Can Customs department at airport detain your personal jewellery? Here's what court ruled 

The Delhi High Court has recently directed the Customs Department to release gold jewellery detained from a woman returning from Riyadh, ruling that the items qualify as personal effects. The case highlights growing confusion among international travellers regarding the rules for carrying jewellery into India and brings renewed attention to the Baggage Rules, 2016.

The petitioner, an Indian citizen, had travelled to Saudi Arabia to visit her husband and wore four 24-karat gold bangles (100 grams in total) during her visit. Upon returning to India, she did not declare the jewellery at customs, leading to its detention on March 19, 2024.

In her petition, the woman argued that the jewellery was part of her personal belongings, not new purchases, and should not be subject to confiscation. Her legal counsel also stated that she was not given a proper personal hearing, and that the waiver of the show cause notice (SCN) was neither valid nor legal.

The Customs Department, however, argued that the petitioner’s representative had voluntarily waived the SCN and personal hearing, and that the passenger exceeded the limit set under Rule 5 of the Baggage Rules, 2016, which restricts the duty-free import of gold jewellery to 40 grams worth ₹1 lakh for women, and 20 grams worth ₹50,000 for men, provided the passenger has stayed abroad for over a year.

The adjudicating authority had also cited the purity of the gold (24K) to claim that the jewellery could not be classified as personal effect and was therefore prohibited. But the court disagreed with this interpretation.

The division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that classifying worn gold jewellery as “prohibited goods” solely on purity grounds contradicted settled legal precedent. The bench referred to earlier decisions by both High Courts and the Supreme Court, stressing that used jewellery worn by a returning passenger can qualify as personal effects, irrespective of gold purity.

"The adjudicating authority’s decision to absolutely confiscate the bangles without offering an option to pay duty, redemption fine, or penalty, is excessive," the court said. It added that personal hearings are a legal right and cannot be waived lightly. The court, therefore, set aside the confiscation order and instructed the Customs Department to return the bangles within four weeks, subject to warehousing charges from the date of detention.

Gold carrying rules for travellers entering India

If you're planning to return to India with gold jewellery, it’s important to understand the Customs regulations under the Baggage Rules, 2016, to avoid potential penalties or confiscation. Here's a simplified breakdown of what’s allowed and what’s not:

> For passengers returning after over a year abroad (Rule 5)

If you’ve stayed outside India continuously for more than 12 months, you’re eligible for duty-free allowance on gold jewellery — but only if it’s carried in your baggage, not worn on the body.

Men: Allowed to bring in up to 20 grams of gold jewellery, valued up to ₹50,000 duty-free.

Women: Allowed up to 40 grams of gold jewellery, valued up to ₹1 lakh duty-free.

Important: This rule applies only to jewellery packed in your bags, not the items you wear during the flight.

> What do the Baggage rules say about gold?

The Baggage Rules, 2016, outline clear guidelines for travellers carrying gold into India:

Rule 5: Indian citizens returning after more than one year abroad can carry gold jewellery duty-free, up to:

20 grams valued at Rs 50,000 for men

40 grams valued at Rs 1 lakh for women

This applies only to gold carried in baggage, not necessarily jewellery worn on the body.

Rule 3: Allows clearance of used personal effects, including items worn during travel, for up to Rs 50,000, offering flexibility for short-term travellers.

However, the rules do not explicitly classify jewellery as personal effects, leading to grey areas in enforcement. This ambiguity often results in confusion and, in cases like this, legal disputes.

Key takeaways for travellers

Declare excess gold: If you’re carrying more than the permissible amount or wearing high-value jewellery, especially of foreign origin, declare it upon arrival and be ready to show purchase receipts.

Gold of Indian origin: Jewellery originally purchased in India and taken abroad can be brought back duty-free, but must be declared during departure from India.

No assumption of exemption: Do not assume worn jewellery will be automatically exempt. Customs officers have the discretion to assess and detain unreported items.