[BREAKING] Customs Gold Baggage Rules: Delhi HC issues Interim Directions w.r.t. Tourists of Indian/Foreign Origin [Read Order]

In a recent decision affecting tourists carrying Gold Ornaments, of both Indian and Foreign Origin, the Delhi HIgh Court has issued interim guidelines to the Central Board of Indirect Taxes and Customs ( CBIC ) regarding treatment of gold ornaments as ‘personal effects’ and issuance of detention receipts.

The Bench of Justices Prathiba M Singh and Dharmesh Sharma noted that, “Baggage Rules

have to be interpreted in a manner that does not lead to unnecessary burden upon the tourist, being either of Indian or foreign origin. Accordingly, the term “personal effects” cannot exclude personal jewellery or ornaments, as is clear from a harmonious reading of the Baggage Rules.”

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The Petitioner is a Thai national who travelled to Delhi from Thailand on 13th March, 2024. Upon her arrival at the Indira Gandhi International Airport, New Delhi, she was intercepted by the Customs officials who enquired as to whether she was carrying any gold.

The Petitioner was wearing three gold bangles which she showed to the Customs officials.

Thereafter, the Petitioner was asked to take them off and the said bangles were seized. A detention receipt was issued on the same date i.e., 13th March, 2024. According to the Petitioner, the said gold bangles were part of the jewellery which she was wearing in the usual course and there was nothing special in the same.  The Petitioner’s three gold bangles valued at about Rs.7,42,410/- as per the detention receipt. After the gold bangles were seized, no show cause notice has been issued to the Petitioner till date. Hence, the present writ petition was filed seeking return of the said gold bangles.

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From the decision in Nathan Narayansamy v. Commissioner of Customs (2023) passed on 15th September, 2023, the petitioner counsel submitted that gold being part of the personal effects of the tourist of foreign origin could not have been seized by the Customs Department. 

Department submitted that jewellery is excluded from the ambit of ‘personal effects’. Mr. Jha, ld. Counsel for the Department, submits that in terms of the Baggage Rules, 2016 since there was an exclusion of jewellery, whenever any foreign tourist carries jewellery, the same ought to be declared.

The Indian Customs Declaration Form issued by the CBIC as part of the Guide for Travellers was also perused by the Court, from which the court observed that gold and gold jewellery is being treated as prohibited articles where the same is beyond the prescribed limits under Rule 5 of Baggage Rules, including gold bullion.

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Considering the large number of cases where the Customs Department has seized or detained jewellery from tourists, either of Indian or foreign origin, and the directions passed by this Court in Qamar Jahan to the Central Board of Indirect Taxes (CBIC) to reconsider the Baggage Rules, the Court deems fit to pass the following directions for the interim period till the CBIC has reconsidered the Baggage Rules:

i. Detention receipt should contain contact details of the tourist including email address and mobile/ WhatsApp number;

ii. Coloured images of the gold ornaments/ jewellery detained from the tourist should be attached to the detention receipt;

iii. Copy of the said images should be provided to the concerned

tourist and the same shall also be retained on record of the Customs Department. 

The directions were to be followed henceforth by the Customs Department in all cases where jewellery is seized or detained from tourists of either Indian or foreign origin.

To Read the full text of the Order CLICK HERE

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