outlines a
default assumption regarding the shifting of the duty's financial burden to the buyer in
transactions involving goods subject to duty under the Act.
 ADVANCE RULINGS

Section # 28E: Definitions

 Advance Ruling: Refers to a written decision on questions outlined in Section 28H,
raised by the applicant in their application concerning any goods before importing or
exporting them.

 Appellate Authority: Denotes the Authority for Advance Rulings established under
Section 245-O of the Income-tax Act, 1961.

 Applicant: Any person who holds a valid Importer-exporter Code Number, exports
goods to India, or has a justifiable cause satisfying the Authority, making an application
for advance ruling under Section 28H.

 Explanation: For this clause, "joint venture in India" signifies a contractual

arrangement where two or more persons undertake an economic activity subject
to joint control, and one or more participants, partners, or equity holders is a non-
resident with substantial interest in the arrangement.

 Application: Refers to an application submitted to the Authority under Sub-section (1) of

Section 28H.

 Authority: Represents the Customs Authority for Advance Rulings appointed under
Section 28EA.

 Chairperson: Denotes the Chairperson of the Appellate Authority.

 Member: Signifies a Member of the Appellate Authority, including the Chairperson.

 Non-resident, Indian company, and Foreign company:

1. Non-Resident:
  A non-resident refers to an individual or entity that is not considered a resident for
tax purposes in a particular jurisdiction. In the context of this Act, it could pertain
to a person who is not residing in or does not have tax residency in India.

2. Indian Company:

 An Indian company specifically denotes a company that is incorporated and

registered under the laws of India. It is a business entity that operates within the
legal framework of the Indian jurisdiction.

3. Foreign Company:

 A foreign company, on the other hand, is a company incorporated and registered

under the laws of a country other than India. In the context of this Act, it typically
refers to a company that is not domestically registered in India but may engage in
business activities that are subject to the provisions of the Act.

Section # 28EA: Customs Authority for Advance

Rulings
1. Appointment of Officer:

 The Board, for the purpose of providing advance rulings under this Act, has the
authority to appoint an officer with the rank of Principal Commissioner of
Customs or Commissioner of Customs.

 Until the Customs Authority for Advance Rulings is appointed, the existing
Authority for Advance Rulings established under section 245-O of the Income-tax
Act, 1961, will continue to serve as the authority for giving advance rulings for
this Act.

2. Establishment of Offices:

 The offices of the Authority may be set up in New Delhi and other locations as
deemed suitable by the Board.
 3. Exercise of Powers:

 The Authority, in accordance with the provisions of this Act, is empowered to

exercise the powers and authority conferred upon it.

Section # 28F: Authority for Advance Rulings (AAR)

Appellate Authority and Transition Provisions

1. Designation of AAR:

 The Authority for Advance Rulings (AAR), originally constituted under the
Income-tax Act, 1961, assumes the role of the Appellate Authority for appeals
under the Customs Act. This includes the exercise of jurisdiction, powers, and
authority specified in the Customs Act.

2. Revenue Member's Role:

 The AAR, acting as the Appellate Authority, designates a Member from the
Indian Revenue Service (Customs and Central Excise) as the revenue Member.
This qualified Member, eligible for Board membership, serves the purpose of the
Appellate Authority under the Customs Act.

3. Transition of Pending Cases - Finance Bill, 2017:

 With the assent of the President to the Finance Bill, 2017, all ongoing applications
and proceedings before the former Authority for Advance Rulings (Central
Excise, Customs, and Service Tax) get automatically transferred to the AAR. The
transfer occurs from the stage at which these applications or proceedings stood on
the specified date.

4. Transition with Customs Authority for Advance Rulings:

 Upon the appointment of the Customs Authority for Advance Rulings, all pending
applications and proceedings before the former Authority for Advance Rulings
are again transferred to the AAR. This second transfer happens from the stage at
 which the applications or proceedings stood on the date of the Customs Authority
for Advance Rulings' appointment.

Section # 28G: Omission, Vacancies, etc., not to

invalidate proceedings
This section, previously numbered 28G, has been omitted by the Finance Act (7 of 2017) with
effect from March 31, 2017. The omitted section likely dealt with matters related to vacancies
and their impact on the validity of proceedings under the Customs Act. As of the mentioned date,
the provisions outlined in this section are no longer applicable or in force.

Section # 28H: Application for Advance Ruling

This section outlines the procedure for seeking an advance ruling under the Customs Act. Here's
a simplified explanation:

1. Application Process:

 Anyone wanting an advance ruling must submit an application in the prescribed

form.

 The application should clearly state the question for which the advance ruling is
sought.

2. Types of Questions:

 The questions for which an advance ruling can be requested include:

 Classification of goods under the Customs Tariff Act, 1975.

 Applicability of notifications affecting duty rates.

 Principles for determining the value of goods.

 Applicability of notifications related to taxes or duties.

  Determination of the origin of goods and related matters.

 Any other matter specified by the Central Government through

notification.

3. Application Details:

 The application must be submitted in quadruplicate (four copies).

 A prescribed fee of ten thousand rupees should accompany the application.

4. Withdrawal Option:

 The applicant has the option to withdraw the application within thirty days from
the date of submission.

5. Representation:

 The applicant can be represented by any person resident in India who is

authorized for this purpose.

 The term "resident" has the same meaning as defined in the Income-tax Act, 1961.

Section 28-I: Procedure on Receipt of Application for

Advance Ruling
This section outlines the steps and procedures that the Authority follows upon receiving an
application for an advance ruling under the Customs Act. Here's a simplified explanation:

1. Forwarding Application:

 Upon receiving an application, the Authority sends a copy to the Principal

Commissioner of Customs or Commissioner of Customs.

 If necessary, the Authority may ask for relevant records from the customs officer.

2. Order to Allow or Reject Application:

  The Authority examines the application and the records and decides whether to
allow or reject the application.

 The Authority cannot allow the application if the question is already pending with
a customs officer, the Appellate Tribunal, or any court, or if it's the same as a
matter already decided by the Appellate Tribunal or a court.

 The applicant must be given an opportunity to be heard before rejecting the

application, and the reasons for rejection should be provided.

3. Communication of Order:

 A copy of the order (allowing or rejecting the application) is sent to the applicant
and the Principal Commissioner of Customs or Commissioner of Customs.

4. Advance Ruling Pronouncement:

 If the application is allowed, the Authority examines additional material and

pronounces the advance ruling on the specified question.

5. Opportunity to be Heard:

 Before pronouncing the advance ruling, the Authority provides an opportunity for
the applicant to be heard, either in person or through an authorized representative.

6. Timeline for Pronouncement:

 The Authority is required to pronounce the advance ruling in writing within three
months of receiving the application.

7. Communication of Advance Ruling:

 A signed and certified copy of the advance ruling is sent to the applicant and the
Principal Commissioner of Customs or Commissioner of Customs promptly after
the pronouncement.

Section # 28J: Applicability of Advance Ruling

This section defines the scope and applicability of the advance ruling pronounced by the
Authority under Section 28-I. Here's a simplified explanation:

1. Binding Nature:

 The advance ruling is binding only on:

 The applicant who sought it (the person who applied for the ruling).

 In relation to the specific matters mentioned in Section 28H(2).

 The Principal Commissioner of Customs or Commissioner of Customs,

and the customs authorities under their jurisdiction, but only in relation to
the applicant.

2. Conditions for Binding Nature:

 The binding nature of the advance ruling continues unless there is a change in:

 The law relevant to the ruling.

 The facts based on which the ruling was pronounced.

Section # 28K: Advance ruling to be void in certain

circumstances
This section outlines the circumstances under which an advance ruling may be declared void.
Here's a simplified explanation:

1. Grounds for Voidance:

 The Authority can declare an advance ruling void if it finds, either based on a
representation from the Principal Commissioner of Customs or Commissioner of
Customs or through its own findings, that the ruling was obtained by the applicant
through fraud or misrepresentation of facts.

2. Consequences of Voidance:
  If an advance ruling is declared void, an order to this effect is issued.

 Upon such declaration, all provisions of the Customs Act apply to the applicant as
if the advance ruling had never been made.

3. Exclusion of Time Periods:

 The time period for actions like serving notices for duty recovery is adjusted. The
period from the date of the advance ruling to the date of the order declaring it void
is excluded when calculating the specified time frames (e.g., the two-year period
for serving notices).

