Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
(Anti-Smuggling Unit)
*****
INSTRUCTION
New Delhi, dated 1st December, 2015
To
All Principal Chief/Chief Commissioners of Customs
All Principal Chief/Chief Commissioners of Customs (Preventive)
All Principal Chief/Chief Commissioners of Customs & Central Excise
All Principal Chief/Chief Commissioners of Central Excise
All Principal Chief/Chief Commissioners of Central Excise and Service Tax
All Principal Directors General/Directors General
All Principal Commissioners/Commissioners
Web Master, CBEC.
Madam/Sir,
Subject: Guidelines for handling and storage of valuable goods that are
seized/ confiscated by the Department- reg.
In terms of Section 110 of Customs Act, 1962 if the proper officer has reason to
believe that any goods are liable to confiscation under this Act, he may seize
such goods that may include valuables such as gold. In the recent past, the
smuggling of high value goods, especially gold is on the rise, as evidenced by
the increasing number of seizures made by Directorate General of Revenue
Intelligence and the field formations. At the same time, there have been
instances of loss/theft of gold and high value goods from the strong rooms/
seized goods godowns reported by the field formations. Though, there are
detailed guidelines for handling and storage of seized/detained and confiscated
goods, the recent cases of loss/theft of valuables raise a serious concern over
the way these guidelines are implemented by the field formations. In order to
prevent such loss/theft of valuables in future, the following guidelines are
issued re-inforcing/ re-iterating and in continuation of the existing
instructions/circulars in this regard for strict compliance by all field
formations. The previous instructions/guidelines in this regard shall be deemed
to be modified and revised to the extent specified in this instruction.
- Valuables: For the purpose of these guidelines, the valuables include:
i. diamonds, precious and semi-precious stones, pearls, gold/silver;
ii. articles including jewellery made of or containing these valuables mentioned
at (i) above;
iii. high value watches;
iv. currency including foreign currency; and
v. such other articles of small bulk and high value as Commissioner of Customs
may by special or general order specify as valuables.
- Custodian
3.1. Only experienced officers whose integrity is absolutely beyond doubt,
should be posted as incharge of the strong room/ valuable godown. Similar check
from vigilance & integrity angle should also be ensured for the superior officer
who is given the overall supervision of the strong room and custody of the
second key.
3.2. Whenever the Custodian or his superior officer is transferred, a regular
substitute should be provided, who shall take proper charge of the strong
room/valuable godown. The details of handing over/taking over shall be entered
in a register for which the format is given in Annexure-I.
- Storage Place/Strong Rooms:
4.1. Valuables should be kept in a strong room or in a locker in a nationalized
bank, obtained exclusively for the purpose. The packages shall be stored
systematically, serial-wise and year-wise to facilitate easy check and location.
4.2. When the valuables are stored in a strong room, following measures must be
taken strictly:
- The strong rooms storing valuables should have a double lock system,
- The two keys for operating the strong room should be entrusted to two
separate officers; one to the Custodian and the other to a superior/supervisory
officer of gazetted rank;
- It must be ensured that the strong room/valuables godown can be opened only
when the two keys are used.
- Both the Custodian and the Supervisory officer shall collect and deposit
keys of strong room/ valuables godown in an iron box bound by thick thread
(sutli) and sealed with lac seal over a paper slip bearing the names,
designation and signatures of the Custodian and Supervisory officer. The name
and designation should be clear and legible. Preferably, tamper proof paper
seal/sticker may be used.
- The locks of the strong room/ valuables godown shall be sealed when not in
use. The lock shall be covered with fabric tape and sealed by lac over paper
slip bearing the names, designation and signatures of the Custodian and
Supervisory officer. The name and designation should be clear and legible.
Preferably, tamper proof paper seal/sticker may be used.
4.3. No person other than the Custodian shall enter the strong room/ valuables
godown unless otherwise authorised by the Commissioner of Customs. No officer,
including Custodian-in-charge of the strong room / godown, shall be allowed to
open the strong room/ godown on any holiday (including Saturday/Sunday), except
with a prior written permission from the Additional /Joint Commissioner
concerned. The reasons for opening on holidays shall be clearly recorded by the
Additional /Joint Commissioner while giving such permission.
