CUSTOM DUTY

Corporate Tax- Direct

& Indirect Tax
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Contact us 75591 7 Custom Duty
Chapter No. Chapter Name Page No.

1 INTRODUCTION TO CUSTOM DUTY 1.1 to 1.4

2 CUSTOM TARIFF ACT 1975 & TYPES OF CUSTOM DUTIES 2.1 to 2.10

3 LEVY, ASSESSMENT, REMISSION AND VALUATION UNDER CUSTOM 3.1 to 3.11

4 CUSTOM PROCEDURE 4.1 to 4.6

5 GOODS TRANSIT/TRANSHIPMENT 5.1

6 WAREHOUSING 6.1 to 6.4

7 DRAWBACK 74 AND 75 7.1 to 7.6

8 BAGGAGE, COURIER AND POST 8.1 to 8.13

9 EXEMPTION AND REFUND 9.1 to 9.2

10 POWER, PENALTIES AND CONFISCATION 10.1 to 10.6

11 ADVANCE RULING AND SETTLEMENT COMMISSION 11.1 to 11.4

12 APPEAL AND REVISION 12.1 to 12.19

CHAPTER1 INTRODUCTION TO CUSTOMDUTY

INTRODUCTION AND DEFINITION

Particulars Explanation
Customs Customs duty is on imports into India and export out of India. Section 12
Act 1962 of Customs Act, often called charging section, provides that duties of
customs shall be levied at such rates as may be specified under. The
Customs Tariff Act, 1975, or any other law for the time being in force on
goods imported
into, or exported from, India.
Sec 12 1) Except as otherwise provided in this act or any other law for time
Chargi being in force, duties of custom shall be levied at such rates as may
ng be specified under the CTA 1975 or any other law for time being in
Sectio force, on goods imported into or exported from India.
n 2) The provision of sub section 1 shall apply in respect of all goods
belonging to
government as they apply in respect of goods not belonging to
government.
Importa 1) Goods' Sec 2(22)
nt Goods' includes Vessels, Aircrafts, Vehicles, Stores, Baggage,
Terms Currency Negotiable instruments and any other kind of movable
property.
The duty is payable on goods belonging to government also.
2) Costal goods Section 2(7)
As per section 2(7) of the Customs Act, the term coastal goods means
goods, other than imported goods, transported in a vessel from one
port in India to another.
3) Dutiable Goods - Section 2(14)
 Any goods which are chargeable to duty and on which duty has not
been paid.
 Goods continue to be 'dutiable' till they are not cleared from the port.
 Once goods are assessed at 'Nil' rate of duty, they no more remain
'dutiable goods
4) Stores Section 2(38)
As per of the Customs Act, stores means 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.
5) Import: section 2(23)
Bringing into India from a place outside India.
6) Imported Goods - Section 2(25)
 Any goods brought in India from a place outside India,

1.1
 And does not include goods which have been cleared for home
consumption.
7) Importer - Section 2(26)
Importer 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.
8) Export: section 2(18),
Taking out of India to a place outside India.
9) Export Goods -Sec 2(19)
 Any goods, which are to be taken out of India to a place outside India.
 Goods brought near customs area for export purpose.
10) Exporter -Sec 2(19)
In relation to any goods means 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
11) Conveyance
As per section 2(9) of the Customs Act Defines, ‘Conveyance includes a
Vessel, an Aircraft and a Vehicle’. The specific terms are vessel (by
sea), aircraft (by air) and vehicle (by land)
12) Custom port Sec 2(12)
Means any port appointed under clause (a) of section 7 [appointed by
CBI&C] to be a customs port and Includes a place appointed under
clause [aa] of that section to be an inland container depot.
13) Land Custom station
Means any place appointed under clause (b) of section 7 [appointed by
CBI&C] to be a land customs station.
14) Customs airport Sec 2(10)
Means any airport appointed under clause [a] of 7 [appointed by CBI&C]
to be a customs airport; Includes a place appointed under Clause [aa] of
that section to be an air freight station
15) Custom station Sec 2(13)
Means any customs port customs airport or land customs station.
16) Custom area
As per Section 2(11) of the Customs Act, customs area means the area
of a customs station and includes any area in which imported goods or
exported goods are ordinarily kept before clearance by Customs
Authorities.
17) Inland container depot
They are created for the purpose of Loading / Unloading of Export
Goods/Imported Goods. Movement from ICD to a Land Customs
Station or

1.2
Airport is akin to Trans-shipment from one customs station to another
Customs Station.
18) Container freight station
They are set up with the main objective of decongesting the ports
where only part of the custom process mainly with examination of
goods is carried out by the custom.
19) Air Freight station
AFS is an off-airport common user facility equipped with fixed
installations of minimum requirements and offering services for
handling and temporary storage of import and export cargo.
20) Foreign post office Section 2(20A)
Means any post office appointed under clause (e) of sub-section (1) of
Sec. 7 to be a foreign post office.
21) International courier terminal” Sec 2(28A)
Means any place appointed under clause (f) of sub-section (1) of Sec. 7
to be an international courier terminal.
22) India Section 2(27)
'India' as inclusive of territorial waters.
23) Territorial Waters of India
 A portion of sea, which is adjacent to the shores of a country, 12
nautical miles from the base line. (1 nautical mile = 1.853 Kms)
 'Import' is complete as soon as goods enter territorial water.
Similarly, export is complete only when goods cross territorial waters.
24) Exclusive economic zone'
 Area extends to 200 nautical miles from the base line.
 ln this zone, the coastal State has exclusive rights to exploit it for
economic purposes like constructing artificial islands (for oil
exploration, power generation) fishing, mineral resources and
scientific research
 Beyond 200 nautical miles, the area is 'High Seas', where all countries
have equal rights.
 These high seas are reserved for peaceful purposes.
25) Indian Customs Waters Sec 2(28)
 Indian custom waters means the water extending into the sea up to
the limit of contiguous zone of India under Sec 5 of the Territorial
waters, Continental shelf, Exclusive economic zone and other
Maritime zones Act 1976 and includes any bay, gulf, harbor or tidal
river.
 Area beyond 12 nautical miles and up to 200 nautical miles from base
line of India'.

