Man's Rolex seized at Delhi airport; HC provides relief— Check how customs rules apply to declaring high-value items

NEW DELHI: A Dubai-based Indian traveller has won a legal battle at the Delhi High Court after Customs seized his luxury Rolex watch at the Indira Gandhi International Airport , wrongly classifying it as a “commercial quantity.” The passenger had challenged the Customs order, and the Court ruled that a single high-value watch cannot automatically be treated as goods meant for trade, allowing him to redeem it upon payment of the prescribed fine.

The case centres around incident from March 2024, when Mahesh, an Indian citizen residing in Dubai, arrived at Delhi Airport wearing a Rolex Submariner worth around Rs 12.7 lakh. Believing he had no dutiable goods, he passed through the Green Channel- reserved for passengers without items requiring declaration. Customs officers intercepted him, seized the watch, and issued a detention receipt, claiming non-declaration and categorising the watch as a “commercial quantity.”

A division bench of Justices Pratibha M Singh and Sahil Jain delivered the verdict, noting that while the Customs Department acted correctly in detaining the item for non-declaration, it erred in categorising one luxury watch as goods meant for trade.

The case involved Mahesh, an Indian citizen residing in Dubai, who was intercepted by Customs officers at Delhi Airport in March 2024 after walking through the Green Channel. His Rolex watch was seized for alleged non-declaration. An Order-in-Original passed earlier this year allowed redemption of the watch after payment of a fine, but labelled it a “commercial quantity”- prompting Mahesh to challenge the decision before the High Court.

The bench observed that although the Customs Commissioner correctly permitted redemption, the classification of a single Rolex as a commercial import was “unsustainable.”

“Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity, and there is no reason why the same cannot be kept for personal use,” the judges said.

However, the Court maintained that the declaration requirement and duty liability for high-value personal articles remain valid under law. The bench allowed redemption on payment of the existing fine by October 31, reiterating that travellers must exercise diligence when carrying luxury or high-value items through Indian airports.

The ruling serves as an important clarification for both travellers and enforcement authorities — that while non-declaration attracts penalties, mere possession of an expensive personal item does not imply commercial intent.

What the actual rules on declaration Say
Under India’s customs baggage rules, every arriving passenger must declare dutiable, restricted, or high-value items, regardless of whether they are for personal use.

A declaration is mandatory if a traveller carries:

• Goods exceeding the prescribed duty-free allowance.
  
• Foreign currency over $5,000 in cash or total foreign exchange beyond $10,000.
  
• Indian currency above Rs25,000 (for returning residents).
  
• Gold, silver, or jewellery above the permitted limit.
  
• Restricted or prohibited goods such as firearms, ammunition, plants, drones, or satellite phones.
  
• Luxury goods or personal items worth more than ₹ 50,000 — this includes premium watches like Rolex, designer handbags, and high-end electronics.
  
  

Travellers falling under these categories must use the Red Channel and fill out a Customs Declaration Form upon arrival, as opposed to the Green Channel which is for anyone not carrying any items that require declaration/customs duty.

Duty-free limits

• General passengers returning from most countries can bring goods worth up to Rs45,000 – Rs50,000 duty-free.
  
• Travellers from Nepal, Bhutan, Myanmar, or China (by air) get a lower allowance- Rs 6,000 for adults, Rs1,500 for children- applicable only if their stay abroad exceeded three days.
  
• Land-route arrivals from these countries and from Pakistan have virtually no free allowance, except for used clothes and personal effects.
  
  

Children below ten years are entitled to half the adult limit, and pooling allowances within a family is not permitted.
Luxury items and jewellery Luxury goods such as watches, designer accessories, and high-end electronics are not considered personal effects under Customs law. Even when used or worn, these must be declared if they exceed Rs 50,000 in value.

For jewellery, men returning after a year abroad can bring up to Rs 10,000 duty-free, while women can bring jewellery worth Rs 20,000. Any excess is assessed for duty at arrival.
Penalties for non-declaration Failure to declare dutiable or restricted goods can lead to:

• Confiscation under Sections 111(d/j/l/m) of the Customs Act, 1962.
  
• Penalty under Section 112.
  
• Redemption fine under Section 125 (if permitted).
  
  

In Mahesh’s case, the court upheld that Customs acted within its powers in detaining the watch but clarified that the seizure should not have treated the item as a trade import.

Takeaway The High Court’s ruling provides relief in one individual case but carries a broader message for international travellers — high-value personal items like luxury watches must still be declared at Customs counters. Wearing such goods does not exempt them from declaration.

In simple terms, when in doubt, choose the Red Channel. Declaration ensures lawful clearance and avoids the risk of confiscation, penalties, or prolonged litigation — as illustrated by the Rolex case itself.