Customs announces relief for international travelers' stuck duty payments

The Customs department has introduced refund guidelines for payments that were initially successful but ultimately failed due to any errors

The Customs department has issued an advisory to assist passengers in obtaining timely refunds for failed Customs duty payment transactions. These guidelines specifically address the refund process for payments made through the ICEGATE portal.

 

It is important to note that the advisory applies exclusively to international travellers who have brought goods from abroad exceeding the duty-free baggage limit for those items.

 

What was the issue?

 

From April 2023, online Customs duty payments will be made through the ICEGATE portal. A common issue arises when using the ICEGATE portal to pay Customs duty, as payment failures can occur in some cases. When a payment fails, you are required to make another attempt, leading to a double debit scenario — one successful transaction and one failed — for a single Customs duty payment. It is crucial to complete the payment successfully, as failing to do so may result in the seizure of goods exceeding the baggage allowance.

 

However, obtaining a refund for failed transactions has been a challenging experience for many travellers. To address this concern, a new advisory has been issued, outlining a clear process for claiming refunds.

 

“The advisory instructs passengers to verify their payment status on the portal, collect necessary transaction details, and submit a formal refund request along with required documentation. The department will then verify the details and process the refund, crediting the amount back to the passenger's account,” says Deepika Kumari, partner, King Stubb & Kasiva, Advocates and Attorneys.

 

Manmeet Kaur, partner at Karanjawala & Co., explains what the Customs Department says about failed payments on the ICEGATE portal.

 

In terms of an advisory dated 25.12.2024, the concerned passport holder who is facing an issue of failed baggage duty which is lying in the PAN wallet of ICEGATE may directly approach the port officer seeking a refund.

 

The concerned port officer, after conducting a preliminary verification and cross verifying the relevant documents such as baggage declaration form, passport details, challan no., transaction / payment history in the ICES system, shall send a letter on the available address to the passport holder requesting him / her for supporting documents, if so required.

  Upon successfully verifying the claim made by the passport holder, the port officer shall process the refund request to the bank account of the passport holder. Once the refund is processed, the officer shall inform ICEGATE, which shall update the PAN-based wallet for corresponding transactions.

 

What will be the impact of this advisory for passengers?

 

“This advisory brings much-needed clarity and a direct channel for passengers affected by failed payments on the ICEGATE portal to claim refunds. However, the process requires manual verification, which could lead to delays and additional documentation burdens, including affidavits and bank certifications. While the advisory empowers passengers by outlining clear steps, its real impact will depend on widespread awareness and the efficiency of Customs officials in processing claims in a timely manner. Without proper implementation, travellers could continue to face frustration and delays in retrieving their funds,” said Kunal Savani, Partner, Cyril Amarchand Mangaldas.

 

Addressing concerns through specific clarifications and adjustments in the advisory would greatly enhance its efficiency. For instance, specifying a processing timeline, simplifying document requirements, and streamlining reconciliation steps could expedite the refund process while minimising inconvenience for travellers. Such improvements would make the initiative even more effective and traveller-friendly,” said Sanjay A. Chhabria, IDT lead at Nexdigm.