1.3
  The C G has got powers to take measures in this area for security of
India and immigration,
26)Person in charge

a. Vessel Master
b. Aircraft Commander or Pilot in Charge
c. Train Conductor or Guard
d. Vehicle Driver
27) Assessment
e. Other conveyance Person in charge
As per section2(2) of the Customs Act, assessment means process
of determining the tax liability in accordance with the provisions of
the Act, which includes provisional assessment, self-assessment,
reassessment and any assessment in which the duty assessed is nil
28) Adjudicating Authority
As per Section 2(1) of the Customs Act, 1962, adjudicating authority
means any authority competent to pass any order or decision under
this Act, but does not include:
 The Central Board of Excise and Customs (CBE&C),
 Commissioner of Customs (Appeals) or
 Customs, Excise and Service Tax Appellate Tribunal (CESTAT)
17) Entry

1. Import of goods as cargo Bill of Entry

2. Export of goods as cargo Shipping bill or bill of
export
3. Goods imported or to be Label or declaration u/s
exported by 82
post
4. Goods imported or to be Declaration u/s 77
exported as
baggage

Rule and Rule Regulation

Regulation Rules made by central Regulation made by CBI& C
government
Rules are made u/s 156 Regulations are made u/s 157
Consistent with the provisions Consistent with the provisions
of of
the Act the Act as well as rules.

1.4
1.5
CHAPTER 2 CUSTOM TARIFF ACT 1975 & TYPES OF CUSTOM DUTIES

CUSTOM TARIFF ACT 1975

Particulars Explanation
CTA 1975 provides the classification of the goods and rates of duties of customs.
Heading The five column headings as prescribed in schedules to Customs Tariff
Act, 1975 are as under:
under CTA
Column No. Particulars
1. Tariff Item
2. Description of the
3. Goods Unit
4. Standard Rate of duty
5. Preferential Rate of duty

First Schedule In this schedule goods chargeable with import duty are listed. It is also
to known
CTA as ‘Import Tariff’ which comprises of 98 chapters grouped under 21
sections.
Second In this schedule goods chargeable with export duty are listed. It is also
Schedule known
to CTA as ‘Export Tariff’.
Classification a) Determination of Rate of Duty: The rate of duty is
of goods determinable on the basis of classification of goods.
b) Determination of Eligibility of Exemption: The classification
of goods is also required to be decided for the purpose of
determining eligibility to exemptions, most of which are
with reference to the Tariff
headings or sub headings.
HSN Harmonized System of Nomenclature [HSN] is an internationally
accepted product coding system formulated under the auspices of the
General Agreement on Tariffs and Trade [GATI]. It forms the basis of
the system of classification in the Customs Tariff Act, 1975. It has
been developed by
the Customs Co-operation Council, Brussels.
RULES OF CLASSIFICATION
Rule 1 The title of Sections and Chapters are provided for ease of reference
only.
Rule 2(a) Classification of incomplete or unfinished articles as complete of
fiished goods only.
Example: a car without seats would still be classified as car.

Rule 2(b) Classification of Mixtures, combination of a material to be

classified as
that material or substance
2.1
 Example: Natural rubber will cover a mixture of natural and
synthetic
rubber.
Rule 3 To be applied when classification cannot be done with rule 1 and 2.
Classification when goods classifiable under 2 or more headings.

Rule 3(a) Most specific description shall prevail over general description.
Example Suitcase shall be classified as travel accessories and
not as plastic article.
Rule 3(b) Classification based on essential character
Mixture, composite goods consisting of different materials or made up
of different component which cannot be classified under (a) shall be
classified based on essential character.
Example: If one imports “Liquor Gift Sets” that have both,
liquor and glasses, it should be classified under the heading,
“Liquor”, as the essential character of the composite item is
the liquor itself and the glasses are pure ancillaries

Rule 3(c) “Latter the Better Principle”,

i.e., when goods can’t be classified under rules 3(a) or 3(b), the goods
would be classified under the heading that appears last in the
numerical order amongst those which equally merit consideration
Example: A gift set, which has socks and ties, can be classified
under any of the above rules, and therefore should be
classified as ties (heading 6117) over socks (heading 6115)

Rule 4 Akin Principle

This rule states that the goods which cannot be classified in
accordance with Rules 1, 2 or 3, shall be classified under the heading
which includes goods that are the most “akin or similar”. An example
would be anti-glare films used for car windows, venetian blinds, all of
these are not separately classified, they would be classified under the
heading for “builders’ ware of plastic”, as that’s the closest these fit
into.

Rule 5 Cases / Containers for packaging of goods

Goods which are in the nature of containers / packages such as

necklace boxes, camera cases, musical instrument cases, will be
classified with the specific article which are generally sold within these
packages. However, this is applicable to containers, which are fitted for
the article they will contain, are suitable for long term use, protect the
article when not in use, and are of a
kind normally sold with such articles.
Rule 6 Only sub-headings at the same level are comparable

2.2
2.3
 TYPES OF CUSOTM DUTIES
Basic Basic customs duty levied u/s. 12 of
Customs Act is generally 10%
customs duty
[Sec 2]
Preferential If the goods are imported from the areas notified by the Central
rate of duty Government to be preferential areas, then the rate of duty under
column (5) will be applicable.
The government may by notification under section 25 of the Customs
Act prescribe preferential rate of duty in respect of imports from
certain
preferential areas.
CVD Sec 3(1)  Also Called 'Countervailing Duty' (CVD).
 Duty is equal to excise duty levied on a like product
manufactured or produced in India.
 If like article is not produced or manufactured in India, the
excise duty that would be leviable on that article had it
been produced in India is the base.
 If the product is leviable with different rates, then highest
rate among those rates is to be considered.
 If excise duty is not applicable, then no CVD payable.
Calculation of CVD

Value for ACD 3(1)

Assessable value u/s xx
14(1)
(+) BCD xx
(+) SWS @ 10% of BCD xx
(+) NCCD xx
(+) Protective duty xx
Value for ACD 3(1) xxx
Special CVD Special CVD is payable @ 4% on imported goods u/s. 3(5) of Customs
[ Sec Tariff Act. This is in lieu of Vat/sales tax to provide level playing field to
3 (5) ] Indian goods. Traders importing goods can get refund Goods fully
exempted from ACD under section 3(5) (i.e. 4% Special C.V.D)
Calculation of CVD 3(5)
Av+ Basic Customs Duty +

Value for ACD 3(5)

Assessable value u/s xx
14(1)
(+) BCD xx
(+) SWS @ 10% of BCD xx
(+) NCCD xx
(+) Protective duty xx

