DISPOSAL MANUAL - 2019dolcbec.gov.in/pdf2020/Disposal Manual new_30012020.pdf · xvi. Cells,...

DISPOSAL MANUAL - 2019

2 DISPOSAL MANUAL - 2019

3DISPOSAL MANUAL - 2019


FOREWORD

This Disposal Manual is a Handbook meant for the guidance of departmental officers,postedinvariousCommissionerates,associatedwiththeworkrelatingtostorageanddisposalofgoodsthatareseized/confiscated,unclaimed/unclearedandcoveredbytime-expiredbonds.The Appendix-VIattheendgivesthelistofalltheCirculars/InstructionsissuedbytheBoardinthisregard.ItalsogivescrossreferencestotheParaswhererelevantmatterisbeingdealtwith.TheseCirculars/Instructions remain valid after the issue of thisManual. However, in the event of anyinconsistency between this Manual and these Circulars/Instructions, this Manual shall prevail.Appendix- VIIgivesthelistofCirculars/Instructionsrescinded.

2. ThisManualcoversthevariousprocedurestobefollowedbythedepartmentofficers.ThisManual has beenprepared to serve as a handy guidance tool for the officers in the field. Theseproceduresarebasedon theprovisionsof theCustomsAct,1962; theCGSTAct,2017; the IGSTAct,2017;theCentralExciseAct,1944;theAlliedActsandtheNotifications/Circulars/Instructionsissuedthereunder.Circulars/Instructionsissuedupto30thSeptember,2019havebeentakenintoaccount in drafting of the Manual

3. Anearnestattempthasbeenmadetocomprehensivelycoveralltheforeseeablesituationsthatmayariseinthefieldinrelationtostorageanddisposalofseizedandconfiscatedgoods.TheremaybecircumstancesthatarebeyondwhatthisManualcovers. Inthosespecialsituations, fieldformationsmayapproachtheBoardforsuitableguidelines.ButbeforeapproachingtheBoard,thefieldformationsshallsubstantiatethatsuchsituationhasnotbeenaddressedinthisManual.

4. ThisManualistheculminationofhardworkdonebymanyofficers.ItakethisopportunitytoacknowledgewithgratitudealltheofficerswhohavedirectlyandindirectlycontributedinbringingoutthisManual.

5. ItakethisopportunitytothanktheBoardforthesupportandguidanceinbringingoutthismanual.IwouldliketoexpressoursincerethankstoShriMayankKumar,ADGVIg.,ChennaiforspearheadingtheworkingGroupwhichfinalisedthedraftinatimeboundmanner.WegratefullyacknowledgethecontributionsofShriK.V.V.GDiwakar,Commissioner,Shri.K.Engineer,ADG,DGGI,Visakhapatnam,ShriK.Ramakrishnan,ADD,DRI,ShriP.Anandakrishnan,ADC,asmembersoftheWorkingGroup.Iwouldalsoliketoplaceitonrecordtheworkdonebyfollowingofficers,namely,ShriP.K.Singh,erstwhileCommissionerandShriSureshKrishnani,erstwhileDC,DoL,MsKajalSingh,erstwhileCommissioner (RI&I),Ms.PriyaV.KSingh,erstwhileDS,ShriRishiMohanYadav,ShriRohitAnand,andShriA.C.Mallick, erstwhileUnder Secretaries, Shri Tashi TsheringWangdi, erstwhile Superintendent and


ShriSunnyArya,InspectorofAnti-SmugglingUnit(ASU).IextendmygratitudetotheofficersofCustomsInvestigationSectionUnitnamely,ShriSurajKumarGupta,JC,Ms.RanjanaChaudhary,AC,ShriH.C.Bhardwaj,SuperintendentShriRanjeetSinghRana,Superintendent,ShriSaarthakDahiya,ShriPriyanshuSrivastava,ShriManishDalal,ShriRavi,andShriRajpal,Inspector.

(Dr. M.G. ThamizhValavan)

Commissioner (Investigation-Customs), CBIC


Table of Contents1.INTRODUCTION 9

2.CATEGORIESOFGOODS 10

3.RECEIPTANDSTORAGE 16

4.TRANSFEROFCHARGE,STOCK-TAKINGANDINSPECTION 42

5.SPECIAL PROVISIONS FOR UN-CLAIMED/ UN-CLEARED CARGO, MIS-HANDLEDBAGGAGEANDTIMEEXPIREDBONDEDGOODS

45

6.VALUATION 54

7.AUCTIONANDTENDER 59

8.INTERNETAUCTION 74

9.DIRECTSALESANDOTHERMODESOFDISPOSAL 86

10.DIAMONDS,PRECIOUS&SEMIPRECIOUSSTONES 92

11.GOLD,SILVER&OTHERPRECIOUSMETALS 95

12.CURRENCY&OTHERMONETARYINSTRUMENTS 100

13.VEHICLES&VESSELS 105

14.MEDICINES/BULKDRUGS/DRUGFORMULATIONS 108

15.FIREARMS 110

16.NARCOTICS 121

17.DISPOSALOFMISCELLANEOUSGOODS 133

APPENDIX– I 150

APPENDIX–II 153

APPENDIX–IIIA 154

APPENDIX–IIIB 165

APPENDIX–IIIC 173

APPENDIX–IIID 181

APPENDIX–IV 190

APPENDIX–V 191

APPENDIX–VI 192

APPENDIX–VII 197


1.1. ThisManualprescribestheprocedurestobefollowedbyallthefieldformationsundertheCentralBoardofIndirectTaxes&Customs(CBIC)forthedisposalof:

i. Goods seized under the CustomsAct, 1962, the Central Goods and Services Tax, 2017(CGSTAct2017),theIntegratedGoodsandServicesTax,2017(IGSTAct2017)andtheCentralExciseAct,1944;

ii. GoodsconfiscatedundertheCustomsAct,1962,theCGSTAct2017,theIGSTAct2017andtheCentralExciseAct,1944;

iii. Goodsuncleared/unclaimedafterimportationintoIndiaandlyingintheCustomsArea;

iv. MishandledBaggage;

v. GoodsthatinvolveTime-ExpiredBonds;and

vi GoodsdetainedunderSection142oftheCustomsAct,1962.

1.2. TheproceduresprescribedinthisManualarebasedontheprovisionsoftheCustomsAct,1962,theCentralExciseAct,1944,theCGSTAct2017,theIGSTAct2017,theRulesandRegulationsmadethereunder,andotherAlliedActs.Incaseofanyinconsistencybetweentheseproceduresandthestatutoryprovisions,thelatershallprevail.

1.3. WhereasthisManualindicatesthegeneralprocedurestobefollowed,theconcernedPrincipalCommissioners/Commissionersmaymakerequisitechanges thereto,asmaybenecessitatedbylocalconditions,keepinginviewthespiritofinstructionscontainedinthisManual.ThesechangesmaybeinformedtotheBoard.

1.4. InmajorCustomHouses,thereshallbeaseparateunit,calledtheDisposalUnitwhichshouldbeentrustedwiththetaskoftaking-overallgoodsripefordisposalfromthecustodiansanddisposeofthesamebyauctionorotherwise.

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Introduction

CHAPTER - 1


2.1. Categories of Goods

Theentirestockofseized/confiscatedgoods,inthecustodyoftheDepartment,hasbeengroupedunderthefollowingsevencategories:

Category-I:Goodstobedisposedofimmediatelyafterseizure;

Category-II:GoodsfallingunderSection110(1A)oftheCustomsAct,1962;

Category-III:Goodstobedisposedofwithinsixmonthsfromthedateofseizureorwherethedateofexpiryisindicated,wellbeforethatdate;

Category-IV:Valuables;

Category-V:GoodsnotifiedundertheNDPSAct;

Category-VI:Goodsthathavetobedisposedofbywayofdestruction;and

Category-VII:Allothergoods.

2.2. Fortimelydisposalofthegoodsfallingunderthedifferentcategories(mentionedintheParaabove),thesteps,asprescribedherein,shouldbetakenbytheCommissionerates:

2.3. Category-I: Goods to be Disposed of Immediately After Seizure

2.3.1. The goods under this category have a very short shelf-life as they are either prone to rapid decay or they become outdated/ obsolete very fast. Some of these goods are liable to deterioration due to drying or humidity. Some others may require special arrangements for their preservation and storage. Some of such goods may be perishable in nature, while some others may have certain expiry date prescribed thereon. Therefore, these goods may be disposed of immediately after seizure, after issue of a Notice to the owners/ claimant (party) and obtaining orders from the Competent Authority. The goods falling under this category include:

i. Freshflowers;

ii. Freshfruitsandvegetables,meat,fish,poultry,eggsandotherfreshuncanned/unprocessedfoodmaterials;

Categories of Goods

CHAPTER - 2


iii. Cereals,sugarandothergroceryitems;

iv. Beer;

v. Medicinalherbs;

vi. Cigarettes,bidis,bidi-leavesandtobacco;

vii. Livestock;

viii. Raw(wetandsalted)hidesandskins;

ix. Saltandhygroscopicsubstances(otherthaninsealedcontainers);

x. Petroleumproducts;

xi. Molasses;

xii. NewspapersandPeriodicals;

xiii.Confectionery;

xiv. Menthol,Camphor,Saffron;

xv. TeaandCoffee;

xvi. Cells,batteriesandrechargeablebatteries;and

xvii.Lighterswithgas(nothavingarrangementforrefilling),Lighterfuel.

2.3.2. Theabovelistisnotexhaustive.ThePrincipalCommissioner/Commissionerin-chargemaydecideanyseizeditemtobeperishable,dependinguponitsnatureandshelf-life,ifhedeemsthatprolongedstoragemayresultindeteriorationofthegoods.

2.3.3. Apart fromthegoodswhichare likelytodeteriorateorperish, theseizedgoodsforwhichtherecurringcostofupkeeporthecostlikelytobeincurredonthespecialarrangementsrequiredforstorage,isdisproportionatelyhigh(e.g.animalsordangerousgoods)maybedisposedofafterobservingtheprescribedformalitiesandafterdueintimationtotheownerorclaimantaboutthedate,timeandmannerofsuchdisposal.

2.4. Category-II: Goods Falling Under Section 110(1A) of the Customs Act, 1962

2.4.1. Thiscategorycoversthegoods,whicharenotifiedundertheprovisionsofSection110(1A)oftheCustomsAct,1962fromtime-to-time.Forexpeditiousdisposalofthesegoods,theprocedurelaiddown insub-Section (1B)ofSection110of theCustomsAct,1962mustbe followedby theSeizingUnitimmediately.


2.4.2. ThefollowingprecautionsshallbetakenforthedisposalofthegoodsnotifiedunderSection110(1A)oftheCustomsAct,1962:

i. Allsuchcasesshallbeprocessedfordisposalwithinaperiodoftwomonthsfromthedateoftheirseizure.

ii. BeforeactionunderSection110(1A)isinitiated,awrittenNoticetothepartyconcernedshallbegiven.

iii. TheprocessofseekingsanctionoftheMagistrate,wheneverneeded,shallbecompletedwithinamonththereafter.

iv. If theseizedgoodsarehighlyperishableandmaynothaveremainingshelf-lifeofeventhreemonths’time,thecasemaybeprocessedandputupforseekingapprovalfordisposalofthegoodsunderSection110(1A)immediately,afterseizureisaffectedandpreliminaryinvestigationisover.

v. ThedisposalofthegoodsshouldbeclearlyreflectedintheShowCauseNotice,sothattheAdjudicationAuthorityaswellastheAppellateAuthoritymaypassappropriateorders.When action under Section 110(1A) is initiated after issue of Show Cause Notice, anaddendumshallbeissuedimmediatelyafterthedisposalofgoods,toindicatethefactofdisposal.

vi. AftertheDisposalOrderispassedintermsofSection110(1A)andthegoodsdisposedof,appropriateentriesshouldbemadeintheAdjudicationfileaswell,sothattheAdjudicatingAuthoritydoesnotgiveanoptionofredemptionofgoodstotheparty(sincenogoodsareavailableforexercisingsuchanoption).

