Q.

Warehouse and types of warehouse:

Definition [Section 2(43)]:
Warehouse means a public warehouse licensed under section 57 or a private warehouse
licensed under section 58 or a special warehouse licensed under section 58A.
Warehoused goods [Section 2(44)]:
Means goods deposited in a warehouse.

Types of warehouses:
Section 57 - Licensing of public warehouses: The principal commissioner of Customs or
Commissioner of Customs may, subject to such conditions as may be prescribed, licence
a public warehouse wherein dutiable goods may be deposited.
Section 58 – Licensing of private warehouses: The Principal Commissioner of Customs
or Commissioner of Customs may, subject to such conditions as may be prescribed,
licence a private warehouse wherein dutiable goods imported by or on behalf of the
licensee may be deposited.
Section 58A – Licensing of special warehouses: (1) The Principal Commissioner of
Customs or Commissioner of Customs may, subject to such conditions as may be
prescribed, license a special warehouse wherein dutiable goods may be deposited and
such warehouse shall be caused to be locked by the proper officer and no person shall
enter the warehouse or remove any goods therefrom without the permission of the
proper officer.
(2) The Board may, by notification in the Official Gazette, specify the class of goods
which shall be deposited in the special warehouse licensed under sub-section (1).
A Customs bonded warehouse can be established at any place, if approved by the
licensing officer. Warehouses – Private and Public Warehouses – are not under physical
control (under lock of customs), but are under record-based controls, except for Special
Warehouses which would remain under customs lock. In a Private Warehouse, dutiable
goods imported only by licensee are deposited.
A Special Warehouses remain under the physical control of proper officer (under
customs lock). The Principal Commissioner / Commissioner of Customs may, subject to
such conditions as may be prescribed, license a special warehouse wherein only the
dutiable goods notified by CBEC may be deposited.
Such Warehouses will be caused to be locked by the proper officer and no person will
enter the Warehouse or remove any goods therefrom without the permission of the
proper officer.
The Board is empowered to notify the class of goods which will be deposited in the
Special Warehouse. The following class of goods has been notified to be deposited in a
Special Warehouse:
 (i) Gold, silver, other precious metals and semi precious metals and articles
thereof;
(ii) Goods warehoused for the purpose of:
✓ Supply to DFS (Duty Free Shops) in a customs area;
✓ Supply as stores to vessels/ aircrafts under Chapter XI of the Customs
Act 1962;
✓ Supply to foreign privileged persons in terms of the Foreign Privileged
Persons (Regulation of Customs Privileges) Rules, 1957
Sections 57, 58 and 58A inter alia provide that licensing of the Warehouse shall be
subject to such conditions as may be prescribed. In order to prescribe a uniform process
of licensing including the application format, qualifying conditions, record keeping
requirements, licence forms etc., CBEC has issued Public/Private/Special Warehouse
Licencing Regulation, 2016 respectively.
Licence granted for all three types of Warehouses namely – Public, Private and Special
Warehouses can be cancelled. However, considering that such powers are to be
exercised with a great deal of circumspection, the same vest with the Principal
Commissioner/ Commissioner in place of the Deputy/Assistant Commissioner.
Principal Commissioner/ Commissioner may cancel the Warehousing Licence granted
under Section 57/58/58A if the licensee contravenes any of the provisions of the Customs
Law or breeches any of the conditions of the licence. However, the licensee will be given
a reasonable opportunity of being heard before such cancellation.
Once the licence is cancelled, the Warehoused goods will be removed from such
Warehouse within seven days from the date on which order of such cancellation is
served on the licensee. This period can be extended by the proper officer. The
Warehoused goods can be removed to another Warehouse or be cleared for home
consumption or export.
Q. Import And Export Of Goods By Post:
In the case of goods imported by post the agency for the carriage of goods is the
Government of India be it through sea, air or land. The control of the customs
department is only on goods, whether imported or exported.
(i) On which there is a duty; and
(ii) Which are subject to prohibition or restriction under the customs act or any
other law for the time being in force.
The customs have no concern over other goods or other mail.
Provisions Under The Customs Act:
Sections 83 and 84 of the Customs Act are substantive provisions containing various
provisions relating to the goods imported or exported by post.
Section 83 – Relevant Date For Rate Of Duty And Tariff Valuation In Respect Of
Goods Imported Or Exported By Post:
✓ The rate of duty and tariff value if any applicable to any goods imported by post
shall be the rate and valuation in force on the date on which the postal
authorities present to the proper officer a list containing the provisions of such
goods for the purpose of assessing the duty thereon.
However, where the postal goods arrive on a vessel, and the list containing the
particulars is available and is filed by the post master, before the arrival of the
vessel, the list shall be deemed to have been filed on the date of arrival of the
vessel.
The effect of this proviso is that the relevant date for imports by post is the date
of submission of the list by the post master or the date of arrival of the vessel,
whichever is later.
✓ The rate of duty and tariff value applicable to any goods exported by post shall
be the rate and valuation in force on the date on which the exporter delivers such
goods to the postal authorities for exportation.
Regulations Regarding Goods Imported Or Exported By Post (Section 82):
This section empowers the Board to make regulations providing
a. The form and manner in which an entry maybe made in respect of goods
imported or to be exported by post
b. The examination, assessment to duty, and clearance of goods imported or to be
exported by post
c. The transhipment or transit or goods imported by post from one customs station
to another or to a place outside India.
Power To Deal With Postal Articles Containing Goods Contraband Or Liable To Duty
(Section 24 Of The Indian Post Office Act):
1) The post office authority has a right and duty to open and examine a postal
article.
2) The right can be exercised only if he has a reasonable suspicion that the goods
contained in the postal article are – (a) liable to duty of customs, or (b) subject to
a prohibition under any law in force.
3) Before opening and examining the postal article he should issue a notice in
writing to the addressee asking him to be present at an appointed time and place
for the opening of the postal article.
4) The addressee can be present either in person or by an agent; and if the
addressee or his agent does not turn up at the appointed time and place, the
postal authorities are entitled to open and examine the postal article in his
absence.

