Customs Act, 1962

Indian law relating to customs.

Customs Act, 1962

[Act 52 of 1962]      [13th December, 1962]

An Act to consolidate and amend the law relating to customs

Be it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:

Statement of Objects and Reasons.—The Sea Customs Act which lays down the basic law relating to customs was enacted more than 80 years ago. It has been amended from time to time and some important amendments were made by the Sea Customs (Amendment) Act, 1955. General and comprehensive revision of the Act has not so far been undertaken. Several provisions of the Act have become obsolete. Difficulties have been experienced in the implementation of certain other provisions. The trade has been pressing for certain changes and facilities. Smuggling consequent to controlled economy, has presented new problems. To meet these requirements, it has became necessary to revise the Act.

The Land Customs Act was passed in 1924. It is not a self-contained Act and applies by reference provisions of the Sea Customs Act to land customs with certain modifications. There is no separate law relating to air customs, and the administration of air customs is governed by certain rules made under the Indian Aircraft Act, 1911. While revising the Sea Customs Act, it is proposed to consolidate the provisions relating to sea customs, land customs and air customs into one comprehensive measure.

The Notes on clauses explain in detail all the changes which are proposed to be introduced in the new law as compared with the existing law.

Chapter I

PRELIMINARY

1. Short title, extent and commencement.

1. Short title, extent and commencement.—(1) This Act may be called the Customs Act, 1962.

(2) It extends to the whole of India [i][and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person].

(3) It shall come into force on such date[ii] as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions.

2. Definitions.—In this Act, unless the context otherwise requires,—

[iii][(1) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, Commissioner (Appeals) or Appellate Tribunal;

(1-A) “aircraft” has the same meaning as in the Aircraft Act, 1934 (22 of 1934);

(1-B) “Appellate Tribunal” means the Customs, Excise and [iv][Service Tax] Appellate Tribunal constituted under Section 129];

[v][(2) “assessment” means determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum so payable, if any, under this Act or under the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) or under any other law for the time being in force, with reference to—

(a) the tariff classification of such goods as determined in accordance with the provisions of the Customs Tariff Act;

(b) the value of such goods as determined in accordance with the provisions of this Act and the Customs Tariff Act;

(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any notification issued therefor under this Act or under the Customs Tariff Act or under any other law for the time being in force;

(d) the quantity, weight, volume, measurement or other specifics where such duty, tax, cess or any other sum is leviable on the basis of the quantity, weight, volume, measurement or other specifics of such goods;

(e) the origin of such goods determined in accordance with the provisions of the Customs Tariff Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is affected by the origin of such goods;

(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods,

and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;]

(3) “baggage” includes unaccompanied baggage but does not include motor vehicles;

[vi][(3-A) “beneficial owner” means any person on whose behalf the goods are being imported or exported or who exercises effective control over the goods being imported or exported;]

(4) “bill of entry” means a bill of entry referred to in Section 46;

(5) “bill of export” means a bill of export referred to in Section 50;

(6) “Board” means the [vii][[viii][Central Board of Indirect Taxes and Customs] constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)];

(7) “coastal goods” means goods, other than imported goods, transported in a vessel from one port in India to another;

[ix][(7-A) “Commissioner (Appeals)” means a person appointed to be a Commissioner of Customs (Appeals) under sub-section (1) of Section 4;

(8) “Commissioner of Customs”, except for the purposes of Chapter XV, includes an Additional Commissioner of Customs;]

(9) “conveyance” includes a vessel, an aircraft and a vehicle;

(10) “customs airport” means any airport appointed under clause (a) of Section 7 to be a customs airport [x][and includes a place appointed under clause (aa) of that section to be an air freight station];

(11) “customs area” means the area of a customs station [xi][or a warehouse] and includes any area in which imported goods or exported goods are ordinarily kept before clearance by Customs authorities;

(12) “customs port” means any port appointed under clause (a) of Section 7 to be customs port [xii][and includes a place appointed under clause (aa) of that section to be an inland container depot];

(13) “customs station” means any customs port,[xiii][customs airport, international courier terminal, foreign post office] or land customs station;

(14) “dutiable goods” means any goods which are chargeable to duty and on which duty has not been paid;

(15) “duty” means a duty of customs leviable under this Act;

