Customs Act, 1962 Section 97 — No coasting vessel to leave without written order
Customs Act, 1962 · No coasting vessel to leave without written order
Plain-English Explanation
Overview
Section 97 of the Customs Act, 1962, prevents coasting vessels (ships transporting goods within India) from leaving a port after loading or unloading coastal goods without the explicit written permission of a proper officer. This section ensures compliance with customs regulations and the payment of any outstanding dues or penalties before a vessel departs.
Who Does This Apply To?
This section primarily applies to:
- Masters of coasting vessels: The captain or person in charge of the ship.
- Owners of coasting vessels: Individuals or entities that own the ships.
- Proper Officers: Customs officials authorized to grant permission for vessels to depart.
- Shipping agents/companies: Entities managing the vessel's logistics and compliance.
How It Works
The process outlined by Section 97 is as follows:
- Arrival & Loading/Unloading: A coasting vessel arrives at a customs port or coastal port and either brings in coastal goods or loads them for transport.
- Information Disclosure: The master of the vessel must answer questions posed by the proper officer under Section 38 of the Customs Act regarding the vessel, its cargo, and its voyage.
- Payment of Dues: All applicable charges and penalties related to the vessel or its master must be paid. Alternatively, the payment can be secured by providing a guarantee or a deposit.
- Penalty Clearance: The master must demonstrate to the proper officer that no penalties are applicable under Section 116 of the Customs Act. If a penalty is applicable, its payment must be secured via a guarantee or deposit. Section 116 deals with penalties for improper unloading and loading of goods.
- Compliance Check: The master must ensure compliance with all provisions of Chapter XII of the Customs Act (related to Coastal Goods and Vessels Carrying Coastal Goods), along with all associated rules and regulations.
- Written Order: After verifying compliance with all the above conditions, the proper officer issues a written order authorizing the vessel's departure. The vessel cannot leave without this order.
Important Conditions & Exceptions
- Condition 1: Information Accuracy: The information provided by the master under Section 38 must be accurate and complete. Any misrepresentation can lead to delays or penalties.
- Condition 2: Timely Payment: All payments must be made within the timeframe specified by the proper officer. Delays in payment can result in the vessel being detained.
- Exception: There are no specific exceptions explicitly mentioned in Section 97. However, the proper officer retains discretionary power to waive certain requirements based on the specific circumstances, within the ambit of existing regulations and guidelines. This is not explicitly granted in 97, but derived from broader customs powers.
Practical Example
A coasting vessel named "Bharat Trader" unloads a consignment of textiles at the Chennai port. The shipping agent, "Coastal Logistics," needs to obtain clearance for the vessel's departure.
- The master of "Bharat Trader" answers all questions under Section 38 asked by the proper officer.
- "Coastal Logistics" pays port charges of ₹50,000.
- During inspection, a discrepancy is found regarding the declared weight of a previous consignment carried by "Bharat Trader" resulting in a penalty of ₹20,000 levied under Section 116. "Coastal Logistics" provides a bank guarantee to secure this penalty payment.
- After verifying all documents and ensuring compliance with coastal shipping regulations, the proper officer issues a written order allowing "Bharat Trader" to depart. If "Coastal Logistics" had failed to provide the bank guarantee for the penalty, the vessel would have been detained until the payment was secured.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What types of vessels are subject to the restrictions on departure under Section 97 of the Customs Act, 1962?
Section 97 of the Customs Act, 1962 applies specifically to 'coasting vessels.' These are vessels that have either brought or loaded coastal goods at a customs or coastal port. The section restricts the master of such a vessel from allowing its departure without a written order from the proper officer.
What conditions must be met before a 'proper officer' issues a written order allowing a coasting vessel to depart under Section 97 of the Customs Act, 1962?
Under Section 97(2), the 'proper officer' will only issue a departure order after several conditions are satisfied. These include the master answering questions under Section 38, payment or securing of all charges and penalties, assurance that no penalty is leviable under Section 116 or security for such potential penalties, and compliance with all relevant rules and regulations regarding coastal goods and vessels.
What happens if a coasting vessel departs without the written order required by Section 97 of the Customs Act, 1962?
If a coasting vessel departs without the required written order from the 'proper officer' under Section 97(1) of the Customs Act, 1962, the master of the vessel may face penalties. The exact penalties for such violations are prescribed elsewhere in the Act and related regulations, and could include fines or other enforcement actions.
Does Section 97 of the Customs Act, 1962, impose any time limit on the 'proper officer' for issuing the departure order once all conditions are met?
Section 97 of the Customs Act, 1962 does not explicitly state a time limit within which the 'proper officer' must issue the departure order. However, the officer is expected to act reasonably and without undue delay once all conditions outlined in Section 97(2) have been fulfilled by the master of the vessel. Any unreasonable delay may be subject to administrative review.
How does Section 116 of the Customs Act, 1962 relate to Section 97 concerning the departure of coasting vessels?
Section 116 of the Customs Act, 1962 concerns potential penalties leviable on the master of the vessel. Section 97(2)(c) specifically requires the master to either satisfy the 'proper officer' that no penalty is leviable under Section 116, or to provide security (guarantee or deposit) for the payment of any such penalty before the vessel can be cleared for departure.
Are there any recent amendments or updates to Section 97 of the Customs Act, 1962 that I should be aware of?
As of my last update, there have been no significant amendments to Section 97 of the Customs Act, 1962 itself. However, related regulations and circulars concerning coastal goods and vessel procedures may be updated periodically by the CBIC (Central Board of Indirect Taxes and Customs). It's always advisable to check the latest official notifications for any relevant changes impacting the practical application of Section 97.
What constitutes 'security' for the purposes of Section 97(2)(b) and 97(2)(c) regarding charges, penalties, and the departure of coasting vessels?
Section 97(2)(b) and (c) allow for the payment of charges and penalties, or potential penalties under section 116, to be 'secured'. This security can take the form of a guarantee or a deposit of such amount as the 'proper officer' may direct. The specific type and amount of security are determined by the 'proper officer' based on the circumstances of each case.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Written order required for departure | A coasting vessel carrying coastal goods cannot depart from a customs or coastal port without a written departure order from the proper officer. |
| Master's responsibility | The master of the vessel is responsible for ensuring the vessel does not depart without the required written order. |
| Answering questions under Section 38 | The master must answer questions posed by the proper officer as per Section 38 before a departure order is issued. |
| Payment of dues and penalties | All charges and penalties related to the vessel or its master must be paid, or payment secured, before departure. |
| Penalty under Section 116 | The master must satisfy the officer that no penalty is leviable under Section 116, or any such penalty is secured. |
| Compliance with coastal goods regulations | All provisions of the chapter and rules/regulations pertaining to coastal goods and vessels must be complied with. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 97 — No coasting vessel to leave without written order