Smuggling and other violations and penal provisions - CBEC's Customs Manual 2023 - Customs

10. Smuggling and other violations and penal provisions: 10.1 Unscrupulous elements do attempt to evade the duties leviable and bypass various prohibitions/restrictions in relation to imports by attempting to bring the goods into the country from places other than the notified ports/airports/Land Customs Stations without reporting or presenting the goods to customs. Similar attempts are made to unauthorizedly Take goods out of the country. This is essentially termed as smuggling and Customs officers have very important role in ensuring that they detect any such attempts of smuggling into or out of the country and take appropriate action both against the goods as well as against the persons involved. 10.2 The Customs Act, 1962 provides for strict penalties in relation to the goods/persons involved in smuggling and other violations of the legal provisions. These include seizure/ confiscation (including absolute confiscation) of the offending goods and fines and penalties on the persons involved in the offence as well as those abetting the offence. The law also empowers Customs officers to carry out searches, arrests and prosecution of persons involved in smuggling and serious commercial frauds and evasion of duties or misuse of export incentives by fraudulent practices (mis-declaration of nature, and value of the goods or suppression of quantities etc.). 10.3 Whereas the Customs Act, 1962 provides for deterrent penal provisions for violations, due process of law has to be followed before action is taken against offending goods or persons/conveyance etc. involved. The Customs officers act as quasi-judicial authorities and the liabilities for duty evaded or sought to be evaded, fines, penalties etc., are adjudged by giving the persons concerned due notice (or Show Cause Notice) of contemplated action against including the gist of the charges and their basis and providing opportunity for representation as well as personal hearing. 10.4 In grave offence cases, the Customs Act, 1962 provides for prosecution with imprisonment upto maximum of 7 years. This involves criminal proceedings in a Court of law, after sanction for prosecution is given by the competent Customs officer. 10.5 Guidelines for launching of prosecution in relation to offences punishable under the Customs Act, 1962 has been prescribed in Circular No.27/2015-Customs dated 23.10.2015 amended by Circulars No.46/2016-Customs dated 04.10.2016 , No.07/2017-Customs dated 06.03.2017 , No.12/2019-Customs dated 24.05.2019 and No. 12/2022-Customs dated 16.08.2022.