4. Notification:

 The applicant and the Principal Commissioner of Customs or Commissioner of

Customs receive a copy of the order declaring the advance ruling void.

Section # 28KA - Appeal against Authority's Ruling or

Order
This section outlines the process for filing an appeal to the Appellate Authority against a ruling
or order issued by the Authority. Here's a simplified explanation:

1. Who Can File an Appeal:

 The appeal can be filed by any officer authorized by the Board through
notification or the applicant who sought the ruling.

2. Time Limit for Filing:

 The appeal must be filed within sixty days from the date when the ruling or order
by the Authority was communicated.

 There's a provision that allows an extension of thirty days if the Appellate

Authority is convinced that the appellant had a valid reason for not filing within
the initial sixty days.
 3. Form and Manner:

 The appeal must be submitted in the form and manner as prescribed, likely
through a specified format or documentation.

4. Application of Other Sections:

 The provisions of sections 28-I (Procedure on receipt of application) and 28J

(Applicability of advance ruling) are made applicable to the appeal process, with
necessary modifications.

Section # 28L: Powers of Authority or Appellate

Authority
This section specifies the powers granted to the Authority or Appellate Authority in the process
of conducting inquiries and proceedings. Here's a straightforward explanation:

1. Powers Granted:

 The Authority or Appellate Authority has certain powers for the effective exercise
of its functions. These include:

 Discovery and inspection of relevant documents.

 Enforcing the attendance of any person and examining them under oath.

 Issuing commissions for specific inquiries.

 Compelling the production of books of account and other records.

2. Reference to Civil Court Powers:

 The powers granted to the Authority or Appellate Authority is explicitly stated to

be equivalent to those of a civil court under the Code of Civil Procedure, 1908.

3. Deemed Status as Civil Court:

  For certain legal considerations, the Authority or Appellate Authority is deemed
to be a civil court for the purpose of Section 195. However, this designation does
not extend to Chapter XXVI of the Code of Criminal Procedure, 1973.

4. Judicial Proceeding:

 Every proceeding before the Authority or Appellate Authority is considered a

judicial proceeding within the meaning of Sections 193 and 228 of the Indian
Penal Code, 1860.

Section # 28M: Procedure for Authority and Appellate

Authority
This section outlines the procedural aspects to be followed by the Authority and the Appellate
Authority. Here's a clear explanation:

1. Procedure for the Authority:

 The Authority, responsible for giving advance rulings, is required to adhere to a

procedure specified by relevant regulations or rules. These rules dictate the step-
by-step process the Authority must follow in carrying out its functions.

2. Procedure for the Appellate Authority:

 The Appellate Authority, which handles appeals related to advance rulings, has
the autonomy to regulate its own procedure. This means it can establish and
manage the processes it follows in all matters arising from the exercise of its
powers under this Act.

 The Appellate Authority's power to regulate its own procedure is subject to the
provisions laid out in this particular chapter of the Act.
 PROVISIONS RELATING TO CONVEYANCES
CARRYING IMPORTED OR EXPORTED GOODS

Section # 29: Arrival of Vessels and Aircrafts in India

This section outlines regulations concerning vessels and aircraft arriving in India from outside
the country. Here's a straightforward explanation:

1. Initial Arrival and Landing Restrictions:

 The person in charge of a vessel or aircraft entering India must not allow it to call
or land:

 For the first time after arriving in India, or

 At any time while carrying passengers or cargo brought in the vessel or

aircraft

 Such arrival or landing must occur only at a designated customs port or customs
airport, unless otherwise permitted by the Board (customs authority).

2. Exceptions in Unavoidable Circumstances:

 The restrictions mentioned above do not apply when a vessel or aircraft is

compelled to call or land at a place other than a customs port or customs airport
due to accident, weather conditions, or other unavoidable causes.

 In such cases, the person in charge of the vessel or aircraft must:

 Immediately report the arrival or landing to the nearest customs officer or

the local police station.

 Produce the log book of the vessel or aircraft on demand.

 Not unload goods or allow passengers or crew to depart from the vicinity
without the consent of the customs officer.
  Comply with any directions given by the customs officer regarding the
goods.

 Passengers and crew are restricted from leaving the immediate vicinity of the
vessel or aircraft without the consent of the customs officer, except in cases where
it is necessary for health, safety, or the preservation of life or property.

Section # 30: Delivery of Arrival Manifest or Import

Manifest
This section outlines the requirements for delivering arrival manifests or import manifests for
imported goods. Here's a straightforward explanation:

1. Delivery Requirement:

 The person in charge of a vessel, aircraft, or vehicle carrying imported goods, or

any other specified person, must deliver an arrival manifest or import manifest
(electronically prior to arrival in the case of vessels or aircraft) to the proper
officer.

 In the case of a vehicle, an import report must be delivered within twelve hours
after its arrival at the customs station.

 The delivery must be made in the prescribed form and manner.

2. Penalty for Delay:

 If the arrival manifest or import manifest, or any part thereof, is not delivered
within the specified time, and the proper officer is satisfied that there was no
sufficient cause for the delay, a penalty not exceeding fifty thousand rupees may
be imposed on the person in charge or any other responsible person causing the
delay.

3. Electronic Delivery Exception:

  The Principal Commissioner of Customs or Commissioner of Customs may allow
alternative delivery methods in cases where presenting the arrival manifest or
import manifest electronically is not feasible.

4. Declaration of Truth:

 The person delivering the arrival manifest or import manifest must make and
subscribe to a declaration at the bottom, affirming the truth of its contents.

5. Amendment or Supplementation:

 If the proper officer finds that the manifest is incorrect or incomplete without
fraudulent intent, he may allow for its amendment or supplementation.

Section # 30A: Passenger and Crew Arrival Manifest

and Passenger Name Record Information
This section establishes requirements for delivering passenger and crew arrival manifests as well
as passenger name record information for conveyances entering India. Here's a straightforward
explanation:

1. Delivery Requirements:

 The person in charge of a conveyance entering India, or any other person

specified by the Central Government, must deliver:

 The passenger and crew arrival manifest before arrival for aircraft or
vessels, and upon arrival for vehicles.

 The passenger name record information of arriving passengers.

 The delivery must be made in the prescribed form, containing specified

particulars, within the prescribed time.

2. Penalty for Delay:

  If the required manifests or information, or any part thereof, are not delivered
within the prescribed time, and if the proper officer determines that there was no
sufficient cause for the delay, a penalty not exceeding fifty thousand rupees may
be imposed on the person in charge or the specified person causing the delay.

Section # 31: Imported Goods and Unloading from

Vessel
This section outlines the process and conditions for unloading imported goods from a vessel.
Here's a straightforward explanation:

1. Unloading Prohibition:

 The master of a vessel is prohibited from allowing the unloading of any imported
goods until the proper officer grants entry inwards to the vessel.

2. Granting Entry Inwards:

 Entry inwards can only be granted by the proper officer after the delivery of an
arrival manifest or import manifest, or if the proper officer is satisfied that there
was a valid reason for not delivering it.

3. Exceptions:

 Certain types of cargo are exempt from the restrictions mentioned above. These
exceptions include:

 Baggage accompanying passengers or crew.

 Mail bags.

 Animals.

 Perishable goods.

 Hazardous goods.
Section # 32: Regulation of Unloading Based on
Manifest or Report
This section sets forth regulations concerning the unloading of imported goods at a customs
station. Here's a simplified description:

1. Manifest or Report Inclusion:

 Imported goods that are required to be listed in the arrival manifest or import
manifest or import report, as per regulations, must be explicitly mentioned in
these documents.

2. Unloading Restriction:

 Without the explicit permission of the proper officer, no imported goods can be
unloaded at a customs station unless they are specifically identified in the
manifest or report for unloading at that particular customs station.

Section # 33: Regulation of Unloading and Loading at

Approved Places
This section establishes rules governing the unloading of imported goods and loading of export
goods. Here's a straightforward description:

1. Approved Places Requirement:

 Imported goods: Imported goods cannot be unloaded at just any location.

Unloading is restricted to places that have been officially approved under the
provisions of section 8(a).

 Export goods: Similarly, loading of goods for export must also take place only at
approved locations.

