Cargo 2 - 4 Containers Seller : Khai Tri Processing Trading One Member Company Limited, Quarter Long Dien 2, Long Phuoc Ward, Phuoc Long District, Binh Phuoc Province, Vietnam (Mrs. Mai Thi Kim Phung - owner / Ms. Josu Vu (assistant) - Mob.: +[deleted]) Consignee : TMK Traders, 65 W 29, Ranger Office Road, Kambam, Theni, Tamilnadu, 625516 (PAN/IEC : BCAPT4655B0 - deactivated) Contract No.: 02TMK/24 dated [deleted] Port of Loading : Ho Chi Minh, Vietnam Port of Delivery : Chennai, India Name of Vessel : ZHONG GU YING KOU 2508W Container No.: FCIU9508116 / OOCU8529012 BL No.: OOLU[deleted] dated [deleted] Shipping Line : OOCL (Vietnam) Co Ltd BOE No.: 8961561 dated [deleted] Product : Animal Feed - Ruminant Protein Supplementation (Aflatosin Under 20PPB) Nuts Meal free from Metal and Microbiolofical Country of Origin : Vietnam HS Code : 23080000 Quantity : 112000 kgs (USD 0.65 per kg) Amount : USD 36,400 *Seller :* Khai Tri Processing Trading One Member Company Limited, Quarter Long Dien 2, Long Phuoc Ward, Phuoc Long District, Binh Phuoc Province, Vietnam (Mrs. Mai Thi Kim Phung - owner / Ms. Josu Vu (assistant) - Mob.: +[deleted]) *Consignee :* TMK Traders, 65 W 29, Ranger Office Road, Kambam, Theni, Tamilnadu, 625516 (*PAN/IEC :* BCAPT4655B0 - deactivated) *Contract No.:* 04TMK/24 dated [deleted] *Port of Loading :* Ho Chi Minh, Vietnam *Port of Delivery :* Chennai, India *Name of Vessel :* ZHONG GU YING KOU 2508W *Container No.:* OOCU8271669 / FFAU6120346 *BL No.:* OOLU[deleted] dated [deleted] *Shipping Line :* OOCL (Vietnam) Co Ltd *Product :* Animal Feed - Ruminant Protein Supplementation (Aflatosin Under 20PPB) Nuts Meal free from Metal and Microbiolofical *BOE No.:* 8961561 dated [deleted] *Country of Origin :* Vietnam *HS Code :* 23080000 *Quantity :* 56000 kgs (USD 0.65 per kg) *Amount :* USD 36,400 The case involves a shipment consisting of 4 containers of imported cargo, presently lying under the control of Indian Customs. The cargo was confiscated by Customs authorities due to issues arising during import documentation and clearance. Custom notice under Section 49 At this stage, the concerned party proposes to re-export the entire cargo back to Vietnam. We seek your legal opinion on the following aspects: Legal implications of re-exporting cargo that has been confiscated by Customs Permissibility and risks involved in re-export under the Customs Act and allied regulations Correct procedure to be followed with Customs authorities (including adjudication and approvals) Practical steps and documentation required to move forward efficiently Any precautions or strategic recommendations to minimize exposure, delay, or additional costs Relevant documents can be shared for your detailed review.
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If goods are liable for confiscation under Section 111, the Adjudicating Authority shall (for non-prohibited goods) or may (for prohibited goods) offer a Redemption Fine (RF) to the owner.
2) Once goods are confiscated, ownership vests in the Central Government (Section 126). You regain title only upon paying the redemption fine
3) Paying a fine for re-export does not exempt you from personal penalties under Section 112 for the initial breach of law
Re-export is possible, but only with Customs’ written permission (typically provisional release or an adjudication order giving the Section 125 redemption option for re-export)—otherwise confiscation control continues.
Do now: reply to the SCN + seek early hearing; pray for “redeem for re-export only” + status quo/no home-consumption; then file re-export Shipping Bill, complete examination/LET EXPORT, and settle fine/penalty (if imposed) + port/CFS costs.
Big watch-outs: if IEC is deactivated, re-export must be filed via a compliant exporter/authorization; feed/food cargo may need regulator clearance (e.g., FSSAI) before re-export from Chennai to Vietnam (via Ho Chi Minh City).
Once goods are confiscated, the importer loses title.
Re-export is not a matter of right after confiscation.
Under section 125 of Customs Act, 1962, option to redeem confiscated goods and under section 126 of the act, the confiscated goods vest in Central Government, i.e., If absolute confiscation has been ordered then re-export is legally barred. If redemption fine is imposed then re-export may be allowed after payment of fine with penalties.
If adjudication is still pending, Customs may allow re-export as a mitigating measure, but only with Commissioner-level approval.
If goods are merely detained / uncleared, not confiscated yet, then under section 49 of the act,allows storage pending clearance, but does not automatically permitFile a formal Re-export Application re-export. Re-export still needs Section 51 and The Commissioner's approval.
However, you can file a formal Re-export Application.
Customs responds better if you show:
clerical/documentary lapse or no undervaluation intent
no prohibited goods or clean importer track record.
You can take parallel action with shipping line for detention waiver.
Request port/CFS remission citing Customs hold.
Re-export of confiscated cargo is legally possible but not as a right, only as a discretionary relielf.
Yes, the cargo above under Section 49 can potentially be re-exported, but it requires prior permission from the proper Customs officer i.e Assistant/Deputy Commissioner at Chennai Customs and same will be subject to strict conditions like bonds, bank guarantees, and timelines applicable. This is feasible if proceedings haven’t advanced to outright confiscation/adjudication, as courts (e.g., Madras HC) have allowed re-export of detained/seized goods to avoid unnecessary retention when redemption fines are viable. Warehoused uncleared goods are explicitly re-exportable duty-free under Section 69, often for bonafide mistakes or non-compliance.
