CIRCULAR NO.29/2000 Dated 11-4-2000

Import of goods in commercial quantity in baggage - Regarding

Instances have come to the notice of Central Board of Excise and Customs that in some cases of import of baggage in commercial quantity the Adjudicating / Appellate authorities have dropped / set aside the order imposing redemption fine and personal penalty on non bonafide baggage, on the plea that these items are otherwise freely importable under the EXIM Policy.

2. Vide Board's instructions dated 6.5.1996, it was clarified that import of goods in baggage in commercial quantities would not be permissible within the scope of the Baggage Rules, even on payment of baggage rate of duty and these cases had to be Adjudicated for imposition on suitable redemption find / personal penalties etc. Vide Board's instruction dated 17.12.1996 it has further clarified that the portion of the baggage which is not in commercial quantity would be eligible to free baggage allowance.

3. Copy of Board's instructions issued vide F. No. 495/6/96-Customs dated 6.5.1996 and 17.12.1996 (enclosed) may be re-circulated to all concerned one again for strict compliance.

(Dr. Vinayak Prasad)
Under Secretary to the Government of India

To

Shri. D.S.Solanki
Chief Commissioner of Customs
Mumbai

IMPORT OF GOODS IN COMMERCIAL QUANTITIES IN BAGGAGE - REGARDING

Please refer to your D.O. letter F. No. S / V-10(28)CCU/96 dated 16th April, 1996 on the above subject. The Board has examined the issue in detail and it is confirmed that import of goods in commercial quantity could not be permissible within the scope of the Baggage Rules, 1994 even on payment of baggage rate of duty. The baggage rules operate in consonance with the Exim Policy. The Exim Policy specifically restricts import of consumer goods howsoever described in para 156A. Therefore, under the guise of the baggage, the same Exim Policy cannot be all owed to be subverted and such such goods therefore, be adjudicated before clearance

2. The Board's instruction No.2/92, dated 31.1.92 mentioned that "These articles are however, not permitted for importation as baggage in terms of relevant ITC / notice, such goods would be released on adjudication after levy of appropriate fine and penalty". Similarly, the Board's instruction dated 7th July, 1992 issued from the F. No.495 /10/92-Cus. VI also mentioned. "Therefore. normal restrictions Cus. VI also mentioned. "Therefore, normal restriction and prohibitions as have been specified in the revised import policy of goods, irrespective of whether they are brought by air, by sea or baggage would be applicable". It may be seen that both the instructions has spoken of following the Exim Policy and therefore, the practice of allowing such goods on payment of duty only was irregular. In addition, it was mentioned in the Commissioners conference at Calcutta and Cochin that other Collectorates were not allowing goods in commercial quantities without adjudication.

Yours faithfully
(S C Chaudhry)
Director Customs

To

Chief Commissioner of Customs & Cen. Excise (All),
Commissioners of Customs (All).

Permissibility of free allowance to passengers when the whole of the goods or a part of the goods of their baggage is treated to be imported in commercial quantity.

Sir,

It has come to the notice of the Board that adjudicating authorities at different levels are Holding different opinions whether free allowance would be permitted on import of baggages, where part of the goods are found to be in commercial quantity. The Issued of import of consumer goods in commercial quantity had earlier been examined by Board and instructions were issued vide circular No. 2/92, dated 31.1.1992 and vide File No 495/10/92-Cus. VI, dated 7.7.1992 and recently vide F.No. 495/6/96- Cus. VI dated 6.5.1996. The gist of the said instruction are that import of the consumer goods in commercial quantity is not permissible even in the present Exim Policy and in addition they are not to be treated as part of bonafide baggage. Therefore, they would be liable to be adjudicated. The present problem is where a part of the goods are in the commercial quantity. The matter has been examined and it is found that the entire in the baggage imported by a passenger does not become in commercial quantities. Therefore, that portion of the baggage which is not in commercial quantity would be eligible to free baggage allowance.

Yours faithfully
(Ranjana Jha)
Under Secretary to the Government of India

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