Customs Rules
Customs (Compounding of Offences) Rules, 2005

Body 5. Fixation of the Compounding amount. -

For the purpose of compounding of offences under the various provisions of the Act the compounding amount shall be as provided herein below :

Provided that if a person has, in respect of same goods, committed offences falling under more than one category specified below and where amount of duty evasion, or ,amount of drawback exemption from duty, provided under the Act in connection with export goods; or amount of market value of the goods is same for all offences, the compounding amount, in such cases, shall be the amount determined for the offence for which a higher compounding amount has been prescribed.

S. No.	Offence	Compounding amount
1	Offence specified under section 132 of the Act	Rupees fifty thousand for the first offence and to be increased by hundred per cent of this amount for each subsequent offence.
2	Offence specified under section 133 of the Act	Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence.
3	Offence specified under section 134 of the Act	Rupees fifty thousand for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence.
4	Offence specified under section 135(1)(a) of the Act	Upto ten per cent of the amount of market value of the goods subject to minimum of one lakh rupees.
5	Offence specified under section 135(1)(b) of the Act	Upto five per cent of the amount of market value of the goods subject to minimum of one lakh rupees.
6	Offence specified under section 135(1)(c) of the Act	Upto ten per cent of the amount of market value of the goods subject to minimum of one lakh rupees.
7	Offence specified under section 135(1)(d) of the Act	Upto ten per cent of the amount of market value of the goods subject to minimum of one lakh rupees.
8	Offence specified under section 135A of the Act	Upto five per cent of the amount of market value of the goods subject to minimum of one lakh rupees.
9	Offences specified under Section 135AA of the Act	One lakh rupees for the first offence, to be increased by hundred per cent of this amount for each subsequent offence.