Delivery Of Customs Authority (Section 24A Of The Indian Post Office Act):
The power enabling the postal authorities to deliver such articles to the Customs
authorities is enshrined in section 24A of the Indian Post Office Act. The relevant
provisions read as follows:
The Central Government may, by a general or special order, empower any officer of
the post office, specified in such order, to deliver any postal article, received from
beyond the limits of India and suspected to contain anything liable to duty, to such
customs authority as may be specified in the said order and such customs authority
shall deal with such article in accordance with the provisions of the Sea Customs Act
(now Customs Act, 1962) or any other law for the time being in force.
Thus, once the postal authorities have found some postal article to contain dutiable or
prohibited goods, that authority should deliver the postal article in question to the
customs authority for necessary action.
Q. Power to grant exemption from duty under Customs Act, 1962.
Exemption from Duty (Section 25)
a. Grant of Exemption: The Central Government may grant exemption from duty
either by Notification or Special Order:
Notification Special Order
Provision Exemption is granted Exemption is granted on
either absolutely or subject circumstances of an
to conditions. exceptional nature. Such
circumstances should be
specified in the Order.
Exemption Whole or any part of duty. Whole of the Duty.

b. Effective Date:

➢ Unless otherwise provided, such Notification / Special Order shall come

into force, on the date of issue by the Central Government for publication
in the Official Gazette.
➢ If a Notification comes into force on a date later than the date of issue, the
same shall be published and offered for sale by the Directorate of
Publicity & Public Relations, on or before the effective date.

c. Explanation to the Notifications:

➢ Purpose: Central Government may insert Explanations for clarifying the

scope or applicability of the Notification or Special Order. Such
explanation can have retrospective effect from the date of the Exemption
Notification.
➢ Time Limit: Explanation should be inserted within 1 year from the issue
of such Notification or Special Order.

d. Exemption in different forms:

➢ Exemption Notifications or Orders need not be in the same method or

form as that of Statutory Duty as per Tariff.
➢ Form of Method in relation to a rate of duty of Customs means the basis,
i.e., Valuation, Weight, Number, Length, Area, Volume, or Other
measure with reference to which the duty is leviable.
➢ If, as a result of the difference in method or form, the Concessional rate of
duty is more than the tariff rate (Statutory Duty), then the concessional
duty shall be restricted to the Statutory Duty.
➢ Illustration:
Tariff Value = ₹ 5,000 per tonne, Statutory Tariff Rate= ₹ 175 per tonne
Concessional Rate = 5% of Assessable Value=5,000 x 5%=₹ 250 per tonne
 However, the Concessional Rate is restricted to ₹ 175 per tonne.
Adhoc Exemption u/s 25(2) Customs Act:
a. Articles which will be considered for granting the ad hoc exemption and
procedure to be followed for applying for exemption have been specified in
Circular No.9/2014 – Cus dated 19.08.2014.
b. The following goods will be considered for ad hoc exemption.
➢ Import of goods under Grants from Foreign Governments / Foreign
Organisations, with approval of Secretary of Administrative Ministry,
➢ Furthering India’s foreign relations, if recommended by the Secretary
Ministry of External Affairs,
➢ Re – Import of India’s Historical, Cultural and Art Heritage intended for
public exhibition,
➢ Treatment for life threatening diseases,
➢ Goods meant for providing relief and rehabilitation under unforeseen and
exceptional circumstances such as Flood, Earthquake, Epidemic, etc.
➢ Imports by a Registered Charitable Institutions, who receive goods as
Donations or Gifts for charitable purposes. They have to give undertaking
to fulfil prescribed conditions for availing Exemption. Goods imported
cannot be sold or gifted.
c. The Adhoc Exemption can be granted retrospectively.
Q. Explain the various officers of customs under Customs Act, 1962.

1. Proper Officer (Section 2(34)): CEO is the excise equivalent of Proper Officer
under Customs.
a. Proper Officer, in relation to any functions to be performed under CUA
means, the Customs Officer who is assigned those functions by CBEC/
PCC/CC.
b. The General Customs organizational setup exists in the major custom houses
like Mumbai, Kolkata, Chennai, Cochin, Visakhapatnam, Kandla and Goa.
c. In other Customs Ports, airports or land customs stations, the job is carried
out by the Central Excise Officers, who have territorial jurisdiction with
similar designation.

2. Other Persons (Section 6): The term Proper Officer also includes any notified
Central or State Government Officer, or Officer of Local Authority entrusted
with any function of CBEC/ any customs officer either conditionally or
unconditionally.
3. Other Classes of Officers: The Other Classes of Officers of Customs include –
OFFICERS RESPONSIBILITY – THEY DO THE FOLLOWING
Appraisers Assessment of Import / Export goods including
classification, valuation and examination of goods.
Preventive Executive duties like –
Officers 1. Boarding and Checking ships and aircrafts.
2. Clearing passengers and crew and their
baggage.
3. Supervision and control over loading and
unloading of cargo.
4. Preventing smuggling by checking suspects,
patrolling the customs area and searching
suspected premises, persons and vehicles, and
5. Interrogating suspects/ witness and
investigation.
Chemical Testing samples of Imported/Export cargo for
Examiner determining the true character of the goods for the
proper assessment.
Ministerial Maintaining records, keeping accounts, etc.
Officers

Proper Officer: Once power has been exercised U/s 4 of Customs Act, only the
Proper Officer notified for that area could exercise the powers under the Act,
and the Commissioner (preventive) would have no jurisdiction.

Activity beyond scope / power conferred: Government is not bound by any acts
of any of its officers, who exercise statutory power, which was not conferred
upon him. Such action of the officer is nullity – (Management, Asst. Salt Commr.
Vs. Secy. Central Salt Mazdoor Union.)
Powers Of Officers Of Customs (Section 5):
a. The Customs Act assigns powers and duties to the officers of Customs,
subject to the conditions and limitations prescribed by the CBEC.
b. An officer of Customs may exercise the powers and discharge the duties
conferred or imposed on any other officer of customs who is subordinate to
him.
c. A Commissioner (appeals) shall not exercise the powers and discharge the
duties conferred or imposed on an officer of customs other than those
specified in –
i. Chapter XV (appeals and revision), and
ii. Section 108 (power to summon persons for giving evidence).

