International Passenger Facilitation under Customs Act

The Customs Act, 1962 is the primary law that regulates the import and export of goods into and out of India. The Act also provides for the regulation of the movement of passengers and their baggage. The Act empowers the customs authorities to examine passengers and their baggage to prevent the smuggling of goods into or out of the country. In this article, we will discuss the International Passenger Facilitation under Customs Act, 1962.

Table of Content

Short Glimpse

Customs is a crucial aspect of international trade, and it involves the monitoring of the movement of goods and people across international borders. International passenger facilitation is a critical aspect of customs that ensures that people traveling internationally are cleared through customs quickly and efficiently. In India, the Customs Act, 1962, regulates international passenger facilitation. Let us quickly discuss about the meaning of International Passenger Facilitation.

Meaning of International Passenger Facilitation under Customs Act, 1962

International passenger facilitation refers to the process of ensuring the smooth movement of passengers through international borders. The process involves a series of procedures designed to ensure that passengers and their baggage comply with the relevant customs and immigration laws.

The Customs Act, 1962, provides the legal framework for the international passenger facilitation process. The Act empowers the customs authorities to regulate the movement of people and goods across international borders.

The Act defines a passenger as any person arriving in India from a place outside India or departing from India to a place outside India. It also defines baggage as any goods carried by a passenger for personal use or consumption.

  • Passenger Facilitation at Arrival: When a passenger arrives in India, they are required to pass through immigration and customs clearance. The immigration process involves the verification of the passenger’s identity and travel documents, while the customs clearance involves the inspection of the passenger’s baggage. The customs authorities have the power to search the baggage of any passenger arriving in India. They can also seize any goods that are not declared or are prohibited under the law.
  • Passenger Facilitation at Departure: When a passenger departs from India, they are required to pass through the customs clearance process. The customs authorities have the power to inspect the passenger’s baggage and can seize any goods that are not declared or are prohibited under the law. The passenger is also required to declare any goods that are in excess of the prescribed limits. Failure to do so can result in the imposition of penalties or fines.

Important key terms regarding International Passenger Facilitation under Customs Act, 1962

The following are the important key terms regarding International Passenger Facilitation under Customs Act, 1962:

  • Customs Clearance Process: The customs clearance process involves several steps, starting with the presentation of the necessary documents, such as passports, visas, and travel itineraries. The passengers are then subject to customs inspection, which involves the examination of their luggage and belongings for any prohibited or restricted items. The customs officer may also ask the passengers to declare any goods they are carrying that may require duty payments.
  • Customs Duty: Customs duty is a tax levied on goods imported into or exported from a country. The customs officer determines the customs duty payable based on the value of the goods and their classification under the Customs Tariff Act, 1975. Passengers carrying goods that exceed the duty-free limit are required to pay customs duty.
  • Passenger Facilitation: International passenger facilitation is the process of clearing passengers through customs quickly and efficiently. The Customs Act, 1962, provides for various measures to facilitate passenger clearance, such as the use of electronic data interchange systems to process passenger information quickly. The Act also provides for the establishment of customs clearance facilities at airports and seaports to expedite the clearance of passengers and their luggage.
  • Passenger Declaration: The Customs Act, 1962, requires passengers to declare any goods they are carrying that are subject to customs duty. Passengers must also declare any prohibited or restricted items they are carrying. Failure to declare goods can result in penalties, fines, and even criminal prosecution.
  • Baggage Rules: The Customs Act, 1962, sets out the baggage rules for passengers traveling to and from India. Passengers are allowed to carry a certain quantity of goods duty-free, depending on their length of stay abroad. Passengers exceeding the duty-free limit must pay customs duty on the excess goods.

Benefits of International Passenger Facilitation under Customs Act, 1962

The following are the benefits of International Passenger Facilitation:

  • Time-saving: International passenger facilitation helps in saving time for the passengers as well as the customs officials. With the help of electronic systems such as Automated Passport Control (APC) and Electronic Visa Systems, passengers can complete the immigration and customs process in a shorter amount of time, resulting in a more efficient process.
  • Increased Security: International passenger facilitation also helps in enhancing security measures by enabling customs officials to monitor and track passenger movements more effectively. This helps in identifying any suspicious activities or individuals and taking appropriate action to prevent any potential threats.
  • Improved Passenger Experience: By providing a smooth and hassle-free experience to passengers, international passenger facilitation helps in improving their overall travel experience. This results in higher levels of customer satisfaction and helps in promoting tourism and travel.