2.4
2.5
 (+) ACD 3(1) xx
Value for ACD 3(5) xxx
Integrated IGST (Integrated Goods and Services Tax) is a component under GST
law, which is levied on goods being imported into India from other
tax (CVD of country. It has been subsumed various customs duties including
IGST) Countervailing Duty (CVD) and Special Additional Duty of Customs
[sec 3(7) (SAD).
of CTA] Calculation of IGST
Value for ACD 3(5)
Assessable value u/s 14(1) xx
(+) BCD xx
(+) SWS @ 10% of BCD xx
(+) NCCD xx
(+) Protective duty xx
(+) ACD 3(1) xx
(+) ACD 3(5) xx
(+) Safeguard Duty xx
(+) CVD on subsidies xx
Article
(+) Antidumping Duty xx
Value for ACD 3(7) xxx
Values for a) Where the whole of the goods are sold, the value determined under
IGST in Section 3(8) or the transaction value of such goods, whichever is
respect if higher; or
warehouse b) Where any part of the goods is sold, the proportionate value of
goods such goods as determined under Section 3(8) or the transaction
value of such goods, whichever is higher.
Last transaction value to be taken: However, where the whole
of the warehoused goods or any part thereof are sold more
than once before such clearance for home consumption or
export, the transaction value of the last such transaction shall
be the transaction value for the purposes of clause (a)/(b).
Unsold goods – Value to be determined as per Section 3(8) : In
respect of warehoused goods which remain unsold, the value
or the proportionate value, as the case may be, of such goods
shall be determined in
accordance with the provisions of Section 3(8).

Goods and Under GST regime, Compensation Cess will be charged on luxury
services products like high-end cars and demerit commodities like pan masala,
tobacco and aerated drinks for the period of 5 years in order to
tax compensate states for loss of
compensation revenue

2.6
cess [sec 3(9) In the GST regime, IGST will be levied on imports by virtue of sub -
of CTA] section
(9) of Section 3 of the Customs Tariff Act, 1975.
Calculation of Compensation cess
Value for ACD 3(9)
Assessable value u/s 14(1) xx
(+) BCD xx
(+) SWS @ 10% of BCD xx
(+) NCCD xx
(+) Protective duty xx
(+) ACD 3(1) xx
(+) ACD 3(5) xx
(+) Safeguard Duty xx
(+) CVD on subsidies xx
Article
(+) Antidumping Duty xx
Value for ACD 3(9) xxx
Values a) Where the whole of the goods are sold, the value determined under
Section 3(10) or the transaction value of such goods, whichever is
for higher; or
Compensation b) Where any part of the goods is sold, the proportionate value of
cess in such goods as determined under Section 3(10) or the transaction
respect if value of such goods, whichever is higher.
warehouse Last transaction value to be taken: However, where the whole
goods of the warehoused goods or any part thereof are sold more
than once before such clearance for home consumption or
export, the transaction value of the last such transaction shall
be the transaction value for the purposes of clause (a)/(b).
Unsold goods – Value to be determined as per Section 3(10) :
In respect of warehoused goods which remain unsold, the
value or the proportionate value, as the case may be, of such
goods shall be determined in
accordance with the provisions of Section 3(10).

Protective  If C G is satisfied that immediate action is necessary to protect

interests of Indian industry; Rate of duty is as per recommendation
duty [Sec 6] of Tariff Commission (Establish under Tariff Commission Act 1951.
 Notification should Pass in parliament within 6 months,
 The protective duty can be rescinded, reduced or increased by a
notification. [Section 7(2)]
 Such notification should also be placed before Parliament within 7
days of assembly and seek the approval by a resolution moved
within a period of 15 days beginning with the day on which
notification is so laid before the
parliament. [Section 7(3)]

2.7
Safeguard duty  Safeguard duty can be imposed if large imports are causing serious
[ Sec 8B] injury to domestic industry.
Exceptions
1. In case of imports from developing countries, such
safeguard duty can be imposed only if import of that article
from:
a. One country > 3%, or
b. Aggregate imports from more than one countries > 9%.
Of the total imports of that article into India.
2. No safe guard duty in case of 100% EOU / SEZ unit unless
specified in notification. Or
The article imported or manufactured from goods imported
is removed in DTA. In such case SGD shall be levied on such
portion of imported article so removed.
Provisional Duty: Central Government can impose provisional
safeguard duty, pending final determination upto 200 days.
Max time of levy: The duty, once imposed, is valid for 4 years,
unless
revoked earlier. This can be extended by Central Government
but total period cannot be more than 10 years.

Countervailing Import of any article into India from any country or territory, which
duty pays directly or indirectly, any subsidy on: (a) manufacture, (b)
production, (c) exportation, or (d) transportation of the article.
on Note:
subsidized  Import may or may not be directly from the country of
articles [Sec 9 manufacture, production, etc.
 The imported article may come into India in the same
condition in which it left the country of origin, or in some
other form.
 Central Government may impose a Countervailing Duty
(CVD), not exceeding the amount of such subsidy, by
Notification in Official Gazette.
 Maximum Limit: Rate of CVD shall not exceed the amount of
Subsidy.
 Retrospective levy shall not extend beyond 90 days from the
date of Notification imposing the Provisional CVD.
 Maximum Levy: 5 years from date of imposition, but
extendable for a further period of 5 years from the date of
such extension.
No CVD
 Research activities conducted by or on behalf of persons
engaged in the manufacture, production or export.
 Assistance to disadvantaged regions within the territory
of the
exporting country.

2.8
  Assistance to promote adaptation of existing facilities
to new
environmental requirements.
Anti-dumping MARGIN OF DUMPING
duty  Margin of dumping' means the difference between normal
[Sec 9A] value and export price
'Normal Value' means comparable price in the exporting country
Quantum of dumping duty
 The anti-dumping duty will be equal to dumping margin
PROCEDURE
 This duty is permissible as per WTO agreement
 Duty can be levied only when there is an Indian industry producing
'like articles'.
 If it is a pending in determination of margin of dumping, duty can be
imposed on provisional basis.
 After dumping duty is finally determined, C G can reduce such duty
and refund duty extra collected than that finally calculated. Such
duty can be imposed up to 90 days prior to date of
notification, if there is history of dumping.
 No education cess and SAH education cess on anty-
dumping duty. EXCEPTION
Anti-dumping duty shall not apply to articles imported by a 100% EOU
or a unit in SEZ or SEZ unless specifically made applicable.
Maximum period of levy: Such duty, unless revoked earlier, can be
imposed
for 5 years. Further extension by 5 yrs. possible.

Sec 9 and 9A No article shall be subject to both duties.

Refund of Where
Anti- Dumping  Upon determination by an authorized office of custom
Duty [Sec (AC/DC)
9AA]  An importer proves that he has paid anti-dumping duty in
excess of actual margin of dumping then Central
government shall give him refund.
 Application must be filed within 3 months from date of
notification of reducing anti-dumping duty
Refund is given within 90 days from the date of receiving
application.
Sec 9C : Appeal Appeal to tribunal against order of anti-dumping and anti-
subsidy duty [section 9c]
 Appeal can be made to the Custom, Excise and Service Tax
Appellate Tribunal.
 Such appeal shall accompanied be a fee of Rs. 15,000.

