Ranya Rao gold smuggling controversy: What India's customs rules say

Kannada actress Ranya Rao was caught smuggling gold at Bengaluru Airport. Here's a look at India's customs rules on gold, cash limits, and penalties under the Customs Act of 1962

Kannada actor Ranya Rao was caught at Bengaluru’s Kempegowda International Airport with 14.8 kg of gold, marking one of the largest gold seizures in recent times. The Directorate of Revenue Intelligence (DRI) uncovered the smuggling operation just before she cleared airport security.  

 

Following searches at locations linked to her led to the recovery of gold jewellery worth Rs 2.06 crore and Rs 2.67 crore in cash. Rao was presented before an economic offences court, which sent her to judicial custody for 14 days. Over the past year, she reportedly made 30 trips to Saudi Arabia, wearing the same outfit each time while smuggling gold. She is the stepdaughter of senior IPS officer Ramachandra Rao, a DGP-rank officer currently serving as the chairman and managing director of the Karnataka State Police Housing and Infrastructure Development Corporation Ltd.

 

 

Indian Customs Act of 1962

The Indian Customs Act of 1962 is a foundational legislation that governs the import and export of goods in India. It plays a crucial role in regulating international trade, safeguarding the economy, and preventing smuggling. The Act is administered by the Central Board of Indirect Taxes and Customs (CBIC), which is part of the Ministry of Finance.

 

The Customs Act of 1962 is divided into 17 chapters, covering various aspects of customs regulations such as duties on imported goods, prohibitions on imports and exports, warehousing, and penalties. It aims to facilitate legal trade while preventing unauthorised activities like smuggling.

 

Key provisions under the Act

-Customs duty: The Act imposes customs duty on goods imported into or exported from India. The rates of duty are specified under the Customs Tariff Act, 1975, or other applicable laws. Customs duty serves multiple purposes, including protecting domestic industries and conserving foreign exchange.

 

-Prohibitions and restrictions: The Act empowers the government to prohibit or restrict the import and export of certain goods. This is crucial for safeguarding national security, public health, and environmental concerns.

 

-Clearance procedures: Importers and exporters must comply with customs clearance procedures, which involve documenting goods, paying applicable duties, and obtaining necessary permissions. This ensures that goods comply with regulatory requirements.

 

-Warehousing: Goods can be stored in warehouses without immediate payment of duty, allowing importers to defer duty payment until goods are cleared for consumption or re-export.

 

Mandatory requirements

-Customs declaration: All passengers entering India must pass through customs checks and may need to complete a customs declaration form if they are carrying dutiable goods. Passengers can declare dutiable goods and currency in advance using the ATITHI mobile app before boarding. If carrying foreign currency notes worth more than $5,000 or a total foreign exchange amount exceeding $10,000, a declaration is mandatory.

 

-Documentation: Importers and exporters must provide detailed documentation of goods, including their value, origin, and classification under the Harmonised System (HS) code.

 

-Payment of duty: Duty must be paid on all imported goods unless exempted by law. The duty rates vary based on the type of goods and their country of origin.

 

Allowances for passengers

Domestic flights

For domestic flights within India, there are generally no customs restrictions or allowances since passengers are not crossing international borders. However, passengers must comply with airline regulations regarding baggage limits and prohibited items.

 

International flights

Duty-free allowances: Passengers arriving in India are entitled to certain duty-free allowances:

>Used personal items and travel souvenirs: These are allowed duty-free.

>Articles up to Rs 15,000: For passengers arriving from Nepal, Bhutan, or Myanmar.

>General allowance: International passengers can bring goods worth up to Rs. 50,000 duty-free, provided they are not carrying prohibited items.

 

Specific items

>Laptop, computers: One laptop per passenger aged 18 and above is allowed duty-free

>Alcoholic liquor: Up to 2 litres of liquor is allowed duty-free

>Tobacco products: Up to 100 cigarettes or 25 cigars or 125 gm of tobacco are allowed duty-free

 

Gold and silver

>NRIs are allowed to bring up to 10,000 gm of gold to India once every six months, provided they have resided abroad for a minimum of six months. However, only a part of this allowance is exempt from duty, while the rest is subject to customs charges.

>A male passenger can bring 20 gm of gold with a value limit of Rs 50,000

>A female passenger can bring 40 gm of gold with a value limit of Rs 1,00,000

>Children can bring 20/40 gm of gold with a value limit of Rs 50,000/Rs 1,00,000 based on gender

 

Cash carrying limit

>Passengers can bring Indian currency up to Rs 25,000 without declaration. However, foreign currency must be declared if exceeding $5,000 or its equivalent.

 

Punishment for smuggling

Smuggling is a serious offense under the Customs Act of 1962. Penalties for smuggling include:

>Imprisonment: Smugglers can face imprisonment ranging from three to seven years, depending on the severity of the offense.

>Fines: In addition to imprisonment, smugglers may be fined, with the amount often being three times the value of the goods involved.

>Confiscation of goods: Smuggled goods are liable to be confiscated by customs authorities.