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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Anti-Smuggling Unit)
Circular No.
09/ 2017 - Customs
New Delhi, dated the 29th March, 2017
To,
All Principal Chief Commissioners/ Chief Commissioners of
Customs/Customs (Preventive),
All Principal Chief Commissioners/ Chief
Commissioners of Customs & Central Excise.
All Principal Directors General /
Directors General of CBEC.
All Principal Commissioners/Commissioners of
Customs / Customs (Prev).
All Principal Commissioners/Commissioners of
Customs (Appeals).
All Principal Commissioners/Commissioners of Customs &
Central Excise.
All Principal Commissioners/Commissioners of Customs &
Central Excise. (Appeals).
Webmaster, CBEC.
Subject: Disposal of seized/confiscated cigarettes of foreign origin
vis-à-vis provisions of the Cigarettes and other Tobacco products (Packaging and
Labelling) Rules, 2008.
Madam/Sir,
I am directed to refer to Board’s instructions of even no. dated 10.02.2010
on the above mentioned subject. The matter of disposal of seized/confiscated
cigarettes has been examined by the Board afresh in view of the suggestions that
there are difficulties being faced by the field formations in adhering to the
requirements spelt out in the above mentioned Circular and the subsequent
statutory provisions on the issue.
2. All tobacco products (whether domestically manufactured and sold or
imported) require to comply with the requirements contained in the Cigarettes
and other Tobacco Products [(Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA 2003)]
and the Rules framed thereunder. Ministry of Health and Family Welfare Vide
Notification GSR 727 (E) dated 15.10.2014 notified the Cigarettes and other
Tobacco Products (Packaging and Labelling) Amendment (COTP) Rules, 2014, which
came into effect from 01.04.2016 [G.S.R. 739 (E) dated 24.09.2015]. The COTP
Rules are strict in nature and their compliance requires that the printing of
pictorial and textual warning on cigarette packets is in specified format,
colours, resolution, font and language.
3. The Legal Metrology Act, 2009 and the Legal Metrology (Packaged
Commodities) Rules, 2011 apply to packaged commodity which includes cigarettes.
As the imported cigarette packs are intended for retail sale, they are covered
under the Legal Metrology (Packaged Commodity) Rules, 2011 which require a
declaration on the packs containing the name and address of the manufacturer or
importer or packer, quantity of the product, month and year of manufacturing or
pre-packing or importation, the retail sale price, etc. In terms of the said Act
and Rules it is illegal to manufacture, pack, sell, import, distribute, deliver,
offer, expose or possess for sale any pre-packaged commodity unless the package
is in such standard quantities or number and bears thereon such declarations and
particulars in such a manner as prescribed.
4. Rule 11(1) of the IPR (Imported Goods) Enforcement Rules , 2007, provides
that where it is found that the goods detained or seized have infringed
intellectual property rights, and have been confiscated under section 111 (d) of
Customs Act, 1962 and no legal proceedings are pending in relation to such
determination, the Deputy/Assistant Commissioner of Customs, as the case may be,
shall destroy the goods under official supervision or dispose them outside the
normal channels of commerce after obtaining “no objection” or concurrence of the
right holder or his authorised representative.
5. In view of the above, the field formations may refer to the following
guidelines while disposing of illicitly imported cigarettes, which are seized
/confiscated,
i. The cigarette packets shall have, inter alia, specified health warning to
cover 85% of the principal display area of the package; 60% shall cover
pictorial warning and 25% shall cover textual health warning; the placement of
the warning; the language to be used on the package; every package of cigarette
should have name of the product; name and address of the manufacturer or
importer or packer; origin of the product (for import); quantity of the product
and date of manufacture [Cigarettes and other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production, Supply and
Distribution Act, 2003 (COTPA 2003) and rules may be referred]
ii. Cigarette packets shall have the name and address of the manufacturer or
packer or importer and the month and year in which the commodity is manufactured
or pre-packed or imported [Legal Metrology (Packaged Commodity) Rules, 2011
refers ].
5.1 Such cigarettes should be disposed of by sale to NCCF/Kendriya Bhandar
and other Consumer Cooperatives (refer to Circular
No. 39/2016-Customs dated
26th Aug, 2016) or by eauction.
6. The cigarette packets which do not comply with the provisions of laws as
discussed above should not be released for home consumption in the domestic
market and should be destroyed. Such destruction shall be carried out in
compliance of pollution control laws that are in force in consultation with the
respective State Pollution Control Boards.
7. Every seizure must be investigated with regard to counterfeiting and where
found to be illicitly manufactured; they must be destroyed in terms Rule 11 of
Intellectual Property Rights Rules 2007 (IPR Rules), which is the responsibility
of the Right Holder. In cases where such counterfeit goods are restricted, the
customs law does not permit their release into the market for consumption.
8. The Chief Commissioners/Directors General are requested to circulate the
present guidelines to all the formations under their charge. Difficulties, if
any, in implementation of the aforesaid guidelines may be brought to the notice
of the Board.
9. The instruction vide letter of even No. dated 10th Feb, 2010 stands
superseded.
10. Hindi version follows.
(Rohit Anand)
Under Secretary to the Government of India
[F.
No. 711/07/2003-Cus (AS)]
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