Chapter V - Levy of customs duties
Section 23
Section 23: Remission for lost or destroyed goods
Section 23 addresses imported goods lost other than through pilferage, or destroyed before home-consumption clearance. On proof to the competent Customs officer, duty is remitted. It also allows an owner to relinquish title before specified clearance or warehousing orders, subject to the offence bar.
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Need advice on Section 23?
This article is for general information. Refer to the Customs Act, 1962 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Without prejudice to the provisions of section 13, where it is shown to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that any imported goods have been lost (otherwise than as a result of pilferage) or destroyed, at any time before clearance for home consumption, the Assistant Commissioner of Customs or Deputy Commissioner of Customs shall remit the duty on such goods.
(2) The owner of any imported goods may, at any time before an order for clearance of goods for home consumption under section 47 or an order for permitting the deposit of goods in a warehouse under section 60 has been made, relinquish his title to the goods and thereupon he shall not be liable to pay the duty thereon; Provided that the owner of any such imported goods shall not be allowed to relinquish his title to such goods regarding which an offence appears to have been committed under this Act or any other law for the time being in force.
Key takeaways
Loss or destruction
A qualifying loss other than pilferage or destruction must be shown to the Assistant or Deputy Commissioner before home-consumption clearance.
Relinquishment timing
The owner may relinquish title before the Section 47 home-consumption order or Section 60 warehouse-deposit order.
Offence limitation
Relinquishment is unavailable if an offence appears to have been committed regarding the goods under customs or another applicable law.
Loss or destruction
A qualifying loss other than pilferage or destruction must be shown to the Assistant or Deputy Commissioner before home-consumption clearance.
Relinquishment timing
The owner may relinquish title before the Section 47 home-consumption order or Section 60 warehouse-deposit order.
Offence limitation
Relinquishment is unavailable if an offence appears to have been committed regarding the goods under customs or another applicable law.
Practical checklist
Do
- Preserve incident, survey and custody evidence for loss or destruction.
- Check whether the facts are pilferage under Section 13 or another loss under Section 23.
- If relinquishing title, act before the relevant order and document Customs acceptance and any offence issue.
Frequently asked questions
Can the owner relinquish goods after customs has issued the home-consumption clearance order?
No. Section 23(2) allows relinquishment only before that order or the warehouse-deposit order, subject to its offence proviso.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026