Officers Required To Assist Officers Of Customs (Section 151):

The following officers are hereby empowered and required to assist officers of
customs in the execution of the Customs Act, namely -
i. Officers of the Central Excise Department
ii. Officers of the Navy and Police
iii. Officers of the Central or State Government employed at any port or
airport
iv. Such other Officers of Central or State Government or a local authority
as notified by the Central Government.
Q. Write a note on drawbacks on imported raw materials in the manufacture of goods
which are to be exported
In duty drawback, the Customs Duty paid on inputs and service tax paid on input
services is given back to the exporter of finished product by way of duty drawback. It
may be noted that duty drawback U/s 75 is granted when imported materials are used
in the manufacture of goods which are then exported, while duty drawback U/s 74 is
applicable when imported goods are re-exported as it is, and article is easily identifiable.
Duty drawback rates are of following types –
a. All industry rate
b. Brand rate
c. Special brand rate
Duty drawback rates can be fixed with retrospective effects (Rule 5(2) of Drawback
Rules 1995)
Condition For Drawback (Section 75):
Imported material – Goods must be notified by the Central Government
↓
Used in: manufacture, or process, or carrying out any operation
↓
Export: such manufactured goods (i.e., notified finished goods) are “exported”
# It is to be noted that drawback U/s 75 is given towards duty paid on imported goods
Comparison Of The Provision Of Section 74 And Section 75 Is As Follows
Drawback Allowable On Re Export Of Drawback On Material Used In The
Duty Paid Goods (Section 74) Manufacture Of Exported Goods
(Section – 75)
1. Drawback, in relation to any “Drawback in relation to any goods
goods exported out of India, manufactured in India and exported,
means refund of duty paid on means the rebate of duty or fact, as the
importation of such goods in terms case maybe chargeable on imported
of Section 74. Thus, drawback is materials or excisable materials used or
allowed only if import duties of taxable services used as input services in
Customs is paid. the manufacture of such goods.
2. The identity of the goods exported The goods exported under this section is
should be established as the one, one different from the inputs as inputs
which was imported on payment are manufactured, processed or any
of duty. operations are carried on before their
export.
3. Drawback under this section is Drawback under this section is available
available on all goods only on notified goods
(identification is the only criteria)
4. The exported goods should have
been imported and customs duty
be paid thereon.
5. The rate of drawback is 98% in
case the goods exported without
use.
The rate of drawback on goods
taken into use is separately
notified depending upon the
period of use, depreciation in
value and other relevant factors.
6. The goods should be exported
within 2 years from the date of
payment of duty or such extended
time as the Board may allow.
7. There is no criterion as minimum
value addition, which is to be
fulfilled before export for claim of
drawback.
8. No provision on this behalf
9. The drawback is governed by the
re -export of imported goods
10. Rate of drawback is generally
98%
11. Only custom duty is considered as
eligible duty
12. Identity of goods should be
established
The goods to be exported maybe
manufactured or processed from
imported or indigenous inputs or by
utilizing input services
Rates per unit of final article to be
exported is fixed by taking into account:
Mode of manufacture
Input – output ratio
Standardization of the products etc.
No such restrictions
It has been specifically provided that
there should not be negative value
addition and in case where minimum
value addition is specified the same
should be achieved for claim of
drawback.
The sale proceeds in respect of such
goods on which the drawback has been
allowed, have to be received by the
exporter or by any person on his behalf
with the period as specified in the FEMA,
1999. In absence of this, such drawbacks
shall be deemed never to have been
allowed and procedure for recovery or
adjustment of the drawback amount will
be initiated.
The drawback, in this case, is governed
by the customs central excise duties and
service tax drawback rules 1995 (now
GST)
Rate maybe either –
i. All industry rate,
ii. Brand rate, or
iii. Special brand rate
Customs duty, GST paid
No such condition
Q. What is baggage? Explain the provisions of the CUA, 1962 relating to baggage.
1. Baggage [Sec.2(3)]:
a. Baggage includes Unaccompanied Baggage, but does not include Motor Vehicles.
b. Baggage is a comprehensive term, which means the Luggage of a passenger,
whether accompanied or not. It comprises of Trunks, Bags, and the Personal
Belongings.
c. It is not merely limited to the meaning of Bonafide Baggage under Tourist
Baggage Rules, 1958.
2. Applicability of CUA: As per Sec. 2 (22), Goods include Baggage also. Hence, the
restrictions and regulations governing the import and export of goods will apply to
baggage also. However, Sec 15, 16, 44 to 56, 91 to 99, do not apply to baggage.
3. Declaration [Sec.77]: For clearing the baggage, the owner shall make a declaration of
its contents to the proper officer. This is known as Baggage Declaration Form.
4. Relevant Date [Sec.78]: Relevant date for rate of duty and tariff valuation shall be the
date on which a declaration is made in respect of such baggage u/s 77.
5. Rate of Duty: Baggage falls under classification 9803. Rate of duty is 35%. Additional
duty u/s 3(5) is not applicable. So, the effective rate is 35% BCD +EC 2% +SHEC 1% =
36.05%.
No Separate rules for valuation of baggage. Therefore, Valuation rules apply to
valuation of baggage also.
Bonafide Baggage Exempt from duty: Bonafide baggage accompanying passengers is
exempt from duty. It includes wearing apparel, toilet requisites and other personal
effects.
General Prohibitions: Following are the general prohibitions / restrictions-
a. Foreign and Indian currency can be taken out / brought in only as per
instructions of RBI under FEMA.
b. Possession of narcotic drugs is strictly prohibited.
c. Domestic pets like dogs, cats, birds etc. can be brought as per strict health
certificate regulations.
d. Taking out exotic birds, wind orchids and wild life, is strictly prohibited.
e. Endangered species or articles made from flora and fauna such as ivory, musk,
reptile skins, furs, antiques are prohibited.
Green Channel: It is impractical to ask every traveller to declare contents of his
baggage. Hence customs have provided two channels at airports. If a person does not
have any dutiable goods, he can go through green channel.
An incoming passenger has to submit disembarkation card, containing written
declaration about his baggage. This should be collected when passenger goes through
green channel. Passenger who has nothing to declare can simply walk through green
channel with baggage on basis of oral declaration / declaration on their disembarkation
cards.
Red Channel: Person carrying dutiable goods should pass through red channel and
should submit declaration. The declaration of goods and value as given by passenger in
disembarkation card is generally accepted, but baggage can be inspected by Customs
officer.
Valuation of baggage: In Naresh Lokumal Serai v. CC, it was held that there are no
separate provisions for valuation of baggage. Hence, valuation rules apply to valuation
of baggage also. In baggage, most of the items may be used. Hence, valuation on basis of
best judgement assessment is appropriate. It was also held that valuation on the basis of
internet prices cannot be considered for valuation. Similarly, price tags on goods cannot
be considered for valuation, since the price indicated is for sale within that country and
not for export to India.
Baggage Rules, 1998 – Definitions [Rule 2] – Baggage:
Resident: A person holding a valid passport issued under the Passports Act, 1967, and
normally residing in India.
Tourist: Tourist means a person, who – a) is not normally Resident in India, b) enters
India for a stay of not more than 6 months, c) enters for legitimate non – immigrant
purposes, such as Touring, Recreation, Sports, Health, Family reasons, Study, Religious
pilgrimage or Business.
General Free Allowance [Rule 3 & 4]:
1. Applicability: Passengers other than Tourists, i.e. Indian Resident or Foreigner
residing in India.
2. Articles allowed Free of Duty: a) Used Personal effects, excluding jewellery,
required for satisfying daily necessities of life. (Without any limit)
b) Other Articles (except those mentioned in Annexure I) which are carried on
by the person or in his accompanying baggage, upto the value specified in the
Appendix. (It is not applicable to Unaccompanied Baggage).
c) Articles mentioned in Annexure I:
➢ Firearms,
➢ Cartridges of fire arms exceeding 50,
➢ Cigarettes exceeding 100,
➢ Cigars exceeding 25,
➢ Tobacco exceeding 125 gms,
➢ Alcoholic Liquor or Wines in excess of Two Litres,
➢ Gold or Silver, in any form, other than ornaments,
➢ Flat panel (LCD / LED / Plasma) Television.
Temporary detention of baggage [Section 80]:
Situation: Where the baggage of a passenger contains any article –
a. Which is dutiable or the import of which is prohibited, and
b. In respect of which a True Declaration has been made u/s 77.
Detention: The proper officer may, at the request of the passenger, detain such Article
for the purpose of being returned to him on his leaving India.
Q. Discuss the various powers of the commissioner to search and arrest of a suspected
person under the Customs Act.
Circumstances under which any person can be searched (Section 100 – 101 of CUA)
POINT SEARCH U/S 100 SEARCH U/S 101
1. Authority Proper Officer Authorised Officer of
Customs. i.e. empowered
by general or special
order of Commissioner of
Customs / PCC
2. Situation for The Proper Officer/ Authorised Officer has reason to believe
Search that any person has secreted about his person, - (a) any goods
liable to confiscation, or (b) any documents relating thereto.
3. Applicability Sec. 100 applies to a PERSON- GOODS referred u/s 101
A. Who has landed from or is are –
about to board, or is on a. Gold
board- b. Diamonds
• Any vessel within the c. Manufactures of
Indian customs gold or diamonds
waters, or d. Watches,
• A foreign – going e. Any other class of
aircraft, goods notified by
B. Who has got out of, or is Central
about to get into, or is in, a Government.
vehicle, which has arrived
from, or is to proceed to
any place outside India,
C. Who has entered or is about
to leave India (other than
above),
D. Who is in a customs area.

