Rules 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957 govern goods that diplomatic missions, consular posts and their staff import, or buy from bond, without payment of customs duty. Rules 1 to 3 say whom the Rules cover and what must be done at the time of clearance: a written claim for exemption and a signed exemption certificate in triplicate.
This article reads the Rules as amended up to the CBIC text updated 6 August 2014 (reflecting Notification No. 56/2014-Cus. (N.T.) and the earlier amending notifications listed in the CBIC text). Later notifications should be checked, as no official consolidated text exists beyond the CBIC text.
The Rules apply to goods exempt from customs duty under the notification No. 3-Customs dated 8 January 1957. Duty exemption is not allowed at clearance unless it is claimed in writing and supported by an exemption certificate in triplicate in the prescribed Appendix form. The certificate is signed by the head of the mission or post, or by the privileged person with countersignature. Two copies go to the Commissioner of Customs at the port and one to the Protocol Division, Ministry of External Affairs.
What the Rules are for
The enacting words say the Rules were made to lay down the procedure for recovery of customs duty on goods imported without payment of duty in the first instance and sold or otherwise disposed of later in India by the officers named in serials 1, 2, 3, 3A, 4, 4A, 5 and 6 of notification No. 3-Customs dated 8 January 1957. They cite section 9(c) of the Sea Customs Act, 1878, as printed. That old Act is quoted as it appears in the text; check the current law for the power under which the Rules now operate. For the exemption power in the present Act, see our article on section 25.
Rule 1: title, commencement and application
- 1(1) The Rules may be called the Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957.
- 1(2) They came into force on 8 January 1957.
- 1(3) They apply to goods exempt from customs duty under notification No. 3-Customs dated 8 January 1957.
The rate or scope of the exemption itself sits in that notification and is not repeated in these Rules. Check the notification as it stands today.
Rule 2: definitions
| Term | Meaning as printed |
|---|---|
| Goods | All articles imported, or purchased locally from bonded stocks, without payment of duty under the notification, and including motor vehicles so imported or purchased and all articles including motor vehicles purchased by a privileged person from another privileged person on which customs duty has not been paid |
| Privileged person | A person entitled to import, or to purchase locally from bond, goods without payment of duty for personal use, for use of a family member, or for official use in his Mission, Consular Post or Office, or in a Deputy High Commission or Assistant High Commission |
| Non-privileged person | A person other than a privileged person |
Two features of the definition of "goods" matter. First, it follows the goods from one privileged person to another, so a transfer between two privileged persons does not wash the exemption away. Second, it covers purchases from bonded stock as well as imports.
Need help reading how an exemption notification applies to a diplomatic or mission import? Our legal consultation team can help look at the facts.
Rule 3: formalities at the time of clearance
Rule 3(1): the written claim and the certificate
No goods are allowed to be cleared without payment of duty unless, in addition to the ordinary formalities for clearance:
- the exemption from duty is claimed in writing at the time of clearance through customs; and
- the claim is accompanied by an exemption certificate in triplicate in the forms in Appendix IA, IB, IC, ID, IIA, IIB, IIIA, IIIB or IIIC, as the case may be (shown in the text as Form Numbers 9 to 17 in Part 5).
The forms are named only; their contents are not set out here, so use the official forms.
Rule 3(2): who signs
| Goods meant for | Certificate signed by |
|---|---|
| Official use in a Diplomatic Mission | The Head of the Diplomatic Mission, or, where the mission has more than fifteen Diplomatic Officers, a Diplomatic Officer duly authorised by the Head |
| Official use in a Consular Post, Deputy High Commission, Assistant High Commission or Trade Representation | The Consular Officer, Deputy High Commissioner, Assistant High Commissioner or Trade Commissioner in charge, or, where there are more than ten privileged persons, an officer authorised by the head of the post |
| Personal use of the privileged person or a family member | The privileged person concerned, countersigned by the Head of the Mission or Post, or, for a mission or post with more than ten privileged persons, by an authorised Diplomatic Officer, Consular Officer or officer of the Commission or Trade Representation |
Rule 3(3): where the copies go
Of the three copies, two are sent to the Commissioner of Customs of the port of importation and one to the Protocol Division, Ministry of External Affairs, Government of India.
Rule 3(4): motor vehicles
Where exemption is claimed for a motor vehicle, the exemption certificate in triplicate is given in the form in Appendix IV-A or IV-B, as the case may be. The rules on signature, countersignature and transmission of copies in sub-rules (2) and (3) apply the same way.
Example. An embassy with eighteen Diplomatic Officers imports office equipment. A Diplomatic Officer authorised by the Head of Mission signs the exemption certificate in triplicate. At clearance the embassy claims exemption in writing, files the certificate with the Bill of Entry papers, and sends two copies to the Commissioner at the port and one to the Protocol Division. A first secretary who imports a car for personal use claims exemption in the vehicle form in Appendix IV-A or IV-B, signs as the privileged person and obtains the Head of Mission's countersignature.
For what happens if such goods are later sold, see our article on rules 4 to 7. The Rules on baggage of ordinary travellers are different; see our article on rules 1 to 4 of the Baggage Rules, 2026.
Need help with a privileged-person clearance?
Missing the written claim or using the wrong form at clearance defeats the exemption. If a mission, an employee or a clearing agent needs guidance on the formalities, our legal consultation team can help you check them before the Bill of Entry is filed.
Key takeaways
- The Rules apply to goods exempt under notification No. 3-Customs dated 8 January 1957.
- Exemption must be claimed in writing at clearance and supported by an exemption certificate in triplicate in the prescribed form.
- The signatory depends on the use: mission head or authorised officer for official use; the privileged person, countersigned, for personal use.
- Two copies go to the Commissioner of Customs at the port, one to the Protocol Division, Ministry of External Affairs.
- Motor vehicles use Appendix IV-A or IV-B.
Read next
- Rules 4–7 of the Foreign Privileged Persons Rules, 1957: sale or disposal of goods and motor vehicles
- Rules 1–4 of the Baggage Rules, 2026: definitions and personal effects
- Section 25 of the Customs Act: power to grant exemption
Disclaimer: Based on the customs rules named above as published on the CBIC Tax Information Portal and, for sets amended since 2023, the amending notifications (read through a TaxClue consolidated reading text; no official consolidated text exists), as consulted on 3 October 2026. Later notifications, rates and the Customs Act, 1962 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.