Customs Act, 1962
[52 OF 1962]*
An Act to consolidate and amend the law relating to customs. Be it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1. (1) This Act may be called the Customs Act, 1962.
(2)It extends to the whole of India 1[, fishing and fishing related activities by Indian-flagged fishing vessels beyond territorial waters of India] 2[and, save as otherwise provided in this Act, it applies also to any offence or contravention thereunder committed outside India by any person].
(3)It shall come into force on such date3 as the Central Government may, by notification in the Official Gazette, appoint.
COMMENTS
SECTION NOTES
1.1 Short title
u Section 1(1) of the Act states that the statute may be cited as the Customs Act, 1962. This is the formal name by which the legislation is referred to in courts, notifications and departmental records.
1.2 Extent and extra-territorial application
u Section 1(2) of the Act extends the statute to the whole of India. By an amendment inserted by the Finance Act, 2026, w.e.f. 30-3-2026, its reach has been expressly stretched to fishing and fishing related activities by Indian-flagged fishing vessels beyond the waters of India.
1.3 Commencement
u Section 1(3) of the Act leaves the date of commencement to be appointed by the Central Government through a notification in the Official Gazette. The Act was brought into force on 1-2-1963 vide Notification No. GSR 155(E), dated 23-1-1963.
*Dated 13-12-1962.
1. Inserted by the Finance Act, 2026, w.e.f. 30-3-2026.
2. Inserted by the Finance Act, 2018, w.e.f. 29-3-2018.
3. With effect from 1-2-1963; vide Notification No. G.S.R. 155(E), dated 23-1-1963. 1.17
See Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zone Act, 1976.
CASE LAWS
u Act applies to whole of India - Parliament can enact Legislation with regard to extraterritorial aspects of certain events - Union of India v. Mohit Minerals (P.) Ltd. [2022] 10 SCC 700 = 138 taxmann.com 331 = 92 GST 101 = 61 GSTL 257 (SC 3 member bench).
Definitions.
2. In this Act, unless the context otherwise requires,—
3a[(1) “adjudicating authority” means any authority competent to pass any order or decision under this Act, but does not include the Board, 3b[Commissioner (Appeals)] or Appellate Tribunal;
(1A) “aircraft” has the same meaning as in the Aircraft Act, 1934 (22 of 1934);
(1B) “Appellate Tribunal” means the Customs, Excise and 4[Service Tax] Appellate Tribunal constituted under section 129;]
5[(2) “assessment” means determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum so payable, if any, under this Act or under the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) or under any other law for the time being in force, with reference to—
(a) the tariff classification of such goods as determined in accordance with the provisions of the Customs Tariff Act;
(b) the value of such goods as determined in accordance with the provisions of this Act and the Customs Tariff Act;
(c) exemption or concession of duty, tax, cess or any other sum, consequent upon any notification issued therefor under this Act or under the Customs Tariff Act or under any other law for the time being in force;
(d) the quantity, weight, volume, measurement or other specifics where such duty, tax, cess or any other sum is leviable on the basis of the quantity, weight, volume, measurement or other specifics of such goods;
(
e) the origin of such goods determined in accordance with the provisions of the Customs Tariff Act or the rules made thereunder, if the amount of duty, tax, cess or any other sum is affected by the origin of such goods;
3a. Substituted by the Finance (No. 2) Act, 1980, w.e.f. 11-10-1982.
3b. Substituted for “Collector (Appeals)” by the Finance Act, 1995, w.e.f. 26-5-1995.
4. Substituted for “Gold (Control)” by the Finance Act, 2003, w.e.f. 14-5-2003.
5. Substituted by the Finance Act, 2018, w.e.f. 29-3-2018. Prior to its substitution, clause (2), as substituted by the Finance Act, 2011, w.e.f. 8-4-2011, read as under:
‘(2) “assessment” includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;’
(f) any other specific factor which affects the duty, tax, cess or any other sum payable on such goods, and includes provisional assessment, self-assessment, re-assessment and any assessment in which the duty assessed is nil;]
(3) “baggage” includes unaccompanied baggage but does not include motor vehicles;
6[(3A) “beneficial owner” means any person on whose behalf the goods are being imported or exported or who exercises effective control over the goods being imported or exported;]
(4) “bill of entry” means a bill of entry referred to in section 46;
(5) “bill of export” means a bill of export referred to in section 50;
(6) “Board” means the 6a[7[Central Board of Indirect Taxes and Customs] constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)];
(7) “coastal goods” means goods, other than imported goods, transported in a vessel from one port in India to another;
8[(7A) “Commissioner (Appeals)” means a person appointed to be a Commissioner of Customs (Appeals) under sub-section (1) of section 4;
9[(7B) “common portal” means the Common Customs Electronic Portal referred to in section 154C;]
10[(8) 11[“Principal Commissioner of Customs or Commissioner of Customs”], except for the purposes of Chapter XV, includes an Additional Commissioner of Customs;]
(9) “conveyance” includes a vessel, an aircraft and a vehicle;
(10) “customs airport” means any airport appointed under clause (a) of section 7 to be a customs airport 12[and includes a place appointed under clause (aa) of that section to be an air freight station];
(11) “customs area” means the area of a customs station 13[or a warehouse] and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities;
(12) “customs port” means any port appointed under clause (a) of section 7 to be a customs port 13a[, and includes a place appointed under clause (aa) of that section to be an inland container depot];
