Customs Act, 1962 Section 11j — Persons possessing specified goods to intimate the place of storage etc
Customs Act, 1962 · Persons possessing specified goods to intimate the place of storage etc
Plain-English Explanation
Overview
Section 11J of the Customs Act, 1962 mandates that individuals possessing certain specified goods exceeding a defined value within a specified area must inform the proper customs officer about the location where these goods are stored. This section aims to prevent smuggling and evasion of customs duties by tracking the storage and movement of these designated items.
Who Does This Apply To?
This section applies to any person who:
- Owns, possesses, or controls specified goods.
- The market price of which exceeds ₹15,000 on the specified date or after acquiring it.
- Operates within a specified area (defined by the government).
This "person" can be an individual, a company, a firm, or any other legal entity. The "specified area" and "specified goods" are defined by notifications issued by the government and are not universally applicable.
How It Works
The process involves the following key steps:
- Initial Intimation (Existing Goods): If a person owns, possesses, or controls specified goods exceeding ₹15,000 on the specified date, they must provide an intimation to the proper officer within seven days of that date. This intimation must contain details of the storage location.
- Example: If a notification specifies gold bullion as a "specified good" and sets a "specified date" of October 26, 2023, anyone owning more than ₹15,000 worth of gold bullion on that date in the "specified area" must notify the customs officer within seven days.
- Intimation Before Acquisition (New Goods): If a person acquires specified goods after the specified date, and the market price of the acquired goods alone exceeds ₹15,000, or the market price of the acquired goods together with any other specified goods of the same class already owned exceeds ₹15,000, they must provide an intimation before acquiring the goods. The intimation must detail the proposed storage location.
- Example: A trader imports electronic components listed as "specified goods." If the imported components are valued at ₹10,000, and the trader already possesses ₹8,000 worth of the same components, they must provide an intimation before taking possession of the new shipment.
- Intimation Before Shifting: If a person intends to move the specified goods from the intimated place to another location, they must inform the proper officer before shifting the goods.
- Storage Restriction: No person can store specified goods at any location other than the intimated place after seven days from the specified date (for existing goods) or after acquiring the goods (for newly acquired goods), unless a shifting intimation has been provided.
Important Conditions & Exceptions
- Market Price Determination: The market price is crucial. The Act doesn't specify how this is to be determined, so reliance is generally placed on invoices, market surveys, or assessments made by customs officials.
- Continuing Intimation: A person who has already delivered an intimation (under subsection (1) or (2)) doesn't need to deliver further intimations as long as the goods remain stored at the intimated place.
- Specified Area Definition: The applicability of Section 11J is contingent upon the "specified area," which is defined by government notifications.
Practical Example
A jewelry business in Jaipur (assuming Jaipur is notified as the specified area) already has silver articles worth ₹10,000 on October 26, 2023 (the specified date). On November 1, 2023, they purchase additional silver articles worth ₹8,000. Since the total value of silver articles exceeds ₹15,000, they must, before making the purchase, inform the proper officer about where the newly purchased articles will be stored. Furthermore, they cannot store those items at any other place than what was communicated. If they later plan to shift the goods to another warehouse, they must again provide an intimation before the shift.
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 considered 'specified goods' under Section 11J of the Customs Act, 1962, and where can I find a list of these goods?
Section 11J of the Customs Act, 1962, pertains to 'specified goods,' but the Act itself doesn't list them directly. The specific goods are notified by the government, typically via notification, considering factors like illegal trade potential. Consult relevant notifications issued by the CBIC (Central Board of Indirect Taxes and Customs) to determine the current list of specified goods applicable under Section 11J.
When does the requirement to intimate the place of storage under Section 11J get triggered?
The requirement to intimate the place of storage under Section 11J is triggered when a person owns, possesses, or controls 'specified goods' on a 'specified date' or acquires such goods after the 'specified date'. The market price of these goods must exceed fifteen thousand rupees, either individually or when combined with other specified goods of the same class/description already owned. See sub-sections (1) and (2) of Section 11J.
What information needs to be included in the intimation to the proper officer under Section 11J regarding the place of storage?
The intimation to the proper officer under Section 11J must include the particulars of the place where the specified goods are kept or stored, or proposed to be kept or stored. This includes details sufficient to accurately identify the storage location within the specified area. It is crucial to ensure the information provided is complete and accurate to avoid potential issues.
How long do I have to inform the customs officer after acquiring specified goods as per Section 11J?
If you acquire 'specified goods' after the 'specified date' within the 'specified area', you must deliver an intimation to the proper officer *before* making such acquisition. This pre-acquisition notification ensures compliance with Section 11J(2).
What are the consequences of failing to intimate the place of storage or shifting goods without prior intimation under Section 11J?
Failure to intimate the place of storage or shifting goods without prior intimation under Section 11J can lead to penalties. While the Act doesn't explicitly prescribe a penalty amount in Section 11J, non-compliance could lead to investigations, seizure of goods, and penalties under other relevant provisions of the Customs Act, 1962, related to illegal trade or concealment. See Section 111 and Section 112 regarding confiscation and penalties.
If I have already submitted an intimation for specified goods, do I need to submit another one if the goods remain at the same place?
No, if you have already delivered an intimation under Section 11J (either sub-section (1) or (2)) in relation to any specified goods, you are not required to deliver any further intimation as long as the specified goods are kept or stored at the same intimated place, as per the proviso to Section 11J(2).
How do I notify the Customs officer if I want to move the specified goods to a different location after I have already intimated the original storage location?
If you intend to shift specified goods to a place other than the originally intimated place, you must deliver an intimation to the proper officer before moving the goods. This intimation should contain the particulars of the place to which the goods are proposed to be shifted, as stated in Section 11J(3).
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Ownership on 'specified date' and value exceeding ₹15,000 | Individuals owning, possessing, or controlling specified goods exceeding ₹15,000 on the 'specified date' must intimate the storage location to the proper officer. |
| Time limit for initial intimation (existing ownership) | Intimation of existing specified goods (owned on the 'specified date') must be delivered to the proper officer within seven days from that date. |
| Acquisition after 'specified date' exceeding ₹15,000 | For acquiring specified goods after the 'specified date', exceeding ₹15,000 (individually or cumulatively), intimation is required *before* acquisition. |
| Requirement to inform on change of storage location | If goods are being moved to a new storage location, you must notify the proper officer before the change. |
| Restriction on storing goods at un-intimated locations | After seven days from the specified date, specified goods cannot be stored at a location not already intimated to the proper officer. |
| Exemption from repeated intimation for same location | Once an intimation is delivered for specific goods at a specific location, no further intimation is needed as long as those goods stay there. |
| Applicability limited to specified area | The requirements of Section 11J apply only within the 'specified area' as defined elsewhere. |
| Applicability limited to specified goods | The requirements of Section 11J apply only to the 'specified goods' as defined elsewhere. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 11j — Persons possessing specified goods to intimate the place of storage etc