2.4.3. Incaseswherethepartyclaimslegalownershipofthegoodsandrequestsfortheirrelease,andtheissuerelatingtothetitleofthegoodshasnotyetbeenadjudicateduponbytheAdjudicatingAuthority,attemptshouldbemadetoexpeditetheinvestigationandadjudicationproceedings.Adecisionregardingdisposalofthegoodsshouldbetakeninsuchcasesimmediatelyoncompletionoftheadjudicationproceedings.

2.5. Category-III: Goods to be Disposed of Within Six Months of Seizure or Before their Expiry.

2.5.1. Thegoodsunderthiscategoryhaveashortspanoflifeanddeteriorationinqualitystartsafterafewdaysofstorageandtherisk/expensesforstorage/maintenanceofthesegoodsareexpectedtobeveryhigh.Somesuchgoodsarealsolikelytorapidlydepreciateinvalueonaccountofthefastchangeintechnologyordesignsorintroductionofnewmodels,etc.Thesegoodsinclude:

i. Electronicgoodsandgadgets,suchasmobilephones,digitalcameras;


ii. Fashionjewellery;

iii. Textiles,includingReadymadeGarments,made-ups,fabricandyarn;

iv. Spectacles;

v. Cosmetics,includingcreams,lotions,shampoos,perfumes,lipsticksandessentialoils;

vi. Tinnedandpreservedprovisions,condensedmilkandmilkpowder;

vii. Goodssuchasspices,resin,Catechu;

viii. Hides,skins,feathersandarticlesthereof;

xi. Rubbergoodsanderasers;

x. Paperandarticlesmadeofpaper;

xi. Rawjute;

xii. VegetableNon-EssentialOils;

xiii. Hypodermicneedlesandsyringes,surgicalinstruments/equipments;

xiv. Medicinesanddrugs;and

xv. Boats,YachtsandLaunches(otherthanthosemeantforDepartmentalappropriation)

2.5.2. TheDeputy/Assistant Commissioner (DC/AC) in-charge of the SeizingUnit should keepwatchoversuchgoodsandexpeditiouslycommunicatetheDisposalOrdertotheDisposalUnit.

2.6. Category-IV: Valuables

Thefollowinggoodsfallunderthiscategory:

i. Diamonds,PreciousandSemi-preciousstones,Pearls;

ii. Goldandarticlesthereof;

iii. Jewellery made of precious metals, viz. Platinum, Palladium, Gold and Silver and/orstuddedwithPreciousorSemipreciousstones;

iii. Silverandarticlesthereof;

iv. Highvaluewatches;

v. Currency,includingForeignCurrency;


vi. Suchotherarticlesof“smallsize/volumeandhighvalue”asmay,byspecialorgeneralorderbe,classifiedas“Valuables”bythePrincipalCommissioner/Commissionerin-charge.

2.7. Category-V:GoodsNotifiedUndertheNarcoticDrugsandPsychotropicSubstances(NDPS) Act

ThedetailedprocedurefortheirdisposalisoutlinedinChapter16ofthisManual.

2.8. Category-VI: Goods to be Disposed of by Destruction

ThePrincipalCommissioner/Commissionerin-chargehasbeendelegatedfullpowersfororderingdestructionofcertaingoods,like:

i. GoodsthatviolatetheIntellectualPropertyRights(IPR)laws;

ii. Hazardouswastes,e-wastesandothergoodsthatmaycausedamagetotheenvironment;

iii. Spuriousdrugsandmedicinalpreparations;

iv. Foodproductsthatdonotfulfillthecompliancerequirementsfortheirsaleindomesticmarketundertheprovisionsofanylawapplicableforthetimebeing,e.g.theFoodSafetyandStandardsAct,2005(FSSAAct);

v. FakeIndianCurrency;

vi. E-Cigarettes/orElectronicNicotineDeliverySystems;and

vii. Any other goods or class of goods, in respect of which the Principal Commissioner/Commissioner in-chargemaydecide that theirrelease into thedomesticmarketwouldcauseharmfuleffectonpublichealthandsafety.

2.9. Category-VII: All Other Goods

Allothergoods,notlistedinanyoftheabovecategories,comeunderthiscategory.Thedisposalofthegoodsfallingunderthiscategoryhastobedoneaftercompletionofalldueformalitiesandwhenfinalityisattainedabouttheirdisposal.

2.10. Pre-trial Disposal

Forearlydisposalof thegoods (other thanCategory-Igoods) thatarea subjectmatterofCourtproceedingsorifprosecutioniscontemplated/launched,pre-trialDisposalOrdersmaybeobtainedbytheSeizingUnitunderSection451oftheCodeofCriminalProcedure(Cr.PC).TheFormatforfilingtheApplicationforpre-trialdisposalunderSection110oftheCustomsAct,1962,asgiveninForm-1,maybeusedforthepurpose.

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Form-1 (ReferPara2.10)

Application for Disposal of Seized Goods that are Perishable or can Deteriorate

INTHECOURTOF__________________________________(MentiontheCourt)

APPLICATIONNo.____________OF20__

CASENo.___________________________

Shri________________________________

PreventiveOfficer/Examiner/InspectorofCustoms/CentralExcise/GST

________________________(Address)

Applicant

MAYITPLEASEYOURLORDSHIP:

I ______________________S/o/D/o/W/o __________________________beg to state the followingon solemnaffirmation:

Thaton_______________________________(mentiondate),____________________(namesofthepersonsarrested)was/wereproducedbeforeyourLordshipinconnectionwiththeseizureof_________________________valued at Rs.___________________ and your Lordship was pleased to grant him/ them bail ofRs_____________________.Thetrialinthiscaseispending/yettocommence/caseiskeptondormantfileon___________________sincetheaccusedisabsconding(strikeoutwhatevernotapplicable).

That the above goods are of perishable/ deteriorating nature. Any further storage is likely tocausedepreciation/lossinitsvalue.Thereisshortageofstorageaccommodation.EarlydisposalorderswilleasethecongestioninWarehouse.Also,thesaleproceedscanbeutilizedforcountry’sdevelopmentalrequirements.

It is,therefore,prayedthatyourLordshipmaybepleasedtoorderfordisposalofthesaidgoodsafterkeepingtherepresentativesamples.Forthisactofkindness,Ishalleverpray.

Solemnlyaffirmedat___________________(Address),This______________dayof____________20_______

(Signature)

(Name with stamp)


3.1. Role of the Seizing Unit and Inventory

3.1.1.Wheneveranygoodsaredetained/ seized,adetailedinventoryofthesegoodsshallinvariablybepreparedbytheSeizingOfficerintheformatgivenatForm-2 intriplicate,exceptinthecaseswherethedetained/seizedgoodsarephysicallyhanded-overtoathirdpartyunderSapurdginamaandthus,areonlynotionallyhandedovertothecustodian,theretheinventoryshallbepreparedinquadruplicate.Thesecopiesoftheinventoryshallbeusedasfollows:

i. TheFirstcopyshallbegiventotheownerofthegoodsorhisauthorizedrepresentative,ifavailable;otherwiseitshallberetainedintheseizure/casefile.

ii. TheDuplicate&Triplicatecopiesshallbeusedforthetransferoftheseizedgoods,within24hoursofthedetention/seizureofthegoods,andtheirhanding-overtothecustodianoftheGodown,i.e.,theofficerin-chargeoftheWarehouse,whoisalsocalled‘WarehouseOfficer.’ThecustodianshallgivereceiptonboththeDuplicateandtheTriplicatecopiesoftheinventoryandreturntheDuplicatecopytotheSeizingOfficer,whoshallretainthesameintheseizure/casefile.

iii. TheFourthcopyshallbegiventotheSapurdigar.

3.1.2. If thegoodsarekept atmore thanone location,due to theirdifferentnature/ category, aseparateinventoryshallbedrawnforeachcategoryofgoods,andtheyshallbeforwardedtothecustodianunderaproperreceipt,asprescribedinpara3.1.1(ii)above.

3.1.3. Iftheseizuretakesplaceonaholiday,theseizedgoodsshallberetainedinthesafecustodyoftheSeizingUnitanddeliveredtothecustodianontheimmediatenextworkingday.

3.1.4. Theinventoriesareveryimportantdocumentsandshallbedrawncarefullytocontainalltherelevantdetails,suchasdescription,quantity,brand,serialnumber,countryoforigin,make,model,quality,yearofmanufacture,natureofthegoodsastowhetherold/new,damage(ifany),etc.Suchinformationisnecessaryforidentificationoftheitemscoveredbytheinventoryaswellasfortakingfurtheractionfortheirdisposal.

3.1.5. The packages containing the detained/ seized goods shall be sealed with the seal of theDetaining/SeizingOfficerandtheseal,ifany,ofthelawfulclaimantorhisauthorizedrepresentative,

Receipt and Storage

CHAPTER - 3


and shall be signed by them. Specimens of each seal and signature shall also be affixed on theinventoryofthedetained/seizedgoodsforcomparisonpurposeatthetimeofreceiptofthegoodsbythecustodianandthereafter,returnofthesametothelawfulclaimant,ifrequired.TheValuablesseizedshallbepackedindurablecontainers,likehardplasticormetalboxes,andwire/metalsealsmaybeusedinsteadofrope/waxseals.

3.1.6.Whenseized/detainedgoodsaretransferredfromonecustodiantoanother,asinthecaseoftransferofcharge,theOriginalInventoryandalsotheRe-inventory,(describedlateratPara3.3.3)ifany,shallinvariablybehanded-overalongwiththegoods.Whileconductingstockchallengesorduringtransferofcharge,etc.,sealsonthepackagesshallbecomparedwithspecimensofsealsonthecorrespondinginventories.Thespecimenofsealsontheinventoriesshallactasthefinalproof,whereanytamperingofsealsissuspectedorwherediscrepancyinthegoodsisfoundatthetimeofopeningthepackages.

3.1.7. Incaseswherethedetained/seizedgoodsarephysicallyhanded-overtoathirdpartyunderSapurdginamaandthus, are only notionally handed over to the custodian,thefourthcopyshallbegiventotheSapurdigar.OthercopiesoftheInventorieswillbedealtwith,intheusualmanner.

3.2. Storage Place

3.2.1. StorageoftheseizedgoodsshallpreferablybeinGovernmentbuildingsatthegroundfloororinbasement,sothathirechargesforGodownsarenotpaid,however,suchplacesshouldbeproperlysecured.WhenGodownspaceishired,isolatedbuildingmaybeavoidedunlessadequatesecurityisprovided.TheGodownshallbespaciousenoughtohousethegoodsontheracks/almirahs.TheGodownshouldbewell-ventilated,damp-proofandproperlyilluminated,preferablywithnaturallight.Fire-fightingequipmentandsmokedetectorsshouldbeinstalled.Iftherearenoefficient&workingcentralfire-fightingsystemavailable,sufficientnumberofportablefireextinguishersshouldbeinstalled.Incase,high-valuedconfiscatedgoodsarebeingleftwiththecustodians,concurrentmeasuresinconsultationwiththecustodians,likewire-fencingcanbeexplored.Thereshouldbefocusonoptimumutilizationofavailablespacebywayofstackinginascientificmanner,reviewingofstocksatregularintervalsandexploringpossibilityofdisposalofgoodsinconvenientlotsandexpeditiousdisposalof ‘absolutelyconfiscatedgoods’.Valuablesshouldbekept inStrong Room/ banklockers.

3.2.2. Separatestorageandcustodymaybeprovidedforgoods,whicharelikelytobereleasedsoon,like,oncompliancewithformalitiesorthegoodsdetainedfrompassengerswhicharetobereturnedto themwhile they are goingback, and for the following categories of goodsnamely, Valuables,perishablegoods,vehicles/conveyances.

