CIRCULARNo.9/2001-CUS Dated 22ndFebruary, 2001
Baggage Imports –Import in Commercial Quantity Not Permissible
Subject: Import of goods in commercial quantity as baggage - Procedure foracceptance of Oral Declaration of passengers - Regarding
Ithas been brought to the notice of the Board recently that goods in commercialquantities have been brought by the passengers and these have been cleared aspart of baggage by improper declaration etc. Apparently there is no strictmonitoring by the supervisory officers on duty and chances of commercialquantities getting cleared as part of baggage by declaration/non-declarationwithout or with the concurrence of lower staff on duty cannot be ruled out. Itis also reported that in some cases, the involved person(s) are frequent shortvisit passengers and repeat offenders. The fines and penalties imposed inadjudication proceedings are apparently not sufficient as these have notdeterred the unscrupulous passengers from bringing goods in commercialquantities repeatedly.
2.Board has taken serious note of such incidents. It appears instructions issuedalready are not being enforced by Commissioners in-charge of InternationalAirports and supervisory officers are not showing the diligence and watch onpassenger clearance process expected of them. They also do not appear to betaking enough deterrent action in the matter of imposition of fines &penalties and even initiating prosecution action in cases of habitual offendersinvolved in evasion of duties by misdeclaration/smuggling by concealment inbaggage etc.
3.In this connection, attention is once again drawn to Boards instructions issuedvide F.No.495/6/97-Cus.VI dated 6-5-96 and reiterated in letterF.No.495/19/99-Cus.VI dated 11.4.2000. It was clearly stated that the import ofgoods in commercial quantities would not be permissible within the scope of theBaggage Rules, even on payment of duty. It was also stated that suitableredemption fine/personal penalties would need to be imposed in all such cases,which apparently is not being done. It is once again emphasized that theredemption fine and personal penalties should be such that it not only wipes outthe margin of profit but also acts as a strong deterrent against repeatoffences. The guidelines mentioned in the Adjudication Manual may be followedstrictly by the adjudicating authorities, and any lapse in this regard would beviewed seriously. In case of repeat offences, the prosecution guidelinescontained in Board’s instructions F.No.394/71/97-Cus(AS), dt 22.6.99 may befollowed.
4.In addition to the above, the following steps may also be taken:
| a) | In respect of ‘Red Channel’ passengers the general practice is to record the Oral declaration (OD) on the Disembarkation Card without first making the passenger fill up the relevant entries. It may be ensured that every passenger reporting at Red Channel fill up a Disembarkation Card clearly mentioning therein the quantity and value of goods that he has brought, and hand over the Customs portion of the card to the officer on duty at the red Channel. In case the same is incomplete/not filled up, the proper Customs officer should help record the O.D of the passenger on the Disembarkation Card and only thereafter should countersign/stamp the same, after taking the passenger’s signature. |
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| b) | At this stage, the Baggage officer must scrutinize the passport and other relevant travel documents to identify the short-visit passengers/frequent travellers. Where the case is put up for adjudication the fact of past visits and cases adjudicated etc must be brought to the notice of the adjudicating officer. |
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| c) | The supervisory officers must take care to ensure that the total material in excess of duty free allowance imported by the passenger is being declared/and charged to duty and is subject matter of adjudication for determining fines, penalties etc. |
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| d) | In case of genuine tourists where the baggage is marginally in excess of the bonafide baggage, the passengers may be allowed to clear the same, as per the existing practice, on payment of appropriate Customs duty. However, in all other cases such as short visit passengers/frequent visitors where the baggage is substantially in excess of the free allowance and in commercial quantity, the same should be deemed to be non-bonafide baggage and dealt with in the manner mentioned at paragraph 3 above. |
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| | It must also be ensured that where the ‘Red Channel’ facility is sought the valuation of items charged to duty is done properly. There should also be very careful check to find out whether it is a first offence or a case of repeat offence warranting more imposing deterrent penalties, apart from considering prosecution, as per guidelines. In their adjudication orders, the adjudicating authorities must clearly mention wherever it is a case of repeat offence providing justification for imposition of high penalty, so that the offenders are not let off at the appellate stage on account of legal lacuna. |
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| e) | For the passengers walking through the Green Channel, the existing practice of collecting Disembarkation Card, containing the written declaration of the passenger about his baggage, at the channel may continue |
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5.In offence cases viz. for misdeclaration or non-declaration, the aforesaidguidelines may be applied, in addition to any other guidelines/existingprovision(s) of Law.
6.The Commissioner/Addl. Commissioner incharge of the Airport shall be responsiblefor ensuring strict compliance of the aforesaid instructions. The supervisorycontrols and surprise visits by senior officers must be stepped up and Asstt.Commissioner/Dy. Commissioner on duty remain ever vigilant to check against anyabuse by unscrupulous passengers. It must also be ensured that no harassment iscaused to genuine passengers. Strict action may be taken against any Customsofficer, who fails to comply with the aforesaid instructions.
7.Kindly acknowledge the receipt. Difficulties, if any, in implementation ofaforesaid instructions may be brought to the notice of the Board at an earlydate.
Sd/-
(Dr. Vinayak Prasad)
Under Secretary to the Government of India