Customs Act, 1962 Section 157 — General power to make regulations

Customs Act, 1962  ·  General power to make regulations

Customs Act, 1962 Section 157 13 Amendments CBIC Source
Type Section
Legislation Customs Act, 1962
Amendments 13

Plain-English Explanation

Plain English Summary

Overview

Section 157 of the Customs Act, 1962, grants broad powers to the Central Board of Indirect Taxes and Customs (CBIC) to create regulations that effectively implement the Act's objectives. These regulations fill in procedural details not explicitly covered in the Act itself, providing clarity and facilitating smoother customs operations.

Who Does This Apply To?

This section indirectly affects all stakeholders involved in customs-related activities. Specifically:

  • Importers and Exporters: The regulations prescribe forms, procedures, and documentation requirements that these businesses must follow.
  • Customs Brokers: They need to be aware of the regulations to accurately advise their clients and ensure compliance.
  • Customs Officers: The regulations guide them in carrying out their duties related to assessment, clearance, warehousing, etc.
  • Warehouse Keepers: Regulations define the conditions for warehousing goods, including any manufacturing processes permitted.

How It Works

Section 157 operates through the following mechanisms:

  • Empowerment of the Board: Sub-section (1) grants the CBIC (referred to as "the Board" in the Act) the authority to make regulations. These regulations must be consistent with the Customs Act and the existing rules. The regulations must generally aim to carry out the purposes of the Act.

  • Specific Areas of Regulation: Sub-section (2) provides a non-exhaustive list of areas where regulations can be made. These include:

    • Documentation: The form and manner of submitting key documents like bills of entry, shipping bills, import/export manifests, and transhipment documents.
    • Export Procedures: Procedures for export of goods, relinquishment, abandonment, destruction, or rendering goods commercially valueless under Section 26A.
    • Refunds: Prescribing the form and manner for making applications for refunds of duty under Section 27 and Section 26A.
    • Manifests and Passenger Data: Specifying the form, particulars, and timeframes for submitting passenger and crew manifests and passenger name record (PNR) information under Sections 30A and 41A, including penalties for delays.
    • Transhipment, Transportation, and Warehousing: Setting conditions for allowing transhipment (Section 54(3)), transportation (Section 56), and inter-warehouse transfers (Section 67) without duty payment, as well as conditions for manufacturing or operations within warehouses (Section 65)
    • Provisional Assessment: The time and manner of finalising provisional assessments.
    • Consultation & Notices: Procedures for pre-notice consultations and the issuance of supplementary notices.
    • Advance Rulings and Appeals: The form, manner, and procedure for applications related to advance rulings and appeals under Chapter VB.
    • Clearance and Removal: Prescribing the manner of clearing or removing imported or exported goods.
    • Documents for Import: Specifying the documents required for importing goods.
    • Electronic Ledgers: Setting conditions, restrictions, and the manner of deposits, utilization and refunds for electronic cash ledgers and electronic duty credit ledgers.
    • Audits: The manner of conducting audits under the Customs Act.
    • Authentication & Chapter XIIB: Rules regarding authentication, information submission, and exemptions under Chapter XIIB.
    • Controlled Delivery: The goods subject to controlled delivery and the method thereof.
    • Differential Procedures: Tailored procedures for specific importers, exporters, goods, or transport modes.
    • Amendment of Documents: Defining the form, manner, time limit, conditions, and restrictions for amending documents under Section 149.

Important Conditions & Exceptions

  • Consistency with the Act and Rules: Regulations must be consistent with the Customs Act, 1962, and the rules framed thereunder. They cannot contradict the primary legislation.
  • Non-Exhaustive List: The list in sub-section (2) is not exhaustive. The CBIC can make regulations on other matters to carry out the purposes of the Act, provided they are consistent.
  • Public Interest: The regulations should be framed in the public interest and should aim to facilitate trade while ensuring compliance.

Practical Example

An importer wants to claim a refund of excess duty paid under Section 27. Section 157 empowers the CBIC to issue regulations prescribing the specific form (e.g., Form A) and manner (e.g., online submission via ICEGATE portal with required attachments like proof of payment and assessment order) in which the refund application must be made. The importer must adhere to these regulations to successfully claim the refund. Failure to use the correct form or method could result in rejection of the application.

