Customs Act, 1962 Section 113 — Confiscation of goods attempted to be improperly exported
Customs Act, 1962 · Confiscation of goods attempted to be improperly exported
Plain-English Explanation
Overview
Section 113 of the Customs Act, 1962 deals with the confiscation of goods that someone has attempted to improperly export. This section essentially outlines circumstances under which export goods can be seized by customs authorities if there are violations of customs laws and regulations.
Who Does This Apply To?
This section primarily applies to:
- Exporters: Individuals or entities involved in exporting goods from India.
- Customs Agents: Persons acting on behalf of exporters, handling export-related documentation and processes.
- Owners of Conveyances: Those owning or responsible for ships, aircraft, or other vehicles used for exporting goods.
- Employees: Employees involved in the export process.
How It Works
Section 113 lists specific situations that trigger confiscation. Here's a breakdown:
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Exporting from Unauthorized Locations:
- Attempting to export goods by sea or air from a location other than a designated customs port or airport. This aims to control export activities through official channels.
- Trying to export goods by land or inland water through a route not specified in a notification issued under Section 7(c).
- Bringing goods near the land frontier or coast for export from a place other than a designated land customs station or customs port.
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Violation of Prohibitions:
- Attempting to export goods contrary to any prohibition imposed by the Customs Act or any other law. This covers scenarios involving illegal or restricted goods.
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Concealment:
- Goods found concealed in a package brought within a customs area for export.
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Violation of Loading Regulations:
- Goods loaded or attempted to be loaded in violation of Section 33 (relating to loading of export goods) or Section 34 (relating to export manifest).
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Unauthorized Destination:
- Goods loaded or attempted to be loaded on a conveyance headed outside India without the proper officer's permission.
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Discrepancies in Declarations:
- Goods not included or in excess of those included in the export entry or baggage declaration (Section 77).
- Goods entered for export that don't match the value or material particulars stated in the export entry or baggage declaration.
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Drawback-Related Issues:
- Goods entered for export under a drawback claim that don't match the information provided by the exporter or manufacturer for drawback rate fixation (Section 75).
- Goods on which import duty hasn't been paid and are entered for export under a drawback claim (Section 74).
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Claiming Wrongful Remission/Refund:
- Goods entered for export claiming remission or refund of any duty/tax/levy to make a wrongful claim in contravention of the Customs Act or any other law.
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Failure to Load/Unloading without Permission:
- Goods cleared for export but not loaded due to the exporter's actions, or unloaded after loading without the proper officer's permission.
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Contravention of Chapter IVB:
- Contravention of any provisions relating to specified goods as defined by Chapter IVB or any rule made thereunder.
Important Conditions & Exceptions
- Condition 1: The "attempt" to export improperly is sufficient for confiscation, not necessarily actual export.
- Condition 2: The proper officer must have reasonable grounds to believe there was an attempt to improperly export.
- Exception: Bona fide errors or discrepancies may not lead to confiscation if the exporter can demonstrate a lack of intent to evade duty or violate regulations.
Practical Example
A garment manufacturer, "Fashion Exports," declares a value of INR 50,000 for a consignment of shirts being exported to the USA. However, customs officials, during inspection, determine that the actual market value of the shirts is INR 75,000. Since the declared value doesn't correspond with the actual value, and there is a discrepancy violating declarations as per Section 113(i), the goods are liable to confiscation.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What goods are liable to confiscation under Section 113 of the Customs Act, 1962?
Section 113 outlines various scenarios where export goods are subject to confiscation, including attempting to export from unauthorized locations (like non-customs ports – Section 113(a)), exporting goods contrary to prohibitions (Section 113(d)), discrepancies between declared and actual goods (Section 113(h), 113(i)), and fraudulent drawback claims (Section 113(j)). Confiscation essentially means the government takes possession of the goods without compensation.
If I attempt to export goods through an undesignated land route, can they be confiscated under the Customs Act?
