Section 54 of The Customs Act,1962
- (1)Where any goods imported into a customs station are intended for transhipment, a bill of transhipment shall be presented to the proper officer in 1[such form and manner as may be prescribed]: 2[Provided that where the goods are being transhipped under an international treaty or bilateral agreement between the Government of India and Government of a foreign country, a declaration for transhipment instead of a bill of transhipment shall be presented to the proper officer in 1[such form and manner as may be prescribed].]
- (2)Subject to the provisions of section 11, where any goods imported into a customs station are mentioned in the 3[arrival manifest or import manifest] or the import report, as the case may be, as for transhipment to any place outside India, such goods may be allowed to be so transhipped without payment of duty.
- (3)Where any goods imported into a customs station are mentioned in the 3[arrival manifest or import manifest] or the import report, as the case may be, as for transhipment--
- (a)to any major port as defined in the Indian Ports Act, 1908 (15 of 1908), or the customs airport at Mumbai, Calcutta, Delhi or Chennai or any other customs port or customs airport which the Board may, by notification in the Official Gazette, specify in this behalf, or
- (b)to any other customs station and the proper officer is satisfied that the goods are bona fide intended for transhipment to such customs station, the proper officer may allow the goods to be transhipped, without payment of duty, subject to such conditions as may be prescribed for the due arrival of such goods at the customs station to which transhipment is allowed.
Summary
- Under the Customs Act, 1962, Section 54 allows imported goods meant for another port or country to be moved without paying tax immediately.
- Importers must present a transhipment bill, which is a document for moving cargo, to the proper officer.
- If an international treaty or bilateral agreement is in place, the importer can present a simple transhipment declaration instead of a formal bill.
- Goods can be sent to major Indian ports, specified metro airports, or other approved customs stations.
- Transhipment to destinations outside India is completely free of import duty, as long as it is mentioned in the arrival cargo records.
Practical examples
FAQ
1. What is the process for transhipment without paying duty under Section 54 of the Customs Act, 1962?
Under Section 54 of the Customs Act, 1962, an importer must present a standard transhipment bill to the officer. However, if the goods are covered by an international treaty or bilateral agreement between India and another country, a transhipment declaration is filed instead of the bill.
2. Can goods be sent to any port in India under Section 54 of the Customs Act, 1962?
Under Section 54 of the Customs Act, 1962, duty-free transhipment is allowed to any major port, the customs airports at Mumbai, Calcutta, Delhi, or Chennai, any other port specified by the Board, or any customs station where the officer is satisfied that the goods are genuinely bound.
3. Is customs duty charged on international transit goods under Section 54 of the Customs Act, 1962?
Under Section 54 of the Customs Act, 1962, if the arrival manifest or import report shows that the imported goods are destined for a place outside India, the proper officer can allow transhipment without any payment of import duty.
Test yourself
Q1.Under Section 54 of the Customs Act, 1962, if goods are being transhipped under an international treaty between India and a foreign nation, what document must be presented?
Q2.Under Section 54 of the Customs Act, 1962, which of the following is explicitly listed as an airport where duty-free transhipment of goods is allowed?
Q3.Under Section 54 of the Customs Act, 1962, what is the prerequisite for transhipping goods to a non-major port or a smaller customs station without paying duty?
Q4.Under Section 54 of the Customs Act, 1962, if an importer brings goods into Mumbai that are bound for Sri Lanka, how does the Act treat the duty liability?