Customs Act, 1962 Section 145 — Owner etc to perform operations incidental to compliance with customs law

Overview

Section 145 of the Customs Act, 1962 places the responsibility on the owner, importer, or exporter of goods to perform all necessary operations to make the goods available for examination by customs officers. This section ensures the smooth functioning of customs procedures and avoids delays due to lack of preparation by those dealing with the goods.

Who Does This Apply To?

This section primarily affects:

• Importers: Businesses or individuals importing goods into India.
• Exporters: Businesses or individuals exporting goods from India.
• Owners of the goods: This could be different from the importer or exporter, particularly in cases of warehousing or temporary custody.

It also indirectly affects customs officers by defining the responsibilities of the parties involved, enabling them to perform their duties efficiently.

How It Works

Section 145 operates through the following steps:

• Goods arrive at a customs station: Upon arrival (import) or before dispatch (export), goods are subject to examination by customs officials.
• Obligation to prepare for examination: The owner, importer, or exporter has the legal obligation to make the goods easily accessible for examination.
• Necessary operations: This includes operations such as:
  • Unpacking goods
  • Moving goods to an examination area
  • Opening containers
  • Providing necessary equipment for examination (e.g., ladders, forklifts)
  • Providing assistance in identifying and segregating goods.
• Cost responsibility: All costs associated with these operations are borne by the owner, importer, or exporter. The government is not liable for these expenses.
• Facilitation of Examination: The section explicitly states that the operations should "facilitate" the examination. This means more than just making the goods available; the person must actively make the inspection process easy.

Important Conditions & Exceptions

• Condition 1: The operations must be "necessary" for making the goods available for examination. Operations beyond what is reasonably required may not fall under this section.
• Condition 2: The term "proper officer" refers to the customs officer authorized to conduct the examination. The person must make the goods available as per the instructions and guidance of the customs officer.
• Exception: If the customs department undertakes these operations themselves due to specific reasons (e.g., specialized equipment needed or national security concerns), the cost may be borne by the government in certain cases, though this is not a standard practice. However, the responsibility to arrange to make the goods available still rests with the assessee.

Practical Example

XYZ Importers brings a consignment of electronic components valued at ₹50 lakhs from China. Upon arrival at the Mumbai port, customs officials select the consignment for examination. XYZ Importers is responsible for:

1. Unloading the container from the ship and transporting it to the designated examination area.
2. Opening the container and unpacking the cartons containing the electronic components.
3. Providing a detailed packing list to help the officer identify the specific components.
4. Providing manpower to assist in physically handling the components during inspection.

If XYZ Importers fails to perform these operations, customs officials could levy penalties for non-compliance, delaying the clearance process and potentially incurring demurrage charges. The cost of any labor, equipment rental, or other expenses incurred in performing these operations will be borne by XYZ Importers.

Key Amendments

No major amendments since enactment.