CBIC Issues Instructions on Issuance of Look Out Circulars (LOCs)
The Central Board of Indirect Taxes and Customs (CBIC) has issued detailed instructions and standardized guidelines regarding the process and necessary approvals for the issuance of Look Out Circulars (LOCs) against individuals.
Key Procedural Guidelines
- Standardized Protocol: The instructions mandate a clear, standardized protocol to be followed by Customs and other indirect tax enforcement agencies when seeking to open an LOC against any individual.
- Reason for Issuance: LOCs are typically issued to prevent an individual, often a defaulting taxpayer, a suspect in a large fraud/smuggling case, or a person required for investigation, from leaving the country.
- Necessity of Approval: The circular likely emphasizes that the power to request an LOC should be exercised only in cases that meet strict criteria and requires high-level approval (e.g., from an officer not below the rank of a Joint Secretary or Commissioner) to ensure the action is neither arbitrary nor excessive.
- Safeguarding Personal Liberty: The detailed guidelines are intended to strike a balance between the enforcement agencies’ duty to prevent economic offenses and the individual’s constitutional right to personal liberty and freedom of movement.
- Coordination: The instructions ensure effective coordination between the CBIC’s field formations and the Bureau of Immigration (BOI), which executes the LOCs at ports of exit.
Source :- cs-ins-30-2025