Procedure To Be Followed In Search Of Person (Section 102):

1. Right of a person to be searched:
a. Nature of right: person to be searched u/s 100 or 101 can request the officer
to take him before the nearest Gazetted Officer of Customs or Magistrate.
b. Duty of Officer of Customs: Upon such request, the Officer of customs –
• May detain the person to be searched, and
• Bring him before Gazette Officer/ Magistrate
2. Role of Gazette Officer/Magistrate: The Gazetted Officer of Customs or the
Magistrate before whom any such person is brought, shall –
a. Discharge the person, if he sees no reasonable ground for search, or
b. Direct that search be made
 3. Witness:
a. Before making a search under u/s 100 or 101, the Officer of Customs shall
call upon two or more persons to attend and witness the search. He may issue
an order in writing to them or any of them.
b. The search shall be made in the presence of such persons and a list of all
things ceased in the course of such search shall be prepared by the Officer or
other person, and signed by the witnesses.
4. Searching of female: Female can be searched only by a female officer.
Power To Arrest (CUA Section 104)
1. Authority Officer of customs should be empowered in this behalf by
order of PCC/CC
2. Grounds for Officer has reason to believe that any person in India or
arrest within the Indian Customs waters has committed an offence
punishable u/s 132/133/135/135A/136
3. Duties of The person arrested shall be –
Officer a. Informed of the grounds of arrest, as soon as maybe
possible
b. Taken to a Magistrate without unnecessary delay
4. Bail Customs officer shall have the same powers of the police
officer (for the purpose of releasing such person on bail or
otherwise) and be subject to the same provisions under the
Criminal Procedure Code.
Note: The following are the provisions regarding cognizance of offences –
OFFENCE NATURE
Where the offences are relating to – Cognizable
• Prohibited goods, or
• Evasion or attempted evasion of duty exceeding ₹ 50
lakhs,
Any other offence under the Act. Not Cognizable
Where an offence is non – cognizable, the Police can arrest the Offender, only if there is
a request from Customs Authorities.
Note:
1. Power to arrest is circumscribed by objective considerations, and cannot be
exercised on whims, caprice, or fancy of the officer
2. Customs authorities cannot take any person into the custody for custodial
interrogation, since in case of detention, he has to be sent to Judicial remand.
3. High Court cannot grant anticipatory bail against arrest as the right to arrest is
a statutory right vested as per CUA and cannot be taken away by the High Court
Order.
Q. Abatement of duty on damaged / deteriorated goods under Customs Act, 1962.
[Sec 22].
Where it is shown to the satisfaction of the Assistant Commissioner of Customs or
Deputy Commissioner of Customs –
a. That any imported goods had been damaged or had deteriorated at any time
before or during the unloading of the goods in India; or
b. That any imported goods, other than warehoused goods had been damaged at
any time after the unloading thereof in India but before their examination under
section 17, on account of any accident not due to any willful act, negligence or
default of the importer, his employee or agent; or
c. That any warehoused goods had been damaged at any time before clearance for
home consumption on account of any accident not due to any willful act,
negligence or default of the owner, his employee or agent,

Such goods shall be chargeable to duty in accordance with the provisions of sub-
section (2) [Sub-section (1)].

The duty to be charged on the goods referred to in Sub-section (1) shall bear the
same proportion to the duty chargeable on the goods before the damage or
deterioration which the value of the damaged or deteriorated goods bears to the
value of the goods before the damage or deterioration [Sub-section (2)].

For the purpose of this section, the value of damaged or deteriorated goods may
be ascertained by either of the following methods at the option of the owner:
a. The value of such goods may be ascertained by the proper officer, or
b. Such goods may be sold by the proper officer by public auction or by tender,
or with the consent of the owner in any other manner, and the gross sale
proceeds shall be deemed to be the value of such goods [Sub-section (3)].

