Customs violations: Monetary limit for legal action raised

In baggage and outright smuggling cases, the threshold market value of goods or foreign currency has been increased from over Rs 20 lakh to over Rs 50 lakh for legal action.

Customs violations: Monetary limit for legal action raised
In the case of commercial frauds, the threshold value of offending goods has been enhanced to Rs 2 crore from Rs 50 lakh. (Representational image)

The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday increased the threshold monetary limit for prosecution and arrest for customs violations. In baggage and outright smuggling cases, the threshold market value of goods or foreign currency has been increased from over Rs 20 lakh to over Rs 50 lakh for legal action. In the case of commercial frauds, the threshold value of offending goods has been enhanced to Rs 2 crore from Rs 50 lakh.

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“The CBIC, by way of release of circulars, has not merely increased the threshold monetary limit for arrest and prosecution but has also provided a more illustrative list of scenarios where offences can lead to arrest. This move will help in reducing litigation and bringing in more clarity for both importer and the customs department,” said Saurabh Agarwal, tax partner, EY.

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