3.2.3. InrespectofValuables,doublelockingsystemshallbefollowed,thekeytosecondlockbeingwithaGazettedofficer,higherinranktotheofficerindirectcharge.


3.2.4. Theresponsibilityforproperstorageandcustodyofgoodsshallbeontheindividualofficers;andforthispurpose,itshouldbeensuredthatthechargesofindividualofficersshouldbecompactandmanageable.

3.3. Receiving the Goods in Godown

3.3.1. Immediatelyonreceiptofthegoods,alongwiththeDuplicateandtheTriplicatecopiesoftheinventory,thecustodianshouldsatisfyhimselfthatthepackageshavebeenproperlysealed,sealsareintactandtheinventoryhasbeenmadeoutinapropermanner,givingallthedetailsrequired,asregardsthecontentsofpackages.Heshouldalsoverifywhetherthecategorizationofthegoods,as indicated in Chapter-2,hasbeenmentionedcorrectlyornot.Thereisnoneedtoexaminethecontents of thepackages, provided the seals are intact and the inventory is in order.Aspects ofsealingshouldbeverifiedcarefully.Further,inrespectofValuables,thepackageshallbeweighedandthesameshallberecordedintheStockRegister.

3.3.2. Iftheconditionofpackages,sealsandtheinventoryareinorder,thecustodianshouldreceivethegoodsinhisGodownandmakeentriesintheStockRegisteralongwithlocationoftheirstorage. Heshould, then, acknowledge receiptof the sealedpackagesbywayofmaking crossentriesontheDuplicate&Triplicatecopiesof inventory,retaintheTriplicatecopywithhimandreturntheDuplicatecopytotheSeizing/Detainingofficerforkeepingitintheseizure/casefile.Incaseofanydiscrepancy,thesameshouldbereconciledbeforeacknowledgingthereceipt.

3.3.3. If the seals are not intact at the time of receipt of the goods by the custodian, it is theresponsibilityoftheSeizing/detainingofficertogetthepackagesopened,tallythecontentsandre-sealthepackages,withtheapprovaloftheDeputy/AssistantCommissionerin-charge.Suchre-inventoryandre-sealingshallbedone in thepresenceof theowner,orhisrepresentativeandateamofGazettedOfficers,includingoneofficerfromtheSeizingUnit.Ifneithertheownernorhisrepresentativeisavailable,aspecificnotetothateffectshallbemadeandre-inventoryshallbedoneinthepresenceoftwoindependentwitnesses,inadditiontotheteamofofficers,asaforesaid.Re-inventoryshallbeproperlydocumented.

3.3.4.Whenre-inventoryofthedetained/seizedgoodsisdone,theoriginalinventoryshouldalsobeattachedtothere-inventory.Thefactofre-inventoryshouldbeendorsedontheoriginalinventoryandcrossreferencesoneachdocumentmustalsobemade.Theoriginalinventoryaswellasthefreshre-inventoryshouldalwaysbekepttaggedtogetherandbeavailablewiththecustodianandincaseofshiftingofgoods,bothshouldalwaystravelwiththegoods.

3.3.5. Aforesaidprocedureshould invariablybe followedduringauthorizedopeningofpackagesduringadjudicationproceedingsordrawalofsamples,andresealingthereof.

3.3.6. Duplicateinventoryandalsore-inventory,ifany,shallbekeptinthefile.SeparatefilesmaybemaintainedforeachStockRegisterandbothshallcorrectlyreflectthestockpositionintheGodownatallpointsoftime.


3.3.7. IncasethegoodsstoredarephysicallywithSapurdigarandonlythenotionalchargeiswiththecustodian,Triplicatecopyoftheinventoryshouldbehanded-overtothecustodian.Thecustodianwillnotberequiredtoverifythecontentsofthepackagesorthepackages,sincetheresponsibilityforkeepingthepackagesintactiswiththeSupardigar,owneroftheGodownortheplaceofstorageofthegoods.However,thecustodianshouldaddthegoodsintotheaccountof‘goodspendingfordisposal’andintheStockRegister,entriesshouldbemadeclearlyindicatingtheplaceofstorageintheprescribedcolumnsoftheRegister.

3.3.8. Each package should be securely tied, pinned and stuck with a Stock Card in the Proforma given at Form-3.

3.4. Stock Register

3.4.1. The custodian should enter the details given in the inventory in the ‘Register of Seized/DetainedGoods.’ThisRegistershallbeasperformatgivenatForm-4 forthe ‘goodsother-than-Valuables’andshallbeasperformatgivenatForm-5 for‘Valuables’.

3.4.2. Theofficerin-chargeofthewarehouseshallmaintaintheWarehouseRegisterdulyupdated.Allentries in the register shall be made immediately on receiving the relevant information. The warehouse in-charge shall keep liaison with the Seizing Unit and ascertain the position of pending cases on regular/ quarterly basis. All updates may be entered into the relevant column of the register.

3.4.3. AsregardsNarcoticDrugs&PsychotropicSubstances(NDPS),theRegisterprescribedatForm-30 (refer Chapter 16) should be maintained.

3.5. Posting/ Transfer of Custodian

3.5.1. Onlyexperiencedofficers,whoseintegrityisabsolutelybeyonddoubt,shouldbepostedasin-chargeoftheStrongRoom/ValuablesGodown.Similarcheckfromvigilanceandintegrity-angleshouldalsobeensuredforhisseniorofficer,whoisgiventheoverallsupervisionoftheStrongRoomandcustodyofthesecondkey.

3.5.2 Whenever thecustodianorhisseniorofficer is transferred,aregularsubstituteshouldbeprovided,who shall take proper charge of the Strong Room/ Valuables Godown. The details ofhanding-over/taking-overshallbeenteredinaregister,forwhichtheformatisgiveninForm-6.

3.5.3 Theofficerhanding-overthegoodsontransferfromtheWarehouseunit,shallalsohand-overallthefilesandthecorrespondencesrelatingtothepackagesreceivedbyhimorhanded-overtohim.

3.6. Responsibilities of the Custodian

3.6.1. Itwillbethefundamentalresponsibilityofthe’Godownin-charge’or’GodownSuperintendent’toinspecttheGodownregularlyinordertoensurethatthegoodsstoredinhischargearebeingproperlykeptandnoneofthepackages/goodsshowanysignofdeterioration.Specialtreatmentshouldbeaccordedtospecialconsignments.Forinstance,inthecaseofmotorcars,heshouldsee


that the tyresareproperly inflatedand that theengine isperiodically run, so that it isproperlylubricated.Similarly,anychemical,whichishygroscopicinnature,shouldnotbeallowedtomeltandspoilothergoodsduringstorage.Thismaybedonebychangingcontainersorrepairingthem.TheDeputy/AssistantCommissionerin-chargeshouldalsoinspecttheGodownperiodically.Theresponsibilitiesofacustodianareenumeratedbelow,however,thesearenotexhaustive:

3.6.2. Thecustodianwillberesponsibleforthephysicalcustodyofthepackageswithsealsintact.Hewillnotberesponsibleforthecontentsofthepackage,wherethepackagesareproperlysealedandthesealsareintact.Thecustodianshould,however,insistbeforeacceptingthesealedpackagesthattheinventorycoveringthegoodsiscompleteinallrespects.

3.6.3. Onreceipt,heshouldattachtheStock-Card,intheProformagivenatForm-3ofappropriatecolour:(i)Redcolourcardforgoods‘temporarilydetainedforre-export’,(ii)Pinkcolourcardforgoods ‘seizedbutnotadjudicated’,(iii)Yellowcolourcardforgoods ‘confiscatedbutnotripefordisposal’and(iv)Greencolourcardforgoods‘ripefordisposal’.

3.6.4. Heshouldensurethatthepackagesarecarefullystoredandprotectedagainsttheravagesofweather,ants,rodentsandinsects.

3.6.5. Heshouldmonitortheconditionofthegoodsandtakeadequatemeasuresagainsttheftandpilferage. Incase, there isanytheftorpilferage,heshould immediatelyreport it tothePrincipalCommissioner/Commissioner concerned.Any incidentof theft/ loss/ substitutionof thegoods,whichcomestolight,shouldnotonlybeimmediatelyexaminedpersonallybytheconcernedPrincipalCommissioner/Commissioner,butshouldalsobeimmediatelyreportedtothePrincipalAccountsOfficerandtheStatutoryAuditOfficer,etc.,aslaiddownunderRule 33 of the General Financial Rules, 2017 (G.F.R., 2017).ActionshouldalsobeinitiatedimmediatelyintermsofprovisionsofRule 33 and 34 of G.F.R., 2017.TheBoardshouldalsobekeptinformedofallsuchcasesonanimmediatebasis,withareportofactioninitiated.

3.6.6. Allpackagesshouldcompulsorilybeinspectedfordeteriorationofpackages/sealsatregularintervalsby thecustodian. If thegoods/seals showsignsofdeteriorationordamage,heshouldimmediatelybringittothenoticeoftheDeputy/AssistantCommissionerin-chargeoftheGodown,forappropriateaction.Separaterecordofsuchgoodsshouldbekept,whichmustbeupdatedeverymonth.Incasedeteriorationisnoticedinrespectofgoodsawaitingadjudication,themattershouldbebroughttothenoticeoftheAdjudicatingofficerforensuringquickdecisionofthecase.Wheredeteriorationisnoticedinrespectofcasesunderappeal,theAppellateAuthorityshouldbeinformedimmediatelysothathigherpriorityisgiventothedisposaloftherelevantcases.WherethegoodsareinvolvedintheCourtproceedings,itwillbenecessarytobringthemattertothenoticeoftheCourtforgettingpermissionforthedisposalofgoodspendingfinalizationoftheproceedings.

3.6.7. ThecustodianshallberesponsibleformaintainingtheStockRegistersinapropermanner;proper custody of Registers for handing-over & taking-over charge and inventories; and forsubmittingthemonthlyreturnof‘goodsripefordisposal’.


3.6.8. Heshallberesponsibleforoptimalutilizationofthespace.Thefollowingstepsmaybetakenforoptimumutilizationofspace:

a) Thetotalstockofseizedgoodsmustbereviewedbythecustodianeverymonth,sothatthepossibilityofdisposal,inconvenientlots,couldbeconsidered.

b) Absolutelyconfiscatedgoodsmustbedisposedofexpeditiously.

c) Shifting of the seized/ confiscated goods from the rented premises to own premises,whereverpossible,tosaveonrentals;

d) Neatstackinginascientificmannertonotonlypreventdamage/deteriorationofgoodsbutalsotohelpinsavingspace.

3.6.9. On account of having notional custody, the cutodian shall safeguard the interest of theGovernmentinrespectofconfiscatedgoodsleftwiththePortTrustsorotheragencies.Specialcaremustbetakenforbulkyitems,likeironandsteelmaterials,heavymachinery,etc.,whicharegenerallyleftinthecustodyofthePortauthorities.However,whereitisfeltthatthePortTrustarrangementsarenotadequate,heshalltakeconcurrentmeasures,inconsultationwiththePortauthorities,forensuringsafetyofthegoods.Inthisconnection,thepossibilityofrentingoutsuitableopenspaceaccommodationfromthePortadministration,withwire-fencingenclosure,forstoringconfiscatedmaterials,whichcouldnototherwiseberemovedtotheGodowns,shouldalsobeexplored.

3.6.10.Thewarehouse in-chargeshallregularlypursuewiththeSeizingunits for issuanceof theDisposalOrder.AfterreceivingtheDisposalorder,valuationoftheconcernedgoodsmaybeobtainedfromtheGovernment-ApprovedValuers,forthepurposeofapprovalbytheJointPricingCommittee(JPC).

3.6.11.After approval of the valueof the goodsby the JPC, the list of such goods furnishing theinformation,viz.lotno.,description,quantityandapplicabletaxes,shallbeforwardedtotheDisposalUnitforlistingthegoodsfore-auction.

