disposal manual - 2019 manual new_30012020.pdf · (ri &i), ms. priya v.k singh, erstwhile ds,...

DISPOSAL MANUAL - 2019

2 DISPOSAL MANUAL - 2019

3DISPOSAL MANUAL - 2019


FOREWORD

This Disposal Manual is a Handbook meant for the guidance of departmental officers,postedinvariousCommissionerates,associatedwiththeworkrelatingtostorageanddisposalofgoodsthatareseized/confiscated,unclaimed/unclearedandcoveredbytime-expiredbonds.The Appendix-VIattheendgivesthelistofalltheCirculars/InstructionsissuedbytheBoardinthisregard.ItalsogivescrossreferencestotheParaswhererelevantmatterisbeingdealtwith.TheseCirculars/Instructions remain valid after the issue of thisManual. However, in the event of anyinconsistency between this Manual and these Circulars/Instructions, this Manual shall prevail.Appendix- VIIgivesthelistofCirculars/Instructionsrescinded.

2. ThisManualcoversthevariousprocedurestobefollowedbythedepartmentofficers.ThisManual has beenprepared to serve as a handy guidance tool for the officers in the field. Theseproceduresarebasedon theprovisionsof theCustomsAct,1962; theCGSTAct,2017; the IGSTAct,2017;theCentralExciseAct,1944;theAlliedActsandtheNotifications/Circulars/Instructionsissuedthereunder.Circulars/Instructionsissuedupto30thSeptember,2019havebeentakenintoaccount in drafting of the Manual

3. Anearnestattempthasbeenmadetocomprehensivelycoveralltheforeseeablesituationsthatmayariseinthefieldinrelationtostorageanddisposalofseizedandconfiscatedgoods.TheremaybecircumstancesthatarebeyondwhatthisManualcovers. Inthosespecialsituations, fieldformationsmayapproachtheBoardforsuitableguidelines.ButbeforeapproachingtheBoard,thefieldformationsshallsubstantiatethatsuchsituationhasnotbeenaddressedinthisManual.

4. ThisManualistheculminationofhardworkdonebymanyofficers.ItakethisopportunitytoacknowledgewithgratitudealltheofficerswhohavedirectlyandindirectlycontributedinbringingoutthisManual.

5. ItakethisopportunitytothanktheBoardforthesupportandguidanceinbringingoutthismanual.IwouldliketoexpressoursincerethankstoShriMayankKumar,ADGVIg.,ChennaiforspearheadingtheworkingGroupwhichfinalisedthedraftinatimeboundmanner.WegratefullyacknowledgethecontributionsofShriK.V.V.GDiwakar,Commissioner,Shri.K.Engineer,ADG,DGGI,Visakhapatnam,ShriK.Ramakrishnan,ADD,DRI,ShriP.Anandakrishnan,ADC,asmembersoftheWorkingGroup.Iwouldalsoliketoplaceitonrecordtheworkdonebyfollowingofficers,namely,ShriP.K.Singh,erstwhileCommissionerandShriSureshKrishnani,erstwhileDC,DoL,MsKajalSingh,erstwhileCommissioner (RI&I),Ms.PriyaV.KSingh,erstwhileDS,ShriRishiMohanYadav,ShriRohitAnand,andShriA.C.Mallick, erstwhileUnder Secretaries, Shri Tashi TsheringWangdi, erstwhile Superintendent and


ShriSunnyArya,InspectorofAnti-SmugglingUnit(ASU).IextendmygratitudetotheofficersofCustomsInvestigationSectionUnitnamely,ShriSurajKumarGupta,JC,Ms.RanjanaChaudhary,AC,ShriH.C.Bhardwaj,SuperintendentShriRanjeetSinghRana,Superintendent,ShriSaarthakDahiya,ShriPriyanshuSrivastava,ShriManishDalal,ShriRavi,andShriRajpal,Inspector.

(Dr. M.G. ThamizhValavan)

Commissioner (Investigation-Customs), CBIC


Table of Contents1.INTRODUCTION 9

2.CATEGORIESOFGOODS 10

3.RECEIPTANDSTORAGE 16

4.TRANSFEROFCHARGE,STOCK-TAKINGANDINSPECTION 42

5.SPECIAL PROVISIONS FOR UN-CLAIMED/ UN-CLEARED CARGO, MIS-HANDLEDBAGGAGEANDTIMEEXPIREDBONDEDGOODS

45

6.VALUATION 54

7.AUCTIONANDTENDER 59

8.INTERNETAUCTION 74

9.DIRECTSALESANDOTHERMODESOFDISPOSAL 86

10.DIAMONDS,PRECIOUS&SEMIPRECIOUSSTONES 92

11.GOLD,SILVER&OTHERPRECIOUSMETALS 95

12.CURRENCY&OTHERMONETARYINSTRUMENTS 100

13.VEHICLES&VESSELS 105

14.MEDICINES/BULKDRUGS/DRUGFORMULATIONS 108

15.FIREARMS 110

16.NARCOTICS 121

17.DISPOSALOFMISCELLANEOUSGOODS 133

APPENDIX– I 150

APPENDIX–II 153

APPENDIX–IIIA 154

APPENDIX–IIIB 165

APPENDIX–IIIC 173

APPENDIX–IIID 181

APPENDIX–IV 190

APPENDIX–V 191

APPENDIX–VI 192

APPENDIX–VII 197


1.1. ThisManualprescribestheprocedurestobefollowedbyallthefieldformationsundertheCentralBoardofIndirectTaxes&Customs(CBIC)forthedisposalof:

i. Goods seized under the CustomsAct, 1962, the Central Goods and Services Tax, 2017(CGSTAct2017),theIntegratedGoodsandServicesTax,2017(IGSTAct2017)andtheCentralExciseAct,1944;

ii. GoodsconfiscatedundertheCustomsAct,1962,theCGSTAct2017,theIGSTAct2017andtheCentralExciseAct,1944;

iii. Goodsuncleared/unclaimedafterimportationintoIndiaandlyingintheCustomsArea;

iv. MishandledBaggage;

v. GoodsthatinvolveTime-ExpiredBonds;and

vi GoodsdetainedunderSection142oftheCustomsAct,1962.