6. Inserted by the Finance Act, 2017, w.e.f. 31-3-2017.
6a. Substituted by the Central Board of Revenue Act, 1963, w.e.f. 1-1-1964.
7. Substituted for “Central Board of Excise and Customs” by the Finance Act, 2018, w.e.f. 29-32018.
8. Clause (7A) substituted by the Finance Act, 1995, w.e.f. 26-5-1995. Earlier, clause (7A) was inserted by the Finance (No. 2) Act, 1980, w.e.f. 11-10-1982.
9. Inserted by the Finance Act, 2021, w.e.f. 28-3-2021.
10. Substituted by the Finance Act, 1995, w.e.f. 26-5-1995. Earlier, clause (8) was substituted by the Finance Act, 1992, w.e.f. 14-5-1992.
11. Substituted for “Commissioner of Customs” by the Finance (No. 2) Act, 2014, w.e.f. 6-8-2014.
12. Inserted by the Finance Act, 2012, w.e.f. 28-5-2012.
13. Inserted by the Taxation Laws (Amendment) Act, 2017, w.e.f. 1-7-2017.
13a. Inserted by the Finance Act, 1983, w.e.f. 13-5-1983.
(13) “customs station” means any customs port, 14[customs airport, international courier terminal, foreign post office] or land customs station;
(14) “dutiable goods” means any goods which are chargeable to duty and on which duty has not been paid;
(15) “duty” means a duty of customs leviable under this Act;
(16) “entry” in relation to goods means an entry made in a bill of entry, shipping bill or bill of export and includes 15[***] the entry made under the regulations made under section 84;
(17) “examination”, in relation to any goods, includes measurement and weighment thereof;
(18) “export”, with its grammatical variations and cognate expressions, means taking out of India to a place outside India;
(19) “export goods” means any goods which are to be taken out of India to a place outside India;
(20) “exporter”, in relation to any goods at any time between their entry for export and the time when they are exported, includes 16[any owner, beneficial owner] or any person holding himself out to be the exporter;
17[(20A) “foreign post office” means any post office appointed under clause (e) of sub-section (1) of section 7 to be a foreign post office;]
(21) “foreign-going vessel or aircraft” means any vessel or aircraft for the time being engaged in the carriage of goods or passengers between any port or airport in India and any port or airport outside India, whether touching any intermediate port or airport in India or not, and includes—
(i) any naval vessel of a foreign Government taking part in any naval exercises;
(ii) any vessel engaged in fishing or any other operations outside the territorial waters of India;
(iii) any vessel or aircraft proceeding to a place outside India for any purpose whatsoever;
18[(21A) “Fund” means the Consumer Welfare Fund established under section 12C of the Central Excise Act, 1944 (1 of 1944);]
(22) “goods” includes—
(a) vessels, aircrafts and vehicles;
(b) stores;
(c) baggage;
14. Substituted for “customs airport” by the Finance Act, 2017, w.e.f. 31-3-2017.
15. Words “in the case of goods imported or to be exported by post, the entry referred to in section 82 or” omitted, ibid.
