Duty on pilfered goods
Section 13 of the Customs Act, 1962 deals with duty on pilfered goods. If any imported goods are pilfered after the unloading thereof and before the proper officer has made an order for clearance for home consumption or deposit in a warehouse, the importer shall not be liable to pay the duty leviable on such goods except where such goods are restored to the importer af The Act came into force on 01 Feb 1963.
If any imported goods are pilfered after the unloading thereof and before the proper officer has made an order for clearance for home consumption or deposit in a warehouse, the importer shall not be liable to pay the duty leviable on such goods except where such goods are restored to the importer after pilferage.
Section 13, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai
Court's Decision & Legal Precedent
The quantity of goods to be assessed for customs duty purposes is the actual quantity of goods physically imported and received at the place of importation in India (at the shore tanks at Indian ports), not the quantity stated in the bill of lading from the country of export. This is because: (a) the taxable event under Section 12 of the Customs Act is 'importation', which is complete only when goods become part of the land mass within India and are cleared for home consumption; (b) Sections 13 and 23 establish that duty is not payable on goods lost, pilfered, or destroyed before clearance for home consumption; (c) Section 14 requires valuation 'at the time and place of importation'; (d) the Customs Valuation Rules' definition of 'transaction value' refers to goods 'actually imported'; and (e) whether customs duty is levied at a specific rate or on an ad valorem basis does not change this fundamental principle.
On this section: Provides that if imported goods are pilfered after unloading and before clearance for home consumption, the importer shall not be liable to pay duty, establishing that liability only arises upon successful importation and possession.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
5 instruments name this provision in its title or its text without being made under it.
- Testing of samples of Hazardous wastes from the laboratories recognised under the Environment (Protection) Act, 1986- Circular No.9/2009-Customs, dated 23.2.2009Circular 2009
- General permission for release of imported currency - instructions. - Circular No.22/1999-Customs, dated 7.5.99Circular 1999
- Procedure for collection of duty on ship stores consumed during coastal run.- Circular No.58/1997-Customs, dated 6.11.1997Circular 1997
- Procedure for identification of goods pilfered after the unloading in a customs area until they are cleared for home consumption or for warehousing or are transshipped, and recovery of duty thereon from the Custodians as laid down under section 45 of the Customs Act, 1962 - Circular No.58/1996-Customs, dated 29.11.1996Circular 1996
- Procedure for identification of goods pilfered after the unloading in a customs area until they are cleared for home consumption or for warehousing or are transshipped, and recovery of duty thereon from the Custodians as laid down under section 45 of the Customs Act, 1962 - Circular No.58/1996-Customs, dated 29.11.96Circular 1996
Questions about Section 13
What have the courts held on Section 13 of the Customs Act?
Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai (02 Sep 2015) is the leading judgment on this section among those set out below: Provides that if imported goods are pilfered after unloading and before clearance for home consumption, the importer shall not be liable to pay duty, establishing that liability only arises upon successful importation and possession.
How do I find court cases under Section 13 of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 13, section 13 Customs Act 1962, section 13 of the Customs Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Bharat Petroluem Corporation LTD vs Commissioner of Customs (import), Mumbai (02 Sep 2015).
What should I read with Section 13 of the Customs Act, and has it changed?
1 other provision in this corpus refers back to it. 5 instruments name it without being made under it, most recently Testing of samples of Hazardous wastes from the laboratories recognised under the Environment (Protection) Act, 1986- Circular No.9/2009-Customs, dated 23.2.2009 (2009), then General permission for release of imported currency - instructions. - Circular No.22/1999-Customs, dated 7.5.99 (1999).
When did Section 13 of the Customs Act come into force?
Section 13 of the Customs Act, cited as Customs Act 1962 13, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.