CUSTOMS ACT, 1962

INTRODUCTION
Collection of import duties .
Prevention of smuggling duties .

VESSEL CARRYING IMPORT AND

EXPORT GOODS

This section make it obligatory for vessel coming

to India from foreign ports to call at a custom
port only until the passengers have disembarked
and all imported cargo has been unloaded.

THE PROVISIONS DO NOT APPLY IN RELATION

TO A VESSEL WHICH IS COMPELLED BY
ACCIDENT ,TO BERTH AT A NON CUSTOM PORT

Report immediately the arrival of the vessel

Shall not permit any goods to be unloaded.
Comply with any direction given by officers .

SECTIONS

Section 31 The master of a vessel shall not permit the

unloading of any imported goods until an order has been
given by the proper officer.
Section 32 This section provides that only those goods can
be unloaded at a customs station which are specified in the
import manifest for being unloaded at that custom station.
Section 33 It provides that proper officer can allow
unloading of imported and loading of exported goods also at
a place other that an approved landing place

Section 34 The unloading of imported goods or loading of

exported goods shall be done under the supervision of the
proper officer.
Section 35 No imported goods are allowed to be water
borne after being landed from any vessel.
Section 36 The unloading of imported goods or loading of
exported goods shall not be made on the holidays declared
by the customs authorities.
Section 37 The proper officer can board and inspect the
vessel and he can remain on such a vessel for such period
as he considers necessary.

Section 38 The person in charge of the vessel is required

to produce the relevant documents to the proper officer.
Section 39 As per this section export goods are not to be
loaded on the vessel until entry outwards is granted.
Section 40 This provides that the loading of export goods
can be made only after the approval is granted by the
proper officer for loading.
Section 41 The person-in-charge of the vessel must deliver
to the proper officer before departure of the vessel export
manifest

THIS SECTION PROVIDES THAT THE PERSON

IN CHARGE OF THE VESSEL SHALL NOT TAKE
OUT THE VESSEL FROM THE NOTIFIED AREA
WITHOUT PROPER OFFICER.
A.
B.
C.
D.
E.

Answer questions put to him.

Submit export manifest .
Shipping bill handed to proper officer.
All duties must be leviable.
No penalties is leviable on him.

THE FOLLOWING PROCEDURE IS USED

TO COMPEL A VESSEL TO STOP:
By using an international signal, code or any
other recognized means.
Chasing the vessel. If this doesnt succeed, then
by
Firing a gun as a signal. If this too fails, then by
Firing upon the vessel.

CONFISCATION OF VESSELS
A vessel is liable for confiscation, if
It has been constructed of fitted in such a
manner as to conceal goods.
Goods have been thrown overboard of destroyed
so as to prevent seizure.
Any vessel having required to stop fails to do so.
Goods cleared for exportation under a claim for
duty drawback are unloaded without permission
of proper officer.
Any vessel carrying imported goods is found with
the whole or substantial portion of such goods
missing.

(2) Any vessel used in the activity of

SMUGGLING is liable for confiscation, unless
the owner, his agent or the person-in-charge
of the vessel proves:
o That it was used without his knowledge or
connivance.
o The master had taken all precautions against
such use.

Section 115 (2) has been enacted primarily to control

SMUGGLING and for giving relief to owners who are
innocent of such activities because they have to depend on
their servants to ply vessels on hire. In such events, even
though the owner has nothing to do with the illegal activity,
yet he is not fully exonerated. However he can pay the fine in
lieu of confiscation and thereby save his vessel.
The following defences are available to the shipowner.

The vessel is used without his knowledge or connivance.

The agent of the vessel and the person-in charge are also
innocent and that all possible precautions are taken
against wrongful user.

PENALTY FOR NOT ACCOUNTING FOR

GOODS

Section 116 deals with the penalty for not

accounting for goods.

HOW IS SHORT-LANDING PROVED?

Relevant pieces of evidence are:
The out-turn report and the manifest.
The survey report, conduct of the parties and the
chemical analysis. The survey report is to be
concluded immediately after the goods are
discharged and not at a later date.

PUNISHMENT FOR EVASION OF

DUTY/PROHIBITIONS
Evasion of duty or prohibitions.
Person will be punishable if
He is knowingly a party in any fraudulent
evasion or attempted evasion of any duty or any
prohibition imposed by the Act.
He acquires possession or in any other manner
deals with any goods which he knows are
prohibited.

THE PUNISHMENT IN VARIOUS

CASES IS AS FOLLOWS

If the offence is relating to certain goods, i.e. gold, diamonds,

watches, manufacture of gold, diamonds and the market price
of those goods exceed one lack of rupees then the accused will
have to face imprisonment which may extend to FIVE years
and with fine. The minimum imprisonment is 6 months. But if
he is able to furnish special and adequate reasons for his act,
then he can get the sentence reduced.
In all other cases, he will have to face imprisonment for a term
which may extend to TWO years or with fine or with both.

If any person convicted of an offence under this section is again

convicted under this section, then, he shall be punishable for the
second and for every subsequent offence with imprisonment for a
term which may extend to seven years and with fine.

THE FOLLOWING SHALL NOT BEEN

CONSIDERED AS SPECIAL AND ADEQUATE
REASONS FOR AWARDING AN
IMPRISONMENT OF LESS THAN 6 MONTHS.

The fact that the accused has been convicted for the first
time for an offence under this Act.
The fact that in any proceeding under this Act, other than a
prosecution, the accused has been ordered to pay a penalty
or the goods have been ordered to be confiscated or any
other action has been taken against him.
The fact that the accused was not the principal offender
and was acting merely as a carrier of goods or was a
secondary party in the offence
The age of the accused.