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<h1>New Customs Rules: Penalty Hike for Repeat Offenders, Immunity for Section 135AA Offences, Cooperation Requirement Removed.</h1> The Customs (Compounding of Offences) Amendment Rules, 2022, effective from August 22, 2022, introduce changes to the Customs (Compounding of Offences) Rules, 2005. A new entry in Rule 5 specifies a penalty of one lakh rupees for the first offence under Section 135AA, increasing by 100% for each subsequent offence. Rule 6 is amended to omit the requirement for cooperation in proceedings and grants immunity from prosecution if the offence is solely under Section 135AA. Additionally, a reference in Rule 7 is updated to align with Rule 6.