3.6.12.TheWarehouse in-chargemayalso, from time-to-time, request theSeizingUnits to carryoutprocedureunderSection110(1B)oftheCustomsAct,1962forearlydisposalofgoodsnotifiedunderSection110(1A)oftheCustomsAct,1962.

3.6.13.Immediately after the close of themonth but before the 5th of the followingmonth, thecustodianshallprepareanup-to-datelistin triplicate in the format prescribed at Form-7,ofallthecaseswhichinhisopinionhavebecome‘ripefordisposal’andsendittotheSupervisoryHeadin-charge(byname)oftheSeizing/DetainingdepartmentortheSectionconcerned,forobtaininga‘NoObjectionCertificate’(NOC).Onreceiptofsuchalist,theSupervisoryHeadin-chargeofthedepartment or the Section concerned shall, after necessary verification, certify that there is ‘noobjection’tothedisposalofthegoods.Ifthereareanygoods,whichshouldnotbedisposedof,a


remark“DELETE”shouldbementionedagainstthatentryandthereason,astowhyitshouldnotbedisposedof,shouldbegivenagainsteachsuchentry.Thelistshouldthen,bereturnedwithinoneweekofreceipttothecustodian.ThecustodianshallkeeptheoriginalwithhimandforwardtheduplicatecopytotheDisposalUnitforfurtheraction.Onreceiptofthelistfromthecustodian,theofficerin-chargeoftheDisposalUnitshallexamine,inthepresenceofthecustodian,thepackageswiththelistandwiththedetailedinventoryrelatingtothegoods.Ifthereareanydiscrepancies,heshallimmediatelybringthemtothenoticeoftheDeputy/AssistantCommissioner,Preventive.Theofficerin-chargeoftheDisposalUnitshallthen,prepareacompletelistofthegoodsfordisposalandgetthegoodsdisposedof.

3.7. Goods Received from Different Sections of the Custom House/ Commissionerate

3.7.1. Regular cargo:AseparateGodownshould,whereverpossible,besetapartforkeepingregularconfiscatedcargo.OnreceiptoftheadviceinformatprescribedatForm-8 fromtheSuperintendentin-chargeoftheUnitdealingwiththerelevantseizure/casefile,thecustodianshallimmediatelyhavethegoodslocated,transportedanddeliveredintohischargeandinanycase,within15daysofthereceiptofsuchadvice.ForensuringpromptdispatchoftheadviceintheformatgivenatForm-8,theconcernedSectionshouldlistoutallthecases,forwhichtheperiodallowedforexerciseoftheoptiontopayfineinlieuofconfiscationortheperiodforfilinganappeal,whicheverislonger,expires,alongwiththedateofsuchexpiryina‘ForwardWatch’diary;andoneweekfromthatdate,referenceshouldbemadetothe‘PenaltyRegister’toverifyifthefinehasbeenpaidorappealfiled,andifnot,whetherthegoodscanbetaken-overasfinallyvestingintheGovernment.TheSectionshould then list out such of those items,which are required to be taken-over by the custodianfromthePortauthoritiesfordisposalaction.Whenthegoodsaresodeliveredintothecustody,thecustodianshall,afterdueexaminationofthepackages,makeintriplicate,adetailedinventoryofthecontents in format prescribed at Form-2anddealwiththeminthesamemannerasotherseized/detainedgoods.InthoseCommissionerates,whereaseparateGodownforthepurposeisnotkept,itshallbetheresponsibilityoftheUnit-concernedtotakenecessarystepstoarrangeforthetaking-overofgoodsthathavebecome‘ripefordisposal’,fromthePortauthoritiesdirectlybytheDisposalUnit.

3.7.2.Air cargo:AircargostoredintheAirCargoShedmaybeallowedtobekeptinthesameshedevenafterconfiscation,pendingdisposalinthenormalcourse.Theofficerin-chargeoftheAirCargoShedshallmaintainaStockRegisterinrespectofconfiscatedcargointheproperformat(Form-4)andshallperformallthefunctionsoftheCustodianoftheconfiscatedgoodsinrespectofAirCargoandshalldealdirectlywiththeDisposalUnit.

3.7.3. ICDs, CFSs and Ports: The provisions of the para 3.7.2shallmutatismutandisapplyincaseofconfiscatedcargoattheICDs,CFSsandPorts.

3.7.4.Post parcels:Itshallbethedutyofthe‘PenaltyUnit’ofthe‘PostalAppraisingDepartment’,tokeepaclosewatch,overallthepenaltycasesregisteredbythem.Theparcelswhichareconfiscated


butnotredeemedby theaddressees;andwhichare ‘ripe fordisposal’, shallbesortedoutandadetailedinventoryintheformatprescribedatForm-2shallbeimmediatelyprepared,ofthecontentsofeachparcel,inthepresenceofaresponsiblePostalOfficialandaGazettedOfficerinthe‘PostalAppraisingUnit’.Theparcels,dulysealedwiththesealsofboththeofficers,shallthenbedeliveredtotheCustodianoftheconfiscatedgoods.Thesegoodsshallthereafterbedealtwith,inthesamemanner,asotherseized/detainedgoods.

3.8. Place of Storage of Valuables (Strong Rooms) and Procedure thereof

3.8.1. Valuablesshouldbekeptina‘StrongRoom’orinalockerinanationalizedbank,obtainedexclusivelyforthepurpose.Thepackagesshallbestoredsystematically,serial-wiseandyear-wisetofacilitateeasycheckandlocation.

3.8.2.WhenValuablesarestoredinaStrongRoom,thefollowingprecautionsmustbestrictlytaken:

i. TheStrongRoomstoringValuablesshouldhavea‘doublelocksystem.’

ii. ThetwokeysforoperatingtheStrongRoomshouldbeentrustedtotwoseparateofficers--onetothecustodianandtheothertohissenior/supervisoryofficerofGazettedrank.

iii. ItmustbeensuredthattheStrongRoom/ValuablesGodowncanbeopenedonlywhenboththekeysareusedsimultaneously.

iv. BoththecustodianandthesupervisoryofficershallcollectanddepositkeysoftheStrongRoom/ValuablesGodowninan ironboxboundbythickthread(sutli)andsealedwithlacsealoverapaperslip,bearingthenames,designationandsignaturesofthecustodianandsupervisoryofficer.Thenameanddesignationshouldbeclearandlegible.Preferably,tamperproofpaperseal/stickermaybeused.

v. ThelocksoftheStrongRoomshallbesealed,whennotinuse.Thelockshallbecoveredwith fabric tapeandsealedby lacoverpaper slip,bearing thenames,designationandsignaturesofthecustodianandsupervisoryofficer.Thenameanddesignationshouldbeclearandlegible.Preferably,tamperproofpaperseal/stickermaybeused.

3.8.3. Noperson,otherthanthecustodian,shallentertheStrongRoom/ValuablesGodown,unlessotherwiseauthorizedbythePrincipalCommissioner/Commissionerin-charge.Noofficer,includingthecustodian-in-chargeoftheStrongRoom/Godown,shallbeallowedtoopentheStrongRoom/Godownonanyholiday(includingSaturday/Sunday),exceptwithapriorwrittenpermissionfromtheAdditional/JointCommissionerconcerned.ThereasonforopeningonholidayshallbeclearlyrecordedinwritingbytheAdditional/JointCommissioner,whilegivingsuchpermission.

3.8.4.WhentheValuablesarestoredinlocker/safeinbanks,thekeyofthesafeorthelockershallbekeptsecurelyinthepersonalcustodyofthecustodian.ItshouldalsobeensuredthattheaccesstothesafeorthelockershallnotbeallowedbytheBankManager,exceptonawrittenauthorizationinan


agreedformbearingtherunningnumber,signedbytheDeputy/AssistantCommissionerin-chargeoftheDisposalSectionoftheCommissionerate.Suchauthorizationshouldbeissuednormallyinthenameofthecustodianorinexceptionalcircumstances,whenthecustodianisnotavailable,inthenameofanyotherresponsibleofficer.TheseriallynumberedAuthorizationformsshouldbekeptinthepersonalcustodyoftheDeputy/AssistantCommissionerin-chargeoftheDisposalSection.

3.8.5. The Strong-room/ Valuables-Godown shall have additional security features, like CCTVcameraat themostvantagepoints tokeepround-the-clocksurveillance.ThemonitoringofsuchCCTV camera shall be done by the Deputy/ Assistant Commissioner in-charge of Strong-room/Valuables-Godown.ThedailyrecordingsofthecamerashallbetakenasabackupandkeptwiththeComputerCentre/SystemsUnit.

3.8.6. In the cases of seized currencyorbearernegotiable instruments, as the casemaybe, thegenuinenessmaybecheckedimmediatelywiththenearestbankavailableinthevicinity.InrespectofseizureofValuables,thesamemaybegotappraisedbeforeseizure.Duecaremustbetakentoensurethattheseizedcurrency/bearernegotiableinstrumentsdonotbecomeoutofcirculationortime-barredbeforedisposal.

3.9. Inventory

3.9.1.WheneveranyValuableshavebeenseizedordetainedbyaproperofficerundertheCustomsAct,1962,heshallprepareadetailedinventoryofsuchgoodsatthetimeofdetention/seizureinthe prescribed format given in Form-2,intriplicate.Duringmakingofsuchinventory,thepackagesoftheValuablegoodsshallbeclearlynumbered.

3.9.2. First copyof the inventory shall begivenby theSeizingofficer to theperson fromwhomthegoodsareseized.Thegoods,togetherwiththeduplicateandtriplicatecopiesoftheinventory,shallbeforwarded,within24hoursoftheseizure/detention,tothecustodianoftheStrongRoom/ValuablesGodown.Thecustodianshallacknowledgethereceiptofthegoodsonboth,theduplicateandtriplicatecopiesoftheinventoryandreturntheduplicatecopy,thereafter,totheSeizingofficerforkeepingthesameintheseizure/casefile.Thecustodianshallputhissignaturewithcomplete,clearandlegiblenameandofficialstamp.

3.10. Packaging and Sealing

3.10.1.TheValuablesthatareseized/detainedshallbepackedinnon-deterioratingcontainers,likehighdensityplasticormetalboxes.Thesecontainersshallbesealedwithwire/metalsealsinsteadofrope/waxseals.Apaperseal/stickermentioningtherelevantdetails,asgiveninformatgivenatForm-9,shallbeaffixedonthecontainers(preferably,tamper-proofseal/stickersshallbeused).ThepackagingandsealingshallbedoneinthepresenceofthepersonfromwhomtheValuablesareseized/detainedandtwoindependentwitnesses.Thepaperseal/stickershallhavethesignaturesofthepersonfromwhomtheValuablesareseized,theindependentwitnessesandtheSeizingofficer.The‘fullnames’shouldbewritten,clearlyandlegibly.Iftamperproofseals/stickersarenotused,alac sealshallbeusedwithapaperslip,mentioningrelevantdetails,asmentionedabove.


3.10.2.TheresponsibilitytokeeptheValuablesinsafecustodylieswiththeSeizingofficertilltheValuablesaredepositedwiththeCustodianintheStrongRoom/ValuablesGodown.

3.11. Receipt of Valuables by the Custodian

3.11.1.Immediatelyonreceiptoftheseizedgoods,alongwiththeduplicateandthetriplicatecopiesoftheInventory,thecustodianshallsatisfyhimselfthatthepackageshavebeenproperlysealed,sealsareintactandtheinventoryhasbeenpreparedinapropermannerindicatingall the details requiredwithregardtothecontentsofthepackages.Thecustodianshallnotacceptthepackageswhichare improperlysealedorwhoseseal isnot intactor if the inventorydoesnotcontain thedetails,asrelevantforthegoods/asmentionedinpara 3.1.4above.