16. Substituted for “any owner”, ibid.
17. Inserted, ibid.
18. Inserted by the Central Excises and Customs Laws (Amendment) Act, 1991, w.e.f. 20-9-1991.
(d) currency and negotiable instruments; and
(e) any other kind of movable property;
(23) “import”, with its grammatical variations and cognate expressions, means bringing into India from a place outside India;
(24) 19[“arrival manifest or import manifest”] or “import report” means the manifest or report required to be delivered under section 30;
(25) “imported goods” means any goods brought into India from a place outside India but does not include goods which have been cleared for home consumption;
(26) “importer”, in relation to any goods at any time between their importation and the time when they are cleared for home consumption, includes 20[any owner, beneficial owner] or any person holding himself out to be the importer;
(27) “India” includes the territorial waters of India;
(28) “Indian Customs Waters” means the 20a[waters extending into the sea up to the limit of 21[Exclusive Economic Zone under section 7] of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (80 of 1976)] and includes any bay, gulf, harbour, creek or tidal river;
21a[(28A) “Indian-flagged fishing vessel” means a vessel which is used or intended to be used for the purpose of fishing in the seas and entitled to fly the flag of India;]
22[23[(28B)] “international courier terminal” means any place appointed under clause (f) of sub-section (1) of section 7 to be an international courier terminal;]
(29) “land customs station” means any place appointed under clause (b) of section 7 to be a land customs station;
(30) “market price”, in relation to any goods, means the wholesale price of the goods in the ordinary course of trade in India;
23a[(30A) “National Tax Tribunal” means the National Tax Tribunal established under section 3 of the National Tax Tribunal Act, 2005;]
24[(30AA) “notification” means notification published in the Official Gazette and the expression “notify” with its cognate meaning and grammatical variation shall be construed accordingly;]
19. Substituted for “import manifest” by the Finance Act, 2018, w.e.f. 29-3-2018.
20. Substituted for “any owner” by the Finance Act, 2017, w.e.f. 31-3-2017.
20a. Substituted by the Customs, Central Excises and Salt and Central Boards of Revenue (Amendment) Act, 1978, w.e.f. 1-7-1978.
21. Substituted for “contiguous zone of India under section 5” by the Finance Act, 2018, w.e.f. 29-3-2018.
21a. Inserted by the Finance Act, 2026, w.e.f. 30-3-2026.
22. Inserted by the Finance Act, 2017, w.e.f. 31-3-2017.
23. Renumbered by the Finance Act, 2026, w.e.f. 30-3-2026.
23a. Clause (30A) was to be inserted by the National Tax Tribunal Act, 2005. However, National Tax Tribunal Act, 2005 was declared as unconstitutional by the Supreme Court in Madras Bar Association v. Union of India [2014] 49 taxmann.com 515.
24. Inserted by the Finance Act, 2018, w.e.f. 29-3-2018.
25[(30B) “passenger name record information” means the records prepared by an operator of any aircraft or vessel or vehicle or his authorised agent for each journey booked by or on behalf of any passenger;]
(31) “person-in-charge” means,—
(a) in relation to a vessel, the master of the vessel;
(b) in relation to an aircraft, the commander or pilot-in-charge of the aircraft;
(
c) in relation to a railway train, the conductor, guard or other person having the chief direction of the train;
(
d) in relation to any other conveyance, the driver or other person-incharge of the conveyance;
(32) “prescribed” means prescribed by regulations made under this Act;
(33) “prohibited goods” means any goods the import or export of which is subject to any prohibition under this Act or any other law for the time being in force but does not include any such goods in respect of which the conditions subject to which the goods are permitted to be imported or exported have been complied with;
(34) “proper officer”, in relation to any functions to be performed under this Act, means the officer of customs who is assigned those functions by the Board or the 26[Principal Commissioner of Customs or Commissioner of Customs] 27[under section 5];
(35) “regulations” means the regulations made by the Board under any provision of this Act;
(36) “rules” means the rules made by the Central Government under any provision of this Act;
(37) “shipping bill” means a shipping bill referred to in section 50;
(38) “stores” means goods for use in a vessel or aircraft and includes fuel and spare parts and other articles of equipment, whether or not for immediate fitting;
(39) “smuggling”, in relation to any goods, means any act or omission which will render such goods liable to confiscation under section 111 or section 113;
(40) “tariff value”, in relation to any goods, means the tariff value fixed in respect thereof under sub-section (2) of section 14;
(41) “value”, in relation to any goods, means the value thereof determined in accordance with the provisions of sub-section (1) 28[or sub-section (2) of section 14];
25. Inserted by the Finance Act, 2017, w.e.f. 31-3-2017.
26. Substituted for “Chief Commissioner of Customs” by the Finance (No. 2) Act, 2014, w.e.f. 6-8-2014.
27. Inserted by the Finance Act, 2022, w.e.f. 30-3-2022.
28. Substituted for “sub-section (1) of section 14” by the Finance Act, 2007 w.e.f. 10-10-2007.
(42) “vehicle” means conveyance of any kind used on land and includes a railway vehicle;
29[(43) “warehouse” means a public warehouse licensed under section 57 or a private warehouse licensed under section 58 or a special warehouse licensed under section 58A;]
(44) “warehoused goods” means goods deposited in a warehouse; (45) 30[***]
COMMENTS
ADJUDICATING AUTHORITY [SECTION 2(1)]
SECTION NOTES
2.1 Definition of “Adjudicating authority”
Clause (1) of section 2 of the Act defines “adjudicating authority” as any authority competent to pass an order or decision under the Act. It expressly excludes the Board, the Commissioner (Appeals) and the Appellate Tribunal, because these bodies act as reviewing rather than first-level authorities.