1.2. TheproceduresprescribedinthisManualarebasedontheprovisionsoftheCustomsAct,1962,theCentralExciseAct,1944,theCGSTAct2017,theIGSTAct2017,theRulesandRegulationsmadethereunder,andotherAlliedActs.Incaseofanyinconsistencybetweentheseproceduresandthestatutoryprovisions,thelatershallprevail.

1.3. WhereasthisManualindicatesthegeneralprocedurestobefollowed,theconcernedPrincipalCommissioners/Commissionersmaymakerequisitechanges thereto,asmaybenecessitatedbylocalconditions,keepinginviewthespiritofinstructionscontainedinthisManual.ThesechangesmaybeinformedtotheBoard.

1.4. InmajorCustomHouses,thereshallbeaseparateunit,calledtheDisposalUnitwhichshouldbeentrustedwiththetaskoftaking-overallgoodsripefordisposalfromthecustodiansanddisposeofthesamebyauctionorotherwise.

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Introduction

CHAPTER - 1


2.1. Categories of Goods

Theentirestockofseized/confiscatedgoods,inthecustodyoftheDepartment,hasbeengroupedunderthefollowingsevencategories:

Category-I:Goodstobedisposedofimmediatelyafterseizure;

Category-II:GoodsfallingunderSection110(1A)oftheCustomsAct,1962;

Category-III:Goodstobedisposedofwithinsixmonthsfromthedateofseizureorwherethedateofexpiryisindicated,wellbeforethatdate;

Category-IV:Valuables;

Category-V:GoodsnotifiedundertheNDPSAct;

Category-VI:Goodsthathavetobedisposedofbywayofdestruction;and

Category-VII:Allothergoods.

2.2. Fortimelydisposalofthegoodsfallingunderthedifferentcategories(mentionedintheParaabove),thesteps,asprescribedherein,shouldbetakenbytheCommissionerates:

2.3. Category-I: Goods to be Disposed of Immediately After Seizure

2.3.1. The goods under this category have a very short shelf-life as they are either prone to rapid decay or they become outdated/ obsolete very fast. Some of these goods are liable to deterioration due to drying or humidity. Some others may require special arrangements for their preservation and storage. Some of such goods may be perishable in nature, while some others may have certain expiry date prescribed thereon. Therefore, these goods may be disposed of immediately after seizure, after issue of a Notice to the owners/ claimant (party) and obtaining orders from the Competent Authority. The goods falling under this category include:

i. Freshflowers;

ii. Freshfruitsandvegetables,meat,fish,poultry,eggsandotherfreshuncanned/unprocessedfoodmaterials;

Categories of Goods

CHAPTER - 2


iii. Cereals,sugarandothergroceryitems;

iv. Beer;

v. Medicinalherbs;

vi. Cigarettes,bidis,bidi-leavesandtobacco;

vii. Livestock;

viii. Raw(wetandsalted)hidesandskins;

ix. Saltandhygroscopicsubstances(otherthaninsealedcontainers);

x. Petroleumproducts;

xi. Molasses;

xii. NewspapersandPeriodicals;

xiii.Confectionery;

xiv. Menthol,Camphor,Saffron;

xv. TeaandCoffee;

xvi. Cells,batteriesandrechargeablebatteries;and

xvii.Lighterswithgas(nothavingarrangementforrefilling),Lighterfuel.

2.3.2. Theabovelistisnotexhaustive.ThePrincipalCommissioner/Commissionerin-chargemaydecideanyseizeditemtobeperishable,dependinguponitsnatureandshelf-life,ifhedeemsthatprolongedstoragemayresultindeteriorationofthegoods.

2.3.3. Apart fromthegoodswhichare likelytodeteriorateorperish, theseizedgoodsforwhichtherecurringcostofupkeeporthecostlikelytobeincurredonthespecialarrangementsrequiredforstorage,isdisproportionatelyhigh(e.g.animalsordangerousgoods)maybedisposedofafterobservingtheprescribedformalitiesandafterdueintimationtotheownerorclaimantaboutthedate,timeandmannerofsuchdisposal.

2.4. Category-II: Goods Falling Under Section 110(1A) of the Customs Act, 1962

2.4.1. Thiscategorycoversthegoods,whicharenotifiedundertheprovisionsofSection110(1A)oftheCustomsAct,1962fromtime-to-time.Forexpeditiousdisposalofthesegoods,theprocedurelaiddown insub-Section (1B)ofSection110of theCustomsAct,1962mustbe followedby theSeizingUnitimmediately.


