Issues relevant to baggage:

There is a popular belief that baggage consists of personal belongings of an individual or family and is essential for the day to day life of such persons.

There is another popular belief that customs duty is on trade and merchandise only and the goods brought into India or taken out of India in the course of international trade alone are liable to customs duty and customs regulations. The customs duty is an indirect tax. It is on the goods. It is no way influenced by the parties to the transaction or the nature of the transaction. The only relevant factors are:

(i) whether the goods are imported into India;

(ii) whether they are subject to the levy of customs duty under provisions of the Customs Act and

(iii) whether there is any relief of payment of duty.

It is in this context that the provisions of the Customs Act have to be examined in their applicability to baggage.

The duty cast on the person-in-charge of the conveyance is to file an Import General Manifest in the case of imported goods and an Export General Manifest in the case of export goods. In both the cases, “baggage goods” are required to be declared in separate sheets.