3.11.2.Iftheconditionofthepackagesandtheseals,andthedetailsintheinventoryarefoundtobeinorder,thecustodianshallreceivethegoodsandmakeentriesthereofintheStockRegister(called‘ValuablesRegister’), asper theprescribed formatgivenatForm-5.Heshall, then,acknowledgethereceiptofthesealedpackagesbywayofmakingcrossreferencesofentriesintheduplicateandthetriplicatecopiesofinventoriesandthereafter,retainthetriplicatecopywithhimandreturntheduplicatecopytotheSeizing/Detainingofficer,forkeepingthesameintheseizure/casefile.DigitalPhotograph/VideographofthepackagesshallalsobetakenandpreservedinthecomputeroftheCustodian,sothat,intheeventofanytampering,itcanbecrossverifiedwiththeoriginalpacking.BackupcopiesofsuchPhotograph/VideographshallbekeptattheSystems Unit.

3.12. Safe Custody of Valuables

3.12.1.Theresponsibilityofproperstorageandphysicalcustodyofthepackageswithsealintact,shallbeonthecustodian.Heshall,however,notberesponsibleforthecontentsofthepackages,ifthesamewasreceivedproperlysealed,andisstillwiththesamesealsintactthereon.Thecustodianshallalsoensurethatthepackagesarecarefullystoredandprotectedagainsttheravagesofweather,ants,rodents,insects,etc.

3.12.2.Theprovisionsofthepara3.6.5aboveshallmutatismutandisapplyincaseofsafecustodyofValuablestoo.

3.12.3. If the package shows signs of tampering or damage, the custodian should immediatelybring it to the notice of theDeputy/ Assistant Commissioner in-charge of theDisposal Section,for appropriate action. If the goods are involved in Court proceedings, it will be necessary tobringthemattertothenoticeofthecourt,forgettingnecessaryorderfromthecourtforfurthercourseofaction.Allpackagespendingformorethanfiveyearsshouldcompulsorilybeinspectedfordeteriorationofpackages/sealsandincaseanysuchdeteriorationisfound,thesamemaybebroughttotheknowledgeoftheDeputy/AssistantCommissionerin-chargeoftheDisposalSectionimmediatelyforappropriateaction.


3.12.4.Thecustodianshallberesponsiblefor:maintainingtheStockRegistersinpropermanner;propercustodyoftheRegistersforhanding-overandtaking-overcharge,andinventories;andforsubmittingtheMonthlyReturnof‘goodsripefordisposal’.

3.13. Movement of Valuables

3.13.1.Incaseofseized/confiscatedValuablestobetakenoutforproducingbeforetheCourtorforanyotherpurposeasthesituationmaywarrant,writtenordermustbeissuedbytheDeputy/AssistantCommissionerin-chargeoftheStrongRoom/ValuablesGodown.Suchordershallspecify,amongotherthings,thefollowing:thenameofofficer/custodianwhoshallcarrytheValuablesoutoftheStrongRoom/ValuablesGodown,thepurposeforwhichthegoodsaretakenout,theplacewherethegoodsarebeingtakento,thedateandthetimeofopeningoftheStrongRoom/ValuablesGodown.AseparatefileshallbemaintainedforissuanceofsuchordersbytheDeputy/AssistantCommissionerin-chargeoftheStrongRoom/ValuablesGodown.Wheneverheistransferred,thefileshallbehanded-overtothesuccessor,underaproperacknowledgement.

3.13.2.Theofficer/custodian,whocarriesthegoods,shallverifythedescription,conditionoftheseal,otherrelevantdetailstoensurethatthecorrectpackageistakenoutinrelationtotheseizure/casefile.

3.13.3.AMovementRegistershallbemaintainedbythecustodianforthispurposeintheformatgivenat Form-10.DuecareshouldbetakentoindicatethedetailsofsuchmovementsintheMovementRegisterbythecustodianoneachsuchoccasion;andheshallalsomakeacorrespondingentryintheRemarkscolumnintheValuablesRegister.

3.13.4.Theofficer,whocarriesthepackagestotheCourtoranyotherplace,shallbepresentatthetimeoftheiropeningandsubsequentsealing.

3.14. Inspection

3.14.1.QuarterlyInspectionofsuchseized/confiscatedValuablesstoredintheStrongRoom/Safeshallbecarriedout;andstockofallpackagestakenandconditionofeachpackagelyingthereshouldbeverifiedbytheCommitteeheadedbytheDeputy/AssistantCommissionerin-chargeofValuablesGodownandproceedingsofsuchinspectionshallbedrawnandkeptinthefilemaintainedbytheDeputy/AssistantCommissionerin-chargeofStrongRoom/ValuablesGodown.

3.14.2.TheQuarterlyInspectionsshallbevideo-graphedandasoftcopyofsuchvideorecordingshallbekeptinasealedenvelopewiththeSystems Unit.

3.15. Record Keeping

3.15.1Allfiles/registers/recordsmustbekeptinthesafecustodyoftheSuperintendentofCustoms/CentralExcise/CGSTin-chargeoftheStrongRoom/ValuablesGodown.

3.15.2.TheDisposalSectionshallmaintainaMasterInstructionFilecontainingalltheinstructions


onthestorageandthedisposalofseized/confiscatedgoodsissuedfromtime-to-time,alongwiththisManual. This is important for institutionalmemory. ThisMaster Instruction File should behanded-overtothesuccessorbythecustodianatthetimeofhanding-overthecharge.

3.16. Storage of ‘Goods Other-than-Valuables’

3.16.1.‘GoodsotherthanValuables’should,asfaraspossible,bekeptonracksandalmirahskepton sleepers. The goods should never be stored on the floor. The almirahs and racks should beseriallynumberedandthepartitionsinthealmirahsandracksshouldbelabeledalphabetically.Thealmirahsandracksshouldbesoarranged,andthepackagessosystematicallystored,withlocationentriesmadeinStockRegisterthatthereshouldbenodifficultyatanytimetocheckandlocatethepackages.ThekeysoftheGodowninwhichthegoodsarestored,shouldbekeptinthepersonalcustodyofthecustodian.Specialcareshouldbetakentopreventdamagetothegoodsbyrodentsandinsects.

3.16.2. Storage of conveyances and narcotics has been separately dealtwith inChapter 13 and Chapter 16respectively.

3.17. Other Important Instructions

3.17.1.Gold in all forms, including bullion, ingots, coins, ornaments and crude jewellery; andIndianandForeignCurrencyarecoveredunderNotificationNo.31/86-Cusdated05.02.1986,asamended,issuedunderSection110(1A)oftheCustomsAct,1962.Properrecord,includingentryintheValuablesRegister,mustbekeptonsuchoccasionswhentheactionunderSection110(1B)oftheCustomsAct,1962isinitiated.

3.17.2.Incaseofseizedcurrencyorbearernegotiableinstruments,asthecasemaybe,actionunderSection110(1B)oftheCustomsAct,1962shallbeinitiatedimmediatelyafterseizure,andaproperrecord,includingentryintheValuablesRegister,mustbekept.Thereafter,itshallimmediatelybedepositedwiththebankintheGovernmentAccount.Inthisregard,theSuperintendentin-chargeofStrongRoom/ValuablesGodownshallobtainaCertificatefromthebankregardingsuchdeposit,specifyingdenominationsofcurrencyandtheexchangerateprevailingonthedateofdeposit.

3.17.3.Atthetimeofdisposal,theValuablesshallbetakenupfordisposalbytheInventoryCommittee,soauthorized,bytheAdditional/JointCommissioner.AlltheproceedingsoftheopeningandtheinventoryshallbedoneundervideographyandthesoftcopyshallbekeptinthesafecustodyoftheSuperintendentin-chargeoftheStrongRoom/ValuablesGodown.Inthisregard,aregister for disposalofValuablesshallalsobemaintainedasgivenatForm-11.

3.17.4.Theofficersareadvisedtokeepthemselvesabreastwiththelegalprovisions,onthebasisofwhichdifferentprocedureshaveevolved.Incaseofanyrequirementforfurtherclarity,therelevantprovisionsoftheCustomAct,1962,andNotificationsissuedthereunder,maybereferred.Further,whereverrequired,requisitepermissionfromthecompetentauthoritiesmayalsobeobtained.


3.17.5.AllthePrincipalChiefCommissioners/ChiefCommissionersshouldpaypersonalattentiontoensurethattheguidelines/safeguardsprescribedforcustody,accounting,disposaloftheseized/confiscatedgoods,includingValuables,areenforcedscrupulouslyintheirjurisdiction,soastoavoidany instances of loss, pilferage, damage, theft,misappropriation ormissing/ substitution of thegoods.

3.17.6.Copiesofalltheordersofadjudication/confiscation,appealandreviewshouldbeendorsedtotheCustodian.

3.17.7.The seized goods are required to be properly storedwith adequate security and for thispurpose, ifwarranted, should bemoved, at the earliest opportunity, to the headquarters of theDivision/Commissioneratewheresucharrangementsexist.

3.17.8.Whenever theseizedor thedetainedgoodsareordered tobe returned to theowner, thecustodianshould,aftersatisfyinghimselfthatallthepaymentsduetotheGovernmenthavebeenmadebytheowner,givedeliveryofthegoodsagainsttheowner’sendorsement,onthetriplicatecopyoftheinventorythatthepackageshavebeenreceivedwiththesealsintact.Incasetheownerwishestohaveopendelivery,thecustodianshouldcomplywiththerequestbutthepresenceoftheseizingordetainingofficershould,asfaraspossible,besecured.Iftheseizingordetainingofficerisnotavailable,thepresenceofaGazettedOfficershallbesecured.

***


Form-2 (ReferPara3.1.1)

Inventory of goods detained/ seized (in quadruplicate in case of Sapurdgi and in triplicate otherwise)

1. Ownerofthegoods/Passenger:

a. Name:………………………………………………………………………………………………

b. Father’s/Spouse’sName:……………………………………………………………….

c. Occupation:………………………………………………………………………………………

d. Address:

i. HouseNumber:……………………………………………………………………

ii. Building/Premise:…………………………………………………………………

iii. Street:……………………………………………………….......................................

iv Locality:……………………………………………..................................................

v. City/District,State:……………………………............................................................…

vi. PinCode:…………………………………………………………………………………………

vii. Country:……………………………………………………………………………………………

2. ProofofIdentity:Passport/Other……………………………………………..………

3. Seizing/DetainingOfficer

i. Name:………………………………………………………………………………..…

ii. Designation:…………………………………………………………………………

4. Placeofseizure/detention:

i. HouseNumber:…………………………………………………………………………………


ii. Building/Premise:………………………………………………………………..

iii. Street:…………………………………………………………………………………

iv. Locality:………………………………………………………………………..………

v. City/District,State:……………………………………………………………...

vi. PinCode……………………………………………………………………..…………

5. ProofofAddress:Passport/Other………………………………………………………

6. Dateofseizure(DD/MM/YYYY):………………………………………………………

7. SeizingUnit:……………………………………………………………………………………

8. CaseFileNo.:……………………………………………………………....……………………

9. WitnessNameandAddress:

(i) Witness–1

i. HouseNumber:…………………………………………………………………….

ii. Building/Premise:………………………………………………………………

iii. Street:……………………………………………………………………..……………

iv. Locality:……………………………………………………………...........................

v. City/District,State:…………………………………………...............................

vi. PinCode………………………………………..........................................................

(ii) Witness–2

i. HouseNumber:…………………………….........................................................

ii. Building/Premise:…………..................................................…………………

iii. Street:………………………………………….........................................................


iv. Locality:……………………………………….........................................................

v. City/District,State:…………………………………..........................................

vi. PinCode…………………………………………………............................................

