Section 143 of The Customs Act,1962
- (1)Where this Act or any other law requires anything to be done before a person can import or export any goods or clear any goods from the control of officers of customs and the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] is satisfied that having regard to the circumstances of the case, such thing cannot be done before such import, export or clearance without detriment to that person, the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] may, notwithstanding anything contained in this Act or such other law, grant leave for such import, export or clearance on the person executing a bond in such amount, with such surety or security and subject to such conditions as the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] approves, for the doing of that thing within such time after the import, export or clearance as may be specified in the bond.
- (2)If the thing is done within the time specified in the bond, the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] shall cancel the bond as discharged in full and shall, on demand, deliver it, so cancelled, to the person who has executed or who is entitled to receive it; and in such a case that person shall not be liable to any penalty provided in this Act or, as the case may be, in such other law for the contravention of the provisions thereof relating to the doing of that thing.
- (3)If the thing is not done within the time specified in the bond, the 1[Assistant Commissioner of Customs or Deputy Commissioner of Customs] shall, without prejudice to any other action that may be taken under this Act or any other law for the time being in force, be entitled to proceed upon the bond in accordance with law.
Summary
- It permits the import, export, or clearance of goods even if certain legally required actions have not yet been completed.
- The Assistant Commissioner of Customs or Deputy Commissioner of Customs can grant this permission if they are satisfied that waiting would cause detriment, meaning financial or operational harm, to the person.
- To obtain this permission, the importer or exporter must execute a bond with approved surety or security and conditions.
- The bond binds the person to complete the outstanding legal requirement within a specified time after the clearance or import/export of the goods.
- If the required action is completed within the specified time, the Assistant Commissioner or Deputy Commissioner must cancel the bond as fully discharged.
- Once the bond is successfully completed and cancelled, the person is completely free from any penalty for not doing that thing before clearance.
- If the action is not done within the specified time, the customs department is entitled to proceed upon the bond in accordance with the law.
Practical examples
FAQ
1. Who can authorize clearance of goods under bond under Section 143 of the Customs Act, 1962?
Under Section 143 of the Customs Act, 1962, the Assistant Commissioner of Customs or Deputy Commissioner of Customs is authorized to allow the import, export, or clearance of goods on the execution of a bond.
2. What happens when a bond obligation is successfully completed under Section 143 of the Customs Act, 1962?
Under Section 143 of the Customs Act, 1962, if the importer or exporter completes the required action within the specified time, the Assistant Commissioner or Deputy Commissioner will cancel the bond and return it, and the person will not face any penalty.
3. What happens if a person fails to fulfill a bond condition under Section 143 of the Customs Act, 1962?
Under Section 143 of the Customs Act, 1962, if the person fails to perform the required action within the specified time, the customs department is entitled to proceed upon the bond to recover the amount in accordance with the law.
Test yourself
Q1.Under Section 143 of the Customs Act, 1962, who has the authority to permit the import or export of goods on the execution of a bond when certain legal requirements are not yet completed?
Q2.Under Section 143 of the Customs Act, 1962, what is the consequence if the importer or exporter performs the required action within the time specified in the bond?
Q3.Under Section 143 of the Customs Act, 1962, what condition must be met for the Assistant Commissioner or Deputy Commissioner of Customs to allow clearance under bond?
Q4.If an importer fails to perform the required action within the time specified in a bond executed under Section 143 of the Customs Act, 1962, how can the authorities recover the amount due under Section 142 of the same Act?