bm no 10 of _  the customs (amendment) bill, 1969a bill - further to amend the custom8 act, 1962 be it enacted by parliament in the twentieth year of the republic or india as follows:-1 (1) this act may be called the customs (amendmel'lt) act, 1969 (2) it extends to the whole of india short title, ez1ied,t 5 (3) it shall be deemed to have come into force on the 3rt1 january, 1969 day of and aommencemem 2 after chapter iv of the customs act, 1962 (hereinafter referred in8ertion to as the principal act), the following chapters shall be inserted, of dew el ~~ nam y:-tva 1ft 'chapter iva and ivc  10 dztbconon of illegally imported goods and prbv!:ntlon of the disposal '2 of 1962 r lthereof lla in this chapter, unless the context otherwise requires,-deftni-(4) ''illegal import" means the import of any goods in tions contravention of the provisions of this act or any other law for the time being in force; (b) liiutimated place" means a place intimated under subsection (1), sub-section (2) or sub-section (3), as the case may be, of section lle; (c) "not1fled date", in reletion to goods o~ any tleecrtptton, means the date on which the notification in relation to such goods il illued under section ub; (d) "notified goods" means goods specified in the notification issued under section llb 5 power of central government to notlly loods 11b if, having regard to the magnitude of the illegal import of goods of any class or description, the central government is satisfied that it is expelclient in the public interest to take special measul'8ll for the purpose of checking the illegal import, circulation or disposal of such goods, or facilitating the detection of such goods, it may, by 10 notification in the official gazette, specify goods of such clus or deecription pencma poueuina not1aed igoda to intimate the place of itorap, etc lic (1) every person who owns, possesses or contjols, on the notified date, any notified goods, shall, within seven days from that tlate, deliver to the proper officer a statement (in such form, in such 15 manner and containing such particulars as may be specified by rulea made in this behalf) in relation to the notified goods owned, possessed or controlled by him and the place where such goods are kept or stored (2) every person who acquires, after the notifieti date, any ~o notifted goods, shall, before making such acquisition, deliver to the proper officer an· intimation containing the particulars of the plaee where such goods are proposed to be kept or stored after such acquiaitionand shall, immediately on such acquisition, deliver to the proper oftlcer a atatement (in 8u~h form, in such manner and con· 2s taming such particulars as may be specified by rules made in this behalf) in relation to the notified goods acquiretl by him: provided that a person who has delivered a statement, whether under iub-seetion (1) or lub-seetion (2) in relation t!> any notified goods, owned, possessed, controdeti or acquired by him, shall not be '30 required to deliver any further statement in relation to any notified goods acquired by him, after the date of delivery of the said statement, so long al the not~ goods 10 acquired are kept or stored at the intimated place (3) if any person intends to shift any notified goods to any place 35 other than the intimated place, he shall, before taking out such goods from the intimated place, deliver to the proper ofticer an intimation containing the particulars of the place to which such goatis are proposed to be sh1fted (4) no person jhall, after the expiry of seven days from the 40 notified date, keep or store any notified goods at any place other than the intimated place (5) where any notifted goods have been sold or transferreti, such goods shall not be taken from one place to another unless they are accompanied by the voucher referred to in section uf 4s (5) no nottfled goods (other than those which have been sold or transferred) shall be taken from one place to another unless they are accompanied by a transport voucher (in such form ami eontain~ ing such particulars as may be specified by rules made in this behalf) prepared by the pe1'ion8 owning, pobselsing or controlling such gooda 50 5 11d no person shall acquire (except by gift or succession, from precau~ any other individual in india), after thenotifted date, any notified tions to ~"'-be taken - ---by person; (i) unless such goods are accompanied by,-acquiring notified (4) the voucher referred to in section llf or the memo- gooda randum referred to in sub-section (2) of sectwn hg, as the case may be, or <,b) in the case of a person who haa himaelf imported any goods, any evidence showing clearance of such goods by the customs authorities; and (ii) unless he has taken, before acquirinj such goods from a person other than a tiealer having a 1lxed place of business, such reasonable steps as may be specified by rules made in this behalf, to ensure that the goods so acquu-ed by him are not goods which have been illegally imported is 20 2s he (1) every person who, on or after the notified date, owns, persons possesses, controls or acquires any notified