10. Detailsoftheseizedgoods,packagesanditscontents:

S.No. Details of thePackageContaining theGoods

Detailed Description oftheGoods

Quantity(inclearlydefinedunitswith--outanyscopefor

ambiguity)

CountryofOrigin,ifany

Total Estimated

Market Value

Remarks

1 2 3 4 5 6 7

11. SignatureoftheOwner/Passenger:…………………………………………………

12. SignatureoftheSeizingOfficer:…………………………………………………….…

13. SignatureoftheWitness–1…………………………………………………………..…

14. SignatureoftheWitness–2…………………………………………………………..…

15. Aspecimenofthesealaffixedonthepackages

Received with seals intact. Entered in the Valuables Register vide entry no.……………………..dated……………………

SignatureoftheCustodian(Valuables)

Name:

Designation:

GuidelinesforfillingtheProforma

1. Thedetailsoftheitemsshouldbegivenpackage-wiseandasfaraspossible,foreachitem,thevalueandotherdetailsshouldbefurnished.

2. Conditionofthegoodsshouldalsobeindicatedandwhereveraccessoriesarenotavailable,thatfactalsoshouldbegiven.Thedetailsaboutaccessoriesbegivenintheremarkcolumn.

3. Incaseofmanufacturedgoods,theirmake,modelandserialnumbershouldalsobementionedintheinventory.


4. As far as possible, goods of each category should be kept in a separate package, so thatcategory-wisethosepackagescanbedisposedoffirstthathaveaprescribedtime-limitforthemandtheremaininggoodscanbekeptseparately.

5. Preferably,thesignatureoftheownerandthemahazar(Panch)witnessesshouldbetakenonthepackage.Iftheownerisnotavailable,atleastmahazarwitness’ssignatureshouldbetaken.ThepackagesshouldbesealedwiththesealoftheSeizing/Detainingofficerandthesealoftheownerorhisauthorizedrepresentative,ifheisavailable,otherwisewiththatofaGazettedOfficer.

6. Asfaraspossible,thespecimenofthesealonthepackagesshouldalsobeincorporatedintheinventory.

7. TheinventoryshouldbepreparedinQuadruplicateifthegoodsaregoingtobehanded-overtoaSapurdigar,i.e.,personotherthantheDepartmentalGodownOfficerforstorage.Otherwise,theInventorycanbepreparedinTriplicate.TheOriginalwillbehandedovertotheOwner.TheDuplicatewillbekeptinthecasefile,theTriplicatewillremainwiththeCustodianandthequadruplicatewillbegiventotheSapurdigar(wheretheCustodianandtheWareHouseOfficeraredifferent).

***


Form-3 (ReferPara3.3.8and3.6.3)

Stock Card

1. S.NointheSeized/DetainedGoodsRegister:………………………….

2. Dateofreceipt:……………………….

3. Nameoftheownerofthegoods,ifknown:………………………….

4. No.ofpackages:……………………..

5. Descriptionofgoods,quantityandvalue:…………………………….

6. HistoryofConsignment:……………………………………………..

(Here,enterthedateofcheckmadebytheofficer,dateofopeningseal,dateofauction,etc.)

ExampleformaintainingStockCard:IftherearefourpackagesdetainedunderaS.No./Ref.No.,theStockCardforeachpackageshouldindicatethepackageas¼,2/4,3/4or4/4,asapplicable.

***



Stock Register for the Goods ‘other than Valuables’

1 2 3 4 5 6 7 8 9 10 11S.No. Date of

Receipt

Bywhom

Deposited

Nature

of

Sealing

Custom

House/

Commiss

ionerate

CaseFileNo.

Whether

Inventory

(inpre-

-scribed

form)

accompa-

-niedthe

goods?

Nameof

Owner,if

known

No.of

Packages

Description of

goods

Quality Estimated

Value/

duty

Date of

preparation

of detailed

inventory

Nameof

Officers

Presentat

the time of

Preparing

Detailed

Inventory,

if

Necessary

Natureof

Sealing

(after

inventory

and

identifying

marks

given on

packages)

Where

Stored

ParticularsofRe-opening ReleaseoftheGoods

totheOwner

Date and

Time

ofRe-

opening

Namesof

Officers

Presentat

the Time

ofRe-

opening

How

Sealed

Where

Re-

stored

Date of

Release

(if so

ordered)

Name,

Address,

Phone

No.and

Signature

of the

Recipient12 13 14 15 16 17 18 19 20 21

Disposal by the Department

DateofRe-

opening for

Purposesof

Valuation

byJewellery

Expert

AuctionLot

No.&Other

Particulars

oftheLot

inwhich

included

Price

Fetched

at

Auction

Date of

Deliveryto

theBidder

at the

Auction

Signatureof

theRecipient

AmountPaidas

GodownRent

(receiptno.

and date to be

mentioned)

Signature

(withdate)

of the

Custodian

Remarks

22 23 24 25 26 27 28 29

***



Stock Register for Valuables

1 2 3 4 5 6 7 8 9 10 11 12

S.

No.

Date of

Receipt

CaseFile

No.

Deposited

by:Name

and

Designation

of the

Officer

Name

and

Address

of the

Owner

No.of

Pack-

-ages

Whet-

her Accomp

aniedby

Inventory

(inpre-

-scribed

format)

Descrip-

tion of

Goods

Quantity

as per the

Inventory

Condition of

Sealing

Estimated

Value:

Duty:

Date of

Prepa-

-ration

ofInven-

-tory

13 14 15 16 17 18 19 20 21 22

Nameof

Officers

Presentat

the time of

Preparing

Detailed

Inventory

Location

of

Storage

in the

Strong

Room

DateofRe-

opening/

Movement,

ifany

Order

Reference

forRe-

opening/

Movement

andEntry

No.inthe

Movement

Register

Details of

Proceedings

Drawnfor

Re-opening

FileNo.

Mode

of

Dispo-

-sal

Date of

Release/

Disposal

Names

of

Officers

Present

at the

time of

Release

of

Goods

Signature

ofRecip-

-ientwith

Nameand

Address,

Phoneno.

Entry

No.

in the

Disp-

-osal

Regist-

-er

***



FormatoftheRegistershowingsuccessionofCustodianandSupervisoryOfficeroftheStrong Room/ Valuables Godown

FortheCustodian

S.No. NameandDesignation oftheOfficer

Date of Taking-Over

Date of Handing-Over

OrderReference

Counter-signofthe Immediate SeniorOfficer

FortheSupervisoryofficer(GazettedRank)

S.No. NameandDesignation oftheOfficer

Date of Taking-Over

Date of Handing-Over

OrderReference

Counter-signofthe Immediate SeniorOfficer

***



List of Cases ‘Ripe for Disposal’ (in Triplicate)

From

TheOfficer-in-charge(DisposalUnit)

To

_______________

___________________Department

Theunder-mentionedcaseshavebecome‘ripefordisposal’.Kindlyindicatewithinaweekhereof,whetheryouhaveanyobjectiontothedisposal.Incasenoresponseisreceivedby___________,furthernecessaryactionfordisposalofthesegoodswouldbeproceededwith.

S.No. Disposal Unit

Registration No.

OriginalCaseFileNo.

No.ofPackages

Marks &Nos.

Description ofGoods

Weight Value Remarks

1 2 3 4 5 6 7 8 9

Officer-in-charge(DisposalUnit)

Date:___________________

No objection to the disposal of the above mentioned.

Date____________ DEPARTMENT

***



List of Cases in Which Period of Redemption and Appeal has Expired

From

The________________

_____________________Department

To

The Custodian

The goods mentioned hereunder have not been so-far redeemed within the prescribed periodandtheperiodforpreferringappealisalsoover.Necessarystepsmay,therefore,betakentotakepossessionofthesameandthereafter,todisposethemof.

S.

No.

C.H./

Commissionerate

CaseFileNo.

No.of

Packages

Marks

&Nos.

Weight(if

available)

Description

ofGoods

Value Category

ofGoods

Date of

Expiryof

Redemption

Period/

Appeal

Period

Remarks

1 2 3 4 5 6 7 8 9 10

(DeputyCommissioner/AssistantCommissioner/Superintendent

In-Charge_______________Department)

***



Format of the Tamper proof paper label (TobeaffixedonthecontainerinwhichseizedValuablesarekeptandsealed)

CaseFileNumber:

DateandPlaceofSeizure:

PanchnamaDate:

Contents:

NameandSignatureoftheOwnerofthegoods,withdate:

Name,DesignationandSignatureoftheSeizingOfficer,withdate:

NameandSignatureoftheWitness–1,withdate:

NameandSignatureofWitness–2,withdate:

***



Format for Valuables Movement Register

S.No. NameofDC/AC Authorizing

Movement

FileNo.

PurposeofTaking-OutoftheValuables

and the PlacetoWhichTaken

Name,Designation,

SignatureoftheOfficerTakingtheValuablesout

Date and Time of Taking the Valuablesout

GrossWeight

1 2 3 4 5 6 7

Date and Time of Depositing

back of the Valuables

GrossWeight WhetherOpenedandRe-sealedandifso,

the Details Thereof

NameandSignatureof

the Custodian

NameandSignature

of the SupervisoryOfficer

Remarks

8 9 10 11 12 13

***



Format for Register for Disposal of Valuables by the Department

DatefixedforInventoryfor

Disposal

Details of Disposal Orders

DateofRe-opening for the purpose

of valuationof Jewellery/Gold/

Valuables,etc.

Date of Disposal and

Place

Amount of SaleProceeds

Remarks

1 2 3 4 5 6

***


4.1. Transfer of Charge

4.1.1. PropertransferofchargeofGodownsisessentialforproperaccountingofgoods.Atransferof charge, even temporary, should be supervised by the Superintendent (or Deputy/ AssistantCommissioner(DC/AC)incaseoftransferofchargeofValuables)andcloselymonitoredbytheDC/ACatDivision/SectionandtheAdditional/JointCommissionerin-chargeoftheGodownsattheHeadquarters/Commissioneratelevel.Propertransferofchargenotonlyaffordsagoodopportunityforstock-takingbutalsoobviatesanychanceofsubstitution,mis-appropriationandembezzlement.In the past, investigations of many cases of such lapses have failed to pin-point responsibility,primarily,becauseofimpropertransferofcharge.

4.1.2. Onlyexperiencedofficers,havingintegritybeyonddoubt,shallbeappointedascustodians.Thecustodians,soappointed,shouldnotbefrequentlychangedortransferredout.

4.1.3.Wheneveranycustodianoranyotherofficer in-chargeof theconfiscated/seizedgoods istransferred,thetransfershouldbesoarrangedthatthesuccessorisgivensufficienttimetotakechargeofthecompletestockofthegoodsafteraone-to-onecorrelationofgoodswiththerelevantRegisters.

4.1.4.Whereverthepackagesandsealsareintact,itshallnotbenecessarytoopenthepackagesandcounttheindividualarticles.Wheneversealedpackagesarefoundinopencondition,re-inventoryshallbedrawnbyfollowingtheprescribedprocedure.

4.1.5. AChargeReport shall bepreparedonly in a pre-authenticated register called ‘Register ofHanding-overandTaking-overofCharge’preparedintheformatgivenatForm-6 and not in loose sheetsorinanyotherform.ThisregistershallbepermanentrecordandallChargeReportsshallbepreparedonlyinthisregister.Separateregistersshallbemaintainedfordifferent‘StockRegisters’.SeparatepagesmaybeearmarkedfortransferofchargeofdifferentStockRegistersinthe‘RegisterofHanding-overandTaking-overofcharge’.

4.1.6. Theofficertaking-overchargeshallpointoutanydiscrepancies,etc.,intherelevantcolumnof the Charge Report by referring to the serial no. of the Stock Register. Actual details of suchdiscrepanciesshall,however,beenteredintheStockRegister.

Transfer of Charge, Stock-Taking and Inspections

CHAPTER - 4


4.1.7. The officer taking-over the charge shall also take charge of all the Stock Registers andcorrespondingInventories.OncehesignstheRegisterofHanding-overandTaking-overofcharge,hewillbeconstruedtohavetaken-overallthegoodsinthewarehouseaswellasthecorrespondinginventoriesandStockRegisters.