AIRCRAFT [SECTION 2(1A)]
SECTION NOTES
2.2 Definition of “Aircraft”
u Clause (1A) of section 2 of the Act adopts the meaning of “aircraft” given in the Aircraft Act, 1934. The Act does not lay down a separate definition.
APPELLATE TRIBUNAL [SECTION 2(1B)]
SECTION NOTES
2.3 Definition of “Appellate Tribunal”
u Clause (1B) of section 2 of the Act defines the “Appellate Tribunal” as the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Act. The word “Service Tax” was substituted for “Gold (Control)” by the Finance Act, 2003 (w.e.f. 14-5-2003) to reflect the Tribunal’s current jurisdiction.
29. Substituted by the Finance Act, 2016, w.e.f. 14-5-2016. Prior to its substitution, clause (43) read as under:
‘(43) “warehouse” means a public warehouse appointed under section 57 or a private warehouse licensed under section 58;’
30. Omitted by the Finance Act, 2016, w.e.f. 14-5-2016. Prior to its omission, clause (45) read as under:
‘(45) “warehousing station” means a place declared as a warehousing station under section 9.’
SECTION NOTES
ASSESSMENT [SECTION 2(2)]
2.4 Definition of “Assessment”
u Clause (2) of section 2 of the Act, substituted by the Finance Act, 2018 (w.e.f. 29-32018), defines “assessment” as the determination of the dutiability of any goods and the amount of duty, tax, cess or any other sum payable under the Act, the Customs Tariff Act, 1975 or any other law. The determination is made with reference to classification, value, exemption or concession, measurement, origin and any other factor that affects duty. It also includes provisional assessment, self-assessment, re-assessment and nil assessment.
BAGGAGE [SECTION 2(3)]
SECTION NOTES
2.5 Definition of “Baggage”
u Clause (3) of section 2 of the Act defines “baggage” to include unaccompanied baggage but to exclude motor vehicles. This is why cars, even those accompanying a passenger, cannot be cleared as baggage.
BENEFICIAL OWNER [SECTION 2(3A)]
SECTION NOTES
2.6 Definition of “Beneficial owner”
u Clause (3A) of section 2 of the Act, inserted by the Finance Act, 2017 (w.e.f. 31-3-2017), defines “beneficial owner” as any person on whose behalf goods are being imported or exported, or who exercises effective control over them.
SECTION NOTES
BILL OF ENTRY [SECTION 2(4)]
2.7 Definition of “Bill of entry”
u Clause (4) of section 2 of the Act defines “bill of entry” as the bill of entry referred to in section 46 of the Act. It is the key document filed by an importer to clear imported goods.
BILL OF EXPORT [SECTION 2(5)]
SECTION NOTES
2.8 Definition of “Bill of export”
u Clause (5) of section 2 of the Act defines “bill of export” as the bill of export referred to in section 50 of the Act. It is used for export of goods by land.
BOARD [SECTION 2(6)]
SECTION NOTES
2.9 Definition of “Board”
u Clause (6) of section 2 of the Act defines “Board” as the Central Board of Indirect Taxes and Customs (CBIC) constituted under the Central Boards of Revenue Act, 1963.
SECTION NOTES
COASTAL GOODS [SECTION 2(7)]
2.10 Definition of “Coastal goods”
u Clause (7) of section 2 of the Act defines “coastal goods” as goods other than imported goods that are transported in a vessel from one port in India to another. Coastal goods are subject to special procedures in Chapter XI of the Act.
COMMISSIONER (APPEALS) [SECTION 2(7A)]
SECTION NOTES
2.11 Definition of “Commissioner (Appeals)”
u Clause (7A) of section 2 of the Act defines the “Commissioner (Appeals)” as a person appointed to be a Commissioner of Customs (Appeals) under section 4(1) of the Act. He is the first appellate authority under the Act.
SECTION NOTES
COMMON PORTAL [SECTION 2(7B)]
2.12 Definition of “Common portal”
u Clause (7B) of section 2 of the Act, inserted by the Finance Act, 2021 (w.e.f. 28-3-2021), defines the “common portal” as the Common Customs Electronic Portal referred to in section 154C of the Act. It is the single electronic interface through which most customs filings are made.
