CBIC Revises Threshold Limits For Launching Prosecution In Relation To Offences Punishable Under Customs Act, 1962

The CBIC has decided to revise the threshold in the case of baggage and outright smuggling. The arrest and prosecution can be made in cases involving unauthorised importation of baggage/cases under the Transfer of Residence Rules, where the market value of the goods involved is Rs. 50,00,000. The outright smuggling of high-value goods such as precious metals, restricted items or prohibited items or foreign currency where the market value of the offending goods is Rs. 50,00,000.

According to the indirect tax body's circulars, the arrest and prosecution can be triggered in cases related to the importation of trade goods. It entails wilful mis-declaration of value/description; concealment of restricted goods or goods notified under Section 11 of the Customs Act, 1962; and the market value of the offending goods is Rs. 2,00,000/- (two crores) or more.

Cases involving fraudulent evasion or attempted evasion of duty under the Customs Act 1962, if the amount of duty evaded is Rs. 2,00,00,000/- (Rupees Two Crore) or more, will be prosecuted and arrested.

Similarly, in cases related to fraudulent availment of drawback or attempt to avail of drawback or any exemption from duty in connection with the export of goods, if the amount of drawback or exemption from duty is Rs. 2,00,00,000 or more, it may trigger arrest and prosecution.

The prosecution shall not be initiated in the cases involving non-declaration of foreign currency by foreign nationals and NRIs detected at the time of departure from India, exceeding the threshold limits of Rs 50 lakh, if it is claimed that the currency has been legally acquired and brought into India but not declared inadvertently.

Circular No. 12/2022-Customs

Dated: 16.08.2022

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