4.4. When the valuables are stored in locker/safe, the key of the safe or the
locker shall be kept securely in the personal custody of the Custodian. It
should also be ensured that the access to the safe or the locker shall not be
allowed by the Bank Manager except on a written authorization in an agreed form
bearing the running number, signed by the Deputy/Assistant Commissioner in
charge of the disposal Section of the Commissionerate. Such authorization should
be issued normally in the name of the Custodian or in exceptional circumstances
when the Custodian is not available, in the name of any other responsible
officer. The serially
numbered authorization forms should be kept in the personal custody of the
Deputy/Assistant Commissioner in charge of the disposal.
4.5. The strong room/valuables godown shall have additional security features
like CCTV Camera at the most vantage point(s) to keep round the clock
surveillance. The monitoring of such CCTV Camera shall be done by the Deputy/
Assistant Commissioner in charge of strong room / valuables godown. The daily
recordings of the camera shall be taken as a backup and kept with the computer
centre/systems unit.
4.6. In many cases it has been observed that by the time the case is finalized,
the seized currency / bearer negotiable instruments becomes out of circulation
or time barred. Therefore, in the cases of seized currency or bearer negotiable
instruments, as the case may be, the genuineness may be checked immediately with
the nearest bank available in the vicinity. In respect of seizure of valuables,
the same may be got appraised before seizure.
- Inventory:
5.1. Whenever any valuables have been seized or detained by a proper officer
under the Customs Act, he shall prepare an inventory of such goods. Such
detailed inventory of these goods shall be prepared by the seizing officer at
the time of detention/seizure in prescribed format given in Annexure-II in
triplicate. During making of such inventory, the packages of the valuable goods
shall be clearly numbered.
5.2. First copy of the inventory shall be given by the seizing officer to the
person from whom the goods are seized. The goods together with the duplicate and
triplicate copies of the inventory shall be forwarded, within 24 hours of the
seizure/detention, to the officer posted as Custodian of the strong
room/valuable. The Custodian shall acknowledge the receipt of the goods on both,
the duplicate and triplicate, copies of the inventory and return the duplicate
copy thereafter to the seizing officer for keeping the same in the seizure case
file. The Custodian shall put signature with complete name and official stamp
and the same shall be clear and legible.
- Packaging and sealing:
6.1. The valuables that are seized /detained shall be packed in
non-deteriorating containers like high density plastic or metal boxes. These
containers shall be sealed with wire/metal seals instead of rope/wax seals. A
paper seal/sticker mentioning the relevant details as given in Annexure – III
shall be affixed on the containers (preferably tamper proof seal/stickers shall
be used). The packaging and sealing shall be done in the presence of the person
from whom the valuables are seized/ detained and two independent witnesses. The
paper seal/sticker shall have the signatures of the person from whom the
valuables are seized, the independent witnesses and the seizing officer. The
names should be written completely, clearly and legibly. If tamper proof
seal/stickers are not used a lac seal shall be used with a paper slip mentioning
relevant details as mentioned above (Annexure –III).
6.2. The responsibility to keep the valuables in safe custody lies with the
seizing officer till the valuables are deposited with the Custodian in the
strong room/valuables godown.
- Receipt of Valuables by the Custodian:
7.1. Immediately on receipt of the seized goods and the duplicate and triplicate
copies of the inventory, the Custodian shall satisfy himself that the packages
have been properly sealed, seals are intact and the inventory has been prepared
in a proper manner indicating all
the details required with regards to the contents of the packages. The Custodian
shall not accept the packages if the package is improperly sealed or the seal is
not intact or if the package does not contain the details as mentioned in para
6.1 above.