2. Permission Requirement:
  Without obtaining explicit permission from the proper officer, neither imported
goods can be unloaded nor export goods can be loaded at any location other than
those officially approved.

Section # 34: Supervision of Unloading and Loading

by Customs Officer
This section outlines the requirement for the presence of a customs officer during the unloading
of imported goods and loading of export goods. Here's a brief overview:

1. Supervision Requirement:

 Imported goods cannot be unloaded from a conveyance, and export goods cannot
be loaded onto a conveyance, unless done under the supervision of the designated
customs officer.

2. Permission Exceptions:

 The Board, through official notification, or the proper officer in specific cases,
may grant general or special permission, respectively, allowing certain goods or
classes of goods to be unloaded or loaded without direct supervision.

Section # 35: Restrictions on Water-Borne Goods

This section imposes restrictions on the transportation of goods by water. Here's a concise
explanation:

1. General Rule:

 Imported goods cannot be transported by water for unloading from a vessel.

 Export goods, without a shipping bill, cannot be water-borne for shipping unless
accompanied by a boat-note in the prescribed form.

2. Permission Exceptions:
  The Board, through official notification, or the proper officer in specific cases,
may grant general or special permission, respectively, allowing certain goods or
classes of goods to be water-borne without a boat-note.

Section # 36: Restrictions on Unloading and Loading

on Holidays
This section outlines restrictions on unloading and loading of goods on specific days. Here's a
succinct explanation:

1. General Rule:

 Unloading of imported goods and loading of export goods on Sundays, holidays

observed by the Customs Department, or after working hours on any other day is
prohibited.

2. Exceptions:

 Unloading and loading on restricted days are allowed under certain conditions:

 Prescribed notice must be given.

 Prescribed fees, if any, must be paid.

3. Exemptions:

 No fees are applicable for unloading and loading of baggage accompanying

passengers or crew, as well as mail bags.

Section # 37 # Power to Board Conveyances

This section grants the proper officer the authority to board any conveyance transporting
imported or exported goods. The officer can board the conveyance at any time and stay for the
duration deemed necessary for inspection or other official purposes.
Section # 38: Power to Require Production of
Documents and Ask Questions
This section empowers the proper officer to request the person in charge of a conveyance or
animal carrying imported or exported goods to provide necessary documents and answer any
relevant questions. The person in charge is obligated to comply with such requests made by the
proper officer.

Section # 39: Export Goods Loading Restrictions

This section prohibits the loading of export goods, excluding baggage and mail bags, onto a
vessel until the proper officer grants entry-outwards to that vessel.

Section # 40: Loading Restrictions on Export Goods

This section specifies that at a customs station, the person-in-charge of a conveyance is not
allowed to load:

(a) Export goods (excluding baggage and mail bags) without a shipping bill, bill of export, or bill
of transshipment, duly passed by the proper officer, handed over by the exporter.

(b) Baggage and mail bags without proper permission for export from the proper officer.

Section # 41: Manifest and Report for Departure of

Conveyance
This section mandates that the person-in-charge of a conveyance carrying export goods or
imported goods must, before departure from a customs station:

1. Present an electronically submitted departure manifest or export manifest (in the case of a
vessel or aircraft).

2. Submit an export report (in the case of a vehicle).

The failure to deliver these documents within the specified time may result in a penalty, not
exceeding fifty thousand rupees. However, the Principal Commissioner of Customs or
Commissioner of Customs may allow alternative delivery methods in cases where electronic
submission is not feasible. The person delivering the manifest or report must declare its truth,
and if any inaccuracies are found, the proper officer may permit amendments or supplements,
provided there was no fraudulent intent.

Section # 41A: Manifest and Information for

Departure of Conveyance with Passengers
This section requires the person-in-charge of a conveyance departing from India to provide the
proper officer with:

1. Passenger and crew departure manifest.

2. Passenger name record information of departing passengers.

These details must be submitted in the prescribed form, containing specified particulars, within
the designated timeframe. Failure to deliver these manifests or information on time, without
sufficient cause, may result in a penalty not exceeding fifty thousand rupees.

Section # 42: Regulation of Conveyance Departure

1. Departure Restriction:

 The person-in-charge must not allow the conveyance to depart from a customs
station if it brought imported goods or loaded export goods until a written order is
issued by the proper officer.

2. Conditions for Order Issuance:

 The written order can only be given when certain conditions are met, including:

 Answering questions under section 38.

  Compliance with provisions of section 41.

 Delivery of shipping bills, bills of export, bills of transhipment, and other

required documents to the proper officer.

3. Payment and Compliance:

 Payment of all duties on consumed stores, charges, and penalties related to the
conveyance or the person-in-charge must be made. Payment can be secured by a
guarantee or deposit as directed by the proper officer.

4. Penalty Assurance:

 The person-in-charge should satisfy the proper officer that no penalty is leviable
under section 116, or if applicable, ensure payment of any levied penalty through
a guarantee or deposit as directed.

5. Unloading or Undertaking for Export Goods:

 In cases of export goods loaded without payment or in contravention of

regulations:

 Unload the goods, or

 If unloading is impractical, provide an undertaking, secured by a guarantee

or deposit as directed, to return the goods to India.

Section # 43: Exemption for Certain Conveyances

1. Exemption for Certain Vehicles:

 Sections 30, 41, and 42 provisions do not apply to a vehicle if it only carries the
luggage of its occupants.

2. Central Government's Authority to Exempt:

 The Central Government can, through an Official Gazette notification, exempt

specific conveyance classes from some or all provisions of this Chapter.
  Exempted classes may include:

 Conveyances owned by the Government or foreign Governments.

 Vessels and aircraft temporarily entering India due to emergencies.

CLEARANCE OF IMPORTED GOODS AND

EXPORT GOODS

Section # 44: Exclusion for Baggage and Postal

Articles
1. Baggage Exemption:

 The regulations mentioned in this section do not affect baggage.

2. Postal Articles Exemption:

 The regulations mentioned in this section do not apply to goods imported or

exported by post.

Section # 45: Imported Goods Custody and Removal

Restrictions
1. Custody Requirements:

 Imported goods in a customs area must remain under the approved custody until
cleared for home consumption, warehoused, or transshipped.

2. Record-Keeping Obligations:

 The custodian of imported goods must maintain a record of the goods and provide
a copy to the proper officer.
 3. Restrictions on Removal:

 Imported goods cannot be removed from the customs area without written
permission from the proper officer or as prescribed.

4. Liability for Pilferage:

 If pilferage occurs after unloading in a customs area, the custodian is liable to pay
duty on the goods at the prevailing rate on the date of the arrival manifest or
import manifest submission to the proper officer.

Section # 46: Entry of Imported Goods

1. Entry Requirement:

 The importer, excluding goods for transit or transshipment, must electronically

submit a bill of entry for home consumption or warehousing to the proper officer.
Alternative entry methods may be allowed by the Principal Commissioner of
Customs or Commissioner of Customs.

2. Declaration and Examination:

 The importer may submit a declaration to the proper officer if full information is
unavailable, allowing goods examination or deposit in a public warehouse without
formal warehousing.

3. Inclusion of Goods:

 The bill of entry must encompass all goods specified in the carrier's bill of lading
or receipt, unless otherwise permitted by the proper officer.

4. Timeline for Presentation:

 The importer must present the bill of entry within the next day following the
arrival of the transporting vehicle, aircraft, or vessel at the customs station. Early
presentation, up to thirty days before expected arrival, is allowed. Late
presentation may incur prescribed charges.
 5. Declaration and Documents:

 The importer, during bill of entry submission, must make a truthful declaration
and provide supporting documents, including the invoice.

6. Importer's Responsibilities:

 The importer must ensure the accuracy, completeness, and compliance with
restrictions or prohibitions regarding the bill of entry information, documents, and
goods.

7. Substitution of Bill of Entry:

 The proper officer may permit substitution of a bill of entry for home
consumption with a bill of entry for warehousing, or vice versa, if revenue
interests are not adversely affected and there is no fraudulent intent.

Section # 47: Clearance of Goods for Home

Consumption
1. Conditions for Clearance:

 The proper officer may permit clearance of goods for home consumption if they
are not prohibited, import duty is paid, and applicable charges are settled.