2.9
2.10
 Such appeal should be filed within 90 days from the date of
order under
appeal.
Section 8 EMERGENCY POWER TO IMPOSE OR ENHANCE EXPORT DUTIES
The central Government may impose or enhance export duties by
making amendment to the Second Schedule by issue of a notification in
the official Gazette.
Conditions to be satisfied
The goods may or may not be specified in the Second Schedule.

The Central Government is satisfied that circumstances exist, which

render it necessary for the imposition or enhancement of export duties

Project Import Duty payable on project imports –

Duty payable at concessional rate.
Spare parts
eligible-Spare parts, raw materials or consumables up to 10% of value
of machinery is allowable as part of 'Project Import' at concessional
rate; if such spare parts, raw materials or consumable stores are
essential for maintenance of the plant or project.
Projects eligible –
The projects eligible are: (1) Industrial Plant (2) Irrigation Project
(3) Power Project (4) Mining Project (5) Project for oil or
mineral exploration (6) Other projects as may be specified by
Central
Government.

Illustration 1
The assessable value of imported goods is Rs. 10,00,000. The basic customs duty is
10%. Integrated tax leviable under section 3(7) of the Customs Tariff Act, 1975 is
12%. GST Compensation Cess is leviable @ 15%. Social Welfare Surcharge @ 10%.
Compute total customs duty and imported cost of the goods, if imports are made
on or after 02.02.2018.

Solution
Computation of imported cost and customs duty [amounts in Rs.]
Particulars Amount
Rs.
Assessable Value [A] 10,00,000
Add: Basic Customs duty @ 10% of [A] [B] 1,00,000
Add: Social Welfare Surcharge @ 10% on basic customs duty i.e.
10% of [C] 10,000
[B]
Total value for levy of Integrated Tax u/s. 3(7) of CTA, 1975 [D] 11,10,000
Add: Integrated tax under Section 3(7) @ 12% of [D] [E] 1,33,200

2.11
2.12
 Add: GST Compensation Cess under Section 3(9) @ 15% of [D] [F] 1,66,500
Total Cost of Imported Goods 14,09,700
Total Customs duty [B + C+ E + F] 4,09,700

Illustration 2
The assessable value of imported goods is Rs. 10,00,000. The basic customs duty is
10%. Integrated tax leviable under section 3(7) of the Customs Tariff Act, 1975 is
12%. GST Compensation Cess: Nil, Social Welfare Surcharge @ 10%. The goods
were deposited in custom bonded warehouse. The goods were sold in warehouse
at a transaction value of Rs. 15,00,000 before clearance from warehouse. Compute
total customs duty.

Solution
Computation of Imported cost and customs duty [amounts in Rs.]
Particulars Amount
Rs.
Assessable Value [A] 10,00,000
Add: Basic Customs duty @ 10% of [A] [B] 1,00,000
Add: Social Welfare Surcharge @ 10% on basic customs duty i.e. 10%
of [B] [C] 10,000

Total value for levy of Integrated Tax u/s. 3(7) of CTA, 1975 [WN] [D] 15,00,000
Add: Integrated tax under Section 3(7) @ 12% of [D] [E] 1,80,000
Add: GST Compensation Cess under Section 3(9) @ 15% of [D] [F] NIL
Total Customs duty [B + C + E + F] 2,90,000

Illustration 3
Determine the customs duty payable under Customs Tariff Act, 1975 including the
safeguard duty of 30% u/s. 8B of the said Act with the following details available
on hand:
th
Import of Sodium Nitrite from a developing country from 26 February, 30,00,000

2018

to 25th February, 2019 [both days inclusive]

Share of imports of Sodium Nitrite from the developing country against 4%
total
imports of Sodium Nitrite to India
Basic Customs Duty 10%

Integrated tax u/s. 3(7) of Customs Tariff Act, 1975 18%

GST compensation Cess Nil

Social Welfare Surcharge 10%

2.13
2.14
Solution
Computation of customs duty payable thereon [Amount in Rs.]
Assessable value of sodium nitrite imported 30,00,000
Add: Basic custom duty @ 10% [Rs. 30,00,000 x 10%] 3,00,000
Add : Safeguard Duty 9,00,000
Add: Social Welfare Surcharge @ 10% of BCD [No SWS is leviable on 30,000
safeguard duty]
Total for IGST 42,30,000
IGST u/s. 3(7) of Customs Tariff Act [Rs. 42,30,000 x 18%] 7,61,400
Total Customs Duty Payable [Rs. 3,00,000 + Rs. 9,00,000 + Rs. 19,91,400
30,000 +
Rs. 7,61,400]

2.15
 CHAPTER3LEVY,ASSESSMENT,REMISSIONANDVALUATIONUNDER
CUSTOM

Particulars Explainnation
Valuation IN CASE OF Rate of duty and tariff value
of Home Relevant date shall be the date of filling bill of entry or
imported date
consumption
goods sec
of entry inward whichever is latter
15 Warehouse Relevant date shall be date on which bill of entry for
goods home
consumption is presented (ex bond bill of entry)
Any other goods The date of payment of duty
Exported Rate of duty and tariff value
goods sec Relevant date on which proper officer makes an order permitting clearance
16 and
in case of any other goods the date of payment of duty.
SEC 17: Section 17(1) to 17(3)]
SELF It is applicable to importer as well as exporter.
ASSESSME Goods are examined first and then these are assessed. For this
NT purpose Goods are to be tested for correct classification*
Examination of Goods
Examiners carry out physical examination and quantitative
checking like weighing, measuring etc.
Selected packages are opened and examined on sample basis in
'Customs Examination Yard'. The examiner prepares examination
report.
Information and documents may be called for verification of self-
assessment.