➢ Cases where the abatement is available:

Abatement is available if the goods are damaged / deteriorated under any of the
following circumstances:
S.No Goods damaged / deteriorated
1. Before or during unloading
2. By accident after unloading but before Provided such accident
examination for assessment by the is not due to any willful
customs authorities act, negligence or
3. By accident in warehouse before their default of the importer,
actual clearance from such warehouse. his employee or agent.
The term ‘damage’ denotes physical damage to the goods. This implies that the goods
are not fit to be used for the purpose for which they are meant.
‘Deterioration’ is reduction in quality of goods due to natural causes.
➢ Amount of duty chargeable after abatement
= Duty on goods before damage / deterioration x Value of damaged/deteriorated goods
Value of goods before damage / deterioration

➢ Value of damaged / deteriorated goods are arrived at as follows:

a. Value ascertained by the proper officer
Or
b. The proper officer may sell such goods by public auction / tender or if the
importer agrees, in any other manner and the gross sale proceeds shall be
deemed to be the value of such goods.
Q. Write a note on: Power to grant exemption from duty under CUA, 1962. [Sec 25]
Central Government’s Power To Grant Exemption:
Article 265 of the Constitution provides “No tax shall be levied or collected except by
the authority of law”. The power of the Central Government to alter the duty rate
structure is known as delegated legislation and this power is always subject to
superintendence and check by Parliament.
a. General Exemption: If the Central Government is satisfied that it is necessary in
the Public interest so to do, it may, by notification in the official gazette exempt
generally either absolutely or subject to such conditions (to be fulfilled before or
after clearance) as maybe specified in the notification, goods of any specified
description from the whole or any part of duty of customs leviable thereon.
b. Special exemption: If the Central Government is satisfied that it is necessary in
the public interest so to do, it may, by special order in each case, exempt from
payment of duty, any goods on which duty is leviable only under circumstances
of an exceptional nature to be stated in such order. Further, no duty shall be
collected if the amount of duty leviable is equal to, or less than, one hundred
rupees.

Both the above mentioned exemptions may be granted by providing for the levy
of duty on such goods at a rate expressed in a form or method different from the
form or method in which the statutory duty is leviable.

Further, the duty leviable under such altered form or method shall in no case
exceed the statutory duty leviable under the normal form or method.

Grant Of Exemption:
The power for grant of exemption vests with the Central Government subject to
the overall control of the Parliament. The Government on a rational basis may
discretely use this power and the exemptions may be based on any of the
following basis:
a. Moral grounds, where the duty should not be levied at all. Some of the
instances, which may be given are;
• Where the goods do not reach the Indian soil at all
• Where the goods have reached Indian soil but are not available for
consumption.
• Where the goods get damaged or deteriorated in transit.
b. Discretionary provisions, where the exemption is used for controlling the
economy and industrial growth of the country.
Exemption Notifications:
In Kasinka Trading Vs U.O.I, the Supreme Court held that the power to exempt
includes the power to modify or withdraw in terms of section 21 of the general
clauses act, 1897. It was held that even a time bound exemption notification
issued under Section 5A of the Central Excise Act 1944, or Section 25 of the
Customs Act, 1962 can be modified and revoked if it is in public interest and the
doctrine of promissory estoppel cannot be invoked since a notification cannot be
said to be making a representation or a promise to a party getting benefit
thereof.
The Supreme Court has held in Pankaj Jain Agencies Vs U.O.I, that a
notification is to take effect from the date of the publication in the official
gazette. In ITC Ltd. Vs CCE the Supreme Court reiterated this view and said
that non-availability of the gazette on the date of issue of the notification will not
affect the operativeness and enforceability of the notification particularly when
there are radio announcements and press releases explaining the changes on the
very day.
An exemption notification cannot be withdrawn and duty cannot be demanded
with retrospective effect (Honest Corporation Vs. State of Tamil Nadu).
Effective Date
Section 25 of the Act provides that the date of effect of the notification will be the
date of its issue.
The following issues need to be kept in mind in case of general exemption.
i. Where the exemption notification does not mention the date of its effect,
the notification comes into effect from the date of its issue by the Central
Government for publication in the official gazette.
ii. Where the exemption is through a special order, the above rules do not
apply. Special orders are issued separately for each case and
communicated to the beneficiary directly by the Government. The
beneficiary can claim refund for the period reckoned from the date of its
issue.
Sub – Section 2A empowers the government to issue clarification to the
notifications within one year from the issue of the notification and such
clarification will have retrospective effect.
Q. Discuss the provisions under the customs Act relating to dutiable goods and
valuation of goods.
Dutiable Goods [Sec.2(14)]:
1. Dutiable Goods means –
a. Any goods which are chargeable to duty, and
b. On which duty has not been paid.
2. Duty means a duty of customs leviable under CUA.
3. In order to be dutiable, any Article should be within the ambit of the word
“Goods” defined u/s 2(22), and should find a mention in the Customs Tariff.
If the Tariff Rate is indicated as “Free” against certain goods in Customs Tariff, then
such goods are Non – Dutiable Goods, as no duty is payable on them.
Goods [Sec.2(22)]:
1. Vessels, Aircrafts and Vehicles,
2. Stores,
3. Baggage,
4. Currency and Negotiable Instruments, and
5. Any other kind of Movable Property.
Valuation of Goods [Section 14]
Section 14 of the Customs Act 1962, prescribes the mode of identifying the value of
imported or exported goods for the purpose of payment of customs duty. The provisions
of section 14 are discussed below:
Transaction Value:
1. Sub – section (1) lays down that for the purposes of the Customs Tariff Act ,
1975 or any other law for the time being in force, the value of the imported goods
and export goods shall be the transaction value of such goods.
2. In case of export goods, the transaction value shall be –
• The price actually paid or payable for the goods
• When sold for export from India
• For delivery at the time and place of exportation
• Where the buyer and seller of the goods are not related
• Price is the sole consideration of the same.
However, further conditions maybe specified in the rules made in this behalf.
3. In case of imported goods, the transaction value shall be
• The price actually paid or payable for the goods when sold for export to
India
• For delivery at the time and place of importation
• Where the buyer and seller of the goods are not related and
• Price is the sole consideration for the same
However, in this case also further condition maybe specified in the rules made in this
behalf.
Conversion Dates:
1. For imported goods, the conversion in value shall be done with reference to the
rate of exchange prevalent on the date of filing bill of entry u/s 46.
2. For export goods, the conversion in value shall be done with reference to the rate
of exchange prevalent on the date of filing shipping bill (vessel or aircraft) or bill
of export (vehicle) u/s 50.
In the case of Samar Timber Corporation Vs ACC, it was held that relevant date in
respect of rate of duty payable is the date of presentation of bill of entry and not
date of representation after correction.
Currency Conversion Rate:
1. The rate of exchange is notified by three agencies – The Central Board of Excise
and Customs (Board), The Reserve Bank of India and the Foreign Exchange
Dealers Association of India. For the purpose of customs valuation, the rate of
exchange means the rate of exchange –
a. Determined by the Board
b. Ascertained in such manner as the Board may direct, for the conversion of
Indian currency into foreign currency or foreign currency into Indian
currency. Thus for the purposes of valuation under customs law, rate notified
by CBEC (Board) shall be taken into account.
Tariff Value
1. Sub – section (2) provides that the Board may fix tariff values for any class of
imported goods or export goods, having regard to the trend of value of such or
like goods by notification in the official gazette if it is satisfied that it is necessary
to do so.
2. Where any such tariff values are fixed, the duty shall be chargeable with
reference to such tariff value. Provisions of sub section (2) have an overriding
effect on the provisions of sub – section (1).
Note:
Foreign currency and Indian currency have the meanings respectively assigned to them
in clause (m) and clause (q) of section 2 of the Foreign Exchange Management Act 1999.
Q. Transit goods (Section 53):
Meaning: Goods intentioned for transit in the same conveyance –
a. To any place outside India or
b. To any other customs station.
Unloading / Loading:
Goods remain in the same vessel. They are not unloaded into the customs area.
Record / Bill: No bill has to be presented. They have to be shown in Import / Export
Manifest as “Same Bottom Cargo”, along with their destination.
Continuity and Caution: As they are shown in both import / export manifest, there is
continuity in the record. No chance of goods being lost / smuggled.
Payment of Duty: Transit of goods maybe permitted without payment of duty, if the
destination is –
a. Any place outside India, or
b. Any other customs station
Non Applicability:
a. Prohibited goods can never be transited
b. Transit does not apply to –
i. Baggage
ii. Goods imported by post
iii. Stores
Dutiability:
At The Port Of Transit At The Destination Port (Section 55)
Duty is not collected though the liability On arrival of the destination customs
has already accrued. It is necessary to station, such goods shall be liable to duty
ensure that – and shall be ‘entered’ in the same
• GOODS FOR INDIAN PORTS: manner as goods entered on first
They have actually conveyed to importation. Hence, the destination port/
the Indian port of destination and station is aimed as the actual port /
appropriate duty is collected station of importation.
thereon.
• GOODS INTENDED FOR
FOREIGN PORTS: They are
actually conveyed out of India,
and are not landed in any Indian
customs station.
Q. Note on Restriction on imports and exports
As Central Government has all the powers under this Act to levy duty on various goods
and to in the same way it has power to prohibit importation and exportation of goods.
“Prohibited goods” means any goods that 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.
Section 11 – Power to prohibit importation or exportation of goods –
1. If the Central Government is satisfied that it is necessary so to do for any of the
purposes specified in sub -section (2), it may, by notification in the official
gazette, prohibit either absolutely or subject to such conditions (to be fulfilled
before or after clearance) as may be specified in the notification, the import or
export of goods of any specified description.
2. The purpose referred to in sub section (1) are the following:
• The maintenance of the security of India,
• The maintenance of public order and standards of decency or morality
• The prevention of smuggling
• The prevention of shortage of goods of any description
• The conservation of foreign exchange and the safeguarding of balance of
payments
• The prevention of injury to the economy of the country by the
uncontrolled import or export of gold or silver.
• The prevention of surplus of any agricultural product or the product of
fisheries
• The maintenance of standards for the classification, grading or marketing
of goods in international trade
• The establishment of any industry
• The prevention of serious injury to domestic production of goods of any
description
• The protection of human, animal or plant life or health
• The protection of National treasures of artistic, historic or archaeological
value
• The conservation of exhaustible natural resources,
• The protection of patents, trademarks and copyrights
Various Rules Regarding Prohibition
1. Absolute or conditional prohibition:
Under Section 11 of the CUA, the Central Government has the power to
issue notification under which export or import of any goods can be
declared as prohibited. The prohibition can either be absolute or
conditional. The Central Government has issued many notifications to
prohibit import of sensitive goods such as obscene books, printed waste
paper containing pages of any holy books, armoured guard, explosives,
narcotic drugs etc.