2. Deferred Payment Option:

 The Central Government, through notification, may allow certain importers to

defer payment of duty or charges, following rules and criteria.

3. Import Duty Payment Timeline:

 Importers must pay duty on the date of bill of entry presentation (for self-
assessment) or within one day (excluding holidays) after the bill of entry is
returned by the proper officer. Deferred payment timelines, if applicable, are
specified by rules.
 4. Interest on Delayed Payment:

 In case of delayed payment, interest is charged on the unpaid or short-paid duty.

The Central Government determines the interest rate, ranging from ten to thirty-
six percent per annum.

5. Electronic Duty Payment:

 The Central Government, through notification, may specify classes of importers

required to pay duty electronically.

6. Deemed Date of Commencement:

 For bills of entry returned for payment before the commencement of the Customs
(Amendment) Act, 1991, the date of return is considered the commencement date
for this section.

7. Interest Waiver Authority:

 The Board, if convinced of public interest, may, through a recorded order, waive
all or part of the interest payable under this section.

Section # 48: Procedure for Unclaimed Goods

1. Timeline for Clearance:

 If imported goods remain uncleared, unwarehoused, or untransshipped for thirty

days from unloading (extendable by the proper officer), or if the title is
relinquished, the goods can be dealt with as per this section.

2. Disposition Authority:

 With notice to the importer and proper officer's permission, the person in custody
of the goods can sell them.

3. Exceptions to Timeline:
  Certain goods like animals, perishable items, and hazardous goods may be sold at
any time with the proper officer's permission.

4. Special Provisions:

 Arms and ammunition follow specific directives from the Central Government
regarding the time, place, and manner of sale.

5. Explanation:

 The section refers to "arms" and "ammunition" as per the definitions in the Arms
Act, 1959 (54 of 1959).

6. Flexibility for Hazardous Goods:

 The section provides flexibility for timely disposition of goods that pose risks or
have specific handling requirements.

Section # 49: Storage of Imported Goods

1. Reasonable Time Limit:

 Imported goods, whether dutiable or not, can be stored in a public warehouse

pending clearance for a period not exceeding thirty days.

 For dutiable goods entered for warehousing, the storage period applies until they
can be removed for deposit in a warehouse within a reasonable time.

2. Approval Authority:

 The Assistant Commissioner of Customs or Deputy Commissioner of Customs

can grant permission based on the importer's application and satisfaction with the
reasons provided.

3. Sections(WAREHOUSING) Exemption:

 Goods stored under this section are exempt from the provisions of Sections
(WAREHOUSING) of the Act.
 4. Extension Provision:

 The Principal Commissioner of Customs or Commissioner of Customs has the

authority to extend the storage period in increments of thirty days each, if
necessary.

5. Flexibility for Importers:

 This section offers importers a reasonable timeframe for clearing or warehousing

goods, preventing immediate enforcement actions.

6. Streamlined Warehouse Procedures:

 By allowing temporary storage in public warehouses, the section facilitates

smoother logistics for importers, avoiding immediate burdens on clearance or
warehousing.

Clearance of export goods

Section # 50: Entry of Goods for Exportation

1. Mandatory Entry Requirement:

 Exporters must make an entry for goods intended for exportation by presenting a
shipping bill (for vessels or aircraft) or a bill of export (for land transport).

2. Electronic Entry Procedure:

 The preferred method for entry is electronic submission on the customs

automated system, ensuring efficiency and accuracy in the process.

3. Flexibility in Entry Submission:

 In cases where electronic submission is not feasible, the Principal Commissioner

of Customs or Commissioner of Customs may allow alternative entry
presentation methods.
 4. Declaration by Exporter:

 Exporters, while submitting a shipping bill or bill of export, are required to make
and subscribe to a declaration regarding the truthfulness of the contents.

5. Exporter's Responsibilities:

 The exporter must ensure:

 Accuracy and completeness of information in the shipping bill or bill of

export.

 Authenticity and validity of supporting documents.

 Compliance with any restrictions or prohibitions related to the goods

under the Customs Act or other applicable laws.

6. Regulatory Compliance:

 This section emphasizes the exporter's responsibility to adhere to legal

requirements, promoting transparency and lawful export practices.

7. Customs Automation Encouragement:

 The provision encourages the use of electronic systems, streamlining export

procedures for improved efficiency and accuracy.

Section # 51: Clearance of Goods for Exportation

1. Permission for Export Clearance:

 The proper officer, upon satisfaction that goods entered for export are not
prohibited and all relevant duties and charges are paid, may issue an order
allowing the clearance and loading of goods for exportation.

2. Electronic Clearance Option:

  Orders for clearance may be made electronically through the customs automated
system, enhancing efficiency and aligning with risk assessment criteria.

3. Deferred Payment Provision:

 The Central Government holds the authority, as per a Gazette notification, to

permit certain classes of exporters to make deferred payments for duties or
charges, subject to rules.

4. Interest on Delayed Payment:

 If an exporter fails to pay export duty, either in full or in part, within the stipulated
timeframe specified by rules, interest is applicable on the unpaid or short-paid
duty. The interest rate is determined by the Central Government and can range
from five to thirty-six percent per annum.

5. Encouragement of Electronic Transactions:

 The provision emphasizes the option for electronic processing, promoting a

modernized and efficient approach to export clearance.

6. Flexible Payment Options:

 The deferred payment provision offers flexibility to certain classes of exporters,

potentially easing financial burdens and fostering smoother export processes.

PAYMENTS THROUGH ELECTRONIC CASH

LEDGER

Section # 51A: Payment of Duty, Interest, Penalty, etc.

1. Electronic Cash Ledger:

 Deposits made for duty, interest, penalty, or any payable sum under various Acts
or regulations, using authorized payment modes, are credited to the electronic
 cash ledger of the person. This ledger is maintained according to prescribed
conditions and restrictions.

2. Utilization of Electronic Cash Ledger:

 The amount in the electronic cash ledger can be utilized for making payments
related to duty, interest, penalty, fees, or any other payable sum under relevant
laws and regulations. This is subject to specified conditions, modes, and
timeframes as prescribed.

3. Refund Mechanism:

 After settling duty, interest, penalty, or other payable amounts, the remaining
balance in the electronic cash ledger is eligible for refund. The refund process is
carried out in accordance with prescribed procedures.

4. Board's Discretionary Power:

 The section grants the Board the authority, through notification, to exempt
certain classes of persons or specified categories of goods from particular
provisions of this section. This exemption is based on the Board's satisfaction of
necessity or expediency.

5. Streamlining Financial Transactions:

 The introduction of an electronic cash ledger facilitates a streamlined and digital

approach to financial transactions, enhancing efficiency and transparency.

GOODS IN TRANSIT

Section # 52: Exceptions

This section states that the regulations and provisions described in this part of the Act don't
affect:

 Baggage: Referring to personal luggage.

  Goods Imported by Post: Items received through postal services.

 Stores: Likely referring to provisions or supplies.

In simpler terms, the outlined rules in this section do not apply to these specific categories of
items.

Section # 53: Transit of certain goods without payment

of duty
 This section allows for the transit of certain goods without the requirement of paying
duty.

 Conditions and procedures for such duty-free transit are subject to the provisions of
section 11.

 It applies to goods imported in a conveyance and specified in the arrival manifest or

import report for transit to a location outside India or to another customs station.

 The proper officer has the authority to permit this transit, outlining the necessary
conditions as prescribed.

Section # 54: Transshipment of Goods without

Payment of Duty
1. Bill of Transshipment Presentation:

 When goods imported into a customs station are intended for transshipment, a bill
of transshipment must be presented to the proper officer in the prescribed form.

 For transshipment under international treaties or bilateral agreements, a

declaration, instead of a bill of transshipment, should be presented.

2. Transshipment Without Duty Payment:

  Subject to the provisions of section 11, goods mentioned in the arrival manifest or
import manifest for transshipments outside India can be transshipped without
payment of duty.

3. Conditions for Transshipment:

 Goods mentioned for transshipments to major ports, specified customs airports, or

other customs stations can be allowed without duty payment.

 The proper officer may permit transshipment without duty if satisfied that the
goods are genuinely intended for transshipment to the specified customs station.

 Conditions for the due arrival of goods at the designated customs station must be
adhered to as prescribed.

