A Reference Library for Customs, Excise & Service Tax Officers and Tax Payers

Referencer for Air Customs Officers

(Second Edition)
A Complete Collection of All the Government of India’s & CBEC's Orders On the Clearance of International Passengers and Baggage at Airports and Seaports
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REFERENCER for AIR CUSTOMS OFFICERS 2015

By

M.P. Vasudevan & P.K.Gupta

 

Designed by: M.P.Vasudevan, Assistant Commissioner of Customs, CIU, New Custom House, Ballard Estate, Mumbai – 400 001. 

Published by: www.referencer.in

Printed at: M/s Vekaria Advertising & Printing, Mumbai – 400 002.

 

PREFACE

We are glad that the earlier edition of the “Referencer for Air Customs Officers”, precisely the first formal compilation published way back in the year 2008, was highly admired by the Officers working at the International Airports across the country. It is heartening to note that the same is being used by some of them today as well. There was an impromptu proposal from Cochin Customs, two years ago, to get a revised edition published at their end. However, it did not workout due to paucity of time. Recently the C.B.E. & C. has also directed all the Chief Commissioners of Customs in charge of the International Airports to ensure that every Officer newly posted at the International Airports be mandatorily trained in the relevant rules and regulations. This second edition is being attempted in this background and to heed the earnest requests from the colleagues and officers working at various International Airports.

This book in your hand is not crafted by experts in the field of literary writing, drafting, interpretation, editing or publishing of books or journals but by officers working in the arena just like any one of you. However, we expect and believe that the current edition, a fully revised and updated version, would be an additional tool for your day-to-day official work in connection with the clearance of International passengers and their baggage. We have tried to incorporate additional material in accordance with the feedback received from you. In the process this palm-sized miniature has grown and doubled its pages.

We are very grateful to Shri B.S.Vasudev, Chief Commissioner of Customs, Mumbai Zone-III in supporting this project and penning down a foreword for the current edition. We also take this opportunity to acknowledge the appreciation showered by S/Shri Tarun Kumar Govil, former Commissioner of Customs and G.Ravindranath, currently Commissioner of Service Tax, Chennai and the assistance rendered by late Shri R.S.Potdar, Shri Harish Rao and Shri Pradeep Bait, Superintendents of Customs, Mumbai in circulation of the first edition.

We also admit with regret our inability to entertain all the questions and queries raised by the readers through letters and/or e-mails as we do not have the infrastructure to process all such queries. We, however, welcome your feedback and suggestions for the improvement of the contents and/or layout of this compilation.

Those fond of reading e-books can download a copy from www.referencer.in.

Mumbai, the 31st December, 2014.

(M.P.Vasudevan & P.K.Gupta)

Assistant Commissioners. Mumbai

 

B.S.Vasudev

Chief Commissioner of Customs,
Chhatrapati Shivaji International Airport,
Terminal 2, Level II, Mumbai-400 099.

FOREWORD

Customs officers are assigned with the collection of import and export duties including cesses coupled with the regulation of movement of goods and services in and out of the country. In addition, they are required to curb illicit financial flows, infringement of Intellectual Property Rights and smuggling of firearms, narcotic drugs, fake currency and various other goods subject to physical controls and barriers. The complexities of the Customs Officer’s duties lie in the maximisation of revenue while preventing attempts at smuggling without disturbing or obstructing the pace of movement of goods or services. Owing to changes caused in recent times by vast technological advancement, liberalization and globalization, it is indeed a challenging task to strike the right balance between facilitation and enforcement.

Usually, an officer working in any department, while handling a complex case or dealing with a file, can afford quality time for making meticulous references to the Acts, Rules, Regulations, Notifications, Manuals, etc., or obtaining the  advice/opinion of experts before taking any decision. In contra, an Air Customs Officer (ACO) posted at any International Airport for the clearance of passengers will not have any such luxury while clearing a passenger and his baggage filled with the latest gadgets. The Customs Officer is expected to remember a plethora of rules and regulations applicable in each and every case so that the passenger is not detained for even a few minutes during the process of clearance. The officer, though he cannot afford much leisure or freedom to look into bulky books or manuals, also finds it impossible to maintain a collection of reference materials of his own since no permanent office space, beyond an open counter, is assigned to him.