2.4.2. ThefollowingprecautionsshallbetakenforthedisposalofthegoodsnotifiedunderSection110(1A)oftheCustomsAct,1962:

i. Allsuchcasesshallbeprocessedfordisposalwithinaperiodoftwomonthsfromthedateoftheirseizure.

ii. BeforeactionunderSection110(1A)isinitiated,awrittenNoticetothepartyconcernedshallbegiven.

iii. TheprocessofseekingsanctionoftheMagistrate,wheneverneeded,shallbecompletedwithinamonththereafter.

iv. If theseizedgoodsarehighlyperishableandmaynothaveremainingshelf-lifeofeventhreemonths’time,thecasemaybeprocessedandputupforseekingapprovalfordisposalofthegoodsunderSection110(1A)immediately,afterseizureisaffectedandpreliminaryinvestigationisover.

v. ThedisposalofthegoodsshouldbeclearlyreflectedintheShowCauseNotice,sothattheAdjudicationAuthorityaswellastheAppellateAuthoritymaypassappropriateorders.When action under Section 110(1A) is initiated after issue of Show Cause Notice, anaddendumshallbeissuedimmediatelyafterthedisposalofgoods,toindicatethefactofdisposal.

vi. AftertheDisposalOrderispassedintermsofSection110(1A)andthegoodsdisposedof,appropriateentriesshouldbemadeintheAdjudicationfileaswell,sothattheAdjudicatingAuthoritydoesnotgiveanoptionofredemptionofgoodstotheparty(sincenogoodsareavailableforexercisingsuchanoption).

2.4.3. Incaseswherethepartyclaimslegalownershipofthegoodsandrequestsfortheirrelease,andtheissuerelatingtothetitleofthegoodshasnotyetbeenadjudicateduponbytheAdjudicatingAuthority,attemptshouldbemadetoexpeditetheinvestigationandadjudicationproceedings.Adecisionregardingdisposalofthegoodsshouldbetakeninsuchcasesimmediatelyoncompletionoftheadjudicationproceedings.

2.5. Category-III: Goods to be Disposed of Within Six Months of Seizure or Before their Expiry.

2.5.1. Thegoodsunderthiscategoryhaveashortspanoflifeanddeteriorationinqualitystartsafterafewdaysofstorageandtherisk/expensesforstorage/maintenanceofthesegoodsareexpectedtobeveryhigh.Somesuchgoodsarealsolikelytorapidlydepreciateinvalueonaccountofthefastchangeintechnologyordesignsorintroductionofnewmodels,etc.Thesegoodsinclude:

i. Electronicgoodsandgadgets,suchasmobilephones,digitalcameras;


ii. Fashionjewellery;

iii. Textiles,includingReadymadeGarments,made-ups,fabricandyarn;

iv. Spectacles;

v. Cosmetics,includingcreams,lotions,shampoos,perfumes,lipsticksandessentialoils;

vi. Tinnedandpreservedprovisions,condensedmilkandmilkpowder;

vii. Goodssuchasspices,resin,Catechu;

viii. Hides,skins,feathersandarticlesthereof;

xi. Rubbergoodsanderasers;

x. Paperandarticlesmadeofpaper;

xi. Rawjute;

xii. VegetableNon-EssentialOils;

xiii. Hypodermicneedlesandsyringes,surgicalinstruments/equipments;

xiv. Medicinesanddrugs;and

xv. Boats,YachtsandLaunches(otherthanthosemeantforDepartmentalappropriation)

2.5.2. TheDeputy/Assistant Commissioner (DC/AC) in-charge of the SeizingUnit should keepwatchoversuchgoodsandexpeditiouslycommunicatetheDisposalOrdertotheDisposalUnit.

2.6. Category-IV: Valuables

Thefollowinggoodsfallunderthiscategory:

i. Diamonds,PreciousandSemi-preciousstones,Pearls;

ii. Goldandarticlesthereof;

iii. Jewellery made of precious metals, viz. Platinum, Palladium, Gold and Silver and/orstuddedwithPreciousorSemipreciousstones;

iii. Silverandarticlesthereof;

iv. Highvaluewatches;

v. Currency,includingForeignCurrency;


vi. Suchotherarticlesof“smallsize/volumeandhighvalue”asmay,byspecialorgeneralorderbe,classifiedas“Valuables”bythePrincipalCommissioner/Commissionerin-charge.

2.7. Category-V:GoodsNotifiedUndertheNarcoticDrugsandPsychotropicSubstances(NDPS) Act

ThedetailedprocedurefortheirdisposalisoutlinedinChapter16ofthisManual.

2.8. Category-VI: Goods to be Disposed of by Destruction

ThePrincipalCommissioner/Commissionerin-chargehasbeendelegatedfullpowersfororderingdestructionofcertaingoods,like:

i. GoodsthatviolatetheIntellectualPropertyRights(IPR)laws;

ii. Hazardouswastes,e-wastesandothergoodsthatmaycausedamagetotheenvironment;

iii. Spuriousdrugsandmedicinalpreparations;

iv. Foodproductsthatdonotfulfillthecompliancerequirementsfortheirsaleindomesticmarketundertheprovisionsofanylawapplicableforthetimebeing,e.g.theFoodSafetyandStandardsAct,2005(FSSAAct);

v. FakeIndianCurrency;

vi. E-Cigarettes/orElectronicNicotineDeliverySystems;and

vii. Any other goods or class of goods, in respect of which the Principal Commissioner/Commissioner in-chargemaydecide that theirrelease into thedomesticmarketwouldcauseharmfuleffectonpublichealthandsafety.

2.9. Category-VII: All Other Goods

Allothergoods,notlistedinanyoftheabovecategories,comeunderthiscategory.Thedisposalofthegoodsfallingunderthiscategoryhastobedoneaftercompletionofalldueformalitiesandwhenfinalityisattainedabouttheirdisposal.

2.10. Pre-trial Disposal

Forearlydisposalof thegoods (other thanCategory-Igoods) thatarea subjectmatterofCourtproceedingsorifprosecutioniscontemplated/launched,pre-trialDisposalOrdersmaybeobtainedbytheSeizingUnitunderSection451oftheCodeofCriminalProcedure(Cr.PC).TheFormatforfilingtheApplicationforpre-trialdisposalunderSection110oftheCustomsAct,1962,asgiveninForm-1,maybeusedforthepurpose.