(16) “entry” in relation to goods means an entry made in a bill of entry, shipping bill or bill of export and includes [xiv][* * *] the entry made under the regulations made under Section 84;

(17) “examination”, in relation to any goods, includes measurement and weighment thereof;

(18) “export” with its grammatical variations and cognate expressions, means taking out of India to a place outside India;

(19) “export goods” means any goods which are to be taken out of India to a place outside India;

(20) “exporter”, in relation to any goods at any time between their entry for export and the time when they are exported, includes[xv][any owner, beneficial owner] or any person holding himself out to be the exporter;

[xvi][(20-A) “foreign post office” means any post office appointed under clause (e) of sub-section (1) of Section 7 to be a foreign post office;]

(21) “foreign-going vessel or aircraft” means any vessel or aircraft for the time being engaged in the carriage of goods or passengers between any port or airport in India and any port or airport outside India, whether touching any intermediate port or airport in India or not, and includes—

(i) any naval vessel of a foreign Government taking part in any naval exercises;

(ii) any vessel engaged in fishing or any other operations outside the territorial waters of India;

(iii) any vessel or aircraft proceeding to a place outside India for any purpose whatsoever;

[xvii][(21-A) “Fund” means the Consumer Welfare Fund established under Section 12-C of the Central Excises and Salt Act, 1944 (1 of 1944)];

(22) “goods” includes—

(a) vessels, aircraft and vehicles;

(b) stores;

(c) baggage;

(d) currency and negotiable instruments; and

(e) any other kind of movable property;

(23) “import”, with its grammatical variations and cognate expressions, means bringing into India from a place outside India;

(24) “[xviii][arrival manifest or import manifest]” or “import report” means the manifest or report required to be delivered under Section 30;

(25) “imported goods” means any goods brought into India from a place outside India but does not include goods which have been cleared for home consumption;

(26) “importer”, in relation to any goods at any time between their importation and the time when they are cleared for home consumption, includes [xix][any owner, beneficial owner] or any person holding himself out to be the importer;

(27) “India” includes the territorial waters of India;

(28) “Indian customs waters” means the [xx][waters extending into the sea up to the limit of [xxi][Exclusive Economic Zone under Section 7] of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976)] and includes any bay, gulf, harbour, creek or tidal river;

[xxii][(28-A) “international courier terminal” means any place appointed under clause (f) of sub-section (1) of Section 7 to be an international courier terminal;]

(29) “land customs station” means any place appointed under clause (b) of Section 7 to be a land customs station;

(30) “market price”, in relation to any goods, means the wholesale price of the goods in the ordinary course of trade in India;

[xxiii][(30-A) “National Tax Tribunal” means the National Tax Tribunal established under Section 3 of the National Tax Tribunal Act, 2005;]

[xxiv][(30-AA)  “notification” means notification published in the Official Gazette and the expression “notify” with its cognate meaning and grammatical variation shall be construed accordingly;]

[xxv][(30-B) “passenger name record information” means the records prepared by an operator of any aircraft or vessel or vehicle or his authorised agent for each journey booked by or on behalf of any passenger;]

(31) “person-in-charge” means,—

(a) in relation to a vessel, the master of the vessel;

(b) in relation to an aircraft, the commander or pilot-in-charge of the aircraft;

(c) in relation to a railway train, the conductor, guard or other person having the chief direction of the train;

(d) in relation to any other conveyance, the driver or other person incharge of the conveyance;

(32) “prescribed” means prescribed by regulations made under this Act;

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

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

(35) “regulations” means the regulations made by the Board under any provision of this Act;

(36) “rules” means the regulations made by the Board under any provision of this Act;

(37) “shipping bill” means a shipping bill referred to in Section 50;

(38) “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;

(39) “smuggling”, in relation to any goods, means any act or omission which will render such goods liable to confiscation under Section 111 or Section 113;

(40) “tariff value”, in relation to any goods, means the tariff value fixed in respect thereof under sub-section (2) of Section 14;

(41) “value”, in relation to any goods, means the value thereof determined in accordance with the provisions of [xxvi][sub-section (1) or sub-section (2) of Section 14];

(42) “vehicle” means conveyance of any kind used on land and includes a railway vehicle;

[xxvii][(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 58-A;]

(44) “warehoused goods” means goods deposited in a warehouse;

(45) [xxviii][* * *]

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