Customs Act, 1962 Section 39 — Export goods not to be loaded on vessel until entry-outwards granted
Customs Act, 1962 · Export goods not to be loaded on vessel until entry-outwards granted
Plain-English Explanation
Overview
Section 39 of the Customs Act, 1962, essentially prohibits the loading of export goods onto a vessel until the customs authorities have granted entry-outwards. This provision ensures that export procedures are completed and all necessary clearances are obtained before goods leave the country, maintaining control over export trade. It safeguards against illegal exports and revenue leakage.
Who Does This Apply To?
This section primarily impacts:
- Masters of Vessels: Individuals in charge of ships engaged in international trade. They are directly responsible for ensuring compliance.
- Exporters: Businesses and individuals involved in exporting goods, as they need to ensure the vessel has the necessary clearance.
- Customs Officers: Specifically, the "proper officer" who is authorized to grant entry-outwards.
How It Works
The process governed by Section 39 unfolds as follows:
- Declaration of Export: Exporters file a shipping bill and related documents with the customs authorities, declaring the goods they intend to export.
- Examination and Assessment: Customs officers examine the goods and assess the export duties or taxes, if applicable.
- Granting of Entry-Outwards: Once the customs officer is satisfied that all procedures have been followed correctly, they grant an order for entry-outwards to the vessel. This is the crucial clearance.
- Loading Prohibition: Before entry-outwards is granted, the master of the vessel cannot permit the loading of export goods (excluding baggage and mail bags).
- Loading Permitted: After entry-outwards has been granted, the vessel is authorized to load the declared export goods. Any violation of this provision can result in penalties under other sections of the Customs Act.
Important Conditions & Exceptions
- Condition 1: The prohibition applies to all export goods other than baggage and mail bags. These are treated separately and can be loaded even before entry-outwards.
- Condition 2: The "proper officer" must have the authority to grant entry-outwards. This is usually specified in the customs regulations.
- Exception: While Section 39 focuses on vessels, similar principles apply to other modes of transport (air, land) based on separate regulations. The intention is the same – ensure goods are cleared for export before they leave the country.
Practical Example
Imagine "Sunrise Exports" wants to ship a consignment of textiles valued at INR 5,00,000 from Mumbai to Dubai. Before the goods can be loaded onto the "MV Ocean Star," Sunrise Exports must:
- File the necessary shipping bill with customs, declaring the textiles.
- Customs officers examine the goods and find everything in order.
- The "proper officer" grants entry-outwards to the MV Ocean Star.
- Only after this order is given can the master of the MV Ocean Star allow the loading of Sunrise Exports' textiles. If the goods are loaded before entry-outwards, both Sunrise Exports and the ship's master could face penalties.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What does Section 39 of the Customs Act, 1962, prohibit, and who is responsible for compliance?
Section 39 of the Customs Act, 1962, strictly prohibits the master of a vessel from loading any export goods (excluding baggage and mail bags) until the 'proper officer' has granted 'entry-outwards' to the vessel. This section places the onus of compliance squarely on the vessel's master, ensuring no unauthorized export loading takes place. Violation of this section could lead to penalties under the Customs Act.
What constitutes 'entry-outwards' as defined under Section 39 of the Customs Act, 1962, and how is it obtained?
'Entry-outwards' under Section 39 refers to the official permission granted by the customs authorities (the 'proper officer') for a vessel to depart from India with export goods. It is generally obtained after the vessel has complied with all relevant customs procedures, including filing the necessary documentation (shipping bill, etc.) and obtaining clearance for the export goods from customs. Refer to the Customs Act, 1962 and allied rules/regulations for specifics regarding required documents.
What are the potential consequences for the master of a vessel who violates Section 39 of the Customs Act, 1962?
If the master of a vessel permits the loading of export goods before entry-outwards is granted, they are in violation of Section 39 of the Customs Act, 1962. This can lead to penalties and/or fines levied by the customs authorities. The severity of the penalty will depend on the nature and extent of the violation, as well as other relevant factors.
Does Section 39 of the Customs Act, 1962, apply to all types of vessels and all types of export goods?
Section 39 of the Customs Act, 1962, applies to all types of vessels involved in exporting goods from India. However, it specifically excludes baggage and mail bags from the restriction on loading before entry-outwards is granted. All other export goods are subject to this provision.
How does the introduction of electronic filing of export documents impact the procedure for obtaining entry-outwards under Section 39 of the Customs Act, 1962?
The introduction of electronic filing of export documents (e.g., through the ICEGATE portal) has streamlined the process of obtaining entry-outwards. While the fundamental requirement of obtaining permission before loading remains unchanged under Section 39, electronic filing expedites the submission and processing of documents. This allows for faster clearance and potentially reduces delays in granting entry-outwards.
If export goods are loaded without entry-outwards, can they be unloaded and the vessel subsequently granted permission? What are the implications?
While technically possible to unload goods loaded in violation of Section 39, the situation is complex and can lead to significant delays and penalties. The customs authorities may investigate the circumstances surrounding the unauthorized loading, and the vessel may face fines or other sanctions. Unloading the goods and then seeking entry-outwards does not automatically absolve the vessel's master of responsibility for the initial violation.
What is the role of the 'proper officer' mentioned in Section 39 of the Customs Act, 1962, and how is this individual identified?
The 'proper officer' referenced in Section 39 refers to the designated customs official authorized to grant entry-outwards to a vessel. The specific designation and powers of the 'proper officer' are outlined in notifications and circulars issued by the Central Board of Indirect Taxes and Customs (CBIC). It is crucial to interact with the designated 'proper officer' for all matters related to obtaining entry-outwards.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Prohibition of Loading Export Goods | Export goods (excluding baggage and mail bags) cannot be loaded onto a vessel before entry-outwards is granted. |
| Responsibility of Vessel Master | The master of the vessel is responsible for ensuring that no export goods are loaded before the entry-outwards order is given. |
| Requirement of Entry-Outwards Order | A 'proper officer' must grant an order allowing entry-outwards to the vessel before export goods can be loaded. |
| Exemption for Baggage and Mail Bags | Baggage and mail bags are specifically exempted from the requirement of entry-outwards before loading. |
| Implication of Non-Compliance | Although Section 39 doesn't explicitly state a penalty, failure to comply will attract penalties under Customs Act, 1962 because it is a violation of the legal procedure. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 39 — Export goods not to be loaded on vessel until entry-outwards granted