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Form-1 (ReferPara2.10)

Application for Disposal of Seized Goods that are Perishable or can Deteriorate

INTHECOURTOF__________________________________(MentiontheCourt)

APPLICATIONNo.____________OF20__

CASENo.___________________________

Shri________________________________

PreventiveOfficer/Examiner/InspectorofCustoms/CentralExcise/GST

________________________(Address)

Applicant

MAYITPLEASEYOURLORDSHIP:

I ______________________S/o/D/o/W/o __________________________beg to state the followingon solemnaffirmation:

Thaton_______________________________(mentiondate),____________________(namesofthepersonsarrested)was/wereproducedbeforeyourLordshipinconnectionwiththeseizureof_________________________valued at Rs.___________________ and your Lordship was pleased to grant him/ them bail ofRs_____________________.Thetrialinthiscaseispending/yettocommence/caseiskeptondormantfileon___________________sincetheaccusedisabsconding(strikeoutwhatevernotapplicable).

That the above goods are of perishable/ deteriorating nature. Any further storage is likely tocausedepreciation/lossinitsvalue.Thereisshortageofstorageaccommodation.EarlydisposalorderswilleasethecongestioninWarehouse.Also,thesaleproceedscanbeutilizedforcountry’sdevelopmentalrequirements.

It is,therefore,prayedthatyourLordshipmaybepleasedtoorderfordisposalofthesaidgoodsafterkeepingtherepresentativesamples.Forthisactofkindness,Ishalleverpray.

Solemnlyaffirmedat___________________(Address),This______________dayof____________20_______

(Signature)

(Name with stamp)


3.1. Role of the Seizing Unit and Inventory

3.1.1.Wheneveranygoodsaredetained/ seized,adetailedinventoryofthesegoodsshallinvariablybepreparedbytheSeizingOfficerintheformatgivenatForm-2 intriplicate,exceptinthecaseswherethedetained/seizedgoodsarephysicallyhanded-overtoathirdpartyunderSapurdginamaandthus,areonlynotionallyhandedovertothecustodian,theretheinventoryshallbepreparedinquadruplicate.Thesecopiesoftheinventoryshallbeusedasfollows:

i. TheFirstcopyshallbegiventotheownerofthegoodsorhisauthorizedrepresentative,ifavailable;otherwiseitshallberetainedintheseizure/casefile.

ii. TheDuplicate&Triplicatecopiesshallbeusedforthetransferoftheseizedgoods,within24hoursofthedetention/seizureofthegoods,andtheirhanding-overtothecustodianoftheGodown,i.e.,theofficerin-chargeoftheWarehouse,whoisalsocalled‘WarehouseOfficer.’ThecustodianshallgivereceiptonboththeDuplicateandtheTriplicatecopiesoftheinventoryandreturntheDuplicatecopytotheSeizingOfficer,whoshallretainthesameintheseizure/casefile.

iii. TheFourthcopyshallbegiventotheSapurdigar.

3.1.2. If thegoodsarekept atmore thanone location,due to theirdifferentnature/ category, aseparateinventoryshallbedrawnforeachcategoryofgoods,andtheyshallbeforwardedtothecustodianunderaproperreceipt,asprescribedinpara3.1.1(ii)above.

3.1.3. Iftheseizuretakesplaceonaholiday,theseizedgoodsshallberetainedinthesafecustodyoftheSeizingUnitanddeliveredtothecustodianontheimmediatenextworkingday.

3.1.4. Theinventoriesareveryimportantdocumentsandshallbedrawncarefullytocontainalltherelevantdetails,suchasdescription,quantity,brand,serialnumber,countryoforigin,make,model,quality,yearofmanufacture,natureofthegoodsastowhetherold/new,damage(ifany),etc.Suchinformationisnecessaryforidentificationoftheitemscoveredbytheinventoryaswellasfortakingfurtheractionfortheirdisposal.

3.1.5. The packages containing the detained/ seized goods shall be sealed with the seal of theDetaining/SeizingOfficerandtheseal,ifany,ofthelawfulclaimantorhisauthorizedrepresentative,

Receipt and Storage

CHAPTER - 3


and shall be signed by them. Specimens of each seal and signature shall also be affixed on theinventoryofthedetained/seizedgoodsforcomparisonpurposeatthetimeofreceiptofthegoodsbythecustodianandthereafter,returnofthesametothelawfulclaimant,ifrequired.TheValuablesseizedshallbepackedindurablecontainers,likehardplasticormetalboxes,andwire/metalsealsmaybeusedinsteadofrope/waxseals.

3.1.6.Whenseized/detainedgoodsaretransferredfromonecustodiantoanother,asinthecaseoftransferofcharge,theOriginalInventoryandalsotheRe-inventory,(describedlateratPara3.3.3)ifany,shallinvariablybehanded-overalongwiththegoods.Whileconductingstockchallengesorduringtransferofcharge,etc.,sealsonthepackagesshallbecomparedwithspecimensofsealsonthecorrespondinginventories.Thespecimenofsealsontheinventoriesshallactasthefinalproof,whereanytamperingofsealsissuspectedorwherediscrepancyinthegoodsisfoundatthetimeofopeningthepackages.

3.1.7. Incaseswherethedetained/seizedgoodsarephysicallyhanded-overtoathirdpartyunderSapurdginamaandthus, are only notionally handed over to the custodian,thefourthcopyshallbegiventotheSapurdigar.OthercopiesoftheInventorieswillbedealtwith,intheusualmanner.

