Confiscation and penalty apply when packing machines operate undeclared, triggering duty based on capacity and retail price. Rule 17 mandates that goods produced or removed in contravention of the packing machine rules are liable to confiscation and the manufacturer to a penalty up to the duty leviable on those goods. For undeclared or unregistered packing machines, duty is determined by the number of machines found, the retail sale price of pouches made by those machines, and the duty rate per machine corresponding to the highest maximum packing speed; machines may be presumed operative from the first day of April of the relevant financial year unless contrary evidence is shown.