Deposit of Rs. 3000 from foreign going vessels – dispensed with
By a 1970 circular, a deposit of Rs. 3000 and Rs. 1000 is taken from foreign vessel and coastal vessel, respectively, for covering liabilities of individual vessels.
As per Section 42 of the Customs Act, 1962, the vessel is permitted to depart from a customs station by the proper officer after considering that the person in charge of the conveyance has complied with,-
1. production of specified documents and replied the question, if any, raised
2. Delivery of export manifest.
3. Payment of all duties leviable on any stores consumed in the conveyance.
4. Payment of all charges and penalties due in respect of the conveyance.
5. No penalty is leviable on the person-in-charge under section 116 for the deficiency of goods.
6. Exports goods contravening any of provision of the Customs Act have been unloaded.
The issue was discussed in the Chief Commissioner’s Conference at Mumbai and it was felt that these deposits are of no relevance today as the department has ample power to recover dues, if any, under Section 142 of Customs Act. The deposit is meager and the effort or manpower deployment and logistic involved in first collecting the deposit and refunding it subsequently far outweighs the benefits. The procedure for taking of a deposit initially and refunding it, each time the vessel enters and departs the port, involves avoidable administrative inconvenience and delay in re-payment of deposit.
So the Board, as a trade facilitation measure, has desired that such security amount may not be taken. However, the field formations should ensure that provisions of section 42 are complied with before permitting the conveyance to depart from the customs station by the proper officer.
Is the Board’s desire a direction or can the authorities flout it with impunity as they do with directions?
CBEC’s F.No.450/ 10 /2007-Cus.IV dated February 13, 2007