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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 7/2004
28th January, 2004
Subject: Procedure for disposal of unclaimed/ uncleared cargo under section 48 of the Customs Act, 1962,
lying with the custodians - regarding
I am directed to invite your attention to above mentioned subject and to say that the Department,
in the past, has taken a number of measures to ensure expeditious disposal unclaimed/ uncleared cargo lying in Air cargo Complexes
/Ports/ ICDs/CFSs/LCSs .
2 The custodians have brought to the notice of the Board that considerable time is being taken by Customs in fixing the fair price
which eventually delays the process of fixing the "Reserve Price" by the custodian. At time the reserve price is so high that the
goods are not sold even in three auctions and over a period of time the quality of goods deteriorates.
3 The matter has been examined by the Board. In order to ensure expeditious disposal of unclaimed/ uncleared cargo, under section
48 of the Customs Act, 1962, and landed upto 31.3.2003, and lying with custodians, whether in the private or public sector, the following
procedure should be followed:-
| (i) |
All goods landed upto 31.3.2003 and lying uncleared /unclaimed may be
taken up for disposal by the Custodians and the process of disposal
should be completed by 30.4.2004 by the respective custodians. |
| (ii) |
The custodian will furnish the list of items to be considered for
disposal to customs. The list will contain complete particulars such as
Bill of Lading/Airway Bill number, description of goods, weight, name of
the consignee/consignor, etc. A notice shall simultaneously be issued by
the custodian to the consignee at his known address and also displayed
on the custodian's notice board that if the goods are not cleared within
15 days it will be sold by the custodian under Section 48 of the Customs
Act, 1962. |
| (iii) |
Customs shall scrutinize the list with their own files/records and
intimate the custodian a list of disputed or stayed consignments or
consignments requiring them to be retained for any
investigation/adjudication/court proceedings, motor vehicles or negative
list items as restrictions imposed under allied acts. If no such
intimation is received from the Customs within 15 days, the custodian
shall go ahead with the disposal of the goods. |
| (iv) |
The responsibility for the disposal shall exclusively be with the
Custodian, who shall fix a reserve price, arrived at by a panel of their
approved valuers [irrespective of any value arrived at by the Customs
Appraisers earlier], which should include an expert on the product
line. In case any request is made by the custodians, the Customs shall
make available to the custodian the services of an Appraiser to serve on
the panel. In cases of doubt, the same may be referred to a panel of
three valuers whose decision shall be final. |
| (v) |
The customs will not insist on complete and detailed inventory of the
contents of the consignments to be drawn in their presence. They shall,
instead choose 10% consignments for which detailed inventory shall be
made in their presence for sample check. |
| (vi) |
The disposal of the goods shall be made by public auction. The date of
the public auction should be adequately publicized in advance through
national newspapers (both in English and Hindi) as well as in at least
one newspaper in the local language. The values assessed by the
approved valuers appointed by the custodians shall form the "reserve
price". In the event of the goods not being disposed of at the first
auction, the bids will be invited in sealed tender by the custodian on
all India basis through advertisement in national news papers as also
through E-auction, within 30 days of the first auction and goods shall
be sold to the highest bidder. Reserve price fixed will be applicable
with respect to first auction only. |
| (vii) |
Guidelines issued by the Central Vigilance Commission as contained in
their letter No.98/ORD/1 dated 18th December,
2003, relating to auction through tender system, should also be kept in
view [Letter available of CVC website http://www.cvc.nic.in]
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| (viii) |
The bidding shall be on cum-duty price and duty shall be back-calculated
from the sale price [Local taxes like Sales Tax etc, will however have
to be charged/recovered extra from the buyer]. |
| (ix) |
The custodian should fix a date for holding the auction and communicate
such date to the officer in charge of the customs station and the
concerned Assistant Commissioner/Deputy Commissioner. The Assistant
Commissioner/Deputy Commissioner would nominate, if necessary, an
officer not below the rank of Superintendent /Appraiser to witness the
auction. Customs shall not withdraw any consignments at the last moment
from the auction except with the written approval of the Commissioner of
Customs. |
| (x) |
For each consignment which is sold the custodian will file a
consolidated Bill of Entry, buyer-wise, for assessment of the effective
rate of duty by the Customs. Auctioned goods will be allowed out of
charge only after the duty assessed is paid by the custodian [Refer
Unclaimed Goods {Bill of Entry} Regulations, 1972]. |
| (xi) |
The sale proceeds shall be shared as per the provisions of section 150
of the Customs Act, 1962. |
4 The above instructions are being issued as a one time interim administrative
arrangement to ensure that the unclaimed/ uncleared cargo pending for long are disposed of at the earliest.
5 In case of inconsistency between this Circular and any Circular issued in the past on this issue, this Circular will prevail.
6 Public Notices may be issued for the benefit of the trade, particularly the custodians.
7 Please acknowledge receipt of this Circular.
8 Hindi version will follow.
F.No.450/97/2003-Cus.IV
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