3.2. Storage Place

3.2.1. StorageoftheseizedgoodsshallpreferablybeinGovernmentbuildingsatthegroundfloororinbasement,sothathirechargesforGodownsarenotpaid,however,suchplacesshouldbeproperlysecured.WhenGodownspaceishired,isolatedbuildingmaybeavoidedunlessadequatesecurityisprovided.TheGodownshallbespaciousenoughtohousethegoodsontheracks/almirahs.TheGodownshouldbewell-ventilated,damp-proofandproperlyilluminated,preferablywithnaturallight.Fire-fightingequipmentandsmokedetectorsshouldbeinstalled.Iftherearenoefficient&workingcentralfire-fightingsystemavailable,sufficientnumberofportablefireextinguishersshouldbeinstalled.Incase,high-valuedconfiscatedgoodsarebeingleftwiththecustodians,concurrentmeasuresinconsultationwiththecustodians,likewire-fencingcanbeexplored.Thereshouldbefocusonoptimumutilizationofavailablespacebywayofstackinginascientificmanner,reviewingofstocksatregularintervalsandexploringpossibilityofdisposalofgoodsinconvenientlotsandexpeditiousdisposalof ‘absolutelyconfiscatedgoods’.Valuablesshouldbekept inStrong Room/ banklockers.

3.2.2. Separatestorageandcustodymaybeprovidedforgoods,whicharelikelytobereleasedsoon,like,oncompliancewithformalitiesorthegoodsdetainedfrompassengerswhicharetobereturnedto themwhile they are goingback, and for the following categories of goodsnamely, Valuables,perishablegoods,vehicles/conveyances.

3.2.3. InrespectofValuables,doublelockingsystemshallbefollowed,thekeytosecondlockbeingwithaGazettedofficer,higherinranktotheofficerindirectcharge.


3.2.4. Theresponsibilityforproperstorageandcustodyofgoodsshallbeontheindividualofficers;andforthispurpose,itshouldbeensuredthatthechargesofindividualofficersshouldbecompactandmanageable.

3.3. Receiving the Goods in Godown

3.3.1. Immediatelyonreceiptofthegoods,alongwiththeDuplicateandtheTriplicatecopiesoftheinventory,thecustodianshouldsatisfyhimselfthatthepackageshavebeenproperlysealed,sealsareintactandtheinventoryhasbeenmadeoutinapropermanner,givingallthedetailsrequired,asregardsthecontentsofpackages.Heshouldalsoverifywhetherthecategorizationofthegoods,as indicated in Chapter-2,hasbeenmentionedcorrectlyornot.Thereisnoneedtoexaminethecontents of thepackages, provided the seals are intact and the inventory is in order.Aspects ofsealingshouldbeverifiedcarefully.Further,inrespectofValuables,thepackageshallbeweighedandthesameshallberecordedintheStockRegister.

3.3.2. Iftheconditionofpackages,sealsandtheinventoryareinorder,thecustodianshouldreceivethegoodsinhisGodownandmakeentriesintheStockRegisteralongwithlocationoftheirstorage. Heshould, then, acknowledge receiptof the sealedpackagesbywayofmaking crossentriesontheDuplicate&Triplicatecopiesof inventory,retaintheTriplicatecopywithhimandreturntheDuplicatecopytotheSeizing/Detainingofficerforkeepingitintheseizure/casefile.Incaseofanydiscrepancy,thesameshouldbereconciledbeforeacknowledgingthereceipt.

3.3.3. If the seals are not intact at the time of receipt of the goods by the custodian, it is theresponsibilityoftheSeizing/detainingofficertogetthepackagesopened,tallythecontentsandre-sealthepackages,withtheapprovaloftheDeputy/AssistantCommissionerin-charge.Suchre-inventoryandre-sealingshallbedone in thepresenceof theowner,orhisrepresentativeandateamofGazettedOfficers,includingoneofficerfromtheSeizingUnit.Ifneithertheownernorhisrepresentativeisavailable,aspecificnotetothateffectshallbemadeandre-inventoryshallbedoneinthepresenceoftwoindependentwitnesses,inadditiontotheteamofofficers,asaforesaid.Re-inventoryshallbeproperlydocumented.

3.3.4.Whenre-inventoryofthedetained/seizedgoodsisdone,theoriginalinventoryshouldalsobeattachedtothere-inventory.Thefactofre-inventoryshouldbeendorsedontheoriginalinventoryandcrossreferencesoneachdocumentmustalsobemade.Theoriginalinventoryaswellasthefreshre-inventoryshouldalwaysbekepttaggedtogetherandbeavailablewiththecustodianandincaseofshiftingofgoods,bothshouldalwaystravelwiththegoods.

3.3.5. Aforesaidprocedureshould invariablybe followedduringauthorizedopeningofpackagesduringadjudicationproceedingsordrawalofsamples,andresealingthereof.

3.3.6. Duplicateinventoryandalsore-inventory,ifany,shallbekeptinthefile.SeparatefilesmaybemaintainedforeachStockRegisterandbothshallcorrectlyreflectthestockpositionintheGodownatallpointsoftime.


3.3.7. IncasethegoodsstoredarephysicallywithSapurdigarandonlythenotionalchargeiswiththecustodian,Triplicatecopyoftheinventoryshouldbehanded-overtothecustodian.Thecustodianwillnotberequiredtoverifythecontentsofthepackagesorthepackages,sincetheresponsibilityforkeepingthepackagesintactiswiththeSupardigar,owneroftheGodownortheplaceofstorageofthegoods.However,thecustodianshouldaddthegoodsintotheaccountof‘goodspendingfordisposal’andintheStockRegister,entriesshouldbemadeclearlyindicatingtheplaceofstorageintheprescribedcolumnsoftheRegister.