goods shall maintain (in possessing such form and in such manner as may be specified by rules made in n°odstifted   go to this behalf) a true and complete account of such goods and shall, as maintain often as he acquires or parts with any notified goods, make an entry accounts in the said account in relation to such acquisition or parting with, and shall also state therein the particulars of the person from whom such goods have been acquired or in whose favour luch goods have been partetl with, as the case may be, and such account shall be kept, elong with the goods, at the place of storage of the notified goods to which such accounts relate: 30 provided that it shall not be necessary to maintain separately accounts in the form and manner apecifted by rules made in this behalf in the case of a person who is already maintaining accounts which contain the particulars specified by the said rules 35 (2) every person who owns, possesses or controls any noti1ieti goods and who uses any such goods for the manufacture of any other goods, shall maintain (in such form, in such manner and containing such particulars as may be specified by rules made in this behalf) a true and complete account of the notified goods so uied by him and shall keep such account at the intimated place uf on and from the notified date, no person shall sell or other- sale  te wise transfer any notified goods, unless every transaction in relation of notift8d to the sale or transfer of such goods is evidenced by a voucher in i~d to be such form and containing such particulars as may be specified by byevldenced vourules made in this behalf ehers lig (1) nothing in sections lic, lle anti llf shall apply to any sections notified goods which arelie, lle  ~dl~ (4) in personal use of the person by whom they are owned, not to lip-possessed or controlled, or ply to··· ~jn (b) kept in the residential premises of a person for 1u penonj penonal use u (2) if any person, who is in possession of any nowied goods referred to in sub~section (1), sells, or otherwise transfers for a valuable eonsideration, any such goods, he shall issue to the purchaser or tradlderee, as the case may be, a memorantlum containing such particulars as may be specified by rules made in this behalf and do 5 such goods shall be taken from one place to another webs they are accompanied by the said memorandum  chapl'er ivb prevention or detention o}o' illilgal export of cloodsllh in this chapter, unless the context otherwise requires,-10 (a) "illegal export" means the export of any goods in contravention of the provisions of this act or any other law for the time being in force; (b) "intimated place" means a place intimated under 8ub~ section (1), sub-section (2) or suib-section (3), as the case may is be, of section llj; (c) "specified area" includes the indian customs waters, and such inland area, not exceeding fifty kilometres in width from any coast or other border of india, as the central government may, having regard to the vulnerability of that area to smug- 20 sling, by notification in the offtcial gazette, specify in this i behalf: provided that where a part of any village, town or city falls within a specified area, the whole 01 such village, town or city shall, notwithstanding that the whole of it· is not within ls fifty kilometres from any coast or other border of india, be deemed to be included in such specified area; (d) "specified date", in relation to specified goods, means th  'date on which any notification is issued under section l1~i in t&lation to those goods in any specified: area; 30 (e) "specified goods" means goods of any description specified in the notification issu~ under section 11-1 in relation to a specified area power of central qoyem-ment to speejfy foocii 11-1 if, having regard to the magnitude of the illegal export ot goods of any class or description, the central government is satisfied that it is expedient in the public interest to take special measures 3s for the purpose of checking the illegal export or facilitating the detection of goods which are likely to be illegally exported, it inay by notification in the official gazette, specify goods of such class or description 40 llj (1) every person who owns, possesses or controls, on the specified date, any specified goods, the market price of whicn exceeds fifteen thousand rupees shall, within seven days from that date, deliver to the proper officer an intimation containing the particulars of the place where such goods are kept or stored within 4s the specified are  penon,; j)mie8iinl specl6ed ioocli to intimate the place of storaae etc:   (2) !very person who acquires (within the specified area), ;after the speeifled date, any specified goods,-(i) the market price of which, or 5 (ii) the market price of which together with the market price of any specified goods of the same class or description, if any, owned, possessed or controlled by him on the date of such acquisition, 10 exceeds ~een thousand rupees shall, before malting such acquisition, dell"er to the proper officer an intimation containing the particulars of the place where such