Restricted Category Goods

Under export and import policy, laid down by the DGFT, in the Ministry
of Commerce, certain goods are placed under restricted categories for
import and export. Under section 3 and 5 of the Foreign Trade
(development and regulation) Act 1992, the Central Government can
make provisions for prohibiting, restricting or otherwise regulating the
import or export of goods.

Import and Export Against a Licence

Some of the goods are absolutely prohibited for import and export
whereas some goods can be imported or exported against a licence. For
example, export of human skeleton is absolutely prohibited whereas
export of cattle is allowed against an export licence.

Quality Certification
The import of a large number of products are required to comply with
the mandatory Indian Quality Standard (IQS) and for this purpose
exporters of these products to India are required to register themselves
with Bureau of Indian Standards (BIS). Non fulfilment of the above
requirements shall render such goods prohibited for import.

Punishment
Any importer or exporter involved in dealing with prohibited goods shall
be liable to a punishment with imprisonment for a maximum term of
three years (7 years in respect of notified goods) u/s 135 of CUA. Any
person who is reasonably believed to be guilty of an offence, punishable
u/s 135, maybe arrested under the provisions of section 104 of CUA.

Prohibited goods under other laws

Import and export of some specified goods maybe restricted or prohibited
under other laws such as Environment Protection Act, Wildlife Act,
Indian Trade and Merchandise Marks Act, Arms Act, etc. Prohibition
under those Acts will also apply to the penal provisions of the Customs
Act, rendering such goods liable to confiscation u/s 111 (d) of the CUA
(for import) and 113 (d) of the CUA (for export).
Q. Explain collection of Customs Duty
Charging Section (Section 12)
1. This section is a charging section of the Act. Except as provided in this Act, or
any other law for the time being in force, duties of customs shall be levied at such
rates as maybe specified as under the Customs Tariff Act, 1975, or any other law
for the time being in force, on goods imported into or exported from India
[Sub – section (1)].
2. The provision of sub – section (1) shall apply in respect of all the goods belonging
to the Government as they apply in respect of goods not belonging to the
Government.
Hence, there is no general exemption to goods imported by Government but
Imports by Indian navy, specific equipment required by Police, Ministry of
Defence, Coastal Guard etc are fully exempt from Customs Duty by virtue of
specific notifications subject to fulfilment of conditions and / or procedure set out
in the notification.

