The Mumbai Customs House has been in existence since 1878, when the Sea Customs Act of 1878 was enacted, later replaced by the Customs Act of 1962. Initially, its jurisdiction covered the port and city limits of Mumbai, as well as the area surrounding the airport.

In the late 1960s, smuggling activities saw a sharp rise, necessitating stronger enforcement measures. To combat this growing menace and enhance anti-smuggling operations along the West Coast, the Preventive Commissionerate was established. This new body integrated the Rummaging and Intelligence wing of the Customs House with the Marine and Preventive wing, Mumbai, strengthening efforts to curb illicit trade.