goods are proposed to be kept qr stored after such acquisition: provided that a person who has delivered an intimation, whether under sub-section (1) or sub-section (2), in relation to any specified goods, owned, possessed, controlled or acquired by him, shall not be require!'d to deliver any further intimation so long as the specified goods are kept or stored at the intimated place lo (3) if any person intends to shift any specified goods to which sub-section (1) or sub-section (2) applies, to any place other than the intimated place, he shall, before taking out such goods from the intimated place, deliver to the proper officer an intimatt>n contami the particulars of the place to which such goods are proposerd to be shifted (4) no person shall, after the expiry of seven days from the specified date, keep or store any specified goods to which sub-section (1) or sub-section (2) applies, at any plaee other than the intimated place 11k (1) no specified goods shall be transported from, into or tranalport within any spec1fiftl area or loaded on any animal or conveyance in of speclftsuch area, unless they are accompanied by a transport voucher (in :: ~ such fonn and eontaining such particulars as may be specified by covered by rules made in this behalf) prepared by the person owning, possessing, you4iherb controlling or selling such goods: 35 provided that no transport voucher shall be necessary for the transport, within a village, town or city, of any specified gooda the market price of which, on the date of transport, does not exceed one thousand rupees (2) notwithstanding anything contained in sub-section (1), where the central government, after considering the nature of any specified goods, the time, mode, route anti the market price of the goods intended to be transported, the purpose of the transportation and the wlnerability of the specified area with regard to the illegal export of such goods, is satisfied that it is expedient in the public interest so to do, it may,-45 (i) by notification in the official gazette, specify goods of such class or description and of a market price exceeding such sum as that government may notify; and different sums in relation to the specified goods of the same ciall or description, or difterent claases or descriptions, may be notified for the same apecified area or for difterent speoifted areu, iild (ii) dijkt that no person shau transport any goods so specified unless the transport voucher in relation to them has been countersigned by the proper officer persons possessing speculeci goods to maintain aocounta ill (1) every person who, on or after tile specified date, owns, possesses or controls, within a specified ares, any specified gooda of s a market price exceedmg fifteen thousand rupees, shall mamtain (in such fonn and in suah manner as may be specified by rules made in this behalf) a true and complete account of such goods and shall, as often as he acquires or parts with any specified goods, make an entry in the said account in relation to such acquisition or parting 10 with, and shall also state therein the particulars of the person from whom such goods have been acquired or in whose favour such goods have been parted with, as the case may be, and such account ahall be kept, along with the goods, at the place of storage of the specified goods to which such accounts relate: is provided that it shall not be necessary to maintain separately accounts in the form and manner specified by rules nuape in this behalf in the case of a person who is already maintaining accounts which contain the particulars specified by the said rules (2) every person who owns, possesses or controls any specified ;lo goods to which the provisions of sub-section (1) apply, and who uses any such goods for the manufacture of any other gootis, shall· maintain (in such form, in such manner and containing such particulars as may be specified by rules made in this behalf) a true and complete account of the specified goods so used by him and shall keep such z5 account at the intimated place (3) if at any time, on a verification made by a proper oftlcer, it is found that any specified goods owned, possessed or controlled by a person are lesser in quantity than the stock of such goods as shown, at the time of such verification, in the -accounts referred to in sub 30 section (1), read with the accounts referred to in sub-section (2), it shall be presumed, unless the contrary is proved, that such goods, to the extent that they are lesser than the stock shown in the said accounts, have been illegally exported and that the person owning, posle68ing or controlling such goods has been concerned with the 35 illegal export thereof step, to be taken by persona seli ing or transferring any specifled goem 11m except where he receives payment by cheque dawn by the purchaser, every person who sells or otherwise transfers within any specified area, any specified goods, shall obtain, on his copy of the sale or transfer voucher, the signature and full postal address of the 40 person to whom such sale or transfer is made and shall also take such other reasonable