Key Amendments

  • Clauses (ai), (aii), (aa), (ab), (ca), (d), (e), (f), (g), (h), (i), (j), (ja), (k), (ka), (l), (m), and (n) were inserted over time to expand the specific areas where regulations can be made, reflecting evolving customs procedures and technological advancements.
(1)Without prejudice to any power to make regulations contained elsewhere in this Act, the Board may make regulations consistent with this Act and the rules, generally to carry out the purposes of this Act.
(2)In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely :-
(a)the form and manner to deliver or present1 of a bill of entry, shipping bill, bill of export, arrival manifest or import manifest2, import report, departure manifest or export manifest3, export report, bill of transhipment, declaration for transhipment4 boat note and bill of coastal goods;
(ai)the manner of export of goods, relinquishment of title to the goods and abandoning them to customs and destruction or rendering of goods commercially valueless in the presence of the proper officer under clause (d) of sub-section (1) of section 26A;5
(aii)the form and manner of making application for refund of duty under sub-section (2) of section 26A;5
(aa) the 6form and manner7 in which an application for refund shall be made under section 27;6form and manner7 in which an application for refund shall be made under section 27;]
(ab)the form, the particulars, the manner and the time of delivering the passenger and crew manifest for arrival and departure and passenger name record information and the penalty for delay in delivering such information under sections 30A and 41A;8
(b)the conditions subject to which the transhipment of all or any goods under sub-section (3) of section 54, the transportation of all or any goods under section 56 and the removal of warehoused goods from one warehouse to another under section 67, may be allowed without payment of duty;
(c)the conditions subject to which any manufacturing process or other operations may be carried on in a warehouse under section 65.
(ca)the manner and conditions for payment of duty and removal of goods under clause (C) of sub-section (1) of section 65A.13
(d)the time and manner of finalisation of provisional assessment;9
(e)the manner of conducting pre-notice consultation;9
(f)the circumstances under which, and the manner in which, supplementary notice may be issued;9
(g)the form and manner in which an application for advance ruling or appeal shall be made, and the procedure for the Authority, under Chapter VB;9
(h)the manner of clearance or removal of imported or export goods;9
(i)the documents to be furnished in relation to imported goods;9
(j) the conditions, restrictions and the manner of making deposits in electronic cash ledger, the utilisation and refund therefrom and the manner of maintaining such ledger;9
(ja) the manner of maintaining electronic duty credit ledger, making payment from such ledger, transfer of duty credit from ledger of one person to the ledger of another and the conditions, restrictions and time limit relating thereto;10]
(k) the manner of conducting audit;9
(ka) the manner of authentication and the time limit for such authentication, the document or information to be furnished and the manner of submitting such document or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and the time limit for furnishing such identification, person or class of persons to be exempted and conditions subject to which suspension may be made, under Chapter XIIB;11]
(l)the goods for controlled delivery and the manner thereof;9
(m) the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods.9(ja) the manner of maintaining electronic duty credit ledger, making payment from such ledger, transfer of duty credit from ledger of one person to the ledger of another and the conditions, restrictions and time limit relating thereto;10
(k)the manner of conducting audit;
(ka)the manner of authentication and the time limit for such authentication, the document or information to be furnished and the manner of submitting such document or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and the time limit for furnishing such identification, person or class of persons to be exempted and conditions subject to which suspension may be made, under Chapter XIIB;11
(l)the goods for controlled delivery and the manner thereof;
(m)the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods.]
(n)the form and manner, the time limit and the restrictions and conditions for amendment of any document under section 149.12

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Frequently Asked Questions

What is the scope of the Board's power to make regulations under Section 157 of the Customs Act, 1962?

Section 157 grants the Central Board of Indirect Taxes and Customs (CBIC) broad authority to create regulations that are consistent with the Customs Act and its rules. These regulations are designed to implement the Act's objectives effectively. This power is without prejudice to other regulation-making powers contained within the Act itself.

Can Section 157 regulations specify the format for customs documents like Bills of Entry or Shipping Bills?

Yes, Section 157(2)(a) specifically empowers the Board to prescribe the form and manner for delivering or presenting various customs documents. This includes documents like bills of entry, shipping bills, bills of export, arrival/import manifests, departure/export manifests, import/export reports, bills of transhipment, declarations for transhipment, boat notes, and bills of coastal goods.

Does Section 157 authorize regulations about the electronic cash ledger or duty credit ledger?

Yes. Section 157(2)(j) allows regulations regarding conditions, restrictions, and manners of deposits, utilization, and refunds from the electronic cash ledger. Section 157(2)(ja) provides for similar regulations concerning the electronic duty credit ledger, including payments, transfers, and related time limits.

Can regulations under Section 157 address the handling of goods abandoned to customs?

