Maruthi car decorators imported car accessories from China. They seek your opinion on the following issues : (ii) 10 gear lines were pilfered after unloading and before the proper officer have made an order for clearance

Liability of Customs Duty on Pilfered Goods: (ii) 10 gear lines were pilfered after unloading and before the proper officer made an order for clearance for home consumption: As per Section 13 of the Customs Act, 1962, 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 import duty in respect of such goods. In this case, the 10 gear lines were pilfered after unloading but before the proper officer made an order for clearance for home consumption. Therefore, Maruthi Car Decorators is not liable to pay duty on the gear lines pilfered under these circumstances.