Foreigners wearing Gold / Silver Ornaments exceeding Rs. 50k bound to Report Customs: Madras HC [Read Order]

In a significant ruling, the Madras High Court has held that the foreign visitors shall declare to the customs while wearing gold/silver ornaments exceeding Rs. 50,000 during travel.

Justice C. Saravanan was considering a writ petition filed by a Srilankan Family based in Colombo. They arrived at the Chennai Airport on 06.05.2017 along with two minor children of the first and second petitioners. All the petitioners were wearing 1594 kgs of gold jewelries valued at Rs.43,95,854/- . Proceedings were initiated by the customs department finding that the family passed through green channel despite carrying valuables exceeding the prescribed limit.

The Court observed that the“jewellery items are not articles of personal effect. Jewellery are any other articles other than the articles of “personal effect”. Therefore, the petitioners being tourist within the meaning of Rule 2(1)(v) of the said Rules are governed by Sub Clause (b) of the Rule 3 of Baggage Rules, 2016. The said Rule read with Annexure I makes it clear that gold or silver ornaments upto a value of Rs.50,000/- (Rupees Fifty Thousand only) worn in person or carried on person are only freelyimportable.”

“Further, one fails to understand, petitioners who claim to be pilgrims visiting an alien country would wear costly jewellery even if it be their customs.,” the Court observed.

Upholding the proceedings, the Court held that “the conduct of the petitioners attempting to walk through the green channel without proper declaration had raised serious doubts and thus proceedings initiated against the petitioners are in accordance with the provisions of the Customs Act, 1962. Therefore, I do not find any infirmity in the order passed by the first respondent.”

To Read the full text of the Order CLICK HERE

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