7.2 If the condition of the packages, seals and the Inventory are found to be in
order, the Custodian shall receive the goods and make entries thereof in the
Stock Register (Valuables Register) for which prescribed format has been given
in Annexure – IV. He shall then acknowledge the receipt of the sealed packages
by way of making cross references of entries in the duplicate and triplicate
copies of inventories and thereafter retain the triplicate copy with him and
return the duplicate copy to the seizing / detaining officer for keeping the
same in the seizure case file. Digital photograph / videograph of the packages
shall also be taken and preserved in the computer of the Custodian so that in
the event of any tampering, it can be cross verified with the original packing.
Back up copies of such photograph, videograph shall be kept at the systems unit.
- Safe custody of valuables:
8.1. The responsibility of proper storage and custody of these goods shall be on
Custodian.The Custodian shall be responsible for the physical custody of the
packages with seals intact. He shall, however, not be responsible for the
contents of the package/s if the same was received properly sealed with the
seals intact thereon. The Custodian shall also ensure that the packages are
carefully stored and protected against the ravages of weather, ants, rodents,
insects etc.
8.2. The Custodian should take adequate precautions against theft and pilferage
and keep watch on the condition of the goods and immediately report each such
case to the Commissioner. Any incident of the theft/loss/substitution of the
goods, which comes to light should not only be immediately examined personally
by the concerned Commissioner, but it should also be, with the exception for
petty cases, immediately reported to the Principal Accounts Officer and the
Statutory Audit Officer etc. as laid down under Rule 16 of General Financial
Rules. Board should also be kept informed of all such cases, on immediate basis,
with a report of action initiated.
8.3. If the package show signs of tampering or damage, the Custodian should
immediately bring it to the notice of the Deputy/Assistant Commissioner, in
charge of Disposal Section, for appropriate action. Where the goods are involved
in court proceedings, it will be necessary to bring the matter to the notice of
the court and for getting necessary order from the court for the further course
of action. All packages pending for more than five years should compulsorily be
inspected for deterioration of packages/ seals and the same may be brought to
the knowledge of the Deputy/Assistant Commissioner Disposal for appropriate
action.
8.4. The Custodian shall be responsible for maintaining the Stock Registers in
the proper manner; proper custody of Registers for handing over; and Taking over
charge and Inventories and for submitting the monthly return of goods ripe for
disposal.
- Movement of Valuables:
9.1. In case of seized/ confiscated valuables to be taken out for producing
before court or for any other purposes as the situation may warrant, written
order must be issued by Deputy / Assistant Commissioner in charge of strong
room/ valuables godown. Such order shall specify, among other things, the
following: the name of officer/Custodian who shall carry the valuables out of
the strong room/valuables godown, the purpose for which the goods are
taken out, the place where the goods are being taken to, the date and time of
opening of the strong room/ valuables godown. A separate file shall be
maintained for issuance of such orders by the Deputy / Assistant Commissioner
in-charge of strong room / valuables godown. Whenever he is transferred, the
file shall be handed over to the successor under a proper acknowledgement.
9.2. The officer/custodian who carries the goods shall verify the description,
condition of the seal, other relevant details to ensure that the correct package
is taken out in relation to the case file.
9.3. A movement register shall be maintained by the Custodian for this purpose
in the format given in Annexure - V. Due care should be taken to indicate
details of such movements in the Movement Register by the Custodian on each such
occasion and shall also make a corresponding entry in the remarks column in
Valuable Register.
9.4. The officer who carries the goods to the court or any other place shall be
present at the time of opening of package(s) and its/their subsequent sealing.
- Inspection:
10.1. Quarterly inspection of such seized/ confiscated valuables stored in the
strong room/ safe shall be carried out and stock of all packages and condition
of each package lying there should be done by the committee headed by Deputy
/Assistant Commissioner in charge of valuable godown and proceedings of such
inspection shall be drawn and kept in the file maintained by Deputy / Assistant
Commissioner in-charge of strong room/ valuables godown.
10.2. The Quarterly inspections shall be video graphed and a soft copy of such
video recording shall be kept in a sealed envelope with the Systems Unit.
- Record Keeping:
11.1. All files/registers/records must be kept in the safe custody of
Superintendent of Customs/Superintendent of Central Excise in charge of strong
room/valuable godowns.