PRINCIPAL
COMMISSIONER OF CUSTOMS OR COMMISSIONER OF CUSTOMS [SECTION 2(8)]
SECTION NOTES
2.13 Definition of “Principal Commissioner of Customs or Commissioner of Customs”
u Clause (8) of section 2 of the Act defines the “Principal Commissioner of Customs or Commissioner of Customs”. For the purposes of Chapter XV (appeals), the expression also includes an Additional Commissioner of Customs. The words “Principal Commissioner of Customs or” were inserted by the Finance (No. 2) Act, 2014 (w.e.f. 6-8-2014).
CONVEYANCE [SECTION 2(9)]
SECTION NOTES
2.14 Definition of “Conveyance”
u Clause (9) of section 2 of the Act defines “conveyance” inclusively to cover a vessel, an aircraft and a vehicle.
CUSTOMS AIRPORT [SECTION
2(10)]
SECTION NOTES
2.15 Definition of “Customs airport”
u Clause (10) of section 2 of the Act defines a “customs airport” as any airport appointed under section 7(a) of the Act. It also includes a place appointed under section 7(aa) of
the Act to be an air freight station, which was added by the Finance Act, 2012 (w.e.f. 28-5-2012).
SECTION NOTES
CUSTOMS AREA [SECTION 2(11)]
2.16 Definition of “Customs area”
u Clause (11) of section 2 of the Act defines “customs area” as the area of a customs station or a warehouse, and any area where imported or export goods are ordinarily kept before clearance by customs authorities.
CUSTOMS PORT [SECTION 2(12)]
SECTION NOTES
2.17 Definition of “Customs port”
u Clause (12) of section 2 of the Act defines a “customs port” as any port appointed under section 7(a) of the Act. It also includes a place appointed under section 7(aa) to be an inland container depot, which extends the reach of customs control inland.
SECTION NOTES
CUSTOMS STATION [SECTION 2(13)]
2.18 Definition of “Customs station”
u Clause (13) of section 2 of the Act defines a “customs station” as any customs port, customs airport, international courier terminal, foreign post office or land customs station.
SECTION NOTES
DUTIABLE GOODS [SECTION 2(14)]
2.19 Definition of “Dutiable goods”
u Clause (14) of section 2 of the Act defines “dutiable goods” as any goods chargeable to duty on which duty has not been paid.
DUTY [SECTION 2(15)]
SECTION NOTES
2.20 Definition of “Duty”
u Clause (15) of section 2 of the Act defines “duty” as a duty of customs leviable under the Act.
ENTRY [SECTION 2(16)]
SECTION NOTES
2.21 Definition of “Entry”
u Clause (16) of section 2 of the Act defines “entry” in relation to goods as an entry made in a bill of entry, shipping bill or bill of export, and also covers an entry made under regulations framed under section 84 of the Act (for goods imported or exported by post).
SECTION NOTES
EXAMINATION [SECTION 2(17)]
2.22 Definition of “Examination”
u Clause (17) of section 2 of the Act clarifies that the “examination” of goods includes their measurement and weighment.
EXPORT [SECTION 2(18)]
SECTION NOTES
2.23 Definition of “Export”
u Clause (18) of section 2 of the Act defines “export” and its grammatical variations as the taking out of India to a place outside India
EXPORT GOODS [SECTION 2(19)]
SECTION NOTES
2.24 Definition of “Export goods”
u Clause (19) of section 2 of the Act defines “export goods” as any goods which are to be taken out of India to a place outside India
EXPORTER [SECTION 2(20)]
SECTION NOTES
2.25 Definition of “Exporter”
u Clause (20) of section 2 of the Act defines “exporter” as the person on record between the entry of goods for export and their export, and includes the owner, beneficial owner or any person holding himself out to be the exporter.
FOREIGN POST OFFICE [SECTION 2(20A)]
SECTION NOTES
2.26 Definition of “Foreign post office”
u Clause (20A) of section 2 of the Act, inserted by the Finance Act, 2017 (w.e.f. 31-3-2017), defines a “foreign post office” as any post office appointed under section 7(1)(e) of the Act. It is a post office through which foreign mail can be cleared.
FOREIGN-GOING VESSEL OR AIRCRAFT [SECTION 2(21)]
SECTION NOTES
2.27 Definition of “Foreign-going vessel or aircraft”
u Clause (21) of section 2 of the Act defines a “foreign-going vessel or aircraft” as any vessel or aircraft engaged in the carriage of goods or passengers between an Indian port or airport and a foreign port or airport. It also includes naval vessels of a foreign Government taking part in exercises, vessels engaged in fishing outside India’s territorial waters, and vessels or aircraft proceeding to a place outside India for any purpose.