Yes, goods attempted to be exported by land or inland water through any route other than a route specified in a notification issued under clause (c) of section 7 for the export of such goods are liable to confiscation under Section 113(b) of the Customs Act, 1962. It is crucial to ensure exports occur only through approved routes.
What happens if goods entered for export don't match the declaration made under Section 77 regarding baggage?
If goods entered for exportation under baggage rules (Section 77) do not correspond in value or material particulars with the declaration, they are liable to confiscation under Section 113(i) of the Customs Act, 1962. Accurate declarations are essential to avoid penalties and confiscation.
Are there any penalties beyond confiscation for attempting improper export under Section 113?
Yes, besides confiscation of the goods under Section 113, the Customs Act also provides for penalties such as monetary fines and potential prosecution under other sections, depending on the nature and severity of the offense. The penalties are adjudicated based on the specific violations and the intent behind the improper export attempt. Also refer Section 114 and Section 135 for more details.
How does Section 113 of the Customs Act, 1962, relate to drawback claims?
Section 113(j) and 113(ja) specifically address situations where goods entered for export involve fraudulent drawback claims (Section 74) or wrongful claims of remission or refund of duty or tax. If import duty hasn't been paid and a drawback is claimed, or if remission/refund is claimed fraudulently, the goods are subject to confiscation. Accurate documentation and compliance with drawback rules are critical.
My goods were cleared for export but not loaded due to unforeseen circumstances. Can they be confiscated under Section 113?
According to Section 113(k), if goods cleared for export are not loaded due to a wilful act, negligence, or default of the exporter, their agent, or employee, or if they are unloaded after being loaded without permission, they may be confiscated. This highlights the exporter's responsibility to ensure proper loading and export processes.
What constitutes a 'customs area' for the purposes of Section 113, especially regarding the attempt to export prohibited goods?
The term 'customs area' isn't explicitly defined in Section 113, but generally refers to any area within the jurisdiction of customs authorities, including customs ports, airports, land customs stations, and bonded warehouses. Section 113(d) states that attempting to export goods contrary to any prohibition under the Customs Act or any other law within a customs area makes them liable to confiscation.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Export from unauthorized location (sea/air) | Goods attempted to be exported by sea or air from a place other than a designated customs port or airport are liable to confiscation. |
| Export from unauthorized location (land/water) | Goods attempted to be exported by land or inland water through a route not specified in a Section 7(c) notification are liable to confiscation. |
| Goods near frontier for unauthorized export | Goods brought near the land frontier or coast for export from a non-designated land customs station or port are liable to confiscation. |
| Export contrary to prohibition | Goods attempted to be exported, or brought within customs area for export, contrary to any prohibition under the Customs Act or any other law are liable to confiscation. |
| Concealed goods for export | Goods found concealed in a package brought within a customs area for exportation are liable to confiscation. |
| Violation of loading provisions | Goods loaded or attempted to be loaded in contravention of Section 33 or Section 34 are liable to confiscation. |
| Discrepancy in entry | Goods not included, or in excess of, what is included in the export entry or baggage declaration, are subject to confiscation. |
| Drawback claim discrepancies | Goods entered for export under a drawback claim that do not match information furnished for drawback rate fixation are liable to confiscation. |
Amendment History
The words "dutiable or prohibited" omitted by the Finance Act, 2003 (32 of 2003), section 116(a) (w.e.f.14.05.2003).
Substituted by the Finance Act, 2003 (32 of 2003), section 116(b), for clause (i) (w.e.f. 14.05.2003). Earlier clause (i) was amended by Act 25 of 1978; section 11 (w.e.f. 01.07.1978).
Inserted by the Finance (No.2) Act, 1991 (49 of 1991), section 120(2) (w.e.f. 27.09.1991)
Inserted (w.e.f. 28-03-2021) s. 95 of Finance Act 2021 (13 of 2021)
The words "under a claim for drawback" omitted by the Finance Act, 2003 (32 of 2003), section 116(c)(w.e.f.14.05.2003).
Inserted by the Customs (Amendment) Act, 1969 (12 of 1969), section 5 (w.e.f. 03.01.1969)