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Section54
The Customs Act, 1962

Transhipment of certain goods without payment of duty

In force From 01 Feb 1963 Act 52 of 1962 As on 17 Oct 2026

Act 52 of 1962 Ministry Finance Enacted 13 Dec 1962 In force 01 Feb 1963 Cited by 3 provisions Instruments 7

Section 54 of the Customs Act, 1962 deals with transhipment of certain goods without payment of duty. Where any goods imported into a customs station are intended for transhipment, a bill of transhipment shall be presented to the proper officer in [such form and manner as may be prescribed]: [Provided that where the goods are being transhipped under an international treaty or bilateral agreement bet The Act came into force on 01 Feb 1963.

(1) Where any goods imported into a customs station are intended for transhipment, a bill of transhipment shall be presented to the proper officer in 1[such form and manner as may be prescribed]:

2[Provided that where the goods are being transhipped under an international treaty or bilateral agreement between the Government of India and Government of a foreign country, a declaration for transhipment instead of a bill of transhipment shall be presented to the proper officer in 1[such form and manner as may be prescribed].]

(2) Subject to the provisions of section 11, where any goods imported into a customs station are mentioned in the 3[arrival manifest or import manifest] or the import report, as the case may be, as for transhipment to any place outside India, such goods may be allowed to be so transhipped without payment of duty.

(3) Where any goods imported into a customs station are mentioned in the 3[arrival manifest or import manifest] or the import report, as the case may be, as for transhipment--

(a) to any major port as defined in the Indian Ports Act, 1908 (15 of 1908), or the customs airport at Mumbai, Calcutta, Delhi or Chennai or any other customs port or customs airport which the Board may, by notification in the Official Gazette, specify in this behalf, or

(b) to any other customs station and the proper officer is satisfied that the goods are bona fide intended for transhipment to such customs station,

the proper officer may allow the goods to be transhipped, without payment of duty, subject to such conditions as may be prescribed for the due arrival of such goods at the customs station to which transhipment is allowed.

Section 54, 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.

This section refers to

  1. s. 11 Power to prohibit importation or exportation of goods

Referred to by 3

  1. s. 55 Liability of duty on goods transited under section 53 or transhipped under section 54
  2. s. 111 Confiscation of improperly imported goods, etc
  3. s. 157 General power to make regulations

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. Aban Offshore LTD vs Commnr. of Customs (import)

    Supreme Court of India 02 Feb 2017 Binding (Supreme Court) Reportable

    Court's Decision & Legal Precedent

    A foreign-going vessel which enters Indian territorial waters temporarily for the purpose of undergoing repairs and which is subsequently removed from Indian territorial waters does not constitute goods imported into India for home consumption merely by reason of such entry and repair. The completion of the act of importation requires not only that the goods enter Indian territorial waters, but also that they satisfy the requirement of being intended for primary use in India (home consumption). Mere repair of a vessel does not constitute putting the vessel to use or utility in India, and therefore does not satisfy the home consumption requirement. Consequently, customs duty is not chargeable on a foreign-going vessel that enters Indian territorial waters solely for repair purposes, despite such entry technically constituting the commencement of importation. However, foreign-going vessels remain subject to the procedural and regulatory compliance requirements of the Customs Act upon entering Indian territorial waters, and violation of these procedural provisions (such as failure to file appropriate documents or deliver import manifests) remains actionable even absent the completion of import.

    On this section: Deals with transshipment requirements. Court referenced this as alternative route for goods not for home consumption.

    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.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 28 Oct 2021 GJHC240446302021

    … M/s. Qingdao Hi-lander provided the papers to the shipping agent – present petitioner herein and to the vessel agent M/s. Feedertech and imported the goods under Section 30 read with Section 54 of the Customs Act, 1962. 2.3. It is the say of the petitioner that neither the petitioner nor its principal should be held liable for the storage, demurrage or other charges levied by the Adani Ports and Special Economic Zone Ltd. (APSEZ) for any detaining of the container at Adani Mundra Container Terminal. …

    Read this order on eCourtsIndia

Made under this section, and citing it

4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

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

All subordinate legislation

Questions about Section 54

What have the courts held on Section 54 of the Customs Act?

Aban Offshore LTD vs Commnr. of Customs (import) (02 Feb 2017) is the leading judgment on this section among those set out below: Deals with transshipment requirements. Court referenced this as alternative route for goods not for home consumption.

How do I find court cases under Section 54 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 54, section 54 Customs Act 1962, section 54 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 Aban Offshore LTD vs Commnr. of Customs (import) (02 Feb 2017).

What should I read with Section 54 of the Customs Act, and has it changed?

Its own text turns on section 11 (Power to prohibit importation or exportation of goods), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently Notification No.17/2019-Cus(NT), dated 27.2.2019 (2019), then Notification No.38/2018-Cus(NT), dated 11.5.2018 (2018), and 2 more.

When did Section 54 of the Customs Act come into force?

Section 54 of the Customs Act, cited as Customs Act 1962 54, 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 17 Oct 2026. This page is not a substitute for legal advice.