Reassessm  If self-assessment is not done properly the proper officer may re-
en t [ sec assess the duty leviable on such goods
17(4) &  Speaking Order in case of Assessment Contrary to claim of
17(5)] importer/Exporter within 15 days from the date of assessment of
BOE or Shipping Bill as the case may be. sec 17(5)
 It is mandatory for issuance of separate assessment order in case the
assessment done by Customs Office is contrary to what is claimed by
the importer in Bill of Entry or Shipping Bill. Such an order shall be
passed within 15 days of filing of Bill of Entry or Shipping Bill. It shall
be a speaking order (i.e., shall give the reasons on which findings in
the orders are based.)
On site post clearance audit Section 17(6)Where
 Re-assessment has not been done or speaking order has not been
passed on re-assessment the proper officer may audit the duty of
imported or
exported goods at the office or premises of the importer or exporter in
the

3.1
3.2
 manner prescribed in on-site post clearance audit at the premises of
importers and exporters regulation 2011
Introduction • In order to achieve the aim of catalyzing economic development
through transparency, harmonization, predictability, & automation in
trade & also to reduces time and cost for the EXIM community, & to
help them to become more competitive internationally “Turant
Customs”, a mega reform for the ease of doing business.
This initiative stands on the pillar of Faceless, Contactless and
Paperless Customs, toward faster and cheaper Customs clearance of
imported goods, & reduce interface between the Trade and Customs
officers.
A key enable in Turant Customs is Faceless Assessment, rolled out in
phases and covered the entire country by 31st October 2020.

Provisional • When Customs Officer is satisfied that importer or exporter is unable to

assessmen make self-assessment u/s 17(1) and makes request in writing
t sec 18
• It is deemed necessary to carry out chemical or other tests of goods

• When importer/exporter has produced all documents, but Customs

Officer still deems it necessary to make further enquiry.

• The importer/exporter has to furnish bond/ guarantee/security for

payment of difference if any. ( in case of WH bond amount 2 times of
duty)

• Goods can be cleared after payment of duty provisionally assessed and

after providing the surety.
Interest payable at 15% (The interest is payable from the first day
of the month in which duty was provisionally assessed till the
date of payment) and on if refund is not given within 3 month
from the date of final Assessment of duty then at 6%.

Sec 19  If article liable to duty subject to Qty: charged as per qty.

Articles
 If all articles having same rate, then such rate.
Imported
 If all articles are subject to different rate, then highest rate for entire
in Set set including exempted article also if any.
 Accessories and spare for any article: At the same rate applicable to
article
Exceptions

 If importer proves to the satisfaction of proper office and the

evidence is available: each article charged separately.

3.3
Re- 1 Case of re- import Time limit BCD, IGST & GST
importatio for re- cess is exempt and
n of Goods import following sum is
Sec 20 payable

Goods manufactures in Duty is fully

India and exported and exempt if-
re- imported in India for-
Such goods are re-
exported within 6
a Repairs or re- Within 3 months from date
conditioning other years (10 of re- import
than the specified year in case (extension upto 6
goods of Nepal months allowed by
and commissioner or
Bhutan) principle
b Re- processing/ Within 1 commissioner and
refilling/ re- making or year
Assistance
other similar process
commissioner
is
satisfied

about identity of
such goods
2 Goods re- imported Within 3 years from date of
without being subjected export (2 years extension)
to re- manufacturing or
processing through
melting, recycling or
recasting aboard-

A If exported under Amount of

following benefits- drawback refund of
customs or
Claiming drawback /
central / state
refund of customs or
excise duty or
central excise or state
IGST,
excise or IGST, Only for c
in Amount of IGST are
Under bond without
1 year for not paid,
payment of IGST,
export 1
Amount of IGST
Under duty exemption year
and GST
scheme (DEEC/ extension
compensation cess
advance authorization/
leviable at time
DFIA) or export
and place of import
promotion capital
goods scheme EPCG

3.4
 B Re- import of any Value (for levy of duty) = fair
other cost of
goods [not falling repairs + cost of materials used
under 2A to 2C] in repairs (such cost includable
exported for repairs even if not actually incurred 0 +
abroad and there has insurance and freight charges
been no chance in both ways
ownership of the goods
between the time of
export of such goods
and re- import there of
C Re- import of any Nil
other exported goods

Sec 21  Derelict: broken down

goods
derelict  Jetsam: Goods thrown overboard a ship
wreck  Flotsam: Floating wreckage of a ship

 Wreck: Broken forcefully

Which is brought or coming into India?

 Such goods shall be dealt with as if they were imported into India
( liable to duty as if imported into India even if not actually imported by
any person)
 Unless proper officer allows duty free.

REMISSION

Particulars EXPLAINATION
Sec 13: If any imported goods are pilfered.
Remission a. After unloading thereof, and
of Duty b. Before the proper officer has made an order for:
c. Clearance for home consumption, or Deposit in a warehouse
The importer shall not be liable to pay the duty leviable on such goods
except where such goods are restored to the importer after pilferage.
d. It has been held that remission of duty has to be allowed if
goods were lost or destroyed for any reason at any time before
clearance
e. Similarly, there is no remedy if goods are pilfered after the
order for clearance is made but before the goods are actually
cleared
If goods are pilfered after the order of clearance is made but before the
goods are actually cleared, no remission would be allowed.
Sec 22 : Where it is shown to the satisfaction of AC or DC of Customs that any
Abatement imported
of goods had been damaged or had deteriorated at any time:

3.5
3.6
Duty on 1. Before or during the unloading of the goods; or
damaged 2. After unloading but before clearance for home consumption,
on account of any accident not due to any willful act,
or negligence or default of the owner, his employee or agent,
deteriorate Then duty shall be chargeable only on the value of the damaged or
d Goods deteriorated goods.
The value of damaged or deteriorated goods may be ascertained by
either of the following methods at the option of the owner:
a. By the proper officer, or
b. Such goods may be sold by public auction or by tender, and
the gross sale proceeds shall be deemed to be the value of
such goods.
Meaning of damage: 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.
Section 23: The AC or DC shall remit the duty on goods, where it is shown to
remission of their satisfaction that any imported goods have been:
duty on 1. Lost (otherwise than as a result of pilferage) or destroyed, at
lost, any time before clearance for home consumption, or
destroyed 2. The owner of imported goods relinquishes his title to the goods
or before an order for clearance for home consumption or for
abandoned deposit in a warehouse has been made.
goods However, the owner of any such imported goods shall not be allowed to
relinquish his title to such goods regarding which an offence appears
to have been committed under this Act or any other law for the time
being in force.

