Sections 11K 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.
After goods are specified under Chapter IVB, three more duties follow: they must travel with a transport voucher, their stock must be recorded in accounts, and sellers must verify who they sell to. Two of these sections create a presumption of illegal export if the records or the buyer cannot be verified. Section 11N then allows the Central Government to exempt goods from Chapters IVA and IVB.
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.
Specified goods in a specified area must be accompanied by a transport voucher, except for movement within a village, town or city of goods worth not more than one thousand rupees. A holder of specified goods worth more than fifteen thousand rupees must keep true and complete accounts, and a shortfall against the accounts leads to a presumption of illegal export unless the contrary is proved. A seller who cannot show a traceable buyer faces a similar presumption.
Section 11K: transport vouchers
Sub-section (1). No specified goods shall be transported from, into or within any specified area, or loaded on any animal or conveyance in such area, unless they are accompanied by a transport voucher, in such form and containing such particulars as may be specified by rules, prepared by the person owning, possessing, controlling or selling the goods.
The proviso says no transport voucher is necessary for the transport, within a village, town or city, of any specified goods the market price of which, on the date of transport, does not exceed one thousand rupees.
Look at the scope: the sub-section catches movement from, into and within the area, and also the act of loading goods on an animal or conveyance in the area. The voucher is prepared by the person owning, possessing, controlling or selling. If a business moves specified goods between its shops in a specified area, each movement needs the voucher unless the proviso applies.
If your goods move in or through a specified area, a short legal consultation can help you check which movements need a voucher and which fall within the one thousand rupee exception.
Sub-section (2). Notwithstanding sub-section (1), the Central Government may, after considering the nature of specified goods, the time, mode, route and market price of the goods intended to be transported, the purpose of the transportation and the vulnerability of the specified area with regard to illegal export of such goods, and being satisfied that it is expedient in the public interest, (i) by notification specify goods of a class or description and of a market price exceeding the sum it notifies, with different sums for the same or different specified areas; and (ii) direct that no person shall transport any goods so specified unless the transport voucher has been countersigned by the proper officer.
So there is a second tier: for goods and values the Government notifies, the voucher must also be countersigned by the proper officer. The sums are fixed by notification and are not in the Act.
Section 11L: accounts and the presumption
Sub-section (1). Every person who, on or after the specified date, owns, possesses or controls, within a specified area, any specified goods of a market price exceeding fifteen thousand rupees, shall maintain, in such form and manner as may be specified by rules, a true and complete account. An entry is to be made on each acquisition or parting, with the particulars of the other person, and the account is to be kept with the goods at the place of storage. A proviso says separate accounts are not necessary for a person already maintaining accounts that contain the particulars the rules specify.
Sub-section (2). A person who owns, possesses or controls such goods and uses them for manufacture shall maintain a true and complete account of the specified goods so used and keep it at the intimated place.
Sub-section (3): the presumption. If at any time, on a verification made by a proper officer, any specified goods owned, possessed or controlled by a person are found lesser in quantity than the stock shown in the accounts under (1) read with (2), it shall be presumed, unless the contrary is proved, that the goods, to the extent they are lesser than the stock shown, have been illegally exported, and that the person owning, possessing or controlling them has been concerned with the illegal export.
This presumption is rebuttable: the words "unless the contrary is proved" place the burden on the holder. The practical consequence is that the books must tally with the physical stock at any verification.
Section 11M: steps by sellers
Except where he receives payment by cheque drawn by the purchaser, every person who sells or otherwise transfers specified goods within a specified area shall obtain, on his copy of the sale or transfer voucher, the signature and full postal address of the person to whom the sale or transfer is made, and shall take such other reasonable steps as may be specified by rules to satisfy himself of the identity of the purchaser or transferee. If, after an inquiry by a proper officer, the purchaser or transferee is found not readily traceable or is a fictitious person, it shall be presumed, unless the contrary is proved, that the goods have been illegally exported and that the seller was concerned in the illegal export.
The proviso says nothing in the section applies to petty sales if the aggregate market price obtained by petty sales in the course of a day does not exceed two thousand and five hundred rupees. The Explanation says a "petty sale" is a sale at a price which does not exceed one thousand rupees.
| Figure in the text | Where it appears | What it does |
|---|---|---|
| One thousand rupees | 11K(1) proviso | Voucher not needed for transport within a village, town or city of goods not above this market price |
| Fifteen thousand rupees | 11L(1) | Accounts required for specified goods above this market price |
| One thousand rupees | 11M Explanation | A petty sale is one at a price not exceeding this |
| Two thousand and five hundred rupees | 11M proviso | Section does not apply if a day's petty sales add up to no more than this |
Section 11N: power to exempt
Section 11N says that if the Central Government is satisfied that it is necessary in the public interest, it may, by notification in the Official Gazette, exempt generally, either absolutely or subject to conditions specified in the notification, goods of any class or description from all or any of the provisions of Chapter IVA or Chapter IVB. The footnote records that Chapter IVC, containing section 11N, was inserted by Act 12 of 1969 with effect from 3 January 1969. This is a short, separate chapter: it speaks only of exempting goods from those two chapters.
The rules behind the forms
The Specified Goods (Prevention of Illegal Export) Rules, 1969 describe themselves as made under sections 11K, 11L and 11M. The copy consulted is dated 8 June 1990. The rules carry the particulars of the transport voucher, the form of accounts and the reasonable steps for identifying a buyer; their detail is not set out here. For the opening provisions of the chapter, see our article on sections 11H to 11J.
A worked example with invented names
Coastline Metals Pvt. Ltd. sells specified goods from a godown in a specified area. A buyer, Mr. Dutta, pays in cash and gives a postal address, but a later inquiry by the proper officer finds that no such person lives there. Under section 11M, it is presumed unless the contrary is proved that the goods have been illegally exported and that Coastline was concerned in it. Had Mr. Dutta paid by cheque drawn by himself, the signature and address steps would not have been needed. At the same time, Coastline's stock check shows less stock than its accounts under 11L, and the shortfall is also presumed to have been illegally exported unless Coastline proves otherwise. The lesson: keep the voucher copy signed, keep the address, and keep the account in step with the stock.
Need help with vouchers and records for specified goods?
If your business moves, stores or sells goods that fall in a specified area, a legal consultation can help you set up vouchers, accounts and buyer checks that match sections 11K to 11M.
Key takeaways
- Specified goods in or moving through a specified area need a transport voucher, subject to the one thousand rupee village, town or city exception.
- For notified goods and values, the voucher may also have to be countersigned by the proper officer.
- Accounts are required for specified goods above fifteen thousand rupees; a shortfall against accounts raises a presumption of illegal export unless the contrary is proved.
- Sellers must get the buyer's signature and full postal address (unless paid by the buyer's cheque) and take reasonable steps on identity; an untraceable or fictitious buyer raises a presumption.
- Petty sales have a daily limit of two thousand and five hundred rupees under the proviso to section 11M.
- Section 11N lets the Central Government exempt goods from Chapters IVA and IVB by notification.
Read next
- Sections 11H–11J: specified goods, specified area and intimation of storage
- Sections 11D–11G: acquiring notified goods, accounts, vouchers and personal use
- Section 12: dutiable goods and the charge of customs duty
- 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.