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Section51
The Customs Act, 1962

Clearance of goods for exportation

In force From 01 Feb 1963 Act 52 of 1962 As on 15 Oct 2026

Act 52 of 1962 Ministry Finance Enacted 13 Dec 1962 In force 01 Feb 1963 Cited by 5 provisions Instruments 3

Section 51 of the Customs Act, 1962 deals with clearance of goods for exportation. ] Where the proper officer is satisfied that any goods goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading o The Act came into force on 01 Feb 1963.

1[(1)] Where the proper officer is satisfied that any goods goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation:

2[3[Provided that such order may also be made electronically through the customs automated system system on the basis of risk evaluation through appropriate selection criteria:

Provided further that] the Central Government may, by notification in the Official Gazette, permit certain class of exporters to make deferred payment of said duty or any charges in such manner as may be provided by rules.]

2[(2) Where the exporter fails to pay the export duty, either in full or in part, under the proviso to sub-section (1) by such due date as may be specified by rules, he shall pay interest on said duty not paid or short-paid till the date of its payment at such rate, not below five per cent and not exceeding thirty-six per cent per annum, as may be fixed by the Central Government, by notification in the Official Gazette.]

Section 51, 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 5

  1. s. 16 Date for determination of rate of duty and tariff valuation of export goods
  2. s. 26A Refund of import duty in certain cases
  3. s. 74 Drawback allowable on re-export of duty-paid goods
  4. s. 75 Drawback on imported materials used in the manufacture of goods which are exported
  5. s. 156 General power to make rules

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.

  1. Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam

    Supreme Court of India 27 Oct 2015 Persuasive (Other High Court) - Binding on Parties Reportable

    Court's Decision & Legal Precedent

    When an exporter files free shipping bills for export goods and subsequently seeks to claim duty drawback, while the exporter cannot invoke 'reasons beyond control' under Rule 12(1)(a) merely on the ground of lack of legal awareness, the Board's Circular No. 04/2004 dated 16.01.2004 empowers the Commissioner to examine and consider individual requests for drawback on merits and facts without requiring formal conversion of the bills, provided the claim pertains to All Industry Rates of drawback (not brand rates). Physical examination of goods is not a precondition for granting such drawback claims, as the Customs Act only requires that export goods be cleared after satisfying that they are not prohibited and any applicable duty is paid. For non-dutiable export goods, the absence of physical examination does not bar drawback claims.

    On this section: Section 51 provides that the proper officer's satisfaction is limited to ensuring goods are not prohibited and duty (if any) is paid. Court interpreted this to mean that for non-dutiable goods (free shipping bills for export), physical examination is not a precondition for clearance, and therefore cannot be a basis for denying drawback claims.

    Read the full order on eCourts India

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

3 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 51

What have the courts held on Section 51 of the Customs Act?

Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam (27 Oct 2015) is the leading judgment on this section among those set out below: Section 51 provides that the proper officer's satisfaction is limited to ensuring goods are not prohibited and duty (if any) is paid. Court interpreted this to mean that for non-dutiable goods (free shipping bills for export), physical examination is not a precondition for clearance, and therefore cannot be a basis for denying drawback claims.

How do I find court cases under Section 51 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 51, section 51 Customs Act 1962, section 51 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 Cargill India P. LTD vs Commr. of Customs, Vishakhapatnam (27 Oct 2015).

What should I read with Section 51 of the Customs Act, and has it changed?

5 other provisions in this corpus refer back to it. 3 instruments name it without being made under it, most recently Notification No.35/2017-Cus(NT), Dated 11.4.2017 (2017), then Notification No.36/2017-Cus(NT), Dated 11.4.2017 (2017).

When did Section 51 of the Customs Act come into force?

Section 51 of the Customs Act, cited as Customs Act 1962 51, 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

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 15 Oct 2026. This page is not a substitute for legal advice.