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Dated: 29.03.2025

Delhi High Court- Customs to provisionally release the Exported goods within 7 days

The Delhi High Court on 26th March 2025 directed the Customs Department to take a decision within seven days and provisionally release goods exported by Backbone Overseas. The Court criticized the Customs authorities for holding the consignment without issuing a seizure memo for over two months.

1. Detention of Export Goods:

• Backbone Overseas exported ladies PVC slippers via Postal Bill of Export dated 13th January 2025.
• The consignment was detained by Customs without issuing a seizure memo or providing reasons for over two months.

2. Violation of CBIC Circulars:

• The Court noted that CBIC Circular No. 30/2013 mandates that export consignments must not be detained for more than three days unless the goods are prohibited.
• Detention must be followed by prompt seizure and communication to exporters.

3. Lack of Action from Customs:

• Despite multiple letters from the petitioner (dated 20th January and 12th March 2025), Customs did not respond.
• The seizure memo was issued only on 25th March 2025, a day before the court hearing.

4. Customs’ Justification:

• Customs claimed the goods were overvalued to potentially claim irregular duty drawback, but failed to act in a timely manner.

5. Court’s Observation:

• The Court found the customs’ conduct unacceptable and non-compliant with procedural law.
• Held that delay and inaction triggered by the writ petition reflected poorly on administrative efficiency.

6. Court’s Directions:

• Customs was ordered to provisionally release the goods within 7 days, subject to reasonable conditions.
• Backbone Overseas was directed to appear before the Customs Department on 27th March 2025 with all requested documentation.

7. Writ Petition Disposed:

• The petition was disposed of with clear directions to expedite the release and ensure compliance with CBIC norms.

FTP Para 1.08 – Free passage of Export Consignment Consignments of items meant for exports shall not be withheld/ delayed for any reason by any agency of Central/ State Government. In case of any doubt, authorities concerned may ask for an undertaking from exporter and release such consignment.

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Source: Delhi High Court

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