Section # 55: Duty Liability on Goods Transited or

Transshipped
 Transit under Section 53 or Transshipment under Section 54:

 Goods transited under section 53 or transshipped under section 54 to any customs

station are subject to duty liability.

 Arrival at Customs Station:

 Upon arrival at the specified customs station, these goods are treated as if being
imported for the first time.

 Liability to Duty:

 The goods shall be liable to duty, and the entry process shall be conducted
similarly to the entry of goods on their initial importation.

 Application of Provisions:

 The provisions of this Act, along with any relevant rules and regulations, apply to
these goods in a manner consistent with their first-time importation.
Section # 56: Duty-Free Transport of Goods
Section 56 of the Customs Act allows for the duty-free transport of imported goods within the
country. Imported goods can be moved from one land customs station to another without the
requirement of immediate duty payment. Additionally, this section permits the transportation of
goods, irrespective of their origin, from one part of India to another through foreign territory.
However, these movements are subject to conditions prescribed by regulations to ensure the
proper and regulated arrival of goods at their designated destination. The primary objective is to
facilitate the smooth and duty-free transit of goods while maintaining regulatory oversight
through specified conditions.

WAREHOUSING

Section # 57: Licensing of Public Warehouses

Section 57 of the Customs Act empowers the Principal Commissioner of Customs or
Commissioner of Customs to issue licenses for public warehouses. These warehouses serve as
designated facilities where dutiable goods can be deposited. The licensing process is subject to
conditions outlined in the regulations. The objective is to establish controlled and regulated
spaces for the storage of dutiable goods, ensuring compliance with prescribed conditions for the
proper management and security of such warehouses.

Section # 58: Licensing of Private Warehouses

In accordance with Section 58 of the Customs Act, the Principal Commissioner of Customs or
Commissioner of Customs has the authority to grant licenses for private warehouses. These
licenses are subject to prescribed conditions, and private warehouses are designated spaces
where dutiable goods, imported either by the licensee or on their behalf, can be deposited. The
section aims to regulate the storage of dutiable goods in private warehouses, ensuring
compliance with specified conditions outlined in the regulations for proper management and
security of these facilities.
Section # 58A: Licensing of Special Warehouses
1. Authority to Grant License:

 The Principal Commissioner of Customs or Commissioner of Customs may,

subject to prescribed conditions, license special warehouses for the deposition of
dutiable goods.

2. Goods Specification:

 The Board, through official notification, may specify the class of goods permitted
to be deposited in the special warehouses licensed under sub-section (1).

Section 58B: Cancellation of License

1. Grounds for Cancellation:

 The Principal Commissioner of Customs or Commissioner of Customs has the

authority to cancel the license granted under section 57, section 58, or section
58A if the licensee:

 Contravenes any provisions of the Act, rules, or regulations.

 Breaches any conditions specified in the license.

2. Procedure for Cancellation:

 Before canceling the license, the licensee must be provided with a reasonable
opportunity to be heard.

3. Suspension of Warehouse Operation:

 In case of a violation, the Principal Commissioner of Customs or Commissioner

of Customs may suspend the operation of the warehouse during the inquiry.

4. Effect of Suspension:
  During the suspension period, no new goods can be deposited in the warehouse,
but the provisions of the chapter will continue to apply to the goods already
present.

5. Timeline for Goods Removal:

 If the license is canceled, the goods in the warehouse must be removed within
seven days from the date of cancellation order or within any extended period
allowed by the proper officer.

6. Continued Application of these rules:

 The provisions of this section will apply to the goods already deposited in the
warehouse until they are removed to another warehouse or cleared for home
consumption or export within the specified period.

Section # 59: Warehousing Bond

1. Execution of Bond by Importer:

 The importer, upon presenting a bill of entry for warehousing under section 46
and assessment of duty under section 17 or section 18, must execute a bond.

 The bond amount should be three times the assessed duty on the goods.

2. Obligations Under the Bond:

 The importer binds himself to:

 Comply with all provisions of the Act, rules, and regulations related to the
warehoused goods.

 Pay all duties and interest by the specified date mentioned in the notice of
demand.

 Settle any penalties and fines incurred for contravention of the Act, rules,
or regulations regarding the goods.
 3. General Bond Approval:

 The Assistant Commissioner of Customs or Deputy Commissioner of Customs

may allow an importer to execute a general bond for the warehousing of goods to
be imported within a specified period.

4. Additional Security:

 In addition to the bond, the importer must provide security as prescribed.

5. Continuity of Bond:

 A bond executed by an importer remains valid even if the goods are transferred to
another warehouse.

6. Transfer to Another Person:

 If the goods or a part thereof are transferred to another person, the transferee must
execute a bond following the provisions of sub-section (1) or sub-section (2) and
provide the specified security.

Section # 59A: Conditions for Warehousing of Certain

Goods (Omitted)
This section, which laid out conditions for the warehousing of specific goods, has been omitted
by The Finance Act, 1994 (32 of 1994) since May 13, 1994. In simpler terms, the rules regarding
warehousing for certain goods, as outlined in this section, are no longer applicable or in force.

Section # 60: Permission for Removal of Goods for

Deposit in Warehouse
1. When the requirements of Section 59, which pertains to warehousing bonds, have been
fulfilled for specific goods, the proper officer has the authority to issue an order allowing
the removal of these goods from a customs station.
  Note: This order may also be electronically generated through the customs
automated system, using risk evaluation based on appropriate selection criteria.

2. Once the order is issued, the goods must be deposited in a warehouse in accordance with
the procedures outlined in the regulations.

Section # 61: Period for which Goods may Remain

Warehoused
1. Period for Warehousing:

 Goods can remain in the warehouse where they are deposited or be moved to
another warehouse.

2. Capital Goods for Export-Oriented Undertaking or Technology Parks:

 (a) For capital goods intended for use in export-oriented undertakings or

technology park units:

 Till their clearance from the warehouse.

3. Other Goods for Export-Oriented Undertaking or Technology Parks:

 (b) For goods other than capital goods:

 Till their consumption or clearance from the warehouse.

4. General Goods:

 (c) For any other goods:

 Till the expiry of one year from the date of the order under Section 60.

5. Extension of Warehousing Period:

 The Principal Commissioner of Customs or Commissioner of Customs can extend

the period for goods in category (c) for up to one year at a time if sufficient cause
is shown.
 6. Deterioration of Goods:

 In cases where goods are likely to deteriorate, the specified period may be
reduced by the Principal Commissioner of Customs or Commissioner of Customs.

7. Interest on Extended Period:

 If goods specified in category (c) remain in a warehouse beyond ninety days from
the order under Section 60, interest is payable on the duty amount from the expiry
of ninety days until the payment date.

8. Board's Discretion:

 The Board can:

 (a) Waive interest for warehoused goods in exceptional circumstances.

 (b) Specify classes of goods exempt from interest.

 (c) Specify classes of goods for which interest is chargeable from the date
of the order under Section 60.

Note: Definitions for terms like "electronic hardware technology park unit," "hundred per cent
export-oriented undertaking," and "software technology park unit" are provided for clarity.

1. Electronic Hardware Technology Park Unit (EHTP Unit):

 Definition: An EHTP Unit is a specific kind of business established as part of a

scheme by the Indian Government. This type of unit is involved in activities
related to electronic hardware technology.

2. Hundred Per Cent Export-Oriented Undertaking:

 Definition: This refers to a business unit that is entirely dedicated to exporting its
products. It means that all the goods produced by this unit are intended for sale in
international markets.

3. Software Technology Park Unit (STP Unit):

  Definition: An STP Unit is a business unit established under a government-
notified scheme, primarily engaged in activities related to software and
technology development.

Section # 62:
Section 62 of the Customs Act, which pertained to "Control over warehoused goods," has been
omitted as of May 14, 2016, by The Finance Act, 2016 (28 of 2016). This means that the
provisions related to the control over goods stored in warehouses, as outlined in Section 62, are
no longer applicable or in force since the mentioned date.

Section # 63:
Section 63 of the Customs Act, which dealt with the "Payment of rent and warehouse charges,"
has been omitted as of May 14, 2016, by The Finance Act, 2016 (28 of 2016). This means that
the provisions related to the payment of rent and charges for warehoused goods, as outlined in
Section 63, are no longer applicable or in force since the mentioned date.

