Follow Us :

Circular No. 64/94-Cus. VI
dated 17/12/96

F.No. 495/6/96 – Cus- VI
Government of India
Ministry of Finance, Department of Revenue
(Central Board of Excise & Customs), New Delhi

Subject:  Permissibility of free allowance to passengers when the whole of the goods or a part of the goods of their baggage is treated to be imported in commercial quantity.

It has come to the notice of the Board that adjudicating authorities at different levels are holding different opinions whether free allowance would be permitted on import of baggage’s, where part of the goods are found to be in commercial quantity. The issue of import of consumer goods in commercial quantity had earlier been examined by Board and instructions were issued vide circular No. 2/92, dated 31.1.1992 and vide File No. 495/10/92-Cus.VI. dated 7.7.1992 and recently vide F.No. 495/6/96-Cus. VI dated 6.5.1996. The gist of the said instructions are that import of the consumer goods in commercial quantity is not permissible even in the present EXIM Policy and in addition they are not to be treated as part of the bona fide baggage. Therefore, they would be liable to be adjudicated. the present problem is where a part of the goods are in the commercial quantity and that part attracts adjudication and penalty, whether free baggage allowance can be allowed to the other part of the goods which is not in commercial quantity. The matter has been examined and it is found that the entire baggage imported by a passenger does not become non-bonafide or tainted because some articles in the baggage are held liable to confiscation being in commercial quantities. Therefore, that portion of the baggage which is not in commercial quantity would be eligible to free baggage allowance.

(Ranjana Jha)
Secretary to the Govt. of India

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
May 2024