Customs Regulation, 2007

Rule 57.  Recovering penalty or shortfall of the customs duty :

1. The exporter or importer or their customs agent , in case of shortfall in the amount to be deposited as customs duty because of mathematical error, or due to the difference in the classification head or sub-head, or for other reasons,  or the penalty amount due; should be  immediately notified by the customs officer to deposit  the  penalty  or the shortfall in the customs duty, as soon as the customs officer knows about it. 

2.  The person notified pursuant to sub rule (1) should deposit the amount in the customs office within fifteen days from the date of notification. In case the amount should not be paid or have already been paid, such information should be submitted with documentary evidence to the customs officer within fifteen days from the date of receiving the notice. 

3.  In case of the receipt of the information  regarding the  amount should not be paid or have already been paid, pursuant to subsection 2; the customs officer should enquire into the matter and if found justified , should notify accordingly  that the amount should not be deposited. If the documentary evidence did not justify the case, the customs officer should notify to deposit the

amount within seven days. The concerned person should deposit the amount within the specified time  period. In case of not depositing the amount in time , the customs office may stop the customs transaction of such a person or may recover such amount from such person’s asset located anywhere in the government office. 

4. In case of notification given to the customs agent about the deposit of the penalty amount or the shortfall in the customs duty, the customs agent’s duty is  to notify the exporter or importer to recover the penalty or shortfall amount in the given time and make efforts  to make the exporter or importer  present, if required,  at the customs office for the purpose of   recovering  the amount.

5. In case of non recovery of the amount pursuant to sub rule (3), such amount should be treated as due amount to be recovered as government due.

6. In case of the knowledge of the due amount and non recovery of the due amount and, if the customs official clears goods without the instruction of the chief customs  officer, such customs official is liable for disciplinary action.