It is in this scenario that this palm-sized miniature compilation, “Reference for Air Customs Officers”, containing all the relevant rules, regulations, notifications, forms, etc., which fairly fits into his pocket becomes an excellent reference manual for an ACO. I am told that its first publication in 2008 was well received and acknowledged by the officers. I am happy to know that a fully revised and updated version of the same is being brought out now. I feel proud to have a self-motivated and dedicated officer like the present author, Shri M.P.Vasudevan in my organisation. While wishing him all success in his efforts, I also expect the officers posted at the airports across the country will find this compilation of great practical utility.

Mumbai, the 24th December, 2014.

(B.S.Vasudev)

Chief Commissioner of Customs, Mumbai Customs Zone III

 

PREFACE TO THE FIRST EDITION

Customs officers have an exceptionally important role in the economic development of the country as the customs duties have not only been a significant source of revenue, but also a crucial instrument for regulating cross border trade. Customs officers also need to address the country's security concerns by curbing money laundering, IPR infringement and smuggling firearms, narcotics, fake currency, etc. The intricacy of the assignment of an Air Customs Officer lies in the realization of revenue and prevention of smuggling without disturbing the flow of passengers or trade. Due to the changes caused by technological advancement, liberalization and globalization, it is a challenging task to strike the right balance between passenger facilitation and enforcement of Law. Over the years, the responsibilities of the ACOs have become remarkably more complex and challenging. The initiatives of the Government and the Department for computerization of the cargo clearances such as EDI, RMS, NIDB, ECDB, etc., are yet to reach the passenger clearance arena. Having regard to the twin objectives of passenger facilitation and law enforcement, there is a crying need to raise the level of competence of the officers through training and exposure to the Act, rules and regulations which we enforce.

The object of the present compilation is to serve this very purpose. There is no dearth of publications which carry the rules and regulations, but what makes this work unique is its small size. This miniature fits into their pocket and is readily available whenever and wherever they require it.

Some of the orders, circulars and instructions, though not directly applicable in baggage clearance, have been included to give more in-depth understanding of the topics. As such inclusion or exclusion of any order or instruction here will not imply that they are applicable or inapplicable in the passengers’ baggage clearance.

It is hoped that the officers working at the airports would find this compilation useful. For further reference please visit the website www.referencer.in. Suggestions for improvement with regard to the contents and layout are also welcome.

Mumbai, the 20th October, 2008.

(M.P.Vasudevan & P.K.Gupta)

 

Tarun Kumar Govil

Commissioner of Customs,
Chhatrapati Shivaji International Airport,
Mumbai-400 099.

FOREWORD TO THE FIRST EDITION

The ancient “custom” of gifting a part of merchandise by the merchant to the king while entering his kingdom came to be formalized by the modern States into customs duty which was imposed on the goods imported into or exported out of the country. Developing economies including India use customs duty as an important source of revenue and also use the Customs Act as a regulatory instrument to curb smuggling. In addition, there are more than twenty allied Acts which are enforced by the Indian Customs at various ports including airports.

A compilation of all the rules, regulations and procedures of various Acts including Allied Acts would be very voluminous. Here is a ready compilation for airport Customs containing relevant material which can be referred to and used by officers posted at airport whether at the counter in the baggage hall or even on escort duties. The compilation has been prepared by Shri M.P.Vasudevan, Air Customs Superintendent, Mumbai. He is also maintaining a website www.referencer.in. 

This compilation is divided into sixteen chapters as - (1) Baggage Rules, (2) Legal Provisions on Baggage, (3) Rate of Duty on Baggage, (4) Duty Exemptions on Baggage, (5) Other Exemptions & Facilities (6) Import of Food Products, (7) Import of Live Stock & Pets (8) Domestic, Flights & Escorts, (9) Import of Arms & Ammunition, (10) Clearance for Fairs & Exhibitions, (11) Import & Export by Courier, (12) Import of Drugs & Cosmetics, (13) Other Prohibitions on Import, (14) Operation of Duty Free Shops, (15) Important Instructions, (16) Import & Export of Commercial Goods, alongwith an appendix having the model panchnama, statement, arrest memo, etc.

