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Regarding procedure for identification of goods pilfered after the
unloading in a customs area until they are cleared for home consumption or for
warehousing or are transhipped, and recovery of duty thereon from the custodians
as laid down under section 4
Circular No. 58dated 29th
November 1996
I am directed to
refer sub-section 3 of section 45 of the Customs Act, 1962 inserted by clause 58
of the Finance Act, 1995 for recovery of duty from the custodians on goods
pilfered after unloading in customs area.
2. In
case the goods are pilfered/ lost before unloading from the vessel or aircraft
the person in charge of the conveyance is liable for action under section 116.
However if any goods are pilfered/ lost after unloading but before customs
clearance there was earlier no provision for recovery of customs duty from the
custodians. As a result of amendment of section 45 to custodians of the imported
goods have become liable to pay customs duty on the goods pilfered/ lost while
under their custody.
3. For
the purpose of recovery of duty under sub-section 3 of section 45 identification
of the imported goods would involve following situations.
(i) Where
the importer has filed Bill of Entry and shortage is noticed by him;
(ii) Where no
Bill Entry has been filed by the importer but shortages are noted by MCD at thetimeof
closing the IGM;
(iii) Where the
custodians themselves have noticed shortage before or after Bill of Entry is
filed.
4. In case of
situation at para 3(i) above, when the imported has filed a Bill of Entry, the
shortage in goods unloaded but pilfered/ lost may be noticed at following two
stages.
(i) In
case of first check examination before payment of duty.
(ii) In case of
second check examination after payment of duty.
In case of first check
examination if the importer claims remission of duty on pilfered/ lost goods on
the basis of shed Appraiser's examination report under section 13 of the Customs
Act, 1962, the Group AO/ AC should immediately issue demand notice to the
custodian of the goods before allowing remission of duty. He should mention
demand notice No. on reverse side of duplicate Bill of Entry.
In case of second
check examination, the importer is required to file claim with refund section
for refund of duty on pilfered/ lost goods. The AO/ AC of refund section should
issue demand notice before sanctioning refund order & then should forward
all documents to Group AC for further action. The particulars of demand notice
should be mentioned in refund file.
5. In
the situation at para 3(ii) above, where no Bill of Entry has been filed, AC
(MCD) has to take action before closure of IGM. For the particular line numbers
for which no Bills of Entry has been filed, AC (MCD) will inquire from the
custodian as to whether the goods have been landed or not. He may call tally
sheet and other document of verification. In case it is found that the goods
were unloaded but pilfered/ lost AC (MCD) will issue demand to the custodians
for recovery of duty on pilfered/ lost goods u/ s 45(3).
6. In
the third situation at para 3(iii) above where the custodians notice pilferage/
shortage in goods which were unloaded, they will bring it to the notice of
Commissioner of Customs who will forward it to AC (MCD) for issuing demand
notice. AC (MCD) will issue demand irrespective whether Bills of Entry have been
filed or not.
7. It
should be the responsibility of AC (Group)/ AC (MCD) to ensure that the demands
are issued to the custodians and the duty realised.
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