Gold Import Scheme - Gold not declared by passengers - whether liable to absolute confiscation.

Document Text

Gold Import Scheme - Gold not declared by passengers - Whether liable to absolute confiscation: F. No. 495/5/92-Cus.VI dated 10-5-1993. Government of India, Central Board of Excise & Customs, New Delhi. Subject: Gold Import Scheme - Gold not declared by passengers - Instructions to absolute confiscation - liable whether regarding: Reference to Ministry's Instructions of even number dated 22-4-1992, on the above subject. Doubts have been raised by some of the Collectors as to whether gold can now be treated as a prohibited item, and whether the gold imported by a passenger and not declared can be ordered absolute confiscation. 2. The matter has been examined by the Board. It appears that this doubt has arisen because gold does not figure in the list of "prohibited items" in Part-I of Negative List of Imports in the EXIM Policy 1992-97. It is clarified in this context that the expression "prohibited goods" occurring in the Customs Act, 1962, is to be interpreted with reference to the definition as given in the said Customs Act and it would include all goods in all the parts of the Negative List of the EXIM Policy unless the conditions subject to which the goods are permitted to be imported have been complied with. 3. In the case of gold, it is observed that gold was not included in the list of "prohibited items" in the import policy for AM 90-93 and its import was in the restricted category. In the current EXIM Policy for AM 92-97 also, gold does not appear in the list of "prohibited items', but it figures in the "negative list" vide serial number 4 Under heading "miscellaneous items", and its import is not allowed except against a licence or in accordance with a Public Notice issued in this behalf. As there is no change in the import policy of this item, and as we have all along, been ordering absolute confiscation of undeclared gold, the Board is of the opinion that there is no reason why there should be any change in this practice. As such, in respect of gold seized for non-declaration, no option to redeem the same on redemption fine under section 125 of the Customs Act, 1962, should be given except in very trivial cases where the adjudication authority is satisfied that there was no concealment of the gold in question (For example a piece of gold kept in a medicine bottle will be treated as concealment while a bangle/necklace worn by a passenger may not be considered a concealment, if it was easily visible). 4. However, in respect of gold declared, but which could not be cleared for want of sufficient foreign exchange for payment of customs duty, the re- export of the same may be permitted under Section 77 of the Customs Act, 1962. 5. These instructions may be brought to the notice of all officers concerned. JUDICIAL ANALYSIS C.B.E. & C Circular No. 495/5/92-Cus. VI, dated 10-5-1993 was referred in the context of absolute confiscation of used diesel engines in contravention of EXIM Policy. Gauri Enterprises v. Commissioner - 2002 (145) E.LT. 706 (Tri. -Bang.). imported

HS Codes Referenced

Acts & Provisions Referenced

• Customs Act, 1962.

Need the current duty rate?

Calculate the full duty cascade — BCD, SWS, IGST and trade remedies — for any HS code, free.