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.
When customs dues are not paid, the Customs Act allows recovery by attaching and selling the defaulter's property. The Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995 set out how. Rules 1 to 5 cover the definitions and the first three steps: the certificate, the notice and the attachment.
This article reads the Rules as amended up to the CBIC text updated 6 August 2014 (reflecting Notification No. 56/2014-Cus. (N.T.), No. 29/99-Cus. (N.T.) and No. 67/97-Cus. (N.T.)). Later notifications should be checked, as no official consolidated text exists beyond the CBIC text.
An Assistant Commissioner or Deputy Commissioner prepares a certificate of the dues and sends it to the Principal Commissioner or Commissioner where the defaulter has property, residence, business or bank accounts. The Commissioner may have a notice served requiring payment within seven days. If it is not paid, the Proper Officer may attach and sell property and detain it until the dues and the cost of detention are paid.
Rule 1: title and commencement
The Rules are made under section 156 read with section 142 of the Customs Act, 1962. They may be called the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995 and came into force on publication in the Official Gazette. For the parent recovery power, see our article on section 142.
Rule 2: definitions
| Term | Meaning as printed |
|---|---|
| Government dues | Any duty or drawback to be recovered from any person, or any interest or penalty payable by any person under the Act, that has not been paid |
| Certificate | The certificate required to be issued by an Assistant Commissioner or Deputy Commissioner of Customs under section 142(1)(c) of the Act |
| Commissioner | Any person appointed as Principal Commissioner or Commissioner of Customs, or Principal Commissioner or Commissioner of Central Excise, under the Act |
| Proper Officer | An officer subordinate to the Principal Commissioner or Commissioner, not below the rank of Assistant Commissioner, authorised by the Commissioner for the purpose of attachment and sale of the defaulter's property and for realising the amount in the certificate |
| Defaulter | Any person from whom government dues are recoverable under the Act |
Other words take the Act's meanings. Two points about the definitions. First, "government dues" covers duty, drawback, interest and penalty that remain unpaid, so the Rules reach more than duty. Second, the Commissioner definition includes officers of Central Excise as printed; that wording dates from the time the Rules were made, so check the current position on which officers act.
Rule 3: issue of certificate
Where government dues are not paid by a defaulter, the Assistant Commissioner or Deputy Commissioner of Customs may prepare a certificate, signed by him and specifying the amount due, and send it to the Principal Commissioner or Commissioner having jurisdiction over the place in which the defaulter:
- owns any movable or immovable property;
- resides;
- carries on business; or
- has bank accounts.
The certificate is the foundation of everything that follows. Every later rule measures the dues by "the amount mentioned in the Certificate". The defaulter should check that the amount and the head of dues match the underlying order.
If you have received a recovery certificate or notice, our reply to legal notice service can help you respond in time.
Rule 4: issue of notice
On receipt of the certificate, the Principal Commissioner or Commissioner may authorise any officer subordinate to him to cause a notice to be served on the defaulter. The notice must:
- require the defaulter to pay the amount specified in the certificate within seven days from the date of service of the notice; and
- state that, in default, the subordinate officer is authorised to take steps to realise the amount in terms of the Rules.
The seven days run from service, not from the date of the notice. A defaulter should keep a record of when and how service took place.
Rule 9 of these Rules (covered in our article on rules 6 to 14) also bars the defaulter from mortgaging, charging or leasing property once the notice is served, without written permission of the Proper Officer.
Rule 5: attachment of property
If the amount in the notice is not paid within seven days from the date of service, the Proper Officer may proceed to realise the amount by attachment and sale of the defaulter's property. For that purpose, he may detain the defaulter's property until the amount in the certificate, together with the cost of detention, is paid by the defaulter.
Rule 5 was substituted with effect from 11 December 1997 by Notification No. 67/97-Cus. (N.T.). The detention power is a pressure point: property can be held until the dues and the cost of detention are paid, before any sale takes place. The rules on sale, with a thirty-day interval from attachment, are in our article on rules 15 to 20.
The first four steps
| Step | Rule | Who | What |
|---|---|---|---|
| Certificate | 3 | Assistant Commissioner or Deputy Commissioner | Specifies amount due; sent to jurisdictional Principal Commissioner or Commissioner |
| Authorising notice | 4 | Principal Commissioner or Commissioner | Authorises a subordinate officer to serve notice |
| Notice | 4 | Subordinate officer | Seven days from service to pay |
| Attachment | 5 | Proper Officer | Attach, detain until dues and cost of detention paid, and sell |
Example. Brightline Traders has unpaid duty and interest under an order. The Deputy Commissioner issues a certificate for the amount and sends it to the Commissioner for the area where Brightline has its warehouse and bank account. A subordinate officer serves a notice on 3 March giving seven days from service. Brightline does not pay, so the Proper Officer may attach goods in the warehouse and detain them until the certificate amount and the cost of detention are paid.
For the Act, see our section 142 article. For limits on attachment, inventory and exempt property, read rules 6 to 14.
Need help responding to a recovery notice?
A recovery certificate leaves only seven days before attachment can begin. If you or a client has received one, a prompt, accurate reply is the first line of defence. Our reply to legal notice team can review the certificate, check the amounts and prepare the response. For the next stage, see rules 15 to 20.
Key takeaways
- "Government dues" means unpaid duty, drawback, interest or penalty under the Act.
- The certificate is issued by an Assistant Commissioner or Deputy Commissioner and sent to the Commissioner where the defaulter has property, residence, business or bank accounts.
- The notice gives seven days from service to pay.
- On non-payment, the Proper Officer may attach, detain until dues and cost of detention are paid, and sell.
- Check the certificate amount, the date of service and the head of dues at once.
Read next
- Rules 6–14 of the Customs Attachment of Property Rules, 1995: limits, inventory and exempt property
- Rules 15–20 of the Customs Attachment of Property Rules, 1995: sale, proclamation and setting aside
- Rules 21–28 of the Customs Attachment of Property Rules, 1995
- Section 142 of the Customs Act: recovery of sums due to Government
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.