CBEC has issued a circular / instruction no. F.No.450/ 10 /2007-Cus.IV dated 13-02-2007 for Dispense with practice for recovery of revenue deposit of Rs. 3000/- u/s. 42 of the Customs Act, 1962.

Accordingly, the board has withdraws its earlier instructions vide F.No. 28/12/70-Cus IV dated 22.5.1970 regarding security deposit in respect of foreign going & coastal vessels under section 42 of the Customs Act, 1962. Accordingly, the quantum of deposit of Rs.3000/- and Rs.1000/- is taken from foreign vessel and coastal vessel, respectively, for covering liabilities of individual vessels. When shipping Lines handle a number of vessels, a one time deposit of Rs.15,000/- and Rs.5,000/- is taken for the foreign going and coastal vessels respectively.

It is welcome step and now no foreign going & coastal vessels are required to deposit security.

Customs security deposit requirement relaxed; foreign and coastal vessels no longer required to furnish deposits. An administrative circular dispenses with the practice of collecting statutory security deposits from foreign-going and coastal vessels, withdrawing earlier instructions that prescribed fixed and one-time deposits and thereby removing the necessity for those vessels to furnish the previously required security deposits for export clearance.