I have great pleasure in presenting this compilation. I wish Shri Vasudevan all the best in his endeavours and hope that this compilation is used by officers in performing their duties.

Date: 20.10.2008.

(T.K.Govil)

Commissioner, Airport, Mumbai.

G.Ravindranath

Additional Commissioner of Customs,
Chhatrapati Shivaji International Airport,
Mumbai-400 099.

FOREWORD TO THE FIRST EDITION

The World is a book, and those who do not travel read only a page, so said Saint Augustine. Fortunately, in today's world, travel both for business and pleasure, has become an integral part of one's life. And to travel - especially international travel - one needs to have true knowledge of local customs and the law of customs. As Copernicus said true knowledge is to know that we know what we know, and to know that we do not know what we do not know. In international travel border control is necessary, and not necessarily an evil. And the border control is necessarily the function of customs administration. As an international traveler, one needs to have a rain check on what he knows and does not know of his rights, obligations and privileges.

This book in your hands tells you all about the Indian customs clearance procedures for arriving and departing passengers. Reading it makes you a confident traveler.  This book is indispensable. Read it, reread it, and refer to it whenever you are in doubt, or don't agree with the customs man. It tells you everything you want to know but don't know who to ask. Make it your travel companion.

I noticed during my tenure as additional commissioner of customs, Mumbai airport that even seasoned travelers were completely unaware of their statutory obligations, and landed in trouble. This book helps them avoid such embarrassment in future.

When abroad, every one of us loves to shop. You pick up that lovely antique from the backstreets of Bangkok, that exquisite air gun from Joberg, those adorable Pugs from Hong Kong, or those python skin bags from China, not knowing if you can bring them into India, and end up paying hefty fines and penalties, and even end up in jail. All this because of ignorance of law. Read this book and save the trouble of paying hefty fines and penalties, and going to jail.

This book also lucidly explains the obligations of departing passengers, provisions relating to carrying Indian and foreign currency, the duty-free shopping and transfer of residence.

I find this book equally handy to customs officers and an invaluable referencer.

Good job, Mr. M P Vasudevan and Mr. P K Gupta.

Mumbai Airport, 19th August, 2008.

(G.Ravindranath)

Additional Commissioner of Customs, Airport, Mumbai

 

CONTENTS

Chapter

Subject

Page

1.

Baggage Rules

1

 

1.

Baggage Rules, 1998

3

 

2.

CB Declaration Regulations, 2013

21

 

3.

CBDR, 2013 - Implementation

27

2.

Legal Provisions on Baggage

29

 

1.

The Customs Act, 1962

31

 

2.

The Import Tariff Act, 1975

35

 

3.

ITC (HS) Schedule - I

37

 

4.

The FT (D and R) Act, 1992

41

 

5.

The FT (EARCC) Order, 1993

43

3.

Rate of Duty on Baggage

57

 

1.

Effective Rate of Duty on Baggage

59

 

2.

Duty on Transfer of Residence

63

 

3.

Import of Gold and Silver

71

 

4.

Import of Gold - Clarifications

77

4.

Duty Exemptions on Baggage

81

 

1.

Free Import of Laptop Computer

83

 

2.

Exemption to Additional Duty

85

 

3.

‘Merit-Rate’ Assessment in Baggage

87

 

4.

Personal Effects - Definition

93

5.

Other Exemptions and Facilities

97

 

1.

Gift Imported by VIPs

99

 

2.

Import by Vice-President of India

103

 

3.

Exemption to Import by Governors

105

 

4.

Import by Diplomats, Consulates, etc.

107

 

5.

Re-import of Private Property

123

 

6.

Exemption to Replacement Parts

127

 

7.

Frequent Travelers - Export Certificate

129

6.