11.2. The disposal section shall maintain a Master Instruction File containing
all instructions on storage and disposal of seized/ confiscated goods issued
from time to time. This is important for institutional memory. This Master
Instruction File should be handed over to the successor by the Custodian at the
time of handing over charge.
- Miscellaneous:
12.1. The Gold in all forms including bullion, ingots, coins, ornaments and
crude jewellery and Indian and foreign currency are covered under Notification
No.31/86-Cus dated 05.02.86, as amended, issued under Section 110 (1A) of the
Customs Act, 1962. Proper record including entry in valuables register must be
kept on such occasions when the action under Section 110 (1B) of customs Act
1962 is initiated.
12.2. In case of seized currency or bearer negotiable instruments as the case
may be, Action under Section 110 (1B) of Customs Act 1962 shall be initiated
immediately after seizure and a proper record including entry in valuables
register must be kept. Thereafter, it shall be immediately deposited with the
bank in the Government Account. In this regard the
Superintendent in charge of strong room/valuables godown shall obtain a
certificate from the bank regarding such deposit specifying denominations of
currency and the exchange rate prevailing on the date of deposit.
12.3. At the time of disposal, valuables shall be taken up for disposal by the
Inventorisation Committee so authorised by the Additional/Joint Commissioner.
All The proceedings of opening and inventorisation shall be done under
videography and the soft copy shall be kept in the safe custody of
Superintendent in charge of strong room / valuables godown. In this regard, a
register for Disposal of valuable by the Department shall also be maintained as
given in Annexure -VI.
12.4. The officers are advised to keep themselves abreast with the legal
provisions on the basis of which different procedures have evolved. In case of
necessity for further clarity, cross referencing to necessary provisions of the
Customs Act, 1962 and notifications issued thereunder may kindly be made.
Further, wherever required, requisite permission from competent authorities may
also be obtained.
12.5. When situation warrants discretion on part of the officers, it should be
exercised in the context of existing laws.
12.6. All Principal Chief/ Chief Commissioners of Customs, Customs (P), Central
Excise & Service Tax should pay personal attention to ensure that the
guidelines/safeguards prescribed for custody, accounting, disposal of
seized/confiscated goods including valuables, are enforced scrupulously in their
jurisdiction, so as to avoid any instances of loss, pilferage, damage, theft,
misappropriation or missing/substitution of the goods.
- These guidelines shall be widely circulated to all field formations.
Difficulties, if any, in implementation of the aforesaid guidelines may be
brought to the notice of the Board.
- This letter may kindly be acknowledged.
This issues with the approval of the Board.
Yours faithfully,
Encl: As above
(M.G. Thamizh Valavan)
Director (AS)
F.No.394/97/2015-Cus (AS)
Annexure – I
Format of the register showing succession of Custodian and Supervisory of
Strong room/ valuables godown
1. For the Custodian
S. No. |
Name and designation of the Officer |
Date of taking over |
Date of Handing over |
Order reference |
Counter sign of the immediate superior officer |
2. For the Supervisory officer (Gazetted Rank)
S. No. |
Name and designation of the Officer |
Date of taking over |
Date of Handing over |
Order reference |
Counter sign of the immediate superior officer |
ANNEXURE-II
Inventory of goods detained/seized
- Owner of the goods/ Passenger:
- Name: …………………………………………………………………………..
- Father’s/Spouse’s Name: ………………………………………………………
- Occupation: …………………………………………………………………….
- Address:
- Door Number: ………………………………………………………….
- Building/Premise: ………………………………………………………
- Street: …………………………………………………………………..
- Locality: ………………………………………………………………..
- City/District: ……………………………………………………………
- Pin Code: ……………………………………………………………….
- Proof Address: Passport Number/Other: ……………………………….
- Seizing/Detaining Officer:
a. Name: …………………………………………………………………………..
b. Designation: ……………………………………………………………………
- Place of seizure/detention:
- Door Number: ………………………………………………………….
