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Regarding payment of customs duty by custodians in respect of auctioned
goods
Circular No. 71 dated 28th
November 2001
A reference was received from the
Container Corporation of India (CONCOR) stating that there is a divergence of
practice in Custom Houses with regard to apportionment of sale proceeds from
disposal/ sale of unclaimed/ uncleared goods under section 150 of the Customs
Act, 1962. It was reported that some Custom Houses determine the Customs duty
payable on auctioned goods after deducting the sales expenses from the sale
proceeds of the goods whereas other Custom Houses are determining duty on the
basis of sale proceeds without allowing any deduction.
2.
The matter has been examined. It is clarified that �
(a) the Customs duty shall
be determined by backward calculation considering the sale proceeds of
unclaimed/uncleared goods as the cum-duty price. For calculation of duty, total
sale proceeds without allowing any deduction towards sales expenses or any other
charge is to be taken as cum duty price.
(b) After determination of
the Customs duty, sale proceeds of unclaimed/ uncleared goods is to be
appropriated in the manner as provided in section 150(2) of the Customs Act,
1962.
3. These instructions
may be brought to the notice of all concerned by way of issuance of suitable
Public Notice/ Standing Order.
4.
Difficulties, if any, in implementation of these instructions, may be
brought to the notice of the Board. Kindly acknowledge receipt of this Circular.
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