Import of Food Products

135

 

1.

Food Stuff Imported by Foreigners

137

 

2.

Food Items - PFA Act Clearance

139

 

3.

Food Products – The PFA Act, 1954

145

 

4.

The FSS Act, 2006 – CBEC Circular

149

7.

Import of Livestock and Pets

157

 

1.

Import of Livestock and Products

159

 

2.

Import of Pets by Passengers

163

 

3.

Clearance of Pet Animals

165

 

4.

Import of Pets in Baggage

171

 

5.

Re-Import of Pets in Baggage

173

 

6.

Import of Livestock by Diplomats

175

8.

Domestic Flights, Cargo and Escorts

177

 

1.

Domestic Passengers on AI Flights

179

 

2.

International Flights - Domestic Cargo

181

 

3.

Transhipment of Import-Export Cargo

185

 

4.

Transhipment – Modified Procedure

193

 

5.

Escort of Domestic Flights

195

 

6.

Inspection of Non-Scheduled Flights

197

9.

Import of Arms and Ammunition

203

 

1.

Exemption for Import of Firearms

205

 

2.

Arms and Ammunition - Policy

207

 

3.

Import of Firearms in Baggage

211

 

4.

Import of Firearms under TR

215

 

5.

Clearance of Firearms under TR

217

 

6.

Disposal of Imported Firearms

219

 

7.

Disposal of Firearms - Clarifications

221

10.

Clearance for Fairs and Exhibitions

225

 

1.

The ATA Carnet Regulations, 1990

227

 

2.

Exemption under Carnet/Triptyque

229

 

3.

Import for Display at Specified Events

235

 

4.

Clearance for Private Fairs

245

11.

Import and Export by Courier

249

 

1.

The Courier I&E (C) Regulations

251

 

2.

Courier I&E (ED&P) Regulations

273

 

3.

Courier Clearance – Public Notice

295

 

4.

Exemption to Pricelists, Tags, etc.

313

 

5.

Exemption to Bonafied Gifts

321

12.

Import of Drugs and Cosmetics

323

 

1.

Drugs and Cosmetics - Prohibitions

325

 

2.

Import of Drugs for Personal Use

331

 

3.

Import Through Specified Ports

333

13.

Other Prohibitions

335

 

1.

The NDPS Act, 1985

337

 

2.

Sex Determination Kits

347

 

3.

Import of Films - VCD, DVD, etc.

351

 

4.

Import of Plants and Plant Products

353

14.

Operation of Duty Free Shops (DFS)

355

 

1.

DFS at Airports and Ports

357

 

2.

Warehousing of Goods at DFS

359

 

3.

Appointment of ACOs as CE Officers

361

 

4.

Exemption to Goods Supplied to DFS

363

 

5.

Movement of Excisable Goods to DFS

367

 

6.

Operation of DFS – Public Notice

383

 

7.

Payment in Indian Rupees

395

15.

Some Important Instructions

397

 

1.

Notice to the Owner u/s 150

399

 

2.

Cigarettes and Tobacco Packaging

401

 

3.

Statutory Warning on Cigarettes

405

 

4.

Export of Herbal Medicines

409

16.

Import-Export of Commercial Goods

411

 

1.

Import of  Commercial Goods

413

 

2.

Commercial Goods – Oral Declaration

417

 

3.

Export of Commercial Goods

423

 

4.

Duty Free Export of Samples

425

 

5.

Export of Commercial Samples

427

17.

Appendices

429

 

1.

Model Search Warrant

431

 

2.

Model Panchanamma

433

 

3.

Model Summons

437

 

4.

Model Statement

439

 

5.

Model Arrest Memorandum

443

 

6.

Model Remand Application

445

 

7.

Mishandled Baggage – Forms

447

 

8.

Detention Receipt - Proforma

451

 

9.

Loss of DR – Indemnity Bond

455

 

10.

Drawback - Application Form

457

 

11.

Model Refund Order

461

 

Duty on Baggage – At a Glance

465

 

Glossary of Essentials

471

 


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