Customs Act, 1962 Section 98 — Application of certain provisions of this Act to coastal goods, etc
Customs Act, 1962 · Application of certain provisions of this Act to coastal goods, etc
Plain-English Explanation
Overview
Section 98 of the Customs Act, 1962, extends specific provisions applicable to imported/exported goods and vessels to coastal goods (goods transported within India's territorial waters) and vessels carrying them. This ensures a basic level of customs control and regulation over domestic waterborne transport, preventing misuse and ensuring proper tracking of goods within the country.
Who Does This Apply To?
This section primarily impacts:
- Owners and operators of vessels carrying coastal goods.
- Consignors and consignees of coastal goods.
- Customs officers responsible for supervising and controlling coastal traffic.
- Entities dealing with handling and storage of coastal goods.
How It Works
Section 98 works by selectively applying provisions normally used for international trade to coastal trade:
- Application of Sections 33, 34, and 36 (with modifications as needed): These sections deal with the power to board vessels, power to require the production of documents, and power to stop and search. By extending these to coastal goods, customs officers can inspect vessels and documents to verify the legitimacy of the goods being transported and prevent smuggling or other illegal activities.
- Application of Sections 37 and 38 (with modifications as needed): These sections relate to power to examine persons and power to summon persons to give evidence and produce documents. These allow customs officers to question individuals involved in coastal trade to gather information and ensure compliance.
- Central Government Notification: The Central Government has the power to extend other provisions of Chapter VI (relating to provisions applicable to conveyances carrying imported or export goods) and Section 45 (dealing with restrictions on custody and removal of imported goods) to coastal goods and vessels via notification in the Official Gazette. These notifications can include specific exceptions and modifications to tailor the application to the unique characteristics of coastal trade.
Important Conditions & Exceptions
- Applicability "so far as may be": This clause indicates that the sections are applied with necessary adaptations to fit the context of coastal goods. For instance, certain procedural requirements suitable for international imports might need simplification for domestic coastal movement.
- Notification Required for Chapter VI & Section 45: Only those provisions of Chapter VI and Section 45 specifically notified by the Central Government are applicable to coastal goods. This allows for selective application based on the government's assessment of the need for control.
- Exceptions and Modifications: Any notification extending the provisions can include specific exceptions or modifications, allowing for flexibility in implementing the regulations.
Practical Example
A vessel is transporting 500 tons of steel coils from Kolkata port to Chennai port within India. Under Section 98, customs officers have the power (under Section 33 read with Section 98) to board the vessel in Chennai, examine the cargo manifest (required under Section 34 read with Section 98), and question the captain (under Section 37 read with Section 98) to verify that the steel coils are accurately declared and not being diverted illegally. If a notification under Section 98(3) extends Section 45 to coastal goods, the goods can only be unloaded at an approved place.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What are 'coastal goods' for the purposes of Section 98 of the Customs Act, 1962, and why is this distinction important?
'Coastal goods' refer to goods transported from one port in India to another. Section 98 extends specific provisions of the Customs Act, normally applicable to imported/exported goods, to these domestically transported goods. This is important because it brings certain aspects of customs control, like entry inwards/outwards of vessels, to coastal shipping, impacting documentation and compliance requirements.
Which sections of the Customs Act, 1962, are directly applicable to coastal goods under Section 98(1) and (2)?
Sections 33 (Power to require production of documents and to ask questions), 34 (Power to summon persons to give evidence and produce documents) and 36 (Power to search premises) directly apply to coastal goods as per Section 98(1). Section 98(2) makes Sections 37 (Power to stop and search conveyances) and 38 (Power to examine persons) applicable to vessels carrying coastal goods, similar to those carrying imports or exports.
How does Section 98(3) allow the Central Government to expand the applicability of the Customs Act, 1962, to coastal goods?
Section 98(3) provides a mechanism for the Central Government to issue notifications extending provisions of Chapter VI (relating to clearance of goods) and Section 45 (custody and handling of imported goods, etc.) of the Customs Act, 1962, to coastal goods. These notifications can include specific exceptions and modifications to the applicability, tailoring the rules to the coastal trade context.
Are there any specific penalties associated with non-compliance under Section 98 of the Customs Act, 1962, concerning coastal goods?
While Section 98 itself doesn't define penalties, non-compliance with the sections extended to coastal goods (e.g., Sections 33, 34, 36, 37, 38, 45, or any provision under Chapter VI extended via notification) can attract penalties under other relevant sections of the Customs Act, such as Section 111 (confiscation of improperly imported goods, etc.) or Section 112 (Penalty for improper importation of goods, etc.). The specific penalty depends on the nature of the violation and the specific provision violated.
What practical implications does Section 98 have for businesses involved in coastal shipping within India?
Businesses involved in coastal shipping need to be aware that customs officers have powers to demand documents, summon persons for questioning, and conduct searches, similar to international trade. This necessitates proper documentation of coastal goods movements, compliance with regulations outlined in notifications issued under Section 98(3), and being prepared for potential inspections to avoid penalties and delays.
How frequently are notifications issued under Section 98(3) of the Customs Act, 1962, and where can these notifications be found?
The frequency of notifications under Section 98(3) varies depending on policy changes and administrative requirements. These notifications are published in the Official Gazette of India and are often available through the CBIC (Central Board of Indirect Taxes and Customs) website and other official government sources. Keeping abreast of these notifications is crucial for businesses engaged in coastal trade.
Does Section 98 impact the process of filing bills of coastal goods? What are the key considerations?
While Section 98 doesn't explicitly outline a process for filing bills of coastal goods, the application of Chapter VI provisions through notifications under Section 98(3) may necessitate documentation similar to import/export declarations. Key considerations include understanding which specific declarations are required based on current notifications, ensuring accurate classification of goods, and complying with any specific timelines or procedures outlined in those notifications.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Sections 33, 34 & 36 application | These sections of the Customs Act applicable to imported/export goods also apply to coastal goods 'so far as may be'. |
| Sections 37 & 38 application | These sections of the Customs Act related to vessels carrying imported/export goods also apply to vessels carrying coastal goods 'so far as may be'. |
| Government notification powers | Central Government can extend Chapter VI provisions and Section 45 to coastal goods/vessels via notification. |
| Exceptions and modifications permitted | The Central Government's notification may specify exceptions and modifications to the applied provisions. |
| Applicability of Sections 33, 34, and 36 | These sections primarily deal with reporting, handling, and examination of goods. They're relevant to coastal goods, adjusting for their nature. |
| Applicability of Sections 37 and 38 | These sections address vessel entry/departure and require compliance to ensure proper tracking of coastal transport. |
Amendment History
No amendment records available for this provision.
Customs Act, 1962 Section 98 — Application of certain provisions of this Act to coastal goods, etc