Yes, Section 157(2)(ai) enables regulations covering the manner of export of goods, relinquishment of title to goods, abandoning them to customs, and the destruction or rendering of goods commercially valueless under Section 26A(1)(d). This includes specifying the procedure and documentation involved in such processes.

Are there regulations under Section 157 concerning the amendment of customs documents after they've been submitted?

Yes, Section 157(2)(n) allows for regulations that define the form, manner, time limit, restrictions, and conditions for amending any document under Section 149 of the Customs Act. This provides a framework for rectifying errors or updating information in submitted customs declarations.

How does Section 157 relate to the provisional assessment of duties?

Section 157(2)(d) enables the Board to create regulations about the time and manner of finalizing provisional assessments. This provides a framework for converting provisional assessments to final assessments, ensuring compliance and closure of these cases.

Can Section 157 regulations specify different procedures for different types of importers or exporters?

Yes, Section 157(2)(m) explicitly allows for the creation of separate procedures or documentation for different classes of importers or exporters, categories of goods, or based on the modes of transport used. This allows for tailored regulatory approaches based on specific circumstances.

Key Conditions & Requirements

ConditionDetails
Regulations must align with Act and rules The Board's regulations must be consistent with the Customs Act, 1962 and any rules made under it. They must serve the overall purpose of the Act.
Form and manner of key customs documents Regulations may specify the required form and manner for delivering or presenting various documents such as bills of entry, shipping bills, import/export manifests, and other related documents.
Conditions for duty-free transhipment/transportation The regulations can stipulate the conditions under which transhipment, transportation, and removal of warehoused goods can occur without payment of applicable duty.
Conditions for manufacturing in a warehouse Regulations may define the conditions subject to which manufacturing processes or other operations can be carried out within a customs bonded warehouse.
Form and manner of refund application Regulations may prescribe the specific form and the manner of submitting an application for refund of customs duties.
Passenger/Crew manifest delivery requirements Regulations outline the form, particulars, manner, and timing for delivering passenger and crew manifests and passenger name record information, including penalties for delays.
Manner of maintaining electronic ledgers The manner of maintaining electronic duty credit/cash ledgers, including payment procedures, transfers, restrictions, and time limits related to their use, can be defined by regulations.

Amendment History

123456789+4 moreSuperscript numbers in the text mark amended passages — click them to jump here. Click "↑ view in text" to jump back.
1
2018↑ view in text

Inserted by section 100(i) (w.e.f. 29-3-2018) of the Finance Act, 2018 (13 of 2018).

2
2018↑ view in text

Substituted by section 56 (w.e.f.29.03.2018), by the Finance Act, 2018 (13 of 2018), for "import manifest".

3
2018↑ view in text

Substituted by section 56 (w.e.f.29.03.2018), by the Finance Act, 2018 (13 of 2018), for "export manifest".

4
1999↑ view in text

Substituted by the Finance Act, 1999 (27 of 1999), sec. 115, for "bill of transshipment" (w.e.f. 11.5.1999).

5
2009↑ view in text

Inserted by the Finance (No.2) Act, 2009 (33 of 2009), sec. 91 (w.e.f. 19.8.2009).

6
1991↑ view in text

Inserted by the Central Excises and Customs Laws (Amendment) Act, 1991 (40 of 1991), sec. 14 (w.e.f. 20.9.1991).

7
1995↑ view in text

Substituted by the Finance Act, 1995 (22 of 1995), sec. 67, for "form" (w.e.f. 26.5.1995).

8
2017↑ view in text

Inserted by the Finance Act, 2017 (7 of 2017), sec. 108 (w.e.f. 31.3.2017).

9
2018↑ view in text

Substituted by section 100(ii) (w.e.f. 29.03.2018), by Finance Act, 2018 (13 of 2018), for clause (d). Before substitution clause (d) stood as under: "(d) The manner of conducting audit of the assessment of duty of the imported or export goods at the office of the proper officer or the premises of the importer or exporter , as the case may be."

10
2020↑ view in text

Inserted (w.e.f. 27-3-2020) s. 115 of the Finance Act, 2020 (12 of 2020).

11
2019↑ view in text

Inserted (w.e.f. 1-8-2019) s. 81 (i) of the Finance (No.2) Act, 2019 (23 of 2019).

12
2019↑ view in text

Inserted (w.e.f. 1-8-2019) s. 81 (ii) of the Finance (No.2) Act, 2019 (23 of 2019).

13
2023↑ view in text

Inserted by Act No. 8 of 2023 (w.e.f to be notified)

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