Sections 143-143AA 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.
Section 143 lets the Assistant Commissioner or Deputy Commissioner of Customs allow an import, export or clearance to go ahead on a bond when something that the law requires to be done first cannot be done in time without detriment to the person. Section 143AA lets the Board take measures or prescribe a separate procedure or documentation for a class of importers or exporters or any other persons, for categories of goods or by mode of transport, to facilitate trade. The words "or any other persons," were added by the Finance (No. 2) Act, 2024.
This article reads the sections as per the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022), and adds the change made to section 143AA by the Finance (No. 2) Act, 2024. The Finance Act, 2023 could not be checked in full; see the section on later Finance Acts below.
Under section 143, where a pre-condition cannot be met before import, export or clearance without detriment, the officer may grant leave on the person executing a bond with such surety or security and conditions as he approves, for doing the thing within the time in the bond. If it is done in time, the bond is cancelled and the person is not liable to penalty for that contravention; if not, the officer may proceed upon the bond. Section 143AA lets the Board simplify procedures for facilitation of trade, for a class of importers or exporters or any other persons (the last words added by the Finance (No. 2) Act, 2024).
Section 143(1): when a bond can be accepted
Section 143(1) applies where "this Act or any other law requires anything to be done before a person can import or export any goods or clear any goods from the control of officers of customs". If the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied that, having regard to the circumstances of the case, the thing cannot be done before the import, export or clearance without detriment to that person, the officer may, notwithstanding anything in the Act or the other law, grant leave for the import, export or clearance.
The leave is given "on the person executing a bond", and the bond has three variable features, all set by the officer's approval:
- the amount;
- the surety or security; and
- the conditions.
The bond is for "the doing of that thing within such time after the import, export or clearance as may be specified in the bond".
Points that follow from the text:
- The pre-condition may come from this Act or from "any other law". The text does not list them.
- The officer must be satisfied of two things: the thing cannot be done before the movement of goods, and doing so would be to the person's detriment.
- The section starts "notwithstanding anything contained in this Act or such other law", so it can displace the pre-condition for the time being, in exchange for the bond.
- The Act prints no amount, form of surety or period. They are decided case by case in the bond. This article states none.
If you are weighing whether to seek a bond arrangement for a consignment, have your import-export code and the paperwork for the thing to be done later in order first; our IEC registration service can help.
The footnote shows that the officer's designation was substituted by the Finance Act, 1999 (27 of 1999), with effect from 11 May 1999, replacing "Assistant Commissioner of Customs".
Section 143(2): when the thing is done in time
If the thing is done within the time specified in the bond, the Assistant Commissioner or Deputy Commissioner shall:
- cancel the bond as discharged in full; and
- on demand, deliver it, so cancelled, to the person who has executed it or who is entitled to receive it.
In such a case that person "shall not be liable to any penalty provided in this Act or, as the case may be, in such other law for the contravention of the provisions thereof relating to the doing of that thing". The wording protects against penalty for the contravention relating to doing that thing. The words do not describe any other liability, for example duty, and the copy is silent on that.
Section 143(3): when the thing is not done in time
If the thing is not done within the time in the bond, the officer shall, "without prejudice to any other action that may be taken under this Act or any other law for the time being in force", be entitled to proceed upon the bond in accordance with law. Recovery on bonds is linked with section 142(2), which says that where the terms of any bond provide for recovery in the manner laid down in section 142(1), the amount may, without prejudice to any other mode of recovery, be recovered in that way. Our article on sections 142 and 142A sets out those modes.
An example. Coastline Textiles needs to import a machine part urgently. A certificate that the law requires before clearance cannot be obtained until after the part reaches the port. The Assistant Commissioner is satisfied that waiting would be to Coastline's detriment and grants leave on a bond with the surety and conditions he approves, to produce the certificate within the time in the bond. If Coastline produces it in time, the bond is cancelled as discharged in full and Coastline faces no penalty for the contravention relating to that thing. If it does not, the officer may proceed upon the bond, in addition to any other action the law allows.
| Stage | What the section says |
|---|---|
| Before | Pre-condition required by this Act or other law cannot be met without detriment; officer satisfied |
| Leave | Granted on a bond with amount, surety or security and conditions the officer approves |
| Done in time | Bond cancelled as discharged in full, delivered on demand; no penalty for contravention relating to that thing |
| Not done in time | Officer entitled to proceed upon the bond in accordance with law, without prejudice to other action |
Section 143A: omitted
Section 143A is printed as omitted. The footnote says it was omitted by the Finance Act, 2013 (17 of 2013), with effect from 10 May 2013. The older wording shown in the footnote is not law and is not explained here.
Section 143AA: simplified procedures to facilitate trade
Section 143AA begins "Notwithstanding anything contained in any other provision of this Act". It says the Board may, for the purposes of facilitation of trade, take such measures or prescribe separate procedure or documentation for:
- a class of importers or exporters or any other persons (the words "or any other persons," were inserted after "importers or exporters" by the Finance (No. 2) Act, 2024; the CBIC copy reads "a class of importers or exporters"); or
- categories of goods; or
- the basis of the modes of transport of goods,
in order to do any of these:
| Clause | Purpose |
|---|---|
| (a) | Maintain transparency in the import and export documentation |
| (b) | Expedite clearance or release of goods entered for import or export |
| (c) | Reduce the transaction cost of clearance of importing or exporting goods |
| (d) | Maintain balance between customs control and facilitation of legitimate trade |
The footnote shows that section 143AA was inserted by section 97 of the Finance Act, 2018 (13 of 2018), with effect from 29 March 2018.
Points to note: the power is the Board's; it covers measures and "separate procedure or documentation"; since the 2024 amendment it can reach persons other than importers or exporters, though the text does not say who those persons are; the four purposes are listed; and the section prints no scheme, class or document. The section does not say where the Board's measures are published, so they must be looked for in the instruments it issues. This article names none and describes none. For related facilitation, see our overview of authorised economic operator status.
Practical points
- A bond is a promise with a time limit. Diary the date in the bond and keep proof that the thing was done.
- Ask for the cancelled bond in writing once the thing is done. Section 143(2) says it is delivered on demand.
- If the time is likely to be missed, deal with it before it expires rather than after. The text gives the officer no express power of extension in this section, and the copy is silent on it.
- For documents and the clearance route, see our customs clearance process for imports.
Changes made by later Finance Acts
| Finance Act | What changed | What the gazette prints about commencement |
|---|---|---|
| Finance (No. 2) Act, 2024 (No. 15 of 2024), section 102 | Section 143AA: after "importers or exporters" the words "or any other persons," are inserted | No date is printed in the clause. The Act received the assent of the President on 16 August 2024 |
Section 143 is not shown as amended in the Finance Acts checked. The Finance Act, 2023 amendments to the Customs Act could not be checked in full, because only an extract of that Act was available. Check the current text on the CBIC portal before relying on any clause of these sections.
Need help with import or export registration and paperwork?
A bond arrangement is easier to manage when your registrations are in order. If you need an import-export code or want it updated before a consignment moves, our team can help with IEC registration.
Key takeaways
- Section 143(1): leave to import, export or clear goods on a bond where a pre-condition cannot be met in time without detriment; amount, surety and conditions set by the officer.
- Section 143(2): done in time means the bond is cancelled as discharged and no penalty for that contravention.
- Section 143(3): not done in time means the officer may proceed upon the bond, without prejudice to other action.
- Section 143A is printed as omitted.
- Section 143AA: the Board may take measures or prescribe a separate procedure or documentation to facilitate trade, for a class of importers or exporters or any other persons (Finance (No. 2) Act, 2024).
Read next
- Sections 142 and 142A: recovery of sums due to Government and first charge
- Section 146: licence for customs brokers
- Customs clearance process for imports, step by step
- Authorised Economic Operator in customs
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. The change made by the Finance (No. 2) Act, 2024 is added from its gazette text; the Finance Act, 2023 could not be checked in full, and the current rules, regulations and notifications should be checked. This article is general information, not legal advice; check the official text before acting.