Provisions for International Passenger Facilitation under Customs Act, 1962

The Customs Act, 1962 provides for the following provisions for the facilitation of international passengers:

  • Examination of Passengers and their Baggage: Under Section 82 of the Act, the customs authorities have the power to examine any person who arrives in India from any foreign country or who is about to depart from India to any foreign country. The customs authorities can also examine any baggage, goods or articles that the person is carrying with him or her.
  • Provision for Red Channel and Green Channel: The customs authorities have provided for separate channels for passengers at the airport, namely the Red Channel and the Green Channel. The passengers who have nothing to declare can go through the Green Channel, whereas those who have something to declare must go through the Red Channel.
  • Declaration of Currency, Bullion, and High-Value Articles: As per Section 75 of the Act, any person who is carrying currency, bullion or high-value articles exceeding the prescribed limits must declare them to the customs authorities. The customs authorities can seize any undeclared currency, bullion or high-value articles.
  • Duty-Free Allowances: The customs authorities have provided for duty-free allowances for passengers who are arriving in India. These allowances are subject to the conditions and limits prescribed by the customs authorities. The duty-free allowances are provided for items such as alcohol, cigarettes, perfumes, and other personal effects.
  • Refund of Duty: If a passenger, who has paid duty on goods, re-exports them within the prescribed time limit, he or she can claim a refund of the duty paid. The claim for a refund must be made within the prescribed time limit and in the prescribed manner.

Process for International Passenger Facilitation under Customs Act, 1962

The Customs Act, 1962 provides for the following process for the facilitation of international passengers:

  • Arrival of International Passengers: International passenger facilitation under the Customs Act, 1962 begins with the arrival of passengers at an airport, seaport, or land border. Upon arrival, passengers are required to complete immigration and customs formalities. Immigration formalities involve the verification of passports, visas, and other travel documents. Customs formalities involve the declaration of goods and payment of duties and taxes.
  • Red and Green Channels: International airports and seaports have two separate channels for passengers to exit the airport – the red channel and the green channel. The red channel is meant for passengers who have something to declare, while the green channel is for passengers who have nothing to declare. Passengers are required to choose the appropriate channel based on their baggage and goods.
  • Customs Declaration: Passengers who have goods to declare must complete a customs declaration form. The form requires passengers to list all the goods they are carrying, their value, and the purpose of the goods. Passengers must also declare any currency exceeding the prescribed limit.
  • Baggage Clearance: After completing customs formalities, passengers can collect their baggage from the designated area. Baggage is subject to inspection by customs officials, who may ask passengers to open their luggage for inspection.
  • Duty Payment: Passengers who have goods to declare must pay customs duties and taxes. The customs duty rate varies depending on the nature and value of the goods. The passenger is required to pay the duty in Indian Rupees or any other authorized currency.
  • Green Channel Passengers: Passengers who have nothing to declare can exit through the green channel. However, if a passenger is found to have goods to declare, they will be directed to the red channel for customs clearance.
  • Red Channel Passengers: Passengers who have goods to declare must enter the red channel. The customs officials will examine the goods and assess the customs duty and tax. The passenger is required to pay the duty and tax before leaving the airport.

Important Points to be kept in mind regarding International Passenger Facilitation

The following are the points that should be kept in mind important points to be mind regarding International Passenger Facilitation:

  • Declare all Goods: It is important for passengers to declare all goods that they are carrying with them, including currency, electronic items, and other valuables. Failure to do so can result in penalties and fines.
  • Prohibited Items: Certain items such as drugs, firearms, and certain food items are prohibited and must not be carried while travelling. It is important for passengers to familiarize themselves with the list of prohibited items before travelling.
  • Duty-free Allowances: Passengers are allowed to bring in a certain amount of goods duty-free, depending on the country they are travelling to. It is important for passengers to be aware of these allowances and declare any goods that exceed the limit.
  • Cooperation with Officials: Passengers must cooperate with customs officials during the immigration and customs process. This includes providing any necessary information and documents, as well as following any instructions given by the officials.

Takeaway

In conclusion, the process of international passenger facilitation under the Customs Act, 1962 is an essential aspect of international travel. The Customs Act provides a framework for the assessment and collection of customs duties and taxes, as well as the enforcement of customs laws. Passengers must follow the customs declaration and payment process to avoid penalties and fines. Customs officials play a crucial role in ensuring the safe and secure movement of passengers and goods across the borders of India.

CategoryMiscellaneous

CA Rohit Goyal has experience in multiple spheres including general functions in the field of Auditing, Accounting, and handling Scrutiny Assessments, Taxation Matters along with the specialized functions including Finance, Banking and also handles the field of Stock Audit, Internal Audit and other Various Assignments of Banks.

Copyright © 2024 Goyal Mangal & Company.