Maruthi car decorators imported car accessories from China. They seek your opinion on the following issues : (iii) 10 decorative steering wheels were damaged after unloading and examination for assessment by the custom a

Liability of Customs Duty on Damaged Goods: (iii) 10 decorative steering wheels were damaged after unloading and examination for assessment by the custom authorities but before actual home clearance: Section 22 of the Customs Act, 1962, provides for abatement of duty on damaged or deteriorated goods. Abatement of duty on damaged imported goods is available if such imported goods are damaged accidentally after unloading but before examination for assessment by the customs authorities. However, in the given case, the steering wheels were damaged after examination by the proper officer. Therefore, abatement of duty on such goods is not available under Section 22. However, if Maruthi Car Decorators is able to demonstrate that the steering wheels have been destroyed after unloading and examination by the proper officer but before the order of clearance for home consumption, the duty can be remitted under Section 23 of the Customs Act, 1962, provided the importer relinquishes the title to the goods to the Customs authorities. Without relinquishing title or proving destruction, full duty would be payable.