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Qamar Jahan vs. Union of India, W.P.(C) 198/2025

Summary of the judgment

• . The Delhi High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) and the Customs Department to review the baggage rules of 2016. 
• . The Delhi High Court ruled that the customs officials should make sure not to unnecessarily hold onto travelers personal or old jewelry, which includes the ornaments travelers are wearing during their travel, at airports. Travelers should not be subjected to unnecessary harassment or detention at airports.
• . If the baggage rules are not amended till the next hearing of the court, the CBIC and customs departments must place on record the standard operating procedure (SOP) that shall be followed by the customs departments till the baggage rules are amended. 
• .  The Baggage Rules, 2016, should be updated to allow a fair amount of gold or gold jewelry for people traveling to India by air so that genuine travelers are not treated unfairly.

Background of the case

The court was hearing a batch of more than 30 petitions about the process followed by the Customs department for detaining goods belonging to tourists travelling to India, whether they are of Indian or foreign origin.

The Court reviewed the Baggage Rules, 2016, the Indian Customs Declaration Form, and the guide for travellers which is prepared by the Central Board of Indirect Taxes and Customs (CBIC).

The Court observed that the baggage rules are outdated, especially considering the significant increase in gold prices over the years. Since the Baggage Rules are more than nine years old, the Court suggested that they need to be updated to reflect the current market conditions.

The Baggage Rules, 2016

. According to the Baggage Rules, the term ‘personal effects’ does not include jewellery. 

. Rule 2(vi) and Rule 5 of the Baggage Rules, 2016 state that men can bring in up to 20 grams of jewellery worth up to Rs. 50,000, and women can bring in up to 40 grams of jewellery worth up to Rs. 1,00,000, without paying duty, but only if they have been living abroad for more than a year. 

. If gold and gold jewellery exceed the limits specified by Rule 5 of the Baggage Rules, they are treated as prohibited items on the Indian Customs declaration form obtained from the CBIC.

Decision

. The Delhi High Court agreed that stopping illegal gold smuggling is important but also mentioned that genuine travelers, like those with OCI or PIO cards, may bring gold to India for social events. Even though the value of this gold may exceed the permitted limit, these travelers should not be penalized for it.

. The Delhi High Court stated that genuine tourists should not be forced to provide detailed declarations, as this would make the process of traveling to and from India much more difficult and unpleasant.

. Giving customs officials too much power could lead to harassment of honest travelers. 

. The court stated that the CBIC should review the Baggage Rules and that the Government of India should make a policy decision to prevent such harassment, keeping in mind the tackling of illegal gold smuggling. 

. The court also suggested that the CBIC should review the present allowed values for gold in the Baggage Rules, as they no longer match the current market value of gold.

. The Delhi High Court has directed the Central Board of Indirect Taxes and Customs (CBIC) and the Customs Department to review the baggage rules of 2016. 

The next hearing will be on 19th May, 2025