CBIC Simplifies Procedure for Compounding Customs Offences [Read Circular]

The Central Board of Indirect Taxes and Customs (CBIC) has laid down the simplified procedure for compounding offences under the Customs Act.

The Central Government has made changes to the Customs (Compounding of Offences) Rules, 2005. As per the amendment, the satisfaction of compounding authorities has been limited only to verifying and being satisfied that the full and true disclosure of facts has been made by the applicant.

As per Section 135AA, if a person publishes any information relating to the value or classification or quantity of goods entered for export from India, or import into India, or the details of the exporter or importer of goods, it shall be punishable with imprisonment of up to six months, or with a fine which may extend to Rs. 50,000.

“While reviewing the provisions, a need was perceived to undertake awareness campaigns for conveying the benefits of compounding provisions which could enhance the use of such provision by concerned persons. Accordingly, Pr. Chief/Chief Commissioners are directed to undertake periodical (say, quarterly) comprehensive and targeted outreach programs for this purpose,” the Board said.

The circular clarified that “It has also been decided that Pr. DG, Director General & Data Management shall incorporate in the reporting, the performance of every Zone in terms of receipt and timely disposal within 6 months of compounding applications, as well as for the recording of the sums realized as compounding amount, as envisaged in para 7 of the Circular No. 54/2015-Customs dated 30.12.2005.”

To Read the full text of the Circular CLICK HERE

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