3.3.8. Each package should be securely tied, pinned and stuck with a Stock Card in the Proforma given at Form-3.

3.4. Stock Register

3.4.1. The custodian should enter the details given in the inventory in the ‘Register of Seized/DetainedGoods.’ThisRegistershallbeasperformatgivenatForm-4 forthe ‘goodsother-than-Valuables’andshallbeasperformatgivenatForm-5 for‘Valuables’.

3.4.2. Theofficerin-chargeofthewarehouseshallmaintaintheWarehouseRegisterdulyupdated.Allentries in the register shall be made immediately on receiving the relevant information. The warehouse in-charge shall keep liaison with the Seizing Unit and ascertain the position of pending cases on regular/ quarterly basis. All updates may be entered into the relevant column of the register.

3.4.3. AsregardsNarcoticDrugs&PsychotropicSubstances(NDPS),theRegisterprescribedatForm-30 (refer Chapter 16) should be maintained.

3.5. Posting/ Transfer of Custodian

3.5.1. Onlyexperiencedofficers,whoseintegrityisabsolutelybeyonddoubt,shouldbepostedasin-chargeoftheStrongRoom/ValuablesGodown.Similarcheckfromvigilanceandintegrity-angleshouldalsobeensuredforhisseniorofficer,whoisgiventheoverallsupervisionoftheStrongRoomandcustodyofthesecondkey.

3.5.2 Whenever thecustodianorhisseniorofficer is transferred,aregularsubstituteshouldbeprovided,who shall take proper charge of the Strong Room/ Valuables Godown. The details ofhanding-over/taking-overshallbeenteredinaregister,forwhichtheformatisgiveninForm-6.

3.5.3 Theofficerhanding-overthegoodsontransferfromtheWarehouseunit,shallalsohand-overallthefilesandthecorrespondencesrelatingtothepackagesreceivedbyhimorhanded-overtohim.

3.6. Responsibilities of the Custodian

3.6.1. Itwillbethefundamentalresponsibilityofthe’Godownin-charge’or’GodownSuperintendent’toinspecttheGodownregularlyinordertoensurethatthegoodsstoredinhischargearebeingproperlykeptandnoneofthepackages/goodsshowanysignofdeterioration.Specialtreatmentshouldbeaccordedtospecialconsignments.Forinstance,inthecaseofmotorcars,heshouldsee


that the tyresareproperly inflatedand that theengine isperiodically run, so that it isproperlylubricated.Similarly,anychemical,whichishygroscopicinnature,shouldnotbeallowedtomeltandspoilothergoodsduringstorage.Thismaybedonebychangingcontainersorrepairingthem.TheDeputy/AssistantCommissionerin-chargeshouldalsoinspecttheGodownperiodically.Theresponsibilitiesofacustodianareenumeratedbelow,however,thesearenotexhaustive:

3.6.2. Thecustodianwillberesponsibleforthephysicalcustodyofthepackageswithsealsintact.Hewillnotberesponsibleforthecontentsofthepackage,wherethepackagesareproperlysealedandthesealsareintact.Thecustodianshould,however,insistbeforeacceptingthesealedpackagesthattheinventorycoveringthegoodsiscompleteinallrespects.

3.6.3. Onreceipt,heshouldattachtheStock-Card,intheProformagivenatForm-3ofappropriatecolour:(i)Redcolourcardforgoods‘temporarilydetainedforre-export’,(ii)Pinkcolourcardforgoods ‘seizedbutnotadjudicated’,(iii)Yellowcolourcardforgoods ‘confiscatedbutnotripefordisposal’and(iv)Greencolourcardforgoods‘ripefordisposal’.

3.6.4. Heshouldensurethatthepackagesarecarefullystoredandprotectedagainsttheravagesofweather,ants,rodentsandinsects.

3.6.5. Heshouldmonitortheconditionofthegoodsandtakeadequatemeasuresagainsttheftandpilferage. Incase, there isanytheftorpilferage,heshould immediatelyreport it tothePrincipalCommissioner/Commissioner concerned.Any incidentof theft/ loss/ substitutionof thegoods,whichcomestolight,shouldnotonlybeimmediatelyexaminedpersonallybytheconcernedPrincipalCommissioner/Commissioner,butshouldalsobeimmediatelyreportedtothePrincipalAccountsOfficerandtheStatutoryAuditOfficer,etc.,aslaiddownunderRule 33 of the General Financial Rules, 2017 (G.F.R., 2017).ActionshouldalsobeinitiatedimmediatelyintermsofprovisionsofRule 33 and 34 of G.F.R., 2017.TheBoardshouldalsobekeptinformedofallsuchcasesonanimmediatebasis,withareportofactioninitiated.

3.6.6. Allpackagesshouldcompulsorilybeinspectedfordeteriorationofpackages/sealsatregularintervalsby thecustodian. If thegoods/seals showsignsofdeteriorationordamage,heshouldimmediatelybringittothenoticeoftheDeputy/AssistantCommissionerin-chargeoftheGodown,forappropriateaction.Separaterecordofsuchgoodsshouldbekept,whichmustbeupdatedeverymonth.Incasedeteriorationisnoticedinrespectofgoodsawaitingadjudication,themattershouldbebroughttothenoticeoftheAdjudicatingofficerforensuringquickdecisionofthecase.Wheredeteriorationisnoticedinrespectofcasesunderappeal,theAppellateAuthorityshouldbeinformedimmediatelysothathigherpriorityisgiventothedisposaloftherelevantcases.WherethegoodsareinvolvedintheCourtproceedings,itwillbenecessarytobringthemattertothenoticeoftheCourtforgettingpermissionforthedisposalofgoodspendingfinalizationoftheproceedings.

3.6.7. ThecustodianshallberesponsibleformaintainingtheStockRegistersinapropermanner;proper custody of Registers for handing-over & taking-over charge and inventories; and forsubmittingthemonthlyreturnof‘goodsripefordisposal’.


