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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 39/2016-Customs
New Delhi, the 26th August, 2016
To
All Principal Chief Commissioners/Chief Commissioners of Customs
All Principal Chief Commissioners/Chief Commissioners of Customs & Central
Excise
All Principal Director Generals/Director Generals/Chief Departmental
Representatives (CESTAT)
All Commissioners of Customs/Customs (Preventive)
All Commissioners of Customs and Central Excise. [email protected]
Sir/Madam,
Subject: Revised guidelines for disposal of confiscated goods - regarding.
I am directed to invite your attention to the Board's
Circular No.
11/2012-Customs dated 12th April, 2012 and the earlier instructions issued to
the field formations vide Board's letters F. No. 711(7)/53-Cus. (AS) dated
27.5.1993, F. No.30/33/67-LC.I dated 19.1.68 and F.No.30/3/64-LC.I dated
10.2.1964 in the matter of disposal of confiscated/seized goods.
2. Prior to February, 2015, preferential treatment was being given to NCCF/Kendriya
Bhandar and other multi-State Cooperative Societies as per the instructions of
Department of Personnel and Training (DoP&T) in purchase of stationery and other
articles. Vide DoP&T's Office Memorandum No. 14/1/2009-Welfare dated 19.2.2015,
the special dispensation available to these Cooperatives/organizations was
discontinued w.e.f. 1.4.2015.
3. The Board had earlier received a number of requests from the trade for
equitable and wider participation of cooperative societies which are duly
registered with the State/Central Government authorities and not to make a
particular body monopolistic, in sourcing the confiscated goods being disposed
of by the department. Moreover, this Department also received several
representations from NCCF/Kendriya Bhandar seeking clarification with regard to
the eligibility of rebate/uniformity of rate of rebate on the disposal of
confiscated goods.
4. In view of the changed scenario, the current practices being followed in the
field formations, the representations of the stake holders and the latest
instructions issued by DoP&T have been considered and deliberated in depth by
the Board. Accordingly, the following instructions are issued with regard to
disposal of confiscated goods through NCCF/Kendriya Bhandar and other Consumer
cooperatives:-
4.1. Sale through Army Canteen/CSD: There shall be no change in the criteria
adopted by the field formations in respect of disposal through Army Canteen/CSD
and therefore, the existing instructions contained in
Circular No. 11/2012-Cus
dated 12.4.2012 shall continue to be followed in such cases.
4.2. Sale through NCCF/KB/consumer Cooperatives: Any lot of confiscated/seized
consumer goods, which is ripe for disposal and whose value does not exceed Rs.
Five lakh, shall be offered to NCCF/KB/Other Central Government Employees
Consumer Cooperative Society/ Multi-State Consumer Cooperative Societies/State
Consumer Cooperatives, at a uniform rebate/discount of 10%, subject to the
following conditions:-
(a) They should be functional for at least 10 preceding years and should submit
Income-Tax returns and VAT/ST returns showing their activities in sale of goods
to the consumers and that appropriate taxes have been duly paid and relevant
laws/rules and regulations are complied with.
(b) Only those Co-operative Societies or National/State level Cooperative
Federations that are duly verified and certified as genuine, every year by an
officer not below the rank of AC/DC, and those that have been duly registered
under Multi-State Cooperative Societies Act, 2002 or concerned State
Cooperatives Act, should be permitted to purchase the confiscated/seized goods.
The genuineness of co-operative societies/federation may also be verified
through concerned Commissionerates or other field formations of this department,
wherever required.
(c) They should be obliged to sell such seized/confiscated goods directly to
bonafide consumers.
(d) No pick and choose of items would be allowed.
(e) Seized/confiscated consumer goods shall be offered on first come first
served basis.
(f) Complete accounts may be called for scrutiny by the department as and when
necessary, to ensure that the seized/confiscated goods, which are sensitive to
smuggling are not misused; or to verify that their disposal has not been made to
a single party/ individual; or to ensure that sale has not been made to any
persons where in purchase vouchers etc., had been misused by unscrupulous
elements in legitimizing smuggling.
4.3. This Circular modifies the rate of rebate/discount to the extent by
superceding the earlier Board's circulars/instructions issued vide; No.
21/23/55-Cus-IV dated 8.12.1956, 4/63/57-cus.lll dated 7.9.1961,
No.30/3/64-L.C.I dated 10.2.1964, No. 30/33/67-L.C.I dated 19.1.1968, No.
549/86/79-L.C.I dated 27.2.1981, No. 711/20/83-LC(AS) dated 10.8.83 and No.
711/1/2006-Cus(AS) dated 20.2.2006, only insofar provisions of rebate/discount
to NCCF/KB/other cooperatives contained in these Circulars are concerned. Rest
of the instructions/guidelines, contained in these earlier Circulars, which are
prevalent as on date and are not getting modified/affected by way of this
Circular, shall continue to be followed.
5. Sale through e-auction/auction cum tender: Any lot of confiscated/seized
goods of all types and confiscated/seized consumer goods whose value exceeds Rs.
Five lakhs shall not be sold directly to the aforesaid cooperative
Societies/Federation and shall be sold by e-auction or auction-cum-tender basis.
In such e-auction or auction-cum-tender process, all stakeholders/persons
including NCCF/KB/other Central Government employees consumer
cooperatives/Multi-State/State cooperatives or National/State level Cooperative
Federations can also participate, subject to the fulfilment of conditions as
prescribed vide Board's
Circular No.50/2005-Customs dated 1.12.2005 and
reflected in
Circulars No. 12/2006-Customs dated 20.2.2006 and
11/2012-Customs
dated 12.4.2012. However, No discount/rebate shall be available to any
organization/Cooperative for the goods disposed through
E-Auction/Auction-cum-Tender.
5.1. CVC has been emphasizing on e-commerce/e-procurement/e-sales for enhancing
transparency, giving equal opportunities to all. Accordingly, CVC vide Office
Order No.46/9/03 dated September 2003 (No.98/ORD/1) has stated that the
departments/ organizations may themselves decide on e-procurement/reverse
auction for purchases or sales and work out the detailed procedure in this
regard. It has, however, to be ensured that the entire process is conducted in a
transparent and fair manner.
5.2. Board had earlier appointed a Task Force to examine the various issues
arising out of the audit review, and to suggest effective measures to put in
place a permanent mechanism for expeditious disposal of cargo including
confiscated/seized goods. Based on the recommendations of a Task Force, Board
had streamlined the procedure for disposal of goods which inter-alia include its
approval for setting up of a centralized e-auction portal by engaging the
services of M/S. MSTC Ltd. Mumbai, a PSU under the Ministry of Steel. This
e-auction procedure had been in force for quite some time and it had facilitated
expeditious disposal of goods by the field formations. Detailed instructions and
guidelines on this procedure are already available in MSTC website, which
specifically hosts eauctions for Customs and Central Excise department
regularly. It is hereby reiterated that E-auction or auction-cum-tender
prescribed vide Board's
Circular No.50/2005-Customs dated 1.12.2005 and
reiterated in
Circulars No. 12/2006-Customs dated 20.2.2006 and
11/2012-Customs
dated 12.4.2012, may continue to be utilised in respect of confiscated/seized
goods.
6. The above instructions may be followed by all the Customs field formations
with immediate effect.
7. These instructions may be brought to the notice of all concerned immediately
through appropriate Public Notice.
8. Receipt of this Circular may kindly be acknowledged.
(A.C. Mallick)
Under Secretary to the Government of India
Tel. No. 011-26177328
Email: [email protected]
F.No.711/01/2006-Cus(AS)/Pt.
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