CBIC revises guidelines on arrest, prosecution for Customs violations

Tags: Economy/Finance

The Central Board of Indirect Taxes and Customs (CBIC) has issued revised guidelines for prosecution, arrest and bail under the Customs Act.


  • CBIC has increased the limit of fine for violation of these rules.
  • Smuggling of high value goods such as gold and unauthorized import of goods, the market value of which is more than Rs 50 lakh, can lead to prosecution and arrest.

  • Cases of wrong declaration or evasion of duty of goods worth Rs 2 crore or more will also face similar action.

  • Arrest will also be made if the amount of fraudulent duty refund or duty exemption in export of goods exceeds Rs.2 crore.

  • However, the above limit of value will not apply to certain items like ammunition, antiquities, art treasures, wildlife and endangered species.

What is Custom Duty?

  • Customs duty refers to the tax levied on goods when they are transported across an international border.

  • It is a tax that is levied on the import and export of goods.

  • The government uses this duty to increase its revenue, protect domestic industries and control the movement of goods.

Types of custom duty :

  • Basic Customs Duty (BCD)

  • Countervailing Duty (CVD)

  • Additional Customs Duty or Special CVD

  • Protective Duty,

  • Anti-dumping Duty

Central Board of Indirect Taxes and Customs (CBIC) :

  • It is a subsidiary board of the Department of Revenue under the Union Ministry of Finance.

  • It mainly deals with the functions of policy formulation and implementation relating to levy and collection of Customs Duty, Central Excise Duty and Goods and Services Tax.

  • It also works for the prevention of smuggling.

  • CBIC is headed by a Chairman and consists of 6 members.

  • Present Chairman - Vivek Johri

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