Section # 64: Owner’s right to deal with warehoused

goods
1. Inspection: The owner has the right to inspect the warehoused goods.

2. Dealing with Containers: The owner can take necessary actions with the containers of
the goods to prevent loss, deterioration, or damage.

3. Sorting: The owner is allowed to sort the warehoused goods.

4. Showcasing for Sale: The owner can exhibit the goods for sale.
Section # 65: Manufacture and Other Operations in
Relation to Goods in a Warehouse
1. Permission for Operations: The owner of warehoused goods can, with the permission
of the Principal Commissioner of Customs or Commissioner of Customs and under
prescribed conditions, conduct manufacturing processes or other operations related to the
goods within the warehouse.

2. Treatment of Waste or Refuse:

 Exported Goods: If any waste or refuse results from these operations, and the
resulting goods are exported, import duty is waived on the quantity of warehoused
goods present in the waste or refuse. The waste or refuse must either be destroyed
or have duty paid as if it were imported into India in that form.

 Goods Cleared for Home Consumption: If the resulting goods are cleared from
the warehouse for home consumption, import duty is levied on the quantity of
warehoused goods in the waste or refuse arising from the conducted operations.

Section # 66: Exemption for Imported Materials Used

in Warehouse Manufacturing
If materials imported into a warehouse are used to make goods, and the duty rate on these
materials is higher than the duty rate on the finished goods, the Central Government can exempt
the imported materials from the excess duty. This helps to support and develops domestic
industries.

Section # 67: Goods Removal between Warehouses

The owner of warehoused goods can move them from one warehouse to another, but this
requires permission from the proper officer. Certain conditions, outlined in the regulations, must
be met to ensure the timely and proper arrival of the goods at the destination warehouse.
Section # 68: Clearance of Warehoused Goods for
Home Consumption Any warehoused goods can be cleared for home
consumption under the following conditions:

1. Presentation of Bill of Entry: The owner must present a bill of entry for home
consumption in the prescribed form.

2. Payment of Duties and Charges: Import duty, along with interest, fines, and penalties,
must be paid for the goods.

3. Order for Clearance: The proper officer must issue an order allowing the clearance of
goods for home consumption.

 Electronic Clearance: The clearance order may be issued electronically through

the customs automated system based on risk evaluation criteria.

 Owner's Option: The owner can choose to relinquish their title to the goods
before the clearance order is issued by paying applicable penalties. Once
relinquished, they are no longer liable for duty payment.

 Restriction: The owner cannot relinquish title if there's suspicion of an offense

under this Act or any other applicable law.

Section # 69: Clearance of Warehoused Goods for

Export
Warehoused goods can be exported to a destination outside India without paying import duty
under the following conditions:

1. Submission of Documents:

 A shipping bill, bill of export, or the prescribed form under section 84 must be
presented for the goods.
 2. Payment of Export Duties and Charges:

 Export duty, fines, and penalties applicable to the goods must be paid.

3. Clearance Order for Export:

 The proper officer must issue an order allowing the clearance of goods for export.

 Electronic Clearance: The clearance order can be issued electronically through

the customs automated system based on risk evaluation criteria.

4. Government Notification for Certain Goods:

 If the Central Government believes that certain types of warehoused goods might
be smuggled back into India, it can issue a notification in the Official Gazette.

 The notification may prohibit the duty-free export of specified goods or allow
such export with specified restrictions and conditions.

This section ensures the smooth export of warehoused goods while giving the government the
authority to control exports for security and anti-smuggling reasons.

Section # 70: Allowance in Case of Volatile Goods

This section addresses situations where warehoused goods, subject to its provisions, are found to
be deficient in quantity due to natural loss at the time of delivery from a warehouse. Here are the
key points:

1. Natural Loss Allowance:

 The Assistant Commissioner of Customs or Deputy Commissioner of Customs

has the authority to remit the duty on the deficient quantity of goods.

2. Applicability Criteria:

 This section is applicable to warehoused goods specified by the Central

Government through a notification in the Official Gazette.
  The criteria for inclusion are based on the volatility of the goods and the storage
conditions.

Section # 71: Restriction on Taking Warehoused

Goods Out
This section establishes a clear restriction on the removal of warehoused goods from a
warehouse. The key point is:

 Limited Scenarios for Removal:

 Warehoused goods can only be taken out of a warehouse under specific

circumstances:

 Clearance for home consumption.

 Clearance for export.

 Removal to another warehouse.

 Other provisions as stipulated by this Act.

In essence, this section ensures that the movement of warehoused goods is strictly regulated and
allowed only under specified conditions outlined in the Act.

Section # 72: Goods Improperly Removed from

Warehouse, etc.
1. Cases of Demand:

 (a) If warehoused goods are illicitly removed from a warehouse against the
provisions of section 71.

 (b) If warehoused goods remain uncleared after the period specified in section 61.
  (d) If goods, covered by a bond executed under section 59, are not cleared for
home consumption or export and are not satisfactorily accounted for to the proper
officer.

2. Demand and Payment:

 The proper officer has the authority to demand payment from the owner for the
full duty on such goods.

 The owner is obligated to promptly pay the demanded amount, including interest,
fines, and penalties applicable to the goods.

3. Non-Payment Consequences:

 If the owner fails to make the demanded payment, the proper officer has the right
to detain and sell an adequate portion of the owner's goods in the warehouse (with
due notice to the owner), as deemed appropriate by the officer.

Section # 73: Cancellation and Return of Warehousing

Bond
This section stipulates that once all goods covered by a bond under Section 59 have been cleared,
exported, transferred, or duly accounted for, and all associated payments settled, the proper
officer must cancel the bond. The canceled bond is then delivered to the person who executed it
or is entitled to receive it upon demand. This process signifies the complete discharge of
obligations related to the warehoused goods.

Section # 73A: Custody and Removal of Warehoused

Goods
1. Custody Responsibility:

 Warehoused goods remain under the custody of the licensee (holder of a license
under Section 57, 58, or 58A) until they are cleared for home consumption,
 transferred to another warehouse, exported, or removed as per the provisions of
this Act.

2. Prescribed Responsibilities:

 The person holding custody of the warehoused goods (referred to in point 1) has
responsibilities as prescribed by the regulations.

3. Consequences of Contravention:

 If warehoused goods are unlawfully removed (contravening Section 71), the

licensee becomes liable for duty, interest, fines, and penalties. This liability is in
addition to any other legal actions that may be taken under this Act or other
applicable laws.

DRAWBACK

Section # 74: Drawback Allowable on Re-export of

Duty-Paid Goods
1. Conditions for Drawback:

 Ninety-eight percent of the duty paid on imported goods, capable of easy

identification, will be repaid as drawback under certain conditions.

 Conditions include export entry approval by the proper officer, exportation within
two years from the date of duty payment, and satisfactory identification.

2. Extension of Two-Year Period:

 The Board has the authority to extend the two-year export window upon sufficient
cause shown in a particular case.

3. Drawback Rate for Used Goods:

  For goods used after importation, the Central Government may fix the drawback
rate based on factors like duration of use, depreciation in value, and other relevant
circumstances.

4. Government Rules:

 The Central Government has the power to formulate rules for implementing this
section.

 Rules may cover establishing the identity of goods stored in bulk, specifying
goods not easily identifiable, and outlining the procedure and timeframe for filing
drawback claims.

5. Key Definitions:

 Goods are deemed to be entered for export based on the date used for calculating
duty under Section 16.

 For goods provisionally assessed under Section 18, the date of payment of
provisional duty is considered the date of duty payment.

Section # 75: Drawback on Imported Materials Used

in Exported Goods
1. Grant of Drawback:

 Central Government, by notification, may allow drawback on customs duties for

imported materials used in manufacturing, processing, or other operations on
goods entered for export.

2. Conditions for Drawback:

 Drawback granted subject to rules made under sub-section (2).

 No drawback if the export value is less than the value of imported materials used,
as specified in government rules.
  Additional provision for recovery or adjustment if sale proceeds aren't received
within the stipulated time.

3. Deemed Import for Excess Material:

 Central Government, by notification, may declare excess imported material

contained in exported goods as deemed imported material.

4. Government Rules:

 Rules may cover the payment of drawback, specifying goods ineligible for
drawback, recovery procedures, and evidence requirements.