4.1.8. TheofficertransferredfromWarehouse/ValuablesSectionshallsurrendertheDepartmentalsealsissuedtohimbeforehanding-overthechargeofthewarehousetotheofficertaking-overthecharge,underproperreceipt;andrecordofthesameshouldbekeptinthewarehouse.Locksofthemainentryshallbechangedperiodicallytopreventmisuseofduplicatekeys,ifany.CCTVcamerasshallbeinstalledatvulnerablepointsandshouldbeoperationalround-the-clock.TherecordingsoftheCCTVfootageshallbestoredinsuitablemediumtillthenextstockchallenge.

4.1.9. Aftereachtransferofcharge,theChargeReportshallbescrutinizedbytheDeputy/AssistantCommissioner in-chargeoftheDivision/SectionandtheAddl./ JointCommissioner in-chargeatheadquarters/Commissioneratelevel,whoshalltakecorrectivemeasuresonthepointsraisedanddiscrepanciesnoticedthereon,andputupanActionTakenReporttothePrincipalCommissioner/Commissioner.

4.1.10.Wheneverthecustodianproceedsonlongleave,aregularsubstituteshallbepostedinhisplace, anda complete andproper transferof custodyof goods shall takeplace. Such transferofchargeshallalso figure intheRegisterofHanding-OverandTaking-overCharge.However,whenthecustodianproceedsonshortorcasual leave,or inanemergency, thecustodianshouldmakearrangementstoensurethatanyarticles,whichmayberequiredduringhisabsence,arehanded-overtoanotherofficeronproperreceipt,withtheapprovaloftheDeputy/AssistantCommissionerconcerned.ThisofficershallalsoattendtoanyotherurgentorimportantworkrelatingtoGodownandwhen stockof goods is tobe accessedaspart of suchwork, it shall be sodoneonly in thepresenceof theDeputy/AssistantCommissioner in-charge.Full responsibility for theremaininggoodsshall,however,remainwiththecustodianhimself.

4.2. Periodic Stock Challenge, Stock-Taking, Inspections and Reports

4.2.1. Once every six months, a Deputy/ Assistant Commissioner nominated by the PrincipalCommissioner/Commissionerin-chargeforthepurpose,shallconductacompletestock-takingofall thepackagescontaining ‘articlesotherthanValuables’. Inordertoensurethatstock-taking isconductedregularly,thisexercisemaybeconductedinthemonthofJanuaryandJuly.Thereportonthestock-takingshouldbesubmittedinthefollowingmonthandtheactiononthereportshallbetakenimmediately,andinanycase,beforethenextstock-taking.

4.2.2. TheofficersverifyingthestockshallphysicallyverifythestockwithreferencetoInventoriesandStockRegisters,andalsowithreferencetoRegistersof‘Handing-overandTaking-overcharge’.

4.2.3. Theyshouldverifythesealsandsatisfythemselvesthatthesealsareintact.Ifthesealsare


intact,itisnotnecessarytoopenthepackagesandverifycontents.However,ifthesealsareopen/broken,thereasonsthereofmaybeascertainedandcompleteinventoryofthegoodsmustbetaken.

4.2.4.Where substitution or pilferage is suspected, immediate action may be taken to verifythecontentsof thepackagesand in caseanydiscrepanciesare found, such further steps, asarewarranted,mustbetakenwithoutdelay.

4.2.5. The officer deputed for stock challenge, shall compulsorily inspect all the packages fordeteriorationofpackages/sealsandincaseanydeteriorationisnoticed,heshouldbringittotheknowledgeoftheDeputy/AssistantCommissionerin-chargeoftheDisposalUnitforappropriateaction,toensurethatthepackagesremainunderpropersealandanyscopeofpilferageisruled-out.Theofficershallalso,particularly,scrutinizetherecordofdeteriorationofgoodsmaintainedbythecustodianandcheckwhethersuitableactionoutlinedinpara 3.6.5 of Chapter 3hasbeentakenbythecustodianand/orthesupervisingofficer.Ifnot,thesamemustbeurgentlytaken.

4.2.6. Suchofficershallscrutinizethe‘RegisterforHanding-overandTaking-overCharge’tocheck,ifpropertransferofchargehastakenplace&suggestimprovements,ifany.

4.2.7. Heshallexamine,whetherthechargeofindividualcustodiansiscompactandmanageable.

4.2.8. The officer shall critically examine and reportwhether the procedures prescribed in thisManual for storage and preservation of goods, especially Valuables, arms, narcotics drugs andpsychotropic substances, conveyances, etc., are being followed. Compliancewith the proceduressuchastheperiodicaloilingandgreasingofarmsshallbeensured.

4.2.9. Suchofficershallexamine,whetherall thestepsnecessary forexpeditiousdisposalof thegoodshavebeentaken.Heshallpreparealistofcases,whereinthedisposalhasbeenexcessivelydelayedandcallforaStatusReportfromtheparentdepartments.SuchStatusReportshallformpartofhisfinalreporttothePrincipalCommissioner/Commissioner.

4.2.10.TheofficershallsubmitareportregardingthechecksconductedandresultsachievedtothePrincipalCommissioner/CommissionerwithinaweekfromthedateofStockChallenge,coveringalltheabovepoints.SuchreportshouldbescrutinizedbythePrincipalCommissioners/Commissionersthemselvesandtheyshallensurethatappropriateremedialactionistakenimmediately.

***


5.1. Un-claimed/ Un-cleared Cargo (UCC)

5.1.1. Section48oftheCustomsAct,1962dealswiththeUn-clearedCargo(UCC).Thecustodianisrequiredtopreparealistofcargolyingun-claimed/un-clearedinthebondedareaoftheCustomsStation, for more than 30 days from the date of arrival of such cargo in the Customs Station.Continuous interactionwith thecustodian is thekey toensure these listsarepreparedon time.Thereafter,theprocedurefordisposalofsuchcargowouldbeaslaiddownintheCBIC Circular No. 49/2018-Customs dated 03.12.2018.Further,theDeputy/AssistantCommissionerin-chargeofUCCattheCustomsStationshouldensurethataMonthlyStatementintheProformagivenatForm-12,issentbyallthecustodians.

5.1.2. Section 48 gives power to dispose of animals, perishable goods and hazardous goods atanytimewithpermissionoftheproperofficerandevenwithoutNotice.Forothergoods,Noticeis required tobegivenby thecustodian to the importer,asprescribed in theCBIC Circular No. 49/2018-Customs dated 03.12.2018.

5.1.3. Iftheimporterabandonsthegoodsbeforepassingof30daysoftheirimportoratanytimeafterissueofNotice,thecustodianshouldimmediatelytakefurtherstepsforthedisposalofsuchcargo.

5.1.4. Ifthegoodsremainunsoldandpassintothecategoryof‘landed-more-than-one-year-prior’,thenthecustodiancansell thesame following the independentprocedureasdetailed inPara 3 of CBIC Circular No. 50/2005-Cus. dated 01.02.2005,without any reference to Customs, andadjustingthenumberofauctions/tenderstowhichthelotwasalreadysubjectedto,againsttheprescribednumberoffoursuchauctions/tenders.However,evenforsuchgoods,therequisiteNOCfromtheCustomswillberequiredtobeobtainedbythecustodianaspertheprocedurelaiddownin the Circular No. 49/2018-Customs dated 03.12.2018.

5.1.5. Theprocedure laiddown in theCircular No. 49/2018-Customs dated 03.12.2018 shall beapplicabletocargowhichareunloadedataCustomsStation,afterbeingbroughtfromoutsideIndia,onorafter01.04.2018andwhichfallinthecategoryof“un-claimed/un-cleared”intermsofSection 48 of the Customs Act, 1962.ItwouldalsobeapplicabletoallUn-claimed/Un-clearedgoods brought from outside India before 01.04.2018 (un-claimed/ un-cleared for a period not-exceeding-one-year)inrespectofwhich:

Special Provisionsfor Un-Claimed/ Un-Cleared Cargo, Mis-Handled Baggage And Time Expired Bonded Goods

CHAPTER - 5


i. Auctionprocesshasnotstartedyet;or

ii. ListofcargoproposedforauctionhasbeensenttoCustomsbythecustodianbutCustomshasnotyetprovidedthenecessaryinformationasreferredinPara 3(i) and 3(iv) of the Circular No. 49/2018-Customs dated 03.12.2018.

5.1.6. Briefly,theprocedurefordisposalofun-claimed/unclearedcargolyingwiththecustodians,aslaiddowninCircular No. 49/2018-Customs dated 03.12.2018,isasbelow:

i. ThecustodianoftheCustomsStationshallpreparealistofcargolyingun-claimed/un-clearedinthebonded-areaoftheCustomsStationformorethan30daysfromthedateofarrivalofsuchcargointheCustomsStation,andsendthelisttothejurisdictionalPrincipalCommissioner/ Commissioner of Customs. The list shall contain complete particulars,suchasBillofLading/AirwayBillnumber&date,Containernumber,descriptionofgoods,weight,nameoftheconsignee/consignor,etc.Thecustodianshall,simultaneously,updatethelistwithimporter’snameandaddress.Incaseswheretheaddressoftheimporterisnotmentioned in the IGMmessage fromICEGATE, thecustodianshallsendaNotice totheShipping line toprovideaddressof the importer/ consigneewithinoneweek.TheJurisdictionalPrincipalCommissioner/CommissionerofeachCustomsStationshallissueinstructions to theofficersandstaff toensure thatdetailsofall thegoods/shipments,whichareputonholdforinvestigationorotherwisebyDRI/Preventive/SIIBoranyotheragency, are furnished to theDisposalBranchof theCustomsStationand thecustodianimmediately,underproperreceiptandacknowledgement.ThiswillensurethattheDisposalBranchand the custodianare, at all times, awareof thegoods/ shipments/ containersforwhich‘NoObjectionCertificate’fromtheconcernedagencywouldberequiredbeforeinitiatingthedisposalprocess.

ii. From the said list, theCustoms shall segregate shipmentswhich aredisputed/ stayed,shipmentsrequiredtoberetainedforinvestigation/Adjudication/courtprocedure,etc.TheCustomsshall also segregate shipments containingmotorvehiclesorothergoods,requiring License/ Permission/ Certification from Director General of Foreign Trade(DGFT)oranyotherDepartment.TheCustomsshould furnish to thecustodian,within10daysofthereceiptofthesaidlist,thedetailsofshipmentsnottobeincludedintheauctionprocess.TheCustomsshallalsochoose10%shipmentsfromthelistofshipmentssegregated for inclusion for the auction process, forwhich detailed inventory shall bemadeintheirpresenceforsamplecheck.Thisshouldbeconveyedtothecustodian,alongwiththelistofShipments/Containerswhicharerequiredtoberetained.

iii. BasedontheintimationreceivedfromtheCustoms,thecustodianshallissueaNoticetothe importer under Section 48oftheCustomsAct,1962,advisinghimtoclearthegoodswithin10daysfromthedateofissueoftheNotice,failingwhichthegoodswouldbeplacedinpublicauction.NoticeshallbesenttotheimporterontheaddressasgivenintheIGM


messageavailablewiththecustodian,ortheaddressascertainedfromtheShippinglines.Further,acopyof thisNotice issuedtothe importer,shallalsobeaffixedontheNoticeBoardoftheCustomsStation.

iv. Thecustodian, in thenext20days,shallprepareadetailed inventoryof theshipmentswhicharenotrequiredtoberetainedbytheCustomsforanypurpose.Indoingso,theyshallassociatetheCustomsin10%oftheconsignments,forwhichtheCustomshasalreadyintimatedthatinventoryhastobedrawnintheirpresenceforsamplecheck.