The following propositions arise from the above provisions:

1. Duties of customs shall be levied on goods. However, it may be noted that this
levy is subject to other sections in the Act. For instance:
Section 13 – no duty on pilfered goods
Section 22 – Reduced duty on damaged goods
Section 23 – Remission of duty on destroyed goods
2. The goods shall be such as are imported or exported to or from India
3. The duty shall be charged on such rates as maybe specified under the
Customs Tariff Act, 1975.
4. Government goods shall be treated at par with non – governmental goods for
the purposes of levy of customs duty.
Charge on Goods
The charge of customs duty is considered to be on the goods and not on the person
importing them or paying the duty. Being such, it is expected to be passed on to the
buyer.
Test for determining taxable event:
The main test for determining the taxable event is the happening of the event on which
the charge is affixed.
I. Imports
a. In case of goods cleared for home consumption
The Supreme Court observed that import of goods will commence when
they cross the territorial waters, but continues and is completed when
they become part of the mass of goods within the country, the taxable
event being reached at the time when the goods reach the customs
 barriers and bill of entry for home consumption is filed.
(Garden Silk Mills Vs U.O.I)
b. In case of goods cleared for warehousing
In case of warehoused goods, the custom barriers would be crossed when
they are sought to be taken out of customs and brought to the mass of
goods in the country. (Kiran Spinning Mills Vs. Collector of Customs)

II. Exports
Exports of goods is complete when the goods cross the territorial waters of
India.

Duty liability in certain Special Circumstances

a. Re – importation of goods produced or manufactured in India (Sec 20):
If goods are imported into India after exportation there from, such goods
shall be liable to duty and be subject to all the conditions and restrictions,
if any to which goods of the like kind and value are liable or subject, on
the importation thereof.
It implies that goods manufactured or produced in India, which are
exported and thereafter reimported are treated on par with other goods
which are otherwise imported.

b. Goods derelict, wreck etc (section 21):

All goods, derelict, jetsam, flotsam and wreck brought or coming into
India, shall be dealt with as if they were imported into India unless it be
shown to the satisfaction of the proper officer that they are entitled to be
admitted duty free under this Act.
The concept of goods brought into India is not confined to goods which
are intentionally brought into India but also extends to derelict, jetsam,
flotsam and wreck brought or coming into India. This implies that apart
from goods which are normally imported in the course of international
trade, flotsam and jetsam which are washed ashore and derelict and
wreck brought into India out of compulsion are also treated on par with
trade goods.
Distinction between Clearance for Home Consumption and Clearance for
Warehousing:
Clearance for home consumption implies that, the customs duty on import of the goods
has been discharged and the goods are therefore cleared for utilization or consumption.
The goods may instead of being cleared for home consumption be deposited in
warehouse and cleared at a later time. When the goods are deposited in the warehouse
the collection of customs duty will be deferred till such goods are cleared for home
consumption. The revenue for the Government is safeguarded by the importer
executing a bond binding himself in a sum equal to twice the amount of duty assessed on
the goods at the time of import. The importer is also liable to pay interest, rent and
charges for storage of goods in a warehouse.
Q. Power of central government for prohibition on importation and exportation:
If the central government is satisfied that it is necessary to do for any of the purposes
specified u/s 11(2), it may, by notification in official gazette, prohibit the import/
export/both, of goods of specified description, either absolutely or subject to specified
conditions.
Reasons for prohibition of Importation and Exportation of Goods [Sec.11]:
1. Maintenance of security of India
2. Maintenance of public order and standards of decency and morality
3. Prevention of shortage of any goods
4. Conservation of foreign exchange and safeguarding of balance of payments
5. Prevention of injury to economy on account of uncontrolled import/ export of gold
or silver
6. Prevention of serious injury to domestic production of goods of any description
7. Protection of human, animal or plant life or health
8. Protection of national treasures of artistic, historic or archaeological value
9. Conservation of exhaustible natural resources
10. Protection of patents, trade marks, copyrights, designs and geographical
indications
11. Prevention of deceptive practices
12. Prevention of the contravention of any prevailing law
13. Prevention of surplus of any agricultural product or product of fisheries
14. Maintenance of standards for classification, grading, or making of goods in
international trade
15. Establishment of any industry
16. Protection of human, animal or plant life or health
17. Prevention of smuggling
18. Fulfilment of obligations under the Charter of the United Nations for the
maintenance of international peace and security
19. Implementation of any treaty, agreement or convention with any country
20. Any other purpose conducive to the interests of the general public.
Q. Procedure for the clearance of imported / export goods?
Procedure for the clearance of export goods:
Entry of goods for exportation [Section 50]:
The exporter is, under section 50 of the Customs Act, required to present electronically to
a proper officer of customs a shipping bill in case of export by a vessel or by air and a bill
of export, in case of export by a vehicle.
However, the commissioner of customs may, in cases where it is not feasible to make
entry by presenting electronically, allow an entry to be presented in any other manner.
Hence, manual submission of shipping bill/ bill of export is allowable in cases where
electronic submission is not feasible. The exporter of any goods, while presenting a
shipping bill or bill of export, shall make and subscribe to a declaration as to the truth of
its contents.
Clearance of goods for exportation [Sec 51]:
After the shipping bill is filed, they are presented for the customs appraisal. Here also
there are two parts namely, scrutinising assessment and physical check of assessment.
Since the export regulations are not strict and rigid, these procedures are very simple.
After the customs officer is satisfied that the goods are not prohibited and the exporter
has paid the duty and other charges payable in respect of the same, he makes the order
for the shipment on the duplicate copy of the shipping bill. This is known as “Let Export”
orders. However, central government may permit certain class of exporters to make
deferred payment of said duty or any charges in such manner as may be provided by rules.
Procedure for clearance of imported goods: [Sec 45 to 49]
The procedure for clearance of imported goods are contained in section 45 to section 49
of the customs Act. These procedures are not applicable to Baggage and Goods imported
or to be exported by post.
Restriction on custody and removal of Imported goods [section 45]:
Once the imported good have entered the customs area, there arises the question of who
is responsible for the safe custody of goods.
This section requires that until the imported goods are cleared for home consumption or
are warehoused or are exported for transhipment, they shall remain in the custody of
such person as may be approved by the commissioner of customs [sec 45(1)]. This person
is called as custodian.
Responsibility of custodian of goods [sec 45(2)]:
1. Maintain a proper record of goods received from the carriers and send a copy of
the record to the proper officer.
 2. Not to permit such goods to be removed from the customs area or allow them to
be dealt with otherwise except under the specific permission in writing of the
proper officer.