 Manufacturers or processors must provide access for inspection to authorized

customs officers.

5. Retrospective Effect:

 The power to make rules includes granting drawback with retrospective effect, not
earlier than the date of changes in duty rates on input goods used in export.

Note: The section is complex and involves intricate rules, especially regarding drawback
eligibility and recovery procedures.

Section # 75A: Interest on Drawback

1. Interest for Delayed Payment:

 If drawback isn't paid within one month from claim filing under section 74 or
section 75, the claimant is entitled to interest.

 Interest rate determined under section 27A.

 Interest accrues from the day after the one-month period until the actual payment
date.

2. Recovery of Erroneously Paid Drawback:

  If drawback is paid erroneously or becomes recoverable under the Act or rules,
the claimant must repay it within two months of the demand.

 Additional interest, as per the rate fixed under section 28AA, is levied from the
date of initial drawback payment to the recovery date.

Note: This section ensures timely payment of drawbacks and outlines procedures for recovering
erroneously paid amounts with associated interest.

Section # 76: Prohibition and Regulation of Drawback

1. General Restrictions on Drawback:

 No drawback allowed:

 For goods with a market price less than the due drawback amount.

 When the drawback due is less than fifty rupees.

2. Government's Discretion for Smuggling Prevention:

 Central Government may, via Gazette notification:

 Restrict or disallow drawback for specified goods.

 Impose specific restrictions and conditions on goods eligible for

drawback.

Note: This section safeguards against misuse or abuse of drawback provisions, ensuring that the
benefits are appropriately aligned with market values and preventing potential smuggling risks.

Section # 76A:
Section 76A was about notifying Special Economic Zones (SEZs). However, it was omitted by
the Finance Act, 2007 (22 of 2007) and is no longer applicable since May 11, 2007.

Section # 76B:
Section 76B, which dealt with the application of provisions, was omitted by the Finance Act,
2007 (22 of 2007) and is no longer in effect since May 11, 2007.

Section # 76C:
Section 76C, which pertained to the establishment and control, was omitted by the Finance Act,
2007 (22 of 2007) and is no longer applicable since May 11, 2007.

Section # 76D:
Section 76D, regarding the admission of goods, was omitted by the Finance Act, 2007 (22 of
2007) and is no longer applicable since May 11, 2007.

Section # 76E:
Section 76E, which dealt with the exemption from duties of customs in the context of special
economic zones, was omitted by the Finance Act, 2007 (22 of 2007) and is no longer applicable
since May 11, 2007.

Section # 76F:
Section 76F, which pertained to the levy of duties of customs in the context of special economic
zones, was omitted by the Finance Act, 2007 (22 of 2007), effective from May 11, 2007.

Section # 76G:
Section 76G, titled "Authorized operations," was omitted by the Finance Act, 2007 (22 of 2007),
with effect from May 11, 2007.

Section # 76H:
Section 76H, titled "Goods utilized within a special economic zone," was omitted by the Finance
Act, 2007 (22 of 2007), with effect from May 11, 2007.
Section # 76I:
Section 76-I, titled "Drawback on goods admitted to a special economic zone," was omitted by
the Finance Act, 2007 (22 of 2007), with effect from May 11, 2007.

Section # 76J:
Section 76J, titled "Duration of stay," was omitted by the Finance Act, 2007 (22 of 2007), with
effect from May 11, 2007.

Section # 76K:
Section 76K, titled "Security," was omitted by the Finance Act, 2007 (22 of 2007), with effect
from May 11, 2007.

Section # 76L:
Section 76L, titled "Transfer of ownership," was omitted by the Finance Act, 2007 (22 of 2007),
with effect from May 11, 2007.

Section # 76M:
Section 76M, titled "Removal of goods," was omitted by the Finance Act, 2007 (22 of 2007),
with effect from May 11, 2007.

Section # 76N:
Section 76N, titled "Closure of a special economic zone," was omitted by the Finance Act, 2007
(22 of 2007), with effect from May 11, 2007.
 SPECIAL PROVISIONS REGARDING BAGGAGE,
GOODS IMPORTED OR EXPORTED BY POST,
COURIER AND STORES:

Baggage

Section # 77: Declaration by owner of baggage

According to Section 77 of the Act, the owner of any baggage must make a declaration of its
contents to the proper officer for the purpose of clearing it.

Section # 78: Determination of Rate of Duty and Tariff

Valuation in Respect of Baggage
Section 78 of the Act outlines that the duty and tariff valuation for baggage are determined based
on the rates in force on the date when the owner declares the contents of the baggage to the
customs officer (as mandated in section 77).

Section # 79: Bona fide Baggage Exempted from Duty

 (1) Exemptions: The proper officer has the authority, as per rules, to allow duty-free
passage for articles in the baggage of a passenger or crew member if:

 (a) The officer is satisfied that the article has been in use for a specified minimum
period (as per rules).

 (b) For passenger's baggage, it's for personal use, family use, or a genuine gift or
souvenir, provided the total value doesn’t exceed the specified limit.

 (2) Rule-making Power: The Central Government can formulate rules to implement this
section. These rules may include:
  (a) Determining the minimum usage period for articles.

 (b) Setting maximum values for individual articles and the total value of
exempted articles.

 (c) Specifying conditions for baggage to qualify for duty-free passage.

 (3) Different Rules for Different Classes: Rules under sub-section (2) can vary for
different classes of persons.

This section essentially outlines the criteria and conditions under which certain items in the
baggage of passengers or crew members can be exempted from customs duty.

Section # 80: Temporary Detention of Baggage

If a passenger's baggage contains an item subject to duty or import restrictions, even if declared
truthfully under Section 77, the customs officer can, upon the passenger's request, detain that
item. The purpose is to return the article to the passenger upon their departure from India. In
cases where the passenger cannot collect the item when leaving India, alternative arrangements,
like sending it with another authorized passenger or as cargo consigned in their name, may be
facilitated.

Section # 81: Regulations in Respect of Baggage

The Board, under this section, is empowered to formulate regulations covering various aspects
related to baggage. These regulations may include:

a) Manner of Declaration: Guidelines for how individuals should declare the contents of
their baggage.

b) Custody, Examination, Assessment, and Clearance: Procedures and protocols for the
storage, inspection, duty assessment, and release of baggage.

c) Transit or Transshipment: Rules governing the movement of baggage between customs

stations or its transportation to a location outside India.
This section grants the Board the authority to establish these regulations, ensuring clarity and
standardized processes in handling baggage-related matters.

Goods imported or exported by post

Section # 82:
Section 82, titled as Label or declaration accompanying goods to be treated as entry was
removed from the Customs Act by the Finance Act, 2017, effective from March 31, 2017. This
removal implies that, after this date, labels or declarations accompanying goods are no longer
considered as a formal entry for customs purposes under this section.

Section # 83:
This section of the Customs Act provides guidelines for determining the rate of duty and tariff
valuation for goods imported or exported through postal services or couriers. Here's a breakdown
of the key points:

(1) Rate of Duty and Tariff Valuation for Imported Goods:

 The applicable rate of duty and tariff value for goods imported by post or courier is
determined based on the date when the postal authorities or authorized courier present a
list containing the particulars of the goods to the proper officer.

 If the goods are imported by vessel, and the list was presented before the date of the
vessel's arrival, it is deemed to have been presented on the date of such arrival.

(2) Rate of Duty and Tariff Valuation for Exported Goods:

 For goods exported by post or courier, the rate of duty and tariff value is determined on
the date when the exporter delivers the goods to the postal authorities or authorized
courier for exportation.
Section # 84: Regulations regarding goods imported or
to be exported
This section empowers the Board to establish regulations concerning goods imported or exported
via post or courier services. The regulations cover several aspects to ensure a streamlined
process, as outlined below:

(a) Form and Manner of Entry:

 The regulations may specify the form and manner in which an entry for goods imported
or to be exported by post or courier should be made. This helps standardize and simplify
the entry process.

(b) Examination, Assessment, and Clearance:

 The regulations can address procedures related to the examination, assessment of duty,
and clearance of goods imported or to be exported by post or courier. This ensures a
systematic approach to assessing duties and facilitating the smooth clearance of such
goods.

(c) Transit or Transshipment:

 Regulations may provide guidelines for the transit or transshipment of goods imported by
post or courier, allowing their movement from one customs station to another or to a
location outside India. This helps regulate the movement of goods through different
customs points.