3.6.8. Heshallberesponsibleforoptimalutilizationofthespace.Thefollowingstepsmaybetakenforoptimumutilizationofspace:

a) Thetotalstockofseizedgoodsmustbereviewedbythecustodianeverymonth,sothatthepossibilityofdisposal,inconvenientlots,couldbeconsidered.

b) Absolutelyconfiscatedgoodsmustbedisposedofexpeditiously.

c) Shifting of the seized/ confiscated goods from the rented premises to own premises,whereverpossible,tosaveonrentals;

d) Neatstackinginascientificmannertonotonlypreventdamage/deteriorationofgoodsbutalsotohelpinsavingspace.

3.6.9. On account of having notional custody, the cutodian shall safeguard the interest of theGovernmentinrespectofconfiscatedgoodsleftwiththePortTrustsorotheragencies.Specialcaremustbetakenforbulkyitems,likeironandsteelmaterials,heavymachinery,etc.,whicharegenerallyleftinthecustodyofthePortauthorities.However,whereitisfeltthatthePortTrustarrangementsarenotadequate,heshalltakeconcurrentmeasures,inconsultationwiththePortauthorities,forensuringsafetyofthegoods.Inthisconnection,thepossibilityofrentingoutsuitableopenspaceaccommodationfromthePortadministration,withwire-fencingenclosure,forstoringconfiscatedmaterials,whichcouldnototherwiseberemovedtotheGodowns,shouldalsobeexplored.

3.6.10.Thewarehouse in-chargeshallregularlypursuewiththeSeizingunits for issuanceof theDisposalOrder.AfterreceivingtheDisposalorder,valuationoftheconcernedgoodsmaybeobtainedfromtheGovernment-ApprovedValuers,forthepurposeofapprovalbytheJointPricingCommittee(JPC).

3.6.11.After approval of the valueof the goodsby the JPC, the list of such goods furnishing theinformation,viz.lotno.,description,quantityandapplicabletaxes,shallbeforwardedtotheDisposalUnitforlistingthegoodsfore-auction.

3.6.12.TheWarehouse in-chargemayalso, from time-to-time, request theSeizingUnits to carryoutprocedureunderSection110(1B)oftheCustomsAct,1962forearlydisposalofgoodsnotifiedunderSection110(1A)oftheCustomsAct,1962.

3.6.13.Immediately after the close of themonth but before the 5th of the followingmonth, thecustodianshallprepareanup-to-datelistin triplicate in the format prescribed at Form-7,ofallthecaseswhichinhisopinionhavebecome‘ripefordisposal’andsendittotheSupervisoryHeadin-charge(byname)oftheSeizing/DetainingdepartmentortheSectionconcerned,forobtaininga‘NoObjectionCertificate’(NOC).Onreceiptofsuchalist,theSupervisoryHeadin-chargeofthedepartment or the Section concerned shall, after necessary verification, certify that there is ‘noobjection’tothedisposalofthegoods.Ifthereareanygoods,whichshouldnotbedisposedof,a


remark“DELETE”shouldbementionedagainstthatentryandthereason,astowhyitshouldnotbedisposedof,shouldbegivenagainsteachsuchentry.Thelistshouldthen,bereturnedwithinoneweekofreceipttothecustodian.ThecustodianshallkeeptheoriginalwithhimandforwardtheduplicatecopytotheDisposalUnitforfurtheraction.Onreceiptofthelistfromthecustodian,theofficerin-chargeoftheDisposalUnitshallexamine,inthepresenceofthecustodian,thepackageswiththelistandwiththedetailedinventoryrelatingtothegoods.Ifthereareanydiscrepancies,heshallimmediatelybringthemtothenoticeoftheDeputy/AssistantCommissioner,Preventive.Theofficerin-chargeoftheDisposalUnitshallthen,prepareacompletelistofthegoodsfordisposalandgetthegoodsdisposedof.

3.7. Goods Received from Different Sections of the Custom House/ Commissionerate

3.7.1. Regular cargo:AseparateGodownshould,whereverpossible,besetapartforkeepingregularconfiscatedcargo.OnreceiptoftheadviceinformatprescribedatForm-8 fromtheSuperintendentin-chargeoftheUnitdealingwiththerelevantseizure/casefile,thecustodianshallimmediatelyhavethegoodslocated,transportedanddeliveredintohischargeandinanycase,within15daysofthereceiptofsuchadvice.ForensuringpromptdispatchoftheadviceintheformatgivenatForm-8,theconcernedSectionshouldlistoutallthecases,forwhichtheperiodallowedforexerciseoftheoptiontopayfineinlieuofconfiscationortheperiodforfilinganappeal,whicheverislonger,expires,alongwiththedateofsuchexpiryina‘ForwardWatch’diary;andoneweekfromthatdate,referenceshouldbemadetothe‘PenaltyRegister’toverifyifthefinehasbeenpaidorappealfiled,andifnot,whetherthegoodscanbetaken-overasfinallyvestingintheGovernment.TheSectionshould then list out such of those items,which are required to be taken-over by the custodianfromthePortauthoritiesfordisposalaction.Whenthegoodsaresodeliveredintothecustody,thecustodianshall,afterdueexaminationofthepackages,makeintriplicate,adetailedinventoryofthecontents in format prescribed at Form-2anddealwiththeminthesamemannerasotherseized/detainedgoods.InthoseCommissionerates,whereaseparateGodownforthepurposeisnotkept,itshallbetheresponsibilityoftheUnit-concernedtotakenecessarystepstoarrangeforthetaking-overofgoodsthathavebecome‘ripefordisposal’,fromthePortauthoritiesdirectlybytheDisposalUnit.