Sec 24 : If any imported goods can be used for more than one purpose and duty is
Power to leviable on the basis of its purpose of utilization, than denaturing or
make rule mutilation of such goods is useful. By denaturing, goods are made unfit for
for other purposes. After denaturing process, goods can be used only for one
Denaturing purpose and accordingly duty can be levied
or
Mutilation
of
Goods

VALUATION FOR CUSTOMS DUTY

IMPORTANT TERMS

Particulars Explanation
FOB Free on board means exporter’s factory price plus transportation till
port and
loading charges on ship. This is called as price at the place of
exportation.
Cost, FOB plus Insurance and Freight.
Insurance This is called at price at the place of importation.
3.7
and Freight

3.8
Shipping bill Document required for Export. (discussed in details later on)
Bill of Entry Document required to clear imported goods. (discussed in details later
on)
Related
Person
CONCEPT OF VALUATION AND TARIFF VALUE
Assessable Customs duty is payable as a percentage of Value often called
Value Assessable Value or Customs Value. The Value may be either (a)
Value as defined in section 14(1) of Customs Act or (b) Tariff
for customs value prescribed under section
14(2) of Customs Act.
Transaction Transaction value at the time and place of importation or exportation,
Value when price is sole consideration and buyer and sellers are unrelated is
the basic criteria for value u/s. 14(1) of Customs Act. Thus, CIF value in
for customs case of imports
valuation and FOB value in case of exports is relevant.
Valuation in Meaning
case of high It means sale or purchase of goods while they are in the seas i.e., they
seas sale. are on the way to India but have not reached India.
Valuation
In case of high sea sale, price charged by importer to assessee would
form the assessable value and not the invoice issued to the importer
by foreign supplier – National Wire V. CC 2000 (122) ELT 810
(CEGAT) * Godavari
Fertilizers vs. CC (1996) 81 ELT 535 (CEGAT).
Exchange Exchange rate as applicable on date of presentation of bill of entry u/s.
rate 46, as determined by CBI&C (Board) or ascertained in manner
for determined by
CBI&C should be considered.
customs
valuation
CUSTOM VALAUTATION RULES 2007
Related 1) Person shall be deemed to be related if
Person Rule i) They are officers or directors of one another’s businesses;
2(2) ii) They are legally recognized partners in business;
iii)They are employer and employee;
iv) Any person directly or indirectly owns, controls or holds 5%
or more of the outstanding voting stock or shares of both of
them;
v) One of them directly or indirectly controls the other;
vi) Both of them are directly or indirectly controlled by a third
person;
vii) Together they directly or indirectly control a third person;
or
viii) They are members of the same family.
2) Legal person included.
3) Sole agents are not included unless relationship exists.
Rule 3(1) The value of the imported goods shall be the transaction value
3.9
 adjusted in
accordance with the provisions of rule 10.
Rule 3(2) Condition subject to which transaction value acceptable

3.10
 a) No restrictions as to disposition or use of goods
b) Sale or price not subject to condition consideration
c) Proceeds of subsequent resale no part of the proceeds of
any subsequent resale disposal or use of the goods by
the buyer will accrue directly or indirectly to the seller
d) Buyer and seller are not related

Rule 3(3) When buyer are seller are related still TV shall be acceptable if
relationship
did not influence the price.
Rule a) Commission to local agents except buying commission
b) Cost of goods or service supplied by buyer,
10(1) c) royalty relating to imported goods,
Adjustments d) If buyer has made, directly or indirectly, any payment to
seller as a condition of sale, such payments should be
included.
e) All other payment actually made as condition of sale
Rule 10(2) a) Cost of Transportation
b) Cost of Insurance
Note: Read proviso given below.

Key Notes *In case of goods imported by sea for clearance at an Inland Container
Depot or Container Freight Station, the cost of freight from the port of
entry to the ICD or CFS shall not be included.
Explanation: The cost of transport includes the ship
demurrage charges
on chartered vessels, lighterage or barge charges.

Proviso 1 Provided that where the cost referred to in clause (a) is not ascertainable,
such
cost shall be 20% of the free on board value of the goods.
Proviso 2 Provided further that when the free on board value of the goods is not
ascertainable but the sum of free on board value of the goods and the cost
referred to in clause (b) is ascertainable, the cost referred to in clause (a)
shall
be 20% of such sum.
Proviso 3 Provided also that where the cost referred to in clause (b) is not
ascertainable,
such cost shall be 1.125% of free on board value of the goods.
Proviso 4 Provided also that where the free on board value of the goods is not
ascertainable but the sum of free on board value of the goods and the cost
referred to in clause
(a) is ascertainable, the cost referred to in clause (b) shall be 1.125% of
such sum.
Proviso 5 Provided also that in the case of goods imported by air, where the
cost referred to in clause (a) is ascertainable, such cost shall not exceed
20% of free

3.11
on board value of the goods.

3.12
 Calculation of freight or insurance if FOB is cum insurance or
freight.
Case Treatment
a) Sum of “FOB” value of Cost of transport/handling
goods and Cost of under Rule 10(2)(a) = 20% of
insurance under Rule [FOB +
10(2)(b)” is Insurance Cost of Rule 10(2)(b)]
ascertainable. Example: FOB and insurance is
$ 10,000. Hence, cost of
transport =
20% of 10,000 = $ 2,000.
Proviso 6 Provided also that in the case of goods imported by sea or air and
transshipped to another customs station in India,
The cost of insurance, transport, loading, unloading, handling charges
associated
with such transshipment shall be excluded.

DETERMINATION OF ASSESSABLE VALUE & DUTY PAYABLE

Particulars Amount
FOB price XX
Rule 10(1) adjustments
A] Comm & Brokerage XX
B] Free Assistants XX
C] Royalty or License Fees XX
D] Part of proceeds XX
E] Any payment as condition of sale XX
Adjusted FOB XX
Rule 10(2) adjustments
A] Cost of transportation XX
B] Cost of insurance XX
CIF /AV XX

Illustration 1
Computation of assessable value
Vidya Ltd. imported a machine from UK in November, 2019. The details in this
regard are as under:
1. FOB value of the machine: 12,000 UK Pound
2. Freight (Air): 4,000 UK Pound
3. License fee, the buyer was required to pay in UK: 500 UK Pound
4. Buying commission paid in India Rs.20,000
5. Designing charges paid to consultancy firm in New Delhi, which was necessary
for such machine Rs.1,00,000
6. Actual landing charges paid at the place of importance Rs.25,000

3.13
7. Insurance premium details were not available.
8. For this purpose, you may consider followings:
a. Rate of exchange Rs.98.00 per one pound
b. Rate of basic customs duty (BCD) at 10%
c. Integrated tax under section 3(7) of Customs Tariff Act at 12%
d. Social welfare surcharge as applicable
e. Ignore GST compensation Cess.
You are required to compute the total customs duty and integrated tax payable
on the imported machine. You may make suitable assumptions wherever found
necessary.