- Building/Premise: ………………………………………………………
- Street: …………………………………………………………………..
- Locality: ………………………………………………………………..
- City/District: ……………………………………………………………
- Pin Code: ……………………………………………………………….
- Proof Address: Passport Number/Other: ………………………………..
- Date of Seizure (DD/MM/YYYY):
- Seizing Unit:
- Case file No.:
- Witnesses
(i) Witness -1
- Name: …………………………………………………………………………..
- Father’s/Spouse’s Name: ………………………………………………………
- Occupation: …………………………………………………………………….
- Address:
- Door Number: ………………………………………………………….
- Building/Premise: ………………………………………………………
- Street: …………………………………………………………………..
- Locality: ………………………………………………………………..
- City/District: ……………………………………………………………
- Pin Code: ……………………………………………………………….
(i) Witness -2
a. Name: …………………………………………………………………………..
b. Father’s/Spouse’s Name: ………………………………………………………
c. Occupation: …………………………………………………………………….
d. Address:
i. Door Number: ………………………………………………………….
ii. Building/Premise: ………………………………………………………
iii. Street: …………………………………………………………………..
iv. Locality: ………………………………………………………………..
v. City/District: ……………………………………………………………
vi. Pin Code: ……………………………………………………………….
- Details of Seized goods Packages and its contents:
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Sr. No |
Details of the Package containing goods |
Detailed Description of the goods
|
Quantity (in clearly defined units without any scope for
ambiguity) |
Country of Origin if any |
Total estimated market value
|
Remarks |
- Signature of the Owner / Passenger:
- Signature of the Seizing Officer:
- Signature of the Witness-1
- Signature of the Witness-2
- A specimen of the seal affixed on the packages
______________________________________________________________
Received with seals intact. Entered in valuables register vide entry…………….
Dated……..
Signature of the Custodian (valuables)
Name:
Designation:
Annexure- III
Format of the Tamper proof paper label
(To be affixed on the container in which seized valuables are kept and sealed)
- Case File Number:
- Date and Place of Seizure:
- Panchnama date:
- Contents:
- Name and Signature of the Owner of the goods with date:
- Name, Designation and Signature of the Seizing Officer with date:
- Name and Signature of the Witness -1 with date
- Name and Signature of Witness-2 with date
Annexure - IV
Format of Valuables Register
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
Sr. No |
Date of receipt |
Case file No. |
Deposited by:
Name and designation of Officer |
Name & Address of the Owner |
No. of packages |
Whether accompanied by inventory (in prescribed format)
|
Description of goods |
Quantity
as given in the Inventory |
Condition of sealing |
Estimated Value: Duty: |
Date of preparation of inventory |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
21 |
22 |
Name of officers present at the time of preparing detailed inventory |
Location of Storage in the strong room |
Date of re-opening/ Movement if any |
Order reference for re-opening /movement and entry no. in the movement register |
Details of proceedings drawn for
re-opening
File No. |
Mode of Disposal |
Date of release/ disposal |
Names of officers present at the time of release of goods |
Signature of recipient with Name & Address |
Entry No. in the disposal register |
Annexure -V
Format for Valuables Movement Register
Sr. No |
Name of AC/DC authorising movement |
File No. |
Purpose of taking out and the place to which it is taken |
Names,
Designation, Signature of
the officer taking
the valuables |
Date and Time of
Taking valuables |
Gross
weight |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Date and Time of Depositing
of valuables |
Gross
weight |
Whether opened and resealed and if so the details there of |
Name and
Signature of Custodian |
Name and signature of Supervisory officer |
Remarks
If any
|
8 |
9 |
10 |
11 |
12 |
13 |
Annexure -VI
Format for Register for Disposal of Valuables by the Department
Date fixed for Inventorisation for disposal |
Details of disposal orders |
Date of Reopening for the purpose of valuable of Jewellery/ Gold/ valuable etc. |
Date of disposal and place |
Amount of sale proceeds |
Remarks, if any |
1 |
2 |
3 |
4 |
5 |
6 |
|