v. Within7daysofdrawingupofinventory,thecustodianshallapproachthejurisdictionalCustoms authorities, along with the said inventory, seeking ‘No Objection Certificate’(NOC) in respectof all consignments/containerswhichare tobe takenup forauctionthroughthee-auction/tender. Theinventoryshouldhaveadetaileddescriptionoftheitems,toenableCustomstoeasilyidentifytheregulatoryrequirementsinrespectoftheconsignmentsmentionedthereinanditshallclearlyindicatevariationinthedescriptionofgoodswithrespecttothedescriptionofgoodsmentionedinthelistalreadyforwardedtotheCustoms.

vi. TheCustomsshallexaminethelist,andwithin15daysofreceiptofsuchrequest,intimatetothecustodian,detailsofthelistedshipmentswhichcanstraightawaybetakenupforauction,astheydonotrequireanyregulatoryclearances(NOCfromFSSAI,DrugController,Bureauof IndiaStandards(BIS),etc.),ordonotneedanychemicalanalysis to identifythe contents and fitness for consumption/ usage. The consignments, for which suchunconditionalNOCsareissuedbytheCustoms,shallbetakenupforauctionbye-auctionthroughMSTCtoensuremaximumoutreachandparticipation.Inordertoensurequickandregularturnover,theconcernedcustodianshallattempttohold,atleastoneauctioneverymonth.IncasethelistisincompleteanddoesnothavethecompletedetailsfortheCustomstoclearlypinpointtheregulatoryrequirements,theCustomsshallindicatethedeficienciesinthelist,withinthisperiodof15days.

vii. In case regulatory clearances from agencies other-than-Customs are required, such asNOCfromFSSAI,DrugController,BIS,etc.,orsamplesof theconsignmentarerequiredtobe chemicallyanalyzed to identify the contentsand fitness for consumption/usage,the Customs shall identify such requirement and intimate to the concerned custodianwithin15daysofthereceiptofthecompletelist.Thecustodianwill,then,approachthejurisdictionalCustomsofficer for assistance inobtaining the said regulatory clearance.If,inthisprocess,chemicalanalysisisrequired,theCustomsshalldrawthesamplesandforwardthesametotherespectiveagencyfortesting.Therequiredtestingfeesorsuchotherchargesrequiredtobepaidtotheconcernedagency,shallbepaiddirectlybytheconcernedcustodiantothesaidagency.TheconcernedtestingagencywillberequiredtosubmittheTestReportswithin15daysofreceiptofthesamples.


viii. NOC for such consignments shall be issued by the Customs only after receipt of therequiredclearance/resultofchemicalanalysisfromtheconcernedagency,withoutwhichtheconcernedcustodianshallnotputthesaidconsignmentforauction.

ix. In case the result of chemical analysis, or report from FSSAI, Drug Controller, PlantQuarantine,etc.,indicatethatthesampleisnotfitforconsumption/usage,theCustomsshall inform the custodian about the need for destruction of the same and the custodian shall arrangetodestroythesameattheirexpense,afterobtainingtherequisiteenvironmentalandotherclearancesasperlaw.ThedateoftheproposeddestructionshallbeintimatedtotheCustomsatleast15daysinadvance,toenabletherepresentativeoftheCustomstowitnessthesame,shouldtheneedforthesamebefelt.

x. Thevalueoftheshipment/lotincludedintheAuctionListshallbefixedinnext7daysbyapaneloftheGovernment-approvedValuersappointedbythecustodian,whichshallincludeanexpertontheproductline,withoutinvolvementofthelocalCustomsauthorities.Thevalueassessedby theApproved-Valuerappointedby the custodian, shall form the“ReservePrice”.

xi. Thecustodianshallfixadateimmediatelyafterassessmentofvalueofsuchshipment/lot,forholdingtheauction/tenderandcommunicatethatdatetothejurisdictionalPrincipalCommissioner/ Commissioner and the Deputy/ Assistant Commissioner, DisposalBranchof theCustomsStation.TheDeputy/AssistantCommissionershallnominate, iffeltnecessary,anofficernotbelowtherankofSuperintendent/Appraisertowitnesstheauction/ tender.TheCustomsshallnotwithdrawany consignmentat the lastmomentfromtheauction/tender,exceptwiththewrittenapprovalofthejurisdictionalPrincipalCommissioner/Commissioner.

xii. Theshipment/lotinrespectofwhichNOChasbeengivenbytheCustomsshallbetakenupforauction.Allbidsofvalueequaltoormorethanthereserveprice,orthoseupto5%lessthanthereserveprice,shallbetreatedassuccessfulbidsforsaleofthegoods.Remainingshipments/lotsofthelist,shallagainbetakenupforthesecondauctionagainstthesameReservePrice.Theshipmentsorlots, forwhichbidsarenotreceiveduptotheReservePrice,shallagainbetakenupforthethirdauctionagainstthesameReservePrice.Theshipments/lots,inrespectofwhichthreeunsuccessfulauctionshavealreadytakenplace,shallbeconsideredforthefourthauctionagainstthesameReservePriceasfixedbeforethefirstauctionofsuchshipments/lots.However,inthefourthauction,suchshipments/lotsaretobenecessarilysoldforthehighestbid,regardlessoftheReservePricefixed.Intheeventoftheshipments/lotsnotbeingdisposedofinthefirstauction,subsequentauction/tendershouldbeconductedinatime-boundmannerandsuchshipments/lotsshouldbetakenupinthenextauction.Custodianshallfurnishshipment/lot-wisebidsreceivedinrespectofeachauctiontothejurisdictionalPrincipalCommissioner/Commissionerforapproval.


xiii.Afterthesuccessfulbidderhasbeeninformedabouttheresultoftheauction,aconsolidatedBillofEntry,‘buyer-wise’willbefiledwiththeCustomsintheprescribedformatbythecustodian for clearance of the goods as per Section 46 of the Customs Act, 1962, read with Un-cleared Goods (Bill of Entry) Regulations, 1972 (Regulation 2 & 3).

xiv. TheproperofficerofCustomsshallassessthegoodstodutyinaccordancewiththeextantlaw,within15daysoffilingoftheBillofEntryandafterassessment,informtheamountofdutypayabletotheconcernedcustodian.

xv. Theauctionedgoodsshallbehanded-overtothesuccessfulbidderafterassessmentandtheout-of-chargeordersgivenbytheproperofficer,onpaymentofdues.

xvi. Thesaleproceedsoftheauctionshallbedisbursed,asperSection150oftheCustomsAct,1962.

xvii.Incasetheentireprocessofauctionisnotconcludedwithin180daysofthecommencementof auction, the custodian shall inform the bidder about further extended time, whichmay be required to conclude the auction process. Wherever, the bidder indicates hisunwillingnesstowaitfurther,hissuccessfulbidwillbecancelledandtheearnestmoney,ifany,depositedwiththecustodianbythebidder,willbereturnedtothebidderunderintimationtotheCustoms.Otherwise,theauctionprocessshallbeconcludedwithintheextendedtimeconveyedtothebidder.

xviii. Wherever,anyamountofearnestmoneyisdepositedbythebidderwiththecustodian,thesameshallberefundedtothebidderwithinoneweekofannouncementofauctionresults,wherethebidfailsintheauction.

5.1.7. Inthecaseofunclaimed/unclearedhazardouswaste,theproceduregiveninChapter 17 in para 17.3 shallbefollowedfordisposal.

5.2. Mis-handled Baggage (MHB)

5.2.1. OncetheMHBisfoundtobeabandonedandtobetakenupfordisposal,aninventoryshouldbedrawnupbytheofficerin-chargeoftheMHBinthepresenceofaGazettedofficer.Whilepreparingtheinventory,theperishableitemsshouldbeclearlyidentified,sothatthesamecanbetakenupfordisposalwithoutdelay.

5.2.2. Specific approval for opening the packages and drawing inventory of each lot, shouldbeobtained from theAdditional/ JointCommissioner in-chargewho shall nominateoneor twoGazettedofficer(s)forthepurpose,whoshallalsosigntheinventory.

5.2.3. Thefirst-and-foremosttaskoftheGazettedofficerso-nominatedandofficerin-chargeofMHB,istocertifytheweightofthepackage.Ifthereisanydiscrepancybetweentheactualweightandthe


recordedweight,heshallimmediatelybringittothenoticeoftheDeputy/AssistantCommissionerin-charge.Inventoryshallbedoneinhispresence.

5.2.4. Afterpreparingthecompleteinventory,thebaggageshouldbesealedwiththeseal(s)oftheofficer(s)presentandtheirspecimensealaffixedonthemarginoftheinventory.AlltheprecautionsforpreparingInventoryofdetained/seizedgoods,asoutlinedatpara3.1 of Chapter 3shallmutatis-mutandis,applyinrespectofthesegoodsalso.

5.3. Time-Expired Bonds/ Goods

5.3.1. Section 72 of the Customs Act, 1962empowerstheProperOfficertosellthebondedgoods,whichhavenotbeenclearedby theowneronpaymentofdutywithin the time limitprescribedthereinorwithintheextendedtimelimit,asthecasemaybe,torecoverthedutyleviableonthegoods.Section72alsorequirestheProperOfficertoissueaNoticedemandingthefullamountofduty,togetherwithpenalties,rent,interestandotherchargespayableaftertheexpiryofthetime-limit,beforedetainingandsellingthegoods.AsinthecaseoftheUCC,MonthlyStatementhastobepreparedintheProformagivenatForm-13bytheDeputy/AssistantCommissionerin-chargeoftheBondedWarehouse(s)givingthedetailsoftheTime-ExpiredBondedgoodsandforwardedtotheDC/AC(Disposal)forinitiatingactionfordisposal.Inthiscasealso,theDC/AC(Bond)willensurethattheCategoriesofthegoodsareclearlymarked,sothatpriorityforthedisposalcanbeaccordinglygiven.Thegoods,afterbeingtaken-over,shallbehanded-overtotheDisposalunitfordisposal.

5.3.2. TheDisposalUnitshallmaintainaseparateregisterintheProformagivenatForm-14.

5.3.3. Assoonasthegoodsaredisposedof,thedetailsofsaleproceedsrealizedshallbecommunicatedtotheDC/AC(Bond),whoshouldtakeactionforapportionmentofthesameintermsofSection 150 of the Customs Act, 1962.

5.4. Goods Detained Under Section 142

Goods detained under Section 142 of the Customs Act, 1962 shall also be inventoried in theproforma given at Form-2. These goods, after giving a Notice to the concerned person(s) fromwhosepossession/controlthegoodsweredetained,maybedisposedofafter30daysofdetention,preferablybymethodsgivenunderChapters 7 and 8.Thesaleproceedsshallbeapportioned as per Section 150.

***



Monthly Report to be Given by the Custodians in respect of Perishable/ Hazardous/ Others Goods

1. Serialnumber

2. IGMNo.&date

3. LineNo.andSub-lineNo.

4. BillofEntryNo.,ifany,anddate

5. NameoftheImporter

6. NameoftheSteamerAgent

7. NameoftheCHA(ifBillofEntryhasbeenfiled)

8. Descriptionofthegoods

9. Quantity

10. DateofissueofthefirstNotice

11. DateofissueofthesecondNotice

12. Dateofintimationtothedepartmentfordisposal

13. Remarks

/BYR.P.A.D.//

***



MonthlyReporttobeSubmittedbytheBondOfficer/DC/AC(Bond)

1. Serialnumber

2. BondRegisterNo.

3. Into-BondBillofEntryNo.anddate

4. BillofEntrydate

5. NameoftheImporter/Consignee/Consignor/

6. NameoftheCHA

7. Descriptionofthegoods

8. QuantityandWeightoftheconsignment/shipment

9. ValuedeclaredasperBillofEntry

10. DateofissueofthefirstDemandNotice

11. DateofissueofthesecondNotice/final

12. Dateoftaking-overthegoods

13. Remarks

***



Time-Expired Bond Register

S. No.

TEBNo./

Date of Receipt

BondReference

No.

Importer’s Name&Address

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