Undeclared currency on a vessel can be confiscated and crew members penalised when foreign exchange and customs prohibitions are breached.

Undeclared currency found on a vessel and omitted from the vessel's currency declaration was treated as prohibited goods under the foreign exchange law and therefore liable to confiscation under the Customs Act, because the explanation that it belonged to passengers was unsupported and the records were not reliably maintained. Penalties were also sustained against the Master, the Chief Purser and other crew members because the person in charge was responsible for the manifest, the declaration made on the Master's authority was incorrect, and the remaining officers were found to have assisted in removing and dealing with currency known to be liable to confiscation. The penalties were not considered excessive.

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Issues: (i) whether the undeclared currency found on the vessel was liable to confiscation under the Customs Act, 1962 read with the Foreign Exchange Regulations Act, 1973; (ii) whether penalties imposed on the Master, Chief Purser, Staff Captain, II Engineer and Bosun under the Customs Act, 1962 were sustainable.

Issue (i): Whether the undeclared currency found on the vessel was liable to confiscation under the Customs Act, 1962 read with the Foreign Exchange Regulations Act, 1973.

Analysis: The currency was not shown in the vessel's currency declaration, and the declaration made on behalf of the Master was found to be incorrect. The explanation that the money belonged to passengers was unsupported by evidence and the register produced did not appear to have been maintained in the ordinary course of business. The prohibition under Section 13(1) of the Foreign Exchange Regulations Act, 1973, together with Section 67 of that Act, attracted the Customs prohibition so as to render the currency liable to confiscation under Section 111 of the Customs Act, 1962.

Conclusion: The currency was liable to confiscation; the finding was against the appellants.

Issue (ii): Whether penalties imposed on the Master, Chief Purser, Staff Captain, II Engineer and Bosun under the Customs Act, 1962 were sustainable.

Analysis: The person in charge of the vessel was responsible for the manifest under Section 30 of the Customs Act, 1962, and the incorrect declaration made on his authority made the Master liable. The Chief Purser made the declaration on the Master's behalf and therefore abetted the offence. The Staff Captain, II Engineer and Bosun were found to have assisted in taking away the currency from Customs officers and dealing with it despite its liability to confiscation; knowledge could be inferred from the circumstances. The quantum of penalties was also found not excessive.

Conclusion: The penalties were sustainable; the finding was against the appellants.

Final Conclusion: The confiscation and the penalties were upheld, and all the appeals failed.

Ratio Decidendi: Undeclared currency carried on a vessel and prohibited under the foreign exchange law is liable to confiscation under the Customs Act, and persons responsible for the declaration or knowingly dealing with such currency are liable to penalty under Section 112.

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