steps as may be specified by rules made in thib behalf to ensure that the purchaser or transferee, as the case may be, is not a fictitious person, and if he omits or fails to take such steps, it shall be presumed, unless the contrary is proved, that such goods 4s have been illegally exported and the person who had sold or otherwise transferred such goods had been concerned in such illepl export: provided that nothing in this seetion shall apply to petty sale of any spect1letl goods if the aggregate market price obtained by luch petty sales, macie in the course of 'a day, does not exceed two so thouand and five hundred rupeee bl:plamtion-in this section "petty  le" means  le at a prioe which does not exeed one thousand rupees 5  chapter rvc ~ -to exempt from the provisions of cjurrus iva and ivb jo un if the central government is satis1ied that it is necessary ~  in the public interest so to do, it may, by notification in the oftldal exempt gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, goods of any class or cjeleription from all or any of the provisions of chapter iva or chapter ivd' 3 afief section 106 of the principal act, the following section shall lnaertion be inae~",llamely:-of  , ~ 106a "106a any proper officer authorised in this behalf by the power to 15 collector of customs may, for the purpose of ascertaining whether inspect or not the requirements of this act have been complied with, at iny reasonable time, enter a~ place intimated under chapter iva or chapter !vb, as the ease may be, anti inspect the goods kept or stonll therein and reqtlire any person found therein, who is for the ao time being in charge thereof, to produce to him for his inspection the aeeounts maintained under the said chapter iv a or chapter !vb, as the case may be, and to furni,sh to him mlch other infonnation as he may reasonably require for the purpose of ascertaining whether or not such goods have been ijliegally imported exportetl or ~5 are likely to be illegally exported" t in section 111 of the principal an, after clause' (0), the following amend· claulle shall be inserted, namely: _ meat of eeetion "(,,) any notified goods in relation to which any provisions of 111 chapter tva or of any rule made under this act for carrying out the 30 the purposes of that chapter have been contravened" s in sectfotl 113 of the principal act, after clause (k), the following amend claule shall be inserted namely: -meat of , ~~ , (l) any specift~ goods in relation to which any provisions of 113 chapter !vb or of any rule matle under this act for carrying out the 35 purpohs of that chapter have been contravened" e tn section- 151 of the principal act, after the ftgures "11", the figures amendand letters "ub, llh,n-i -1lk, un" shall be inserted ment or section 159 1 of 1981 7 (1) the customs (amendment) ordinance, 1969, is h~by repeal- repeal  and ~  savlng, 40 (2) notwithstanding such repeal, anything done or any action taken un\:ier the principal act, as amended by the said ordidance, shall be deemed to have been done or taken under the corresponding provisions of the principal act as amended by this act  statement oll' objects and reasonsthe bill is in replacement of the customs (amendment) ordinance, 1969 issued on the 3rd january, 1969 because of large scale smuggling of silver out of the country and of various consumer articles into the country, it has become necessary to make additional provisions in the customs act, 1962 80 that smuggl~ goods and attempts at smuggling can be effectively and expeditioua11 dealt with the object of the provisions of the bill is to prevent bldui-gling by facilitating the detection and confiscation of goods smuggled into the country and goods sought to be smuggled out of the country the notes on clauses explain the various provisions contained in the bill new dl:lhi; morarji r desai 'the 7th fehnulry 1969  president's reeommendation u»jder article 117 of the constitution of india[copy of letter no z/5/68-cusvi, dated the 10th february, l969 from shri morarji desai, deputy prime minister and minister of finance to the secretary, lok sabha] l'he president having been informed of the subject matter of the customs (amendment) bill, 1969, namely, to amend the customs act, 1962, 80 as to provide f~ confiscation of goods smuggled or attempted to be smuggled and to ~power the central government to take steps for exercising better control over goods being illegally imported and those likely to be illegally exported, has recommended, under clauses (1) and (3) of article 117 of the constitution, the said bill for introduction in and consideration by the lok sabha                                    8                                                                              j                                                                                 , ~,  ' clause 1 provides for retrospective effect from the date of promulgation of the ordinance so that aetton already taken under the ordinance is not required to be taken again cza'ube 2 seeks to introduce new sections lla to lln:-section lla defines the various expressions used in