FOB value £ 12,000

Add: License fee required to be paid in UK (WN – 1) £ 500
Customs FOB value (WN – 2) £ 12,500
Exchange rate is Rs.98 per £
Value in rupees Rs. 12,25,000.00
Add: Air freight (20% of Customs FOB value) (WN – 3) Rs. 2,45,000.00
Insurance @ 1.125% of Rs.12,25,000 (WN – 4) Rs. 13,781.25
Buying commission (WN – 5)
Designing charges paid to consultancy firm in (WN – 6)
New
Delhi
Assessable value Rs. 14,83,781.25
Add: Basic custom duty @ 10% (Rs.14,83,379 (A) Rs. 1,48,378.13
x
10%)
Add: Social Welfare surcharge @ 10% of (B) Rs. 14,837.81
Rs.1,48,378.13)
Value for integrated tax Rs. 16,46,997.19
Add: Integrated Tax @ 12% (C) Rs. 1,97,639.66
Total customs duty payable (A + B + C) Rs. 3,60,856
(rounded
off)
Working note:
1. License fees is includible in assessable value as per Rule 10(1)(c) of
Custom Valuation Rules.
2. Rate of exchange notified by CBIC on the date of filing of bill of entry to be
considered – Section 14 of the Customs Act, 1962.
3. In case of goods imported by air, freight cannot exceed 20% of Customs FOB
value. Since actual freight is more than 20% of customs FOB value, air
freight is restricted to 20% of customs FOB value as per Rule 10(2) of
Customs Valuation Rules.
4. Insurance charges are included @ 1.125% of FOB value of goods.

3.14
5. Buying commission is not included in the assessable value as per Rule
10(1) of Customs Valuation Rules.
6. Design charges paid in India have not been considered on the presumption
that the same have been paid for design work undertaken in India. Rule
10(1)(b) of the Customs Valuation Rules provides for inclusion of only those
design which have been paid for design work undertaken elsewhere than in
India.
7. No landing charges are to be added to the CIF value in view of the
amendment in Rule 10(2) of the CVR vide notification no. 91/2017 – Cus.
(NT) dated 26.9.2017.

CUSTOM VALAUTATION RULES 2007

Rule 4 Transaction value of identical goods (when Rule 3 is not applicable)
Goods should be the same in all respects, including physical characteristics,
quality and reputation; except for minor differences in appearance
When applying the value of identical goods the following should be
considered
 Goods have been produced in the same country
 They should be produced by same manufacturer, if same
manufacturer not available price of goods produced by another
manufacturer in the same country. However, brand reputation and
quality of other manufacturer should be comparable.
 Imported at or around about same time
 Adjustment for distances and transport costs if any required to be
considered
 Costs and services as per rule 10 are required to add.
 If more than one value of identical goods is available, lowest of
such value should be taken.
Rule 5 Transaction value of similar goods (when Rule 4 is not applicable)
Similar goods are same as with identical goods additional requirement is
that performing same function and commercially inter-changeable
Rule 6 Apply rule 6 when valuation is not possible under Rule 3, 4 and 5
Rule 7 Deductive value Method
Assessable Value is calculated by reducing post-importation costs and
expenses from this selling price.
Rule 8 Computed value method
If valuation is not possible by deductive method, computing the value can be
used.
In this method, value is the sum of
 Cost of value of materials, labor and processing charges for
producing the imported goods
 Amount General expenses and profit

3.15
  The cost or values of all other expenses under rule 10 i.e.
transport,
insurance, loading, unloading and handling charges
Rule 9 Residual method by AO if any of the above method cannot be used.
Rule 11 Importer has to give declaration to the truth and accuracy of value of imported
goods.
Rule 12 Rejection of declared value
 When the proper officer has reason to doubt the truth or accuracy
of the value declared for imported goods, he may ask the exporter
to furnish information, documents or other evidence,
 After receiving such further information, or in the absence of a
response of such importer, the proper officer still has reasonable
doubt about the truth or accuracy of the value, it is deemed that
transaction value not determined properly.
 At the request of an exporter, the proper officer should inform in
writing and
should give reasonable opportunity to importer, before taking final
decision.

3.16
 CHAPTER4CUSTOMPROCEDURE
Particulars Explanation
Basic ‘Entry’ in relation to goods means entry made in Bill of Entry, Shipping
document is Bill or Bill of Export. In case of import by post, label or declaration
‘Entry’ accompanying goods is entry.
Sec 2(16)
Section 7 Power given to CBE&C for appointment of custom ports, airport.
Section 8 Power given to commissioner of custom to approve landing places and
specify
limits of custom area.
Section 10 Power given to commissioner of custom to appoint boarding station .

IMPORT PROCEDURE

Particulars Explanation
Person in • In case of vessel - its master
Charge Sec
• In case of aircraft - its commander or pilot-in-charge
2(31)
• In case of vehicle or other conveyance - its driver or other person in

charge Duties and Responsibilities

• He is responsible for submitting Import Manifest and Export Manifest
• He is responsible to ensure that the conveyance comes through
approved route and lands at approved place only.
• He has to ensure that goods are unloaded after written order,
at proper place. Loading also has to be only after permission.
• He has to ensure that conveyance does not leave without written
order of Customs authorities.
He can be penalized for
• Giving false declaration and statement
• shortages or non-accounting of goods in conveyance

 Person-in-charge entering India shall call or land at customs port or

Sec 29 customs airport only.
 While arriving by land route, the vehicle should come by approved
route to 'land customs station' only.
 It can land at other place only if compelled by accident, stress of
weather or other unavoidable cause.
 In such case, he should report to nearest police station or Customs
Officer.

4.1
Import Person in charge of conveyance is to submi Import Manifest or
manifest or required Import Report. (E filing) t
Import Report
[ Sec 30 ]

Mode of Document Time limit Penalty

transport

Vessel (sea IGM ( e-filing) Before arrival of the Less than equal to Rs
port) vessel 50,000
Aircraft IGM ( e-filing) Before arrival of the Less than equal to Rs
(Airport) vessel 50,000
Vehicle land Import report Within 12 hrs. of Less than equal to Rs
custom ( E filing and arrival 50,000
station) Manual)

Sec 30A (1) The person in charge of a conveyance that enters India from any
place outside India or any other person as may specified by the
Central Government by notification gazette, shall deliver to the
proper officer –
(i) The passenger and crew arrival manifest before arrival in
the case of an aircraft or a vessel and upon arrival in the
case of a vehicle; and
(ii) The passenger name record information of arriving
passengers, In such form, containing such particulars, in
such manner and within such time, as may be prescribed.
(2) Where the passenger and crew arrival manifest or the passenger
name record information or any part thereof is not delivered to the
proper officer within the prescribed time and if the proper officer is
satisfied that there was no sufficient cause for such delay, the
person referred to in sub-section (1) shall be liable to such
penalty, not exceeding
50,000rupees, as may be prescribed.