3.7.2.Air cargo:AircargostoredintheAirCargoShedmaybeallowedtobekeptinthesameshedevenafterconfiscation,pendingdisposalinthenormalcourse.Theofficerin-chargeoftheAirCargoShedshallmaintainaStockRegisterinrespectofconfiscatedcargointheproperformat(Form-4)andshallperformallthefunctionsoftheCustodianoftheconfiscatedgoodsinrespectofAirCargoandshalldealdirectlywiththeDisposalUnit.

3.7.3. ICDs, CFSs and Ports: The provisions of the para 3.7.2shallmutatismutandisapplyincaseofconfiscatedcargoattheICDs,CFSsandPorts.

3.7.4.Post parcels:Itshallbethedutyofthe‘PenaltyUnit’ofthe‘PostalAppraisingDepartment’,tokeepaclosewatch,overallthepenaltycasesregisteredbythem.Theparcelswhichareconfiscated


butnotredeemedby theaddressees;andwhichare ‘ripe fordisposal’, shallbesortedoutandadetailedinventoryintheformatprescribedatForm-2shallbeimmediatelyprepared,ofthecontentsofeachparcel,inthepresenceofaresponsiblePostalOfficialandaGazettedOfficerinthe‘PostalAppraisingUnit’.Theparcels,dulysealedwiththesealsofboththeofficers,shallthenbedeliveredtotheCustodianoftheconfiscatedgoods.Thesegoodsshallthereafterbedealtwith,inthesamemanner,asotherseized/detainedgoods.

3.8. Place of Storage of Valuables (Strong Rooms) and Procedure thereof

3.8.1. Valuablesshouldbekeptina‘StrongRoom’orinalockerinanationalizedbank,obtainedexclusivelyforthepurpose.Thepackagesshallbestoredsystematically,serial-wiseandyear-wisetofacilitateeasycheckandlocation.

3.8.2.WhenValuablesarestoredinaStrongRoom,thefollowingprecautionsmustbestrictlytaken:

i. TheStrongRoomstoringValuablesshouldhavea‘doublelocksystem.’

ii. ThetwokeysforoperatingtheStrongRoomshouldbeentrustedtotwoseparateofficers--onetothecustodianandtheothertohissenior/supervisoryofficerofGazettedrank.

iii. ItmustbeensuredthattheStrongRoom/ValuablesGodowncanbeopenedonlywhenboththekeysareusedsimultaneously.

iv. BoththecustodianandthesupervisoryofficershallcollectanddepositkeysoftheStrongRoom/ValuablesGodowninan ironboxboundbythickthread(sutli)andsealedwithlacsealoverapaperslip,bearingthenames,designationandsignaturesofthecustodianandsupervisoryofficer.Thenameanddesignationshouldbeclearandlegible.Preferably,tamperproofpaperseal/stickermaybeused.

v. ThelocksoftheStrongRoomshallbesealed,whennotinuse.Thelockshallbecoveredwith fabric tapeandsealedby lacoverpaper slip,bearing thenames,designationandsignaturesofthecustodianandsupervisoryofficer.Thenameanddesignationshouldbeclearandlegible.Preferably,tamperproofpaperseal/stickermaybeused.

3.8.3. Noperson,otherthanthecustodian,shallentertheStrongRoom/ValuablesGodown,unlessotherwiseauthorizedbythePrincipalCommissioner/Commissionerin-charge.Noofficer,includingthecustodian-in-chargeoftheStrongRoom/Godown,shallbeallowedtoopentheStrongRoom/Godownonanyholiday(includingSaturday/Sunday),exceptwithapriorwrittenpermissionfromtheAdditional/JointCommissionerconcerned.ThereasonforopeningonholidayshallbeclearlyrecordedinwritingbytheAdditional/JointCommissioner,whilegivingsuchpermission.

3.8.4.WhentheValuablesarestoredinlocker/safeinbanks,thekeyofthesafeorthelockershallbekeptsecurelyinthepersonalcustodyofthecustodian.ItshouldalsobeensuredthattheaccesstothesafeorthelockershallnotbeallowedbytheBankManager,exceptonawrittenauthorizationinan


agreedformbearingtherunningnumber,signedbytheDeputy/AssistantCommissionerin-chargeoftheDisposalSectionoftheCommissionerate.Suchauthorizationshouldbeissuednormallyinthenameofthecustodianorinexceptionalcircumstances,whenthecustodianisnotavailable,inthenameofanyotherresponsibleofficer.TheseriallynumberedAuthorizationformsshouldbekeptinthepersonalcustodyoftheDeputy/AssistantCommissionerin-chargeoftheDisposalSection.

3.8.5. The Strong-room/ Valuables-Godown shall have additional security features, like CCTVcameraat themostvantagepoints tokeepround-the-clocksurveillance.ThemonitoringofsuchCCTV camera shall be done by the Deputy/ Assistant Commissioner in-charge of Strong-room/Valuables-Godown.ThedailyrecordingsofthecamerashallbetakenasabackupandkeptwiththeComputerCentre/SystemsUnit.

3.8.6. In the cases of seized currencyorbearernegotiable instruments, as the casemaybe, thegenuinenessmaybecheckedimmediatelywiththenearestbankavailableinthevicinity.InrespectofseizureofValuables,thesamemaybegotappraisedbeforeseizure.Duecaremustbetakentoensurethattheseizedcurrency/bearernegotiableinstrumentsdonotbecomeoutofcirculationortime-barredbeforedisposal.

3.9. Inventory

3.9.1.WheneveranyValuableshavebeenseizedordetainedbyaproperofficerundertheCustomsAct,1962,heshallprepareadetailedinventoryofsuchