Sections 147-148 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 147 lets an owner, importer or exporter act through an agent and says what follows: the principal is also liable for what the agent does, and an authorised agent is treated as the owner, importer or exporter for the purposes he is authorised for, with a proviso that protects the agent from some duty demands. Section 148 does the same for agents of the person in charge of a conveyance.
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). Please check later Finance Act changes to these sections before acting.
Anything the Act requires of an owner, importer or exporter may be done by his agent. What the agent does is deemed done with the principal's knowledge and consent, unless the contrary is proved, so the principal is also liable. An authorised agent is deemed to be the owner, importer or exporter for the purposes of his authority, including liability, but duty not levied, short-levied or erroneously refunded for reasons other than the agent's wilful act, negligence or default is not recovered from the agent unless it cannot be recovered from the principal. Section 148 makes agents of the person in charge of a conveyance liable for the obligations, penalties and confiscations in the matter.
Section 147(1): things may be done by an agent
Section 147(1) says that where the Act requires anything to be done by the owner, importer or exporter of any goods, it may be done on his behalf by his agent. This is the basis on which customs brokers and clearing agents file documents for importers and exporters. Our article on section 146 explains the licence a customs broker must hold.
Section 147(2): the principal is also liable
Sub-section (2) says that any such thing done by an agent of the owner, importer or exporter shall, "unless the contrary is proved, be deemed to have been done with the knowledge and consent of such owner, importer or exporter". The result is that "in any proceedings under this Act, the owner, importer or exporter of the goods shall also be liable as if the thing had been done by himself".
Points to note:
- It is a presumption ("unless the contrary is proved"), so the principal can try to prove that the agent acted without knowledge and consent.
- It is about "any proceedings under this Act", so it is not limited to prosecutions.
- The word "also" shows the principal's liability is in addition to the agent's, not in place of it.
For a business, the practical lesson is that a signed bill of entry or shipping bill filed by your broker is, in the eyes of the Act, presumed to carry your knowledge and consent. Keep instructions to your agent in writing, check what is declared, and keep your own file. If a notice treats you as responsible for what your agent did, our legal consultation service can help you review the position.
Section 147(3): an authorised agent is deemed to be the owner, importer or exporter
Sub-section (3) applies when any person is expressly or impliedly authorised by the owner, importer or exporter to be his agent in respect of the goods for all or any of the purposes of the Act. That person shall, "without prejudice to the liability of the owner, importer or exporter", be deemed to be the owner, importer or exporter of the goods for those purposes, including liability therefor under the Act. The words "including liability therefor under this Act" were inserted by the Finance Act, 2013 (17 of 2013), section 84(a), with effect from 10 May 2013, as the footnote shows.
Observe the words "expressly or impliedly authorised". The text does not require a written authority for sub-section (3). Whether a person was impliedly authorised is a question of fact.
The proviso: protection for the agent
The proviso says that where any duty is not levied, is short-levied or is erroneously refunded on account of any reason other than any wilful act, negligence or default of the agent, the duty shall not be recovered from the agent, unless in the opinion of the Assistant Commissioner of Customs or Deputy Commissioner of Customs the same cannot be recovered from the owner, importer or exporter.
| Situation | Where duty is recovered from |
|---|---|
| Short-levy or non-levy or erroneous refund due to something other than the agent's wilful act, negligence or default | From the owner, importer or exporter; from the agent only if the officer is of the opinion it cannot be recovered from the principal |
| Due to the agent's wilful act, negligence or default | The proviso gives the agent no protection |
The proviso covers duty. It does not say anything about penalty or confiscation, and this article adds nothing about them.
An example. Navjyot Imports appoints Kapoor Clearing Agency to file its bills of entry. A classification error not caused by any wilful act, negligence or default of Kapoor leads to short-levy of duty. Under the proviso, the duty is not recovered from Kapoor unless the Assistant Commissioner or Deputy Commissioner is of the opinion it cannot be recovered from Navjyot. If Kapoor's own negligence caused the error, the proviso does not protect it. Navjyot remains liable under sub-section (2) in either case, as the text says "also".
The footnote shows the officer's designation in the proviso was substituted by the Finance Act, 1999 (27 of 1999), with effect from 11 May 1999.
Section 148: agent of the person in charge of a conveyance
Section 148 is the counterpart for conveyances. It has two sub-sections.
Sub-section (1). Where the Act requires anything to be done by the person in charge of a conveyance, it may be done on his behalf by his agent.
Sub-section (2). An agent appointed by the person in charge of a conveyance, and any person who represents himself to any officer of customs as an agent of any such person in charge and is accepted as such by that officer, shall be liable for the fulfilment, in respect of the matter in question, of all obligations imposed on the person in charge by or under the Act or any law for the time being in force, and to penalties and confiscations which may be incurred in respect of that matter.
Two groups are covered by sub-section (2): the appointed agent, and the person who represents himself as agent and is accepted as such by the officer. The second group is notable. A person who holds himself out and is accepted by the officer carries the same liability even without a formal appointment. The text says liability is in respect of "the matter in question".
The obligations of the person in charge of a conveyance arise in the Act's chapter on conveyances. Our articles on sections 31 to 34 and sections 39 to 41A explain obligations of the person in charge at arrival and departure.
Comparing sections 147 and 148
| Point | Section 147 | Section 148 |
|---|---|---|
| Principal | Owner, importer or exporter of goods | Person in charge of a conveyance |
| Acting through an agent | Allowed for things the Act requires of the owner, importer or exporter | Allowed for things the Act requires of the person in charge |
| Principal's liability | Also liable; presumption of knowledge and consent | The text does not repeat that presumption |
| Agent's liability | Deemed the owner, importer or exporter for the purposes authorised, with duty proviso | Liable for obligations, penalties and confiscations in the matter |
| Held-out agent | Not mentioned | Included if accepted by an officer of customs |
Practical points
- Choose agents carefully. Under section 147(2) their acts are presumed to be with your knowledge and consent.
- Document the scope. Section 147(3) turns on what the agent was authorised to do "for all or any of the purposes of this Act".
- Do not rely on the proviso as your shield. It protects the agent for duty, but the principal stays liable.
- Review your filings. An internal check of declared description, value and classification before filing is a sensible control. Our customs compliance checklist for importers and our customs compliance checklist for exporters can help.
Need help with a notice involving an agent?
If a notice treats you or your agent as liable for something filed on your behalf, it is worth reading the text of sections 147 and 148 against the facts. Our team can help through a legal consultation.
Key takeaways
- Section 147(1): anything required of the owner, importer or exporter may be done by his agent.
- Section 147(2): the agent's act is deemed done with the principal's knowledge and consent unless the contrary is proved; the principal is also liable.
- Section 147(3): an authorised agent is deemed the owner, importer or exporter for those purposes; the proviso limits recovery of duty from the agent.
- Section 148: agents of the person in charge of a conveyance, including a person accepted as such by an officer, are liable for obligations, penalties and confiscations in the matter.
Read next
- Section 146: licence for customs brokers
- Section 146A: appearance by authorised representative
- Section 149: amendment of bill of entry and shipping bill
- 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.