Section 151B 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 151B lets the Central Government enter into agreements or arrangements with other countries for facilitating trade and enforcing the Customs Act, including exchange of information for risk analysis, verification of compliance and the prevention and investigation of offences. Information received can also be used as evidence in investigations and proceedings under the Act.
This article reads the section 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 section 151B before acting.
The Central Government may agree with another country's government or competent authorities on trade facilitation, enforcement and exchange of information. A notification can apply the section to the contracting State on stated conditions. Information received under such an arrangement may be used as evidence in investigations and proceedings under the Act. For a multilateral agreement, the Board specifies the procedure, conditions and the person through whom information is exchanged.
Where the section comes from
The footnote shows that section 151B was inserted by section 98 of the Finance Act, 2018 (13 of 2018), with effect from 29 March 2018. The portal prints the heading as "Reciprocal arrangement for exchange of information facilitating trade".
Section 151B(1): agreements and arrangements
The Central Government "may enter into an agreement or any other arrangement with the Government of any country outside India or with such competent authorities of that country, as it deems fit". The purposes are listed in the text.
| Purpose | Words in the section |
|---|---|
| Facilitation of trade | For facilitation of trade |
| Enforcement | Enforcing the provisions of the Act |
| Exchange of information | Exchange of information for trade facilitation, effective risk analysis, verification of compliance and prevention, combating and investigation of offences under the provisions of the Act or under the corresponding laws in force in that country |
Points to note:
- The partner can be a government or its competent authorities.
- The instrument is an agreement or any other arrangement, so the section is not limited to formal treaties.
- The exchange is two-way in character: the section speaks of offences "under the provisions of this Act or under the corresponding laws in force in that country".
- The Act does not name any country and prints no list of agreements. This article names none.
For importers and exporters the practical meaning is that data about your shipments, declared values and documents may be shared between customs administrations under such arrangements, for the stated purposes. The text does not describe what data is exchanged or how it is protected, and the copy is silent on that. If you trade across several jurisdictions, keep your declarations consistent. If you have questions about how information from abroad has been used in your matter, a legal consultation can help you review it.
Section 151B(2): notification to apply the section to a contracting State
Sub-section (2) says the Central Government may, by notification, direct that the provisions of the section shall apply to the contracting State with which reciprocal agreement or arrangements have been made, "subject to such conditions, exceptions or qualifications as may be specified in that notification".
So the section's reach for a given country depends on a notification. The Act does not print any such notification and this article states none. Whether one exists for a given country must be checked in the notifications themselves.
Section 151B(3): information as evidence
Sub-section (3) says "subject to the provisions of sub-section (2), the information received under sub-section (1) may also be used as evidence in investigations and proceedings under this Act".
Three things stand out.
- The words "may also be used as evidence" extend the use of the information beyond intelligence and risk analysis to proof.
- The use is in "investigations and proceedings under this Act". The text does not limit it to prosecutions.
- It is "subject to the provisions of sub-section (2)", so the conditions, exceptions or qualifications in a notification can affect it.
Documents received from outside India are also dealt with in section 139 for prosecutions. Our article on section 139 explains how the court treats documents received from any place outside India in the course of investigation. Section 151B(3) is a separate provision about information received under arrangements.
An example. India has an arrangement with a partner country's customs administration. That administration passes on export records for goods shipped to India, and these are later relied on in an investigation of a declared value. Under sub-section (3), subject to sub-section (2), the information may be used as evidence in the investigation and in proceedings under the Act. The importer can still contest the weight and accuracy of the material in the proceedings; the section does not say otherwise.
Section 151B(4): multilateral agreements
Where the Central Government has entered into a multilateral agreement for exchange of information or documents "for the purpose of verification of compliance in identified cases", the Board shall specify:
- the procedure for the exchange;
- the conditions subject to which the exchange shall be made; and
- the designation of the person through whom the information shall be exchanged.
The words "in identified cases" limit this sub-section. The Act leaves the procedure to the Board, and none is stated here.
Section 151B(5): earlier actions deemed valid
Sub-section (5) begins "Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3)". It says that anything done or any action taken, or purported to have been done or taken, in pursuance of any agreement entered into or any other arrangement made by the Central Government prior to the date on which the Finance Bill, 2018 receives the assent of the President, shall be deemed to have been done or taken under the provisions of this section.
A printing point: the copy prints the word "date" with an asterisk, and the note below the section says "29th March, 2018". We flag it and read the date as the note gives it.
So earlier arrangements and actions are brought within the section.
The Explanation: two definitions
| Term | Meaning in the Explanation |
|---|---|
| "contracting State" | Any country outside India in respect of which agreement or arrangements have been made by the Central Government with the Government or authority of that country, through an agreement or otherwise |
| "corresponding law" | Any law in force in the contracting State corresponding to any of the provisions of the Act, or dealing with offences in that country corresponding to any of the offences under the Act |
What section 151B does not say
- It does not list countries, agreements or notifications.
- It does not describe what data is exchanged, how long it is kept or how it is protected.
- It does not set out how information from abroad is to be proved in a particular proceeding beyond saying it may be used as evidence.
- It prints no form, fee or portal step.
Practical points for traders
- Be consistent. Declarations made in different countries about the same goods can be compared where exchange happens.
- Keep records. Commercial invoices, contracts, bank documents and transport documents support the value and description you declare. See our customs compliance checklist for importers and customs compliance checklist for exporters.
- Understand the origin side. Where goods move under trade agreements, origin proof is a separate subject; see our guide on rules of origin and CAROTAR.
- Respond to queries. If you receive a query based on information from abroad, ask what information is relied on and respond with your own documents.
Need help with a query based on information from abroad?
If an investigation or notice relies on information obtained from another country, it helps to understand what section 151B allows. Our team can review the papers with you through a legal consultation.
Key takeaways
- Section 151B(1): the Central Government may enter into an agreement or arrangement with another country's government or competent authorities for trade facilitation, enforcement and exchange of information.
- Section 151B(2): a notification can apply the section to a contracting State, on stated conditions.
- Section 151B(3): information received may also be used as evidence in investigations and proceedings under the Act, subject to sub-section (2).
- Section 151B(4): for multilateral agreements, the Board specifies procedure, conditions and the person through whom information is exchanged.
- Section 151B(5): earlier actions under arrangements made before the Finance Bill, 2018 received assent are deemed to be under the section.
Read next
- Sections 151, 151A and 152: assistance to customs, Board instructions and delegation
- Section 139: presumption as to documents
- Section 153: modes of service of notice and order
- Rules of origin and CAROTAR: proof of origin
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.