In pursuance of this responsibility, the custodian is required to tally the particulars

of the goods landed by a vessel, and send a report known as out turn statement to
the customs authorities.
Liability of the custodians [Sec 45(3)]:
This provision provides that not withstanding anything contained in any law for the time
being in force, if any imported goods are pilfered after unloading in any customs area,
while in the custody of the custodian, such custodian shall be liable to pay duty on such
goods.
Section 45 holds the custodian responsible only in respect of the customs duty in respect
of the pilfered goods. It does not extend to the value of goods lost. If the custodian has no
explanation at all to show how the loss occurred in respect of goods in its custody, the
custodian is liable for loss of goods.
Filing of import bill of entry [Sec. 46]:
It is the duty of the importer of any goods to make an application electronically to the
proper officer for clearance of the goods. The importer is required to make an electronic
integrated declaration to the customs computer systems through network facility. The bill
of entry (Electronic Integrated Declaration) Regulations, 2011, provides the details.
However, the commissioner of customs may, in cases where it is not feasible to make
entry by presenting electronically, allow an entry to be presented in any other manner.
Hence, Manual submission of Bill of Entry is allowable in cases where electronic
submission is not feasible. The form of the bill of entry is governed by bill of entry (forms
regulations, 1976).
The goods may be cleared for home consumption or for deposit in a warehouse or for
transit or transhipment. According to Section 46(3), the importer shall present the bill of
entry before the end of the next day following the day (excluding holidays) on which the
aircraft/vessel/vehicle carrying the goods arrives at a customs station at which such goods
are to be cleared for home consumption or warehousing:
The proviso to section 46(3) provides that a bill of entry may be presented within 30 days
of the expected arrival of the aircraft/vessel/vehicle by which the goods have been
shipped for importation into india:
However, where the bill of entry is not presented within the time so specified and the
proper officer is satisfied that there was no sufficient cause for such delay, the importer
shall pay prescribed charges for late presentation of the bill of entry.
Clearance of goods [Sec 47]:
Once the customs check and payment of duty is completed, the customs officers allow
clearance of the goods. Section 47 provides that where the proper officer is satisfied that
the goods entered for home consumption are not prohibited and the appropriate import
duty and any charges payable thereon has been paid, he can make an order permitting
clearance of the goods for home consumption. On making this order, which is popularly
known as “pass out of customs charge order” the bill of entry (duplicate) copy is produced
to the custodian who delivers the goods to the importer.
Procedure for disposal of goods not cleared [sec 48]:
Thirty days have been considered to be sufficient time for any importer to make up his
mind whether the goods should be cleared into town on payment of duty or whether they
should be transhipped or whether they should be deposited in a warehouse. If such
imported goods are not cleared either for home consumption or for warehouse within 30
days or within such further time as the proper officer may allow or if the title to any
imported goods is relinquished, the custodian of the goods is permitted, with the approval
of the customs department and after giving notice to the importer, to sell the goods by
auction.
In the case of sensitive goods like animals, food stuffs and hazardous goods etc. the
custodian with the approval of the proper officer can sell the goods even before the expiry
of the 30 days limit.
Storage of imported goods in warehouse pending clearance or removal [Sec 49]:
Where the Assistant commissioner / Deputy commissioner of customs is satisfied on the
application of the importer that-
a. The goods cannot be cleared within a reasonable time in the case of imported
goods, whether dutiable or not, entered for home consumption.
b. The goods cannot be removed for deposit in a warehouse within a reasonable time
in the case of any imported dutiable goods, entered for warehousing,
Then in such cases, goods can be stored in a public warehouse for a period not exceeding
30 days. Such goods deposited under public warehouse will not be covered under chapter
IX of the Act. However, the principal commissioner / commissioner of customs may
extend such period of storage for further 30 days at a time.
Q. Procedure for levy and refund of custom duties?
A. Dutiable Goods: (sec 12 & 13)
1. Duties of customs is levied at specified rates under the customs tariff act, 1975 or any
other law on goods imported into or exported from india
2. The provisions of the act apply in respect of all goods belonging to government as they
apply to goods not belonging to government.
B. Duty on pilfered goods: (sec. 13)
If any imported goods are pilfered after the unloading and before the proper officer has
made an order for clearance for home consumption or deposit in a warehouse, the
importer is not liable to pay the duty leviable on such goods, but if such goods are
restored to the importer after pilferage, then duty for the balance quantity goods is
leviable.
C. Valuation of goods for assessment: (Sec. 14)
1. If a duty of customs is chargeable on any goods by reference to their value, the value of
such goods is deemed to be the price at which such or like goods are ordinarily sold for
delivery at the time and place of importation or exportation in the course of international
trade. The seller and the buyer must not have any interest in the business of each other
and the price must be the sole consideration for the sale or offer for sale,
Further such price must be calculated with reference to the rate of exchange as in force on
the date on which a bill of entry is presented or a shipping bill or bill of export is
presented.
2.If it is necessary the central government fixes tariff values for any class of imported
goods or export goods, having regard to the trend of value of such or like goods, and when
any such tariff values are fixed, the duty is chargeable with reference to such tariff value.
D. Date for determination of rate of duty and tariff valuation: (Sec. 15&16)
Imported goods: (Sec.15)
1. The rate of duty and tariff valuation applicable to any imported goods, is the rate
and valuation in force;
a. In the case of ‘goods entered for home consumption’ on the date on which a
bill of entry is presented.
b. In the case of ‘goods cleared from a warehouse’, on the date on which the
goods are actually removed from the warehouse.
c. In the case of ‘any other goods’, on the date of payment of duty.
2. The provisions of this section does not apply to baggage and goods imported by
post.
Export Goods: (Sec. 16)
1. The rate of duty and tariff valuation applicable to any export goods, is the rate and
valuation in force.
a. In the case of goods entered for export, the date on which the proper officer
makes an order permitting clearance and loading of the goods for exportation.
b. In the case of any other goods, on the date of payment of duty.
2. The above provisions do not apply to baggage and goods exported by post.
E. Assessment of duty: (Sec.17 to 23)
1. After an importer has entered any imported goods, or an exporter has entered any
export goods, the imported goods or the export goods are, without undue delay,
examined and tested by the proper officer.
2. After such examination and testing, the duty leviable on such goods is assessed.
3. For the purpose of assessing duty, the proper officer may require the importer, exporter
or any other person to produce any contract, broker’s note, policy insurance, catalogue or
other document whereby the duty leviable on the imported goods or export goods can be
ascertained, and to furnish any information required for such ascertainment which is in
his power to produce or furnish. Thereupon the importer, exporter or such other person
must produce such document and furnish such information.
F. Remission of duty: (Sec 23)
1. If any imported goods have been lost (otherwise than pilferage) or destroyed, at any
time before clearance for home consumption, then assistant commissioner or deputy
commissioner of customs remits (reduces) the duty on such goods.
2. The owner of any imported goods may at any time before an order for clearance of the
goods for home consumption or an order for permitting the deposit of goods in a
warehouse, relinquish (give up) his title to the goods and thereupon, he is not liable to
pay the duty thereon.
G. Power to grant exemption from duty: (Sec.25)
1. The central government, in the public interest, may exempt (absolutely or subject to
conditions) goods of any specified description or goods of strategic or secret nature, or for
charitable purpose, from the levy of duty.
2. An exemption in respect of the above goods may be granted by providing for the levy of
a duty at a rate different from the statutory duty and it shall in no case exceed the
statutory duty.