Offences and Penal Provisions - CBEC's Customs Manual 2023 - Customs

Chapter 30: Offences and Penal Provisions 1. Introduction: 1.1 Persons involved in import or export activity in violation of prohibitions or restrictions in vogue or with the intent to evade duties or fraudulently claim export incentives are liable for strict penal action under the Customs Act, 1962. The offending goods can be confiscated and heavy fines and penalties imposed on the persons concerned. In fact, sensitive goods like narcotics, FICN, arms and ammunitions, etc. are absolutely confiscated. There are also provisions for arrests and prosecution to deter smuggling or commercial fraud, which seriously affects the economic security. 1.2 In the context of penal provisions under the Customs Act, 1962 the term smuggling has vast connotations and means any act or omission which will render such goods liable for confiscation under Sections 111 or 113 of the said Act . 1.3 In general terms, the word penalty means punishment under the law, i.e., such punishment as is provided in penal laws. It also means the sum payable as a punishment for a default. The Customs Act, 1962 contains specific provisions for imposition of penalty in case of contraventions of the legal stipulations.