Statutory Provisions:
The statutory provisions relating to Baggage are covered by sections 77 to 81 of the Customs Act.
Entry of baggage by owner [Section 77] : Under this section the owner of the baggage has to make a declaration of its contents to the proper officer of customs, for the purpose of clearing it. This is known as Baggage Declaration Form.
In Naresh Lokumal Serai v. CC 2006 (203) ELT 580 (Tri.) [maintained by SC] , it was held that declaring packing list is sufficient declaration.
Rate of duty and tariff valuation applicable to baggage [Section 78]: Section 78 of the Customs Act stipulates that the rate of the duty and tariff valuation, if any applicable to baggage shall be the rate of and valuation in force on the date on which a declaration is made in respect of such baggage under section 77. Therefore the relevant date is the date of filing baggage declaration under section 77.
Rate of duty on baggage is 35% ad valorem. This rate is not applicable to motor cycles, scooters or mopeds; fire arms; cartridges of fire arms exceeding 50; cigarettes, cigars or tobacco in excess of the quantity prescribed for importation free of duty under the relevant baggage rules; textile fabrics in excess of rupees five hundred in value and goods imported through a courier service.
In Naresh Lokumal Serai Vs. CC 2006 (203) ELT 580, it was held that there are no separate rules for valuation of baggage. Therefore, valuation rules apply to valuation of baggage also.
Duty exemption to baggage [Section 79] : Section 79(1) of the Customs Act refers to the duty relief available in respect of baggage. It stipulates that the proper officer, may subject to any rules made under sub-section (2) pass free of duty
(a) any article in the baggage, of a passenger or a member of the crew, in respect of which the said officer is satisfied that it has been in his use for such minimum period as may be specified in the rules;
(b) any article in the baggage of a passenger in respect of which the officer is satisfied that it is for the use of the passenger or his family or is a bonafide gift or souvenir, provided t hat the value of each such article and the total value of all such articles does not exceed such limits as may be specified in the rule.
The law thus envisages two categories of baggage, namely those belonging to (a) passengers; and (b) members of the crew.
Similarly it envisages three classes of goods, namely (a) personal effects, which have been in the use of the person for a minimum period; (b) household effects, which is used by the family including the person; and (c) gifts and souvenirs.
Sub-section (2) of section 79 enables the Central Government to make rules for the purposes of carrying out the provisions of section 79(1). It also stipulates that such rules may specify
(a) the minimum period for which any article has been used by a passenger or a member of the crew for the purposes of [clause (a) of sub-section(1)] determining personal effects;
(b) The maximum value of any individual article and the maximum total value of all the articles which may be passed free of duty [under clause (b) of sub-section (1) ] i.e., household effects, gifts, souvenirs etc;
(c) the conditions to be fulfilled before or after clearance subject to which the baggage may be passed free of duty. Sub-section(3) of section 79 provides that different rules may be made for different classes of persons.