Sections 11D 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.
Once goods have been notified under section 11B, the Act controls how they are acquired, recorded and sold. Section 11D sets precautions for an acquirer, section 11E requires accounts, section 11F requires a voucher for every sale or transfer, and section 11G excludes goods kept for personal use from three of these duties while still requiring a memorandum if such goods are sold.
This article follows the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check any later Finance Act changes to these sections before acting.
After the notified date, nobody may acquire notified goods unless they come with the sale voucher (or the personal-use memorandum), or, for a direct importer, evidence of customs clearance. Holders must keep true and complete accounts, and every sale or transfer must be evidenced by a voucher. Goods in personal use or kept at a residence for personal use are outside sections 11C, 11E and 11F.
Section 11D: precautions when acquiring
Section 11D says no person shall acquire, after the notified date, any notified goods, except by gift or succession from any other individual in India, unless two conditions are met.
First, the goods must be accompanied by either (a) the voucher referred to in section 11F, or the memorandum referred to in section 11G(2), as the case may be; or (b) in the case of a person who has himself imported the goods, evidence showing clearance of the goods by the Customs Authorities.
Second, he must have taken, before acquiring the goods from a person other than a dealer having a fixed place of business, such reasonable steps as may be specified by rules to ensure that the goods are not illegally imported.
Two points stand out. The exception for gift or succession applies only when the goods come from an individual in India. And the "reasonable steps" duty applies when the seller is not a dealer with a fixed place of business, such as a casual seller; for a dealer with a fixed place of business, that second condition does not apply, though the voucher condition still does.
If your business buys or deals in a class of goods that has been notified, ask for the voucher every time and keep it. A short legal consultation can help you build a purchase checklist that follows section 11D.
Section 11E: accounts
Sub-section (1). Every person who, on or after the notified date, owns, possesses, controls or acquires notified goods shall maintain, in such form and manner as may be specified by rules, a true and complete account of such goods. He must make an entry each time he acquires or parts with any notified goods, and state the particulars of the person from whom the goods were acquired or in whose favour they were parted with. The account must be kept, along with the goods, at the place of storage of the goods to which it relates.
The proviso says that it is not necessary to maintain separate accounts in the form and manner specified by rules for a person who is already maintaining accounts containing the particulars specified by those rules. In practice, an existing stock register may do, if it carries the required particulars.
Sub-section (2). Every person who owns, possesses or controls notified goods and uses any of them for the manufacture of other goods shall maintain, in such form, manner and with such particulars as may be specified by rules, a true and complete account of the notified goods used, and shall keep it at the intimated place. The "intimated place" here is the one defined in section 11A and covered in our article on sections 11A to 11C.
Section 11F: vouchers for every sale or transfer
On and from the notified date, no person shall sell or otherwise transfer any notified goods unless every transaction in relation to the sale or transfer is evidenced by a voucher in such form and containing such particulars as may be specified by rules. The test is each transaction. The voucher accompanies the goods when they move, as section 11C(5) requires, and an acquirer needs it under section 11D.
Section 11G: goods in personal use
Sub-section (1). Nothing in sections 11C, 11E and 11F applies to notified goods which are (a) in the personal use of the person by whom they are owned, possessed or controlled, or (b) kept in the residential premises of a person for his personal use.
Sub-section (2). If a person in possession of such goods sells, or otherwise transfers for a valuable consideration, any of them, he shall issue to the purchaser or transferee a memorandum containing such particulars as may be specified by rules, and no such goods shall be taken from one place to another unless accompanied by that memorandum.
Note what the exception does and does not do. It lifts the statement, accounts and voucher duties of sections 11C, 11E and 11F for personal-use goods. It does not mention section 11D, so the acquirer's duty remains, and 11D itself accepts the memorandum in place of the voucher. A private individual who sells such goods for consideration must issue the memorandum.
| Section | Who it concerns | Core duty |
|---|---|---|
| 11D | Anyone acquiring notified goods after the notified date | Goods must come with a voucher or memorandum (or clearance evidence for a direct importer); reasonable steps where seller is not a dealer with a fixed place of business |
| 11E | Owners, possessors, controllers and acquirers; manufacturers using the goods | True and complete account, kept with the goods or at the intimated place |
| 11F | Sellers and transferors | A voucher for every transaction |
| 11G | Holders for personal use | Exempt from 11C, 11E and 11F; must issue a memorandum if goods are sold or transferred for valuable consideration |
The rules and an example
The forms, particulars and steps are fixed by rules. The Notified Goods (Prevention of Illegal Import) Rules, 1969, which describe themselves as made under sections 11C to 11G, carry separate rules for the steps under 11D, the accounts under 11E, the voucher under 11F and the memorandum under 11G; the copy consulted is dated 7 January 1985. The detail of those rules is not set out here.
An example with invented names. After a notification, Bharat Hardware Traders, a dealer with a fixed shop, sells a quantity of notified goods to Sushma Engineering Works with a voucher for the transaction. Sushma Engineering uses part of the stock to manufacture other goods and enters the quantities used in its account kept at its intimated place. Meanwhile, Mr. Iyer, a private person, keeps a small quantity at home for his own use; sections 11C, 11E and 11F do not apply to it. If he later sells it for money to a neighbour, he must hand over a memorandum, and the buyer needs it when acquiring and moving the goods.
Need help with records for notified goods?
If you hold or trade in goods that may be notified, correct vouchers and accounts are what protect you. Our legal consultation service can help you review your records against sections 11D to 11G.
Key takeaways
- Acquisition of notified goods needs the section 11F voucher or section 11G(2) memorandum, or customs clearance evidence for a direct importer.
- Reasonable steps are required when the seller is not a dealer with a fixed place of business.
- A true and complete account must be kept with the goods, and a separate account for goods used in manufacture.
- Every sale or transfer needs a voucher.
- Personal-use goods are outside sections 11C, 11E and 11F, but a sale for valuable consideration needs a memorandum.
- Gift or succession from an individual in India is excepted from section 11D.
Read next
- Sections 11A–11C: notified goods and intimation of place of storage
- Sections 11H–11J: specified goods and specified area
- Section 11: power to prohibit import or export of goods
- Customs Compliance Checklist for Importers
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.