Entry Inwards Goods can be unloaded only after grant of Entry Inwards.
[
Sec 31 ]
Sec 32 Imported goods not to be unloaded unless mentioned in import manifest
except
with the permission of proper officer
Sec 33 Unloading and loading of import/export at approved places only
Sec 34 Import/export goods not to be unloaded or loaded Except under the
supervision of custom officer.
Exception
 CBEC may, by notification in the give general permission
 Proper office may in any particulars case give special
permission
4.2
Sec 35  Boats are used to bring imported goods from ship to the
shore and carry export goods from the shore to ship, when
such ship doesn’t get berth at the port and is within the
waters.
 Permission of being water-borne without boat-note: However,
-
 The Board may, by notification in the Official Gazette, give
general permission and the proper officer may in any
particular case give special permission, for any goods or
any class of goods to be water- borne without being
accompanied by a boat-note.
Sec 36 Restriction on unloading of goods on holiday and after working hrs.
except giving except after giving the prescribed notice and on
payment of the prescribed fees, if any. However, no fees shall be
levied for the unloading and loading of
baggage accompanying a passenger or a member of the crew, and mail
bags.
Sec 37 The proper officer may at any time board any conveyance carrying
imported goods or export goods and may remain on such conveyance
for the period as he considered necessary.

Sec 38 For the purpose of carrying out the provision of this act the proper
officer may require the person in charge to produce such document and
answers such question.

Sec 45 : All imported goods unloaded in a customs area shall remain in the
Custody of custody of Port/airport authorities until they are cleared
imported
• The person having custody of any imported goods in a
goods
customs area, shall keep a record of such goods and send a
copy thereof to the proper officer;

• Shall not permit such goods to be removed from the customs

area without written permission of the proper officer.
any imported goods are pilfered after unloading thereof in a customs area
port
authority are liable to pay duty.

Sec 46: Bill of  Importer has to submit Bill of Entry giving details of goods
Entry for being imported, along with required documents. Electronic
home submission of documents is done in major ports.
consumption  White Bill of Entry is for home consumption. Imported goods
on payment of are cleared on payment of customs duty.
customs duty.  Advance BOE can be submitted in 30 days prior to arrival of
( E-filing) ship
Section 47 : • After payment of duty, delivery of goods can be taken from
Payment custodians (port trust) after paying their dues.
of
Custom Duty

4.3
4.4
 • Interest @15% p.a. if duty was not paid within 1 working days
after B O E returned for payment and in case of deferred
payment from the such due date as may be specified by rules
made there under.
• E-payment if duty payment is Rs 10,000 or more per bill of
entry.
Sec • Goods must be cleared within 30 days after unloading.
48 :Disposal if
• Commissioner of Customs can grant extension. (Amendment
goods are not
Finance Act 2013)
cleared within
30 days • If not cleared goods can be sold after giving notice to importer.

• Animals, perishable goods and hazardous goods no time limit

• Arms & ammunition can be sold only with permission of CG.

Sec 49 : Any imported goods, whether dutiable or not, entered for home
storage of consumption, the AC/DC is satisfied on the application of the importer
imported that the goods cannot be cleared within a reasonable time, the goods
goods may, pending clearance, be permitted to be stored in a warehouse, but
such goods shall not be deemed to be warehoused goods This is also
in known as warehouse without warehousing. (max 30 days)
warehouse
Extension given by CC for a further period not exceeding 30 days
pending at a time
clearance

EXPORT PROCEDURE

Particulars Explanation
Shipping Bill Exporter is required to submit Shipping Bill in Electronic format.
[Sec 50] Commissioner may allow it to be presented in any other manner.

Section 51: the customs officer will

Let Export • Will verify the contents
Order • To satisfy that goods are not prohibited for exports
• Ensure applicable duty if any is paid,
• Will permit clearance by giving 'let ship' or 'let export' order.

Sec 39: Loading in conveyance can start after Entry Outward is given by
Entry Outward customs officer.

Sec 40 Loading cannot be done by person in charge unless permission given by

:Export proper
goods not to office.
be
loaded

unless
duly passed

4.5
by
proper officer

4.6
Sec 41: Person in charge of conveyance is required to submit Export
Export Manifest or Export Report.
manifest /  In the case of a vessel or aircraft, an export manifest by
Export report presenting electronically, and
 In the case of a vehicle, an export report
Penalty of 50,000 in case of delay.

Sec 41A 1) The person – in – charge of a conveyance that departs from India to
a place outside India or any other person as may be specified by
the Central Government by notification in the Official Gazette, shall
deliver to the proper officer –
(i) The passenger and crew departure manifest; and
(ii) The passenger name record information of departing
passengers, In such form, containing such particulars, in such
manner and within such time, as may be prescribed.

2) Where the passenger and crew departure manifest or the

passenger name record information or any part thereof is not
delivered to the proper officer within the prescribed time and if the
proper officer is satisfied that there was no sufficient cause for such
delay, the person – in – charge or the other person referred to in
sub-section (1) shall be liable to such
penalty, not exceeding 50,000 rupees, as may be prescribed

Sec 42: No A conveyance not to leave custom station unless written order given by
conveyance the proper officer to that effect. ( Applicable to both imported as well
to leave as exported goods)
without
written order
Sec 43: 1. The provisions of sections 30, 41 and 42 shall not apply to a vehicle
Exemption which carries no goods other than the luggage of its occupants.
from certain 2. The Central Government may, by notification in the Official Gazette,
classes of exempt the following classes of conveyances from all or any of the
conveyance provisions of this chapter:
from certain a. Conveyance belonging to Indian or foreign Government
provisions b. Vessels and aircraft which temporarily enter India by reason
of any emergency.

PAYMENT THROUGH ELECTRONIC CASH LEDGER

Sec51A Deposits to be credited in electronic cash ledger:Every deposit made to

4.7
regulation made thereunder, using authorised mode of
payment shall, subject to such conditions and restrictions, be
credited to the electronic cash ledger of such person, to be
maintained in such manner, as may be
prescribed
Utilization of electronic cash ledger: The amount available in
the electronic cash ledger may be used for making any
payment towards duty, interest, penalty, fees or any other sum
payable under the provisions of this Act or under the Customs
tariff Act, 1975 or under any other law for the time being in
force or the rules and regulations made thereunder in such
manner and subject to such conditions and within such time
as may be
prescribed.
Refund of balance: The balance in the electronic cash
ledger, after
payment of duty, interest, penalty, fee or any other amount
payable, may be refunded in such manner as may be prescribed.

4.2