Section 47 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 47 lets the proper officer make an order permitting clearance of goods for home consumption once he is satisfied the goods are not prohibited and the importer has paid the duty and charges. Sub-section (2) says when the duty must be paid, and the section also deals with deferred payment, interest and waiver of interest.
This article follows the Customs Act, 1962 as per the text on the CBIC portal updated to 30 March 2022. Later Finance Acts must be checked for changes to this section before you act on it.
The proper officer may order clearance for home consumption once satisfied that the goods are not prohibited and the importer has paid the assessed duty and charges. Duty is payable on the date of presentation of the bill of entry in self-assessment, or within one day (excluding holidays) of the bill being returned for payment. Deferred payment is available to classes of importers notified by the Central Government. Interest ranges from not less than ten per cent to not exceeding thirty-six per cent per annum, and the rate is fixed by notification.
Sub-section (1): the clearance order
Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed on them and any charges payable under the Act in respect of them, the proper officer may make an order permitting clearance of the goods for home consumption.
Three conditions combine:
- The goods were entered for home consumption.
- They are not prohibited goods.
- The importer has paid the import duty assessed, if any, and any charges payable under the Act.
The sub-section was renumbered as (1) by section 3 of the Customs (Amendment) Act, 1991 (55 of 1991), w.e.f. 23-12-1991, as the first footnote prints.
The two provisos
First proviso: electronic order on risk evaluation. The order may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria. This proviso was inserted w.e.f. 14-5-2016 by section 121(a) of the Finance Act, 2016 (28 of 2016) and re-lettered by section 77 of the Finance Act, 2018 (13 of 2018), w.e.f. 29-3-2018.
Second proviso: deferred payment. The Central Government may, by notification in the Official Gazette, permit certain class of importers to make deferred payment of the duty or any charges in such manner as may be provided by rules.
Sub-section (2): when duty must be paid
This sub-section was inserted w.e.f. 23-12-1991 and its opening words were substituted by section 101 of the Finance Act, 2017 (7 of 2017). The importer shall pay the import duty:
| Clause | Case | When duty is paid |
|---|---|---|
| (a) | Self assessment | On the date of presentation of the bill of entry |
| (b) | Assessment, reassessment or provisional assessment | Within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty |
| (c) | Deferred payment under the proviso to sub-section (1) | From such due date as may be specified by rules made in this behalf |
Interest on late payment
After clause (c), the copy prints that if the importer "fails to pay the duty within the time so specified", he shall pay interest on the duty not paid or short-paid until the date of its payment, at such rate, "not less than ten per cent. but not exceeding thirty-six per cent. per annum", as may be fixed by the Central Government by notification in the Official Gazette. In this copy the sentence sits at the end of clause (c), so a reader should check how far its reach extends before relying on it for cases (a) and (b). The Act states only the range; the rate is fixed by notification, and this article states none.
Further provisos in sub-section (2)
- Electronic payment. The Central Government may, by notification, specify the class or classes of importers who shall pay duty electronically. The proviso was substituted for "Provided that" w.e.f. 28-5-2012 by section 124(a) of the Finance Act, 2012.
- A transitional proviso. Where the bill of entry was returned for payment of duty before the commencement of the Customs (Amendment) Act, 1991 and the importer had not paid the duty before that commencement, the date of return of the bill is deemed to be the date of that commencement. This concerns an old situation and is printed as part of the text.
- Waiver of interest. If the Board is satisfied that it is necessary in the public interest, it may, by order for reasons to be recorded, waive the whole or part of any interest payable under the section. The proviso was inserted w.e.f. 26-5-1995 by section 59(b) of the Finance Act, 1995 (22 of 1995).
The old wording (two days, "not below ten per cent") in footnote 5 is not the rule.
The rules on deferred payment
The copy consulted of the Deferred Payment of Import Duty Rules, 2016 is dated 19 August 2020 (file date, after the Act text consulted). Its first lines show an issue date of 02-November-2016, and its table of contents lists rules on application, information about intent to avail the benefit of a notification, payment of duty and manner of payment. The Rules have been amended twice since that copy. Notification No. 58/2023-Customs (N.T.) (3 August 2023) lets the Government allow a different due date in exceptional circumstances (proviso to rule 4) and keeps deferred payment available only where the duty on a bill of entry was paid by the due date and any differential duty on reassessment was paid with interest within one day, excluding holidays (second proviso to rule 6). Notification No. 13/2026-Customs (N.T.) moved the deferral to a monthly cycle from 1 March 2026: for bills of entry returned for payment in any month other than March, the duty is due by the 1st day of the following month, and for March by 31 March (rule 4(a) and (b)). Notification No. 12/2026-Customs (N.T.) also added "Eligible Manufacturer Importer" to the notified classes of importers, permitted to make deferred payment up to 31 March 2028.
How section 47 fits with the neighbours
Section 46 covers the bill of entry that leads to this order; see our article on section 46. Section 48 deals with goods not cleared within thirty days; see our article on sections 48 and 49. For provisional assessment, see our article on section 18. Our post on the customs clearance process for imports, listed below, gives the sequence in practice. For ICEGATE access to pay and file, see our ICEGATE registration service.
A worked example
Orbit Cycles files a self-assessed bill of entry for imported gear sets. Under sub-section (2)(a), the duty is payable on the date of presentation. Orbit pays it, along with the charges payable under the Act, and the proper officer, satisfied that the goods are not prohibited, makes the clearance order. In another case, the officer reassesses a bill and returns it to Orbit for payment. Under clause (b), Orbit has one day, excluding holidays, from the date of return to pay. If Orbit were in a class of importers notified for deferred payment, the due date would be as specified by the rules instead. If Orbit paid late, interest would run within the range the section prints, at the notified rate, and the Board could waive all or part of it for reasons recorded, if satisfied that it is necessary in the public interest.
Practical points
- Pay on filing in self-assessment. The text says on the date of presentation.
- Watch the one-day window after a returned bill. It excludes holidays, but only one day is allowed.
- Check the notification before using deferred payment. It applies only to a notified class of importers.
- Do not assume interest is waived. The Board may waive on public interest by order for reasons recorded.
- Keep goods lawful. The order depends on the goods not being prohibited.
Need help with clearance and payment access?
If your team handles bills of entry and duty payment and needs help getting access, we can set that up through our ICEGATE registration service.
Key takeaways
- The proper officer may order clearance for home consumption when the goods are not prohibited and duty and charges are paid.
- The order may be made electronically on the basis of risk evaluation.
- Duty is payable on the date of presentation in self-assessment, or within one day (excluding holidays) of the bill being returned for payment.
- Deferred payment applies to notified classes of importers, on due dates set by rules.
- Interest lies within a printed range of ten to thirty-six per cent per annum, with the rate fixed by notification.
- The Board may waive interest in the public interest by order for reasons recorded.
Read next
- Section 46: bill of entry and entry of goods on importation
- Sections 48 and 49: goods not cleared within thirty days
- Section 50: shipping bill and entry of goods for exportation
- Customs clearance process for imports, step by step
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.