AMENDMENTS IN THE CUSTOMS ACT, 1962 - FINANCE (No.2) BILL, 2019

S. No.

Amendment

Clause of the Finance (No.2) Bill, 2019

1

Section 41 is being amended so as to provide a facility, that the departure manifest can also be furnished to a person notified by the Central Government, in addition to the person-in- charge of the conveyance.

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2

A new chapter XIIB titled “Verification of Identity and Compliance” is being inserted. New section 99B introduced under this chapter empowers proper officer of Customs to carry out verification of a person for ascertaining compliance with the provision of the Customs Act or any other law for the time being in force, for protecting the interests of revenue or to prevent smuggling in the manner as may be prescribed. It is proposed to do the verification of the person through the Aadhaar number or through such other alternative and viable means of identification as may be prescribed through the regulations. It also empowers the Board interalia to make regulations to exempt such persons or class of persons who may not be required to undergo the said verification. Failure to comply with the specified provisions of this section may result in suspension or denial of certain benefits.

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3

Section 103 is being amended so as to-

(a)substitute sub-section (1) in order to enable the proper officer to scan or screen, with the prior approval of Deputy Commissioner of Customs or Assistant Commissioner of Customs, any person referred to in sub-section (2) of section 100 who has any goods liable to confiscation secreted inside his body. The proper officer can directly furnish the report of the said screening or scanning to the nearest magistrate if such goods are found secreted inside the body of the said person. 

(b)so as to enable the magistrate to take action upon the report of scanning or screening by the proper officer under sub-section (6).

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4

Section 104 is being amended so as to-

(a)empower an officer of customs to arrest a person who has committed an offence outside India or Indian Customs waters also under sub-section (1).  

(b)insert two new clauses (c) and (d) in sub-section (4) so as to specify two particular offences which shall be cognizable. 

(c)insert a new clause (e) in sub-section (6) so as to specify a particular offence which shall be non-bailable. 

(d)insert an Explanation so as to define the term instrument.

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5

Section 110 is being amended so as to-

(a)substitute the existing proviso in sub-section (1) with two provisos so as to specify the conditions under which the custody of seized goods could be given to certain person. The amendment also seeks to specify the conditions, under which the custody of such goods, where it is not practicable to seize such goods, could be given to certain persons. 

insert a new sub-section (5) so as to empower the proper officer to provisionally attach any bank account for safeguarding the government revenue and prevention of smuggling, for a period not exceeding six months. It is also being provided that a Principal Commissioner of Customs or Commissioner of Customs may further extend the period of attachment up to six months. 

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6

 Section 110A is being amended so as to empower an adjudicating authority to release bank account provisionally attached under section 110 to the accountholder on fulfilment of certain conditions.

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7

A new section 114AB is being inserted so as to provide that any person who has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilized by such person or any other person for discharging duty, such person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument. An Explanation to define the term instrument is also being inserted.

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8

Section 117 is being amended so as to increase the maximum limit of penalty from one lakh rupees to four lakh rupees.

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9

First proviso to section 125 is being amended so as to provide that in respect of cases of covered under deemed closure proceedings under section 28, no fine in lieu of confiscation shall be imposed on the infringing goods.

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10

Sub-section (1) of section 135 is being amended so as to-

(a)to insert a new clause (e) therein to make obtaining of an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts, where such instrument has been utilized by any person a punishable offence.

(b)insert a new sub-item (E) under item (i) to make obtaining an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts, where such instrument has been utilized by any person a punishable offence if the duty relatable to utilization of the instrument exceeds fifty lakhs of rupees.

(c)insert an Explanation to define the term instrument.

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11

Section 149 is being amended so as to empower Board to make regulations specifying time, form, manner, restrictions and conditions for amendment of any document.

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12

Section 157 is being amended so as to empower the Board to make regulations for purposes of sections 99B and 149 respectively.

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13

Sub-section (2) of section 158 is being amended so as to increase the maximum limit of penalty for violation of any provision of rules or regulations from fifty thousand rupees to two lakh rupees.

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