Compounding of customs offences permits settlement by prescribed payment, subject to specified statutory exceptions and rules. Sub section (3) of Section 137 authorises compounding of offences under the Customs chapter by the Chief Commissioner of Customs, before or after prosecution, on payment of a compounding amount and in the manner prescribed by rules. The power is subject to statutory exceptions excluding repeat compounders for certain sections, offences overlapping with specified penal enactments, smuggling of listed or prohibited goods, prior compounding for high value goods, and persons convicted after a specified date; rule making authority for compounding amounts and manner is conferred on the Central Government under Section 156.