Section # 85: Stores may be allowed to be warehoused

without assessment to duty
This section allows imported goods to be entered for warehousing without undergoing an
assessment of duty if the importer declares that these goods will be supplied as stores to vessels
or aircraft without the payment of import duty. The proper officer, upon receiving such a
declaration, has the authority to permit the warehousing of these goods without the immediate
assessment of duty. In essence, this provision facilitates the streamlined warehousing of goods
intended for use as stores on vessels or aircraft without the immediate imposition of import duty.

Section # 86: Transit and transshipment of stores

1. Permission for Duty-Free Storage: Imported stores in a vessel or aircraft can stay on
board in India without the immediate obligation to pay duty.

2. Transfer of Stores: With the proper officer's permission, these stores can be transferred
to another vessel or aircraft for consumption, following the conditions outlined in
sections 87 or 90.

Section # 87: Imported stores may be consumed on

board a foreign-going vessel or aircraft
Imported stores on a vessel or aircraft (excluding those covered by section 90) can be used on
board without paying duty, but only during the time the vessel or aircraft is classified as a
foreign-going one.

Section # 88: Application of section 69 to stores

Section 88 clarifies that the regulations outlined in section 69 also apply to stores, with specific
adjustments. In simple terms:

(a) Instead of referring to goods "exported to any place outside India" or simply "exported," the
focus is on items "taken on board any foreign-going vessel or aircraft as stores."

(b) When it comes to claiming drawback on fuel and lubricating oil taken on a foreign-going
aircraft as stores, section 74(1) treats the entire amount instead of the usual ninety-eight percent.

Section # 89: Stores to be free of export duty

Section 89 states that goods produced or manufactured in India needed as stores on a foreign-
going vessel or aircraft, can be exported without duty. The quantity allowed is determined by the
proper officer, considering factors like the vessel or aircraft's size, the number of passengers and
crew, and the length of the upcoming voyage or journey.

Section # 90: Concessions in respect of imported stores

for the Navy
Section 90 of the Act provides concessions for imported stores meant for the Indian Navy. Here's
a breakdown of the key points:

1. Consumption on Indian Navy Ship:

 Imported stores specified in sub-section (3) can be consumed on board a ship of

the Indian Navy without paying duty.

2. Application of Section 69:

 The provisions of section 69 and Chapter X are applicable to these stores, similar
to other goods.

 Modifications include substituting "taken on board a ship of the Indian Navy" for
"exported to any place outside India" or "exported."

 In sub-section (1) of section 74, "the whole" is substituted for "ninety-eight per
cent."

3. Stores Covered:

 The stores referred to in sub-sections (1) and (2) include:

 (a) Stores for the use of a ship of the Indian Navy.

 (b) Stores supplied free by the Government for the use of the crew of a
ship of the Indian Navy following their conditions of service.
 PROVISIONS RELATING TO COASTAL GOODS
AND VESSELS CARRYING COASTAL GOODS

Section # 91:
Section 91 clarifies that the rules of this particular set of regulations do not extend to baggage
and stores.

Section # 92: Entry of Coastal Goods

1. The consignor of coastal goods must make an entry by presenting a bill of coastal goods
in the prescribed form to the proper officer.

2. The consignor, while presenting the bill of coastal goods, is required to make and
subscribe to a declaration at the bottom of the bill, affirming the accuracy of the contents
of the bill.

Section # 93: Coastal Goods Loading Restriction

The master of a vessel is prohibited from allowing the loading of any coastal goods until the bill
pertaining to those goods, as submitted under Section 92, has been approved by the proper
officer. The consignor must then provide the approved bill to the master before the loading of
coastal goods on the vessel is permitted. This ensures regulatory compliance and proper
documentation before the transportation of coastal goods.

Section # 94: Clearance of Coastal Goods at

Destination
1. The master of a vessel transporting coastal goods must carry all bills related to these
goods on board the vessel. Upon arriving at any customs or coastal port, the master must
promptly deliver all relevant bills to the proper officer at that port.
 2. For coastal goods being unloaded at a port, the proper officer can grant clearance if
satisfied that the goods are duly entered in a bill of coastal goods, as submitted under
subsection (1). This ensures that the regulatory process is followed for the clearance of
coastal goods at the destination port.

Section # 95: Master of a Coasting Vessel to Carry an

Advice Book
1. The master of any vessel transporting coastal goods is provided by Customs authorities
with an "advice book."

2. At each port of call, the proper officer makes necessary entries in the advice book
pertaining to the goods loaded onto the vessel at that specific port.

3. The master of the vessel is required to have the advice book on board and, upon arrival at
each port of call, must deliver it to the proper officer for inspection. This ensures a
systematic record of coastal goods during the vessel's journey.

Section # 96: Loading and Unloading of Coastal Goods

at Designated Ports Only
Coastal goods can only be loaded onto or unloaded from a vessel at specific ports, namely
customs ports or coastal ports appointed for such operations under section 7. This restriction
ensures proper oversight and control over the movement of coastal goods, maintaining regulatory
compliance.

Section # 97: Departure of Coasting Vessel Requires

Written Order
 1. The master of a vessel that has brought or loaded coastal goods at a customs or coastal
port cannot allow the vessel to depart from the port unless a written order is issued by the
proper officer.

2. Conditions for issuing the written order include:

(a) The master must respond to questions posed under section 38.

(b) All charges and penalties related to the vessel or its master must be paid or secured
through a directed guarantee or deposit.

(c) The master must assure the proper officer that no penalty is applicable under section
116, or if applicable, the payment is secured through a directed guarantee or deposit. (d)
Compliance with the provisions of this Chapter, along with any rules and regulations
concerning coastal goods and vessels carrying coastal goods, is confirmed.

Section # 98: Application of Certain Provisions to

Coastal Goods
1. Sections 33, 34, and 36 shall apply, as applicable, to coastal goods similar to their
application to imported or export goods.

2. Sections 37 and 38 shall apply, as applicable, to vessels carrying coastal goods in a

manner similar to vessels carrying imported or export goods.

3. The Central Government, through an Official Gazette notification, may direct the
application of other provisions of section 45 to coastal goods or vessels carrying coastal
goods. This application is subject to specified exceptions and modifications outlined in
the notification.

Section # 98A: Power to Relax

If the Central Government deems it essential in the public interest, it can, through an official
notification, grant exemptions to coastal goods or vessels carrying coastal goods from certain
provisions of this section. The exemptions may be absolute or subject to specified conditions
outlined in the notification.

Section # 99: Power to Make Rules in Respect of

Coastal Goods and Coasting Vessels
The Central Government holds the authority to establish rules concerning:

(a) Restricting the exportation of coastal goods from India, especially those subject to duties or
prohibition under this Act or any other prevailing law.

(b) Preventing the substitution of coastal goods for imported or export goods on a vessel that
carries both coastal goods and imported/export goods.

AUDIT

Section # 99A: Audit

The proper officer has the authority to conduct audits of the assessment of imported goods,
export goods, or the auditee under this Act. The audit can take place either in the officer's office
or at the premises of the auditee, following the prescribed manner.

Explanation: In the context of this section, "auditee" refers to a person subject to an audit under
this section. It includes importers, exporters, custodians approved under section 45, licensees of a
warehouse, and any other individuals directly or indirectly involved in the processes of clearing,
forwarding, stocking, carrying, selling, or purchasing imported goods, export goods, or dutiable
goods.

SEARCHES, SEIZURE AND ARREST

Section # 100: Power to Search Suspected Persons

Entering or Leaving India, etc.
1. Search Authority: If the proper officer has a reasonable belief that any person covered
by this section has concealed on their person any goods liable to confiscation or relevant
documents, he is empowered to conduct a search on that person.

2. Applicability: This section applies to the following persons:

 (a) Individuals who have landed from, are about to board, or are on board any
vessel within the Indian customs waters.

 (b) Individuals who have landed from, are about to board, or are on board a
foreign-going aircraft.

 (c) Individuals who have disembarked from, are about to embark, or are in a
vehicle arriving from or proceeding to any place outside India.

 (d) Individuals not covered by (a), (b), or (c) who have entered or are about to
leave India.

 (e) Any person present in a customs area.