A Presentation

on Customs
Act
Presented By-
Sandeep Verma
Assistant Audit Officer
 This Act may be called the Customs Act, 1962.
(Act 52 of 1962) (12th December, 1962)

It extends to the whole of India and it applies

Introduction to
Customs Law
also to any offence or contravention
thereunder committed outside India by any
person].

It shall come into force on such date as the

Central Government may, by notification in the
Official Gazette, appoint. (1st Feb 1963)
 Adjudicating Authority [Section 2(1)]- means any authority
competent to pass any order or decision under this Act, but

Important Definitions
does not include the Board, Commissioner (Appeals) or
Appellate Tribunal

Appellate Tribunal [Section 2(1B)]- means the Customs,

Excise and Service Tax Appellate Tribunal constituted under
section 129

Baggage [Section 2(3)] includes unaccompanied baggage but

does not include motor vehicles

Beneficial Owner [Section 2(3A)] means any person on whose

behalf the goods are being imported or exported or who
exercises effective control over the goods being imported or
exported
Important Definitions
Board [Section 2(6)] means the Central Board of Indirect
Taxes and Customs constituted under the Central Boards
of Revenue Act, 1963 (54 of 1963)

Coastal Goods [Section 2(7)] means goods, other than

imported goods, transported in a vessel from one port in
India to another

Customs Area [Section 2(11)] means the area of a

customs station or a warehouse and includes any area in
which imported goods or exported goods are ordinarily
kept before clearance by Customs Authorities;
 Customs Station [Section 2(13)] means any
customs port, customs airport, international
Important Definitions courier terminal, foreign post office or land
customs station

Dutiable Goods [Section 2(14)] means any

goods which are chargeable to duty and on
which duty has not been paid

Fund [Section 2(21A)] means the Consumer

Welfare Fund established under section 12C
of the Central Excises and Salt Act, 1944 (1 of
1944)
Important Definitions Goods [Section 2(22)] includes—

(a) vessels, aircrafts and vehicles;

(b) stores;

(c) baggage;

(d) currency and negotiable instruments; and

(e) any other kind of movable property

Definitions

Term Section of Customs Act Definition

Export Section 2(18) Taking out goods to a place outside of India

Export Goods Section 2(19) any goods which are to be taken out of India to a place outside
India

Import Section 2(23) Bringing goods into India from a place outside India

Arrival Manifest Or Import Manifest Section 2(24) the manifest or report required to be delivered under section 30;

Imported Goods Section 2(25) means any goods brought into India from a place outside India but
does not include goods which have been cleared for home
consumption

India Section 2(27) India includes the territorial waters of India;

Term Section of Definition
Customs Act
Exporter Section 2(20) In relation to any goods at any time between their entry for export
and the time when they are exported, includes any owner,
beneficial owner or any person holding himself out to be the
exporter
importer Section 2(26) In relation to any goods at any time between their importation and
the time when they are cleared for home consumption, includes
any owner, beneficial owner or any person holding himself out to be
the importer
Indian Section 2(28) the waters extending into the sea up to the limit of Exclusive
Customs Economic zone under section of the Territorial Waters, Continental
Waters Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976
(80 of 1976),] and includes any bay, gulf, harbour, creek or tidal river
Term Section of Customs Act Definition
Person-in-charge Section 2(31) (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

Prohibited Goods Section 2(33) Aany goods the import or export of which is subject to any prohibition under this Act or any other law for
the time being in force but does not include any such goods in respect of which the conditions subject to
which the goods are permitted to be imported or exported have been complied with

proper officer Section 2(34) in relation to any functions to be performed under this Act, means the officer of customs who is assigned
those functions by the Board or the Principal Commissioner of Customs or Commissioner of Customs

Regulations Section 2(35) The regulations made by the Board under any provision of this Act

Rules Section 2(36) the rules made by the Central Government under any provision of this Act;

Stores Section 2(38) goods for use in a vessel or aircraft and includes fuel and spare parts and other articles of equipment,
whether or not for immediate fitting

Smuggling Section 2(39) In relation to any goods, means any act or omission which will render such goods liable to confiscation
under section 111 or section 113;
Chapter-III of the Customs Act,1962
Heading Section Particulars
Appointment of customs ports, Section 7 Board appoints
airports, etc
Power to approve landing places Section 8 The Principal Commissioner of Customs or
and specify limits of customs Commissioner of Customs may— (a) approve
area proper places in any customs port or customs
airport or coastal port for the unloading and loading
of goods or for any class of goods; (b) specify the
limits of any customs area.
Appointment of boarding stations Section 10 The Principal Commissioner of Customs or
Commissioner of Customs may, by notification in
the Official Gazette, appoint, in or near any customs
port, a boarding station for the purpose of boarding
of, or disembarkation from, vessels by officers of
customs.
Charging Section • The levy is subject to other sections in the act-
• Section-13- Duty on pilfered goods

[Section-12] • Section 22-Abatement of duty on damaged/deteriorated goods

• Section 23-Remission of duty on lost/destroyed/abandoned
goods.
Duty on Pilfered Goods- Section 13
Section 22-Abatement
of duty on
damaged/deteriorated
goods
Section 22-Abatement of duty on
damaged/deteriorated goods
 Section 23-
Remission of duty
on
lost/destroyed/aba
ndoned goods.
 Section 23-
Remission of
duty on
lost/destroyed/a
bandoned goods
Duty Liability in certain
special Circumstances

Section-20
If goods are reimported into India after exportation
therefrom, such goods shall be liable to duty and
be subject to all the restriction and conditions, if
any, to which goods of the like kind and value are
liable or subject, on the importation itself.
Scenario 1 for
re-
importation
Scenario-2
for
reimportation
Scenario-3 for
reimportation
 Conditions
for
concessions
/exemptions
Goods, derelict, wreck etc. (Section-21)
 Date for
determining the
rate of duty and
tariff valuation of
imported goods
Denaturing or mutilation of goods
(Section 24)
Exemptions
from
Custom
Duty
(Section-25)
Exemptions from Custom Duty (Section-25)
Thank You