chapter iva section llb empowers the central government to notify goods to which these provisions will apply when it is satisfied that the magnitude of smuggling in such goods is such that it is expedient to take special measures section llc provides that all persons possessing notified goodj or the notified date will have to deliver a statement within seven days to the proper officer of customs indicating the place of storage and such particulars of the goods as may be specified under the rules those who acquire such goods afterwards for the first time will also have to furnish similar information, the intimation in respect of the place of storage being delivered to the customs otrcer in advance anti the particulars of the goods being furnished immediately on acquisition the section also provides that transport of goods from one place to another shall be either under cover of a voucher referred to in section llf or by a transport voucher section lld provides that no person shall acquire, except by gift or succession, any notified goods unless they are accompanied by a sale voucher or evidence of clearance through the customs further, where the purchase is made from a person not having a fixed place of business the purchaser is also required to take such reasonable steps as may be specified by rules to ensure that the goods acquired by him are not smuggled goods section lie provides that all persons possessing notified goods will have to maintain accounts in the prescribed form and such accounts shall be kept along with the goods section 11f provides that sale, transfer, etc, of notified goods shall be evidenced by a voucher section llg provides that the regulatory provisiorul contained in section llc, lle and llf will not apply to goods in personal use or goods kept in residential premises of a person for his personal use but if such goods are sold a sale memo shall be issued section 1lh defines the various expressions used in chapter !vb the regulatory provisions are to apply within the specified area which will not exceed 50 kilometres in width from the coast or land border of india ,4 i section 11-1 empowers the central government to specify goods to which the regulatory provisions will apply on being satisfied that the magnitude of smuggling out of such goods is such that it is expedient to take special measures section 11j provides that persons possessing specifiea goods of - market price exceeding rs 15,000 will have to intimate the particulars of the place of storage to the proper officer of customs and those who acquire goods of such market price afterwards will have to intimate the place of storage in advance section 11k provides that whenever any specified goods are transported frdm, into and within any specified area they shall be accompanied by a transport voucher prepared by the person seijing the goods or possessing the goods in order to avoid hardship, transport of goods of a market price not exceeding rs 1,000 has been exempted the section also empowers the central government to specify that in certain circumstances transport vouchers concerning goods of a market price exceeding a specified sum shall have to be countersigned by the proper officer of customs the intention is that where the time, place, mode, etc of transport is suspicious the officer of customs should know beforehand about such transport section lll requires that any person possessing goods of a market price exceeding rs 15,000 shall maintain accounts in the prescribed form the exemption limit has been set high enough to avoid any inconvenience to middle class or petty traders the section also provides that where the stock of goods is less than the balance shown in the books the shortfall shall be presumed to have been smuggled out unless the contrary is proved section 11m provides that except where the seller receives payment by cheque drawn by the purchaser he will take such reasonable steps as may be specified in the rules to ensure that the purchaser is not a fictitious person and if he fails to take such steps it shall be presumed that the goods have been smuggled out the intention is that a person should not be able to account for the goods that he has smuggled by showing sales to fictitious persons and it should be difticult to make purchases for smuggling in order that no inconvenience is caused, petty sales the aggregate market price of which in a day does not exceed rs 2,600 have been exempted from its provision section 11n empowers the central government to exempt goods of any specified description from the provisions of chapter iva or chapter !vb the il'ltention is that should the application of these provisions cause any inconvenience necessary exemption may be issued clause 3 empowers the proper officer of customs to inspect the storage premises where notified or specified goods are kept and to check the accounts ' -, cltluse 4 provides that any notified goods in relation to which any provisions of chapter iva or of any rules have been contravened shall be li&ble to confiscation clause 5 provides that any specified goods in relation to which any provisions