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Baggage - Commercial quantity � Redemption fine/ personal penalty
leviable
Circular No. 29 dated 11th April
2000
Instances have
come to the notice of Central Board of Excise and Customs that in some case of
import of baggage in commercial quantity the Adjudicating/ Appellate authorities
have dropped/ set aside the order imposing redemption fine and personal penalty
on non bonafide baggage, on the plea that these items are otherwise freely
importable under the EXIM Policy.
2. Vide
Board�s instructions dated 6.5.1996, it was clarified that import of goods in
baggage in commercial quantities would not be permissible within the scope of
the Baggage Rules, even on payment of baggage rate of duty and these cases had
to be adjudicated for imposition of suitable redemption fine/ personal penalties
etc. Vide Board�s instruction dated 17.12.1996 it was further clarified that
the portion of the baggage which is not in commercial quantity would be eligible
to free baggage allowance.
3. Copy
of Board�s instruction issued vide F.No.495/ 6/ 96-Cus dated 6.5.1996 and
17.12.1996 (enclosed may be-re-circulated to all concerned once again for strict
compliance.
Regarding
Import of Goods in Commercial Quantities in Baggage
Please refer to
your D.O. Letter F.No. S/ V-10 (28) CCU/ 96 dated � 16th April,
1996 on the above subject. The Board has examined the issue in detail and it is
confirmed that import of goods in commercial quantity could not be permissible
within the scope of the Baggage Rules, 1994 even on payment of baggage rate of
duty. The baggage rules operate in consonance with the Exim Policy. The Exim
Policy specifically restricts import of consumer goods however described in para
156A. Therefore, under the guise of the baggage, the same EXIM policy cannot be
allowed to be subverted and such goods therefore, be adjudicated before
clearance.
2. The
Board�s instructions No. 2/ 92, dated 31.1.92 mentioned that "These
articles are, however, not permitted for importation as baggage in terms of
relevant ITC/ notice such goods would be released on adjudication after levy of
appropriate fine and penalty."" Similarly, the Board'� instruction
dated 7th July, 1992 issued from the F.No. 495/10/92-Cus. VI also
mentioned. "Therefore, normal restrictions and prohibitions as have been
specified in the revised import policy of goods, irrespective of whether they
are brought by air, by sea or baggage would be applicable". It may be seen
that both the instructions have spoken of following the Exim Policy and
therefore, the practice of allowing such goods on payment of duty only was
irregular. In addition, it was mentioned in the commissioner�s conference at
Calcutta and Cochin that other Collect orates were not allowing goods in
commercial quantities without adjudication.
(2) Circular No.
64/ 96-Cus. VI dt. 17.12.1996
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, 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 Bard and instructions were issued vide circular No. 2/ 92, dated
31.1.1992and 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 article 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.
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