of chapter !vb or of any rules have been contravened, shall be liable to confiscation clause 6 provides that notifications issued under sections lib, 11-1, 11k and lln shall be placed before parliament provision already exists under section 159 that all rules made shall be placed before parliament clause 7 provides for validation of all actions taken under the customs (amendment) ordinance, 1969  financial memorandumthe purpose of the bill is to make additional provisions in the customs act, 1962, with a view to preventing the smuggling of goods by facilitating the detection and confiscation of smuggled goods into the country and goods bought to be smuggled out of the country the provisions made in the bill include, under certain circumstances, the furnishing of intimations and statements with regard to places of storage, issue of vouchers relating to sale and transport, maintenance of accounts by persons possessing notified goods or specified goods, etc although there is no particular -clause in the bill which would involve expenditure from the consolidated fund of india, enforcement of the provisions of the bill, as a whole, would involve extra work on the part of officers of customs who are already employed for the prevention of illegal import and export of goods in general it will, therefore, be necessary to strengthen the existing staff in the varlou customs formations it is estimated that an extra expenditure of-(a) ri 70,000 for the rem (lining part of the current financial year, and (b) re 8,00,000 for a full year, may have to be incurred for the enforcement of the provisions of the bill the bill would not involve any non-recurring expenditure clause 2 of the bill seeks to insert three new chapters, namely chapters iva, ivb and ive (containing sections 11a to 11g, 11h to 11m, and un, respectively) in the customs act, 1962 2 propoaed section lib seeks to empower the central government to notify goods of any clan or description in relation to which the provisions of chapter tv a should be complied with 3 proposed section llh seeks to empower the central government to pecity-(a) export goods in relatdon to which the provisions of chapter ivb should be complied with, and (b) a belt within which the possession, sale, transfer or tran,tport of any specified export goods would be regulated by the provisiona of chapter ivb 4 proposed section 11k seeks to empower the central government to specify export goods of any class or description which shall not be transported from, into or within the specified area unless they are accompanied by a transport voucher countersigned by the proper officer 5 proposed section un empowers the central government to exempt good, of any class or description from all or any of the provisions of chapter iva or chapter !vb 6 proposed sections 11c, lie, llf, llg, 11j, 11k and ill seek to empower the central government to specify, by rules made in this behalf, the form and manner in which,-(a) the statement containing the particulars of the place of tora,_ of notified or specified goods, as the case may be, shall be prepared; (b) accounts shall be maintained by a person owning, possessing or controlling any notified or specified goods, as the case may be; (c) the voucher showing the sale, transfer, delivery or other dispoaal of any notified goods (which are not in personal use) shall be prepared; (d) the memorandum showing the sale of notified goods which are in personal use or are kept in any residential premises for personal use, shall be prepared; (e) the transit or transport voucher, as the case may be, in relation to specified goods shall be maintained 7 proposed sections 11d and 11m seek to empower the central government to specify reasonable steps which should be taken by a ~on who acquires any notifted or specified goods, as the case may he, to enaure that they are not illegally imported goods or are not intended to be illegally exported 8 the matters in respect of which notifications or rules can be made by the central government are matters of procedure and detail and it is hardly possible to provide for them in the act itself the delegation of the legislative power is, therefore, of a normal character  annexure extract flom the customs act, 1962- (52 of 1962) - - - - 159 every rule made under this act and every notification issue\:l rules and under sections 11, 14, 25, 43, 66, 69, 70, 74, 75, 76, 98, 101 and 123 shall be certain laid as soon as may be after it is made or issued before each house of ~otific:; parliament while it is in session for a total period of thirty days which b;~aid may be compriseti in one session or in two successive sessions, and if, before before the expiry of the session in which it is so laid or the session paruaimmediately following, both houses agree in making any modification in ment the rule or notification or both houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejutlice to the validity of anything previously dune under that rule or notification - - - - -  a bill further to amend the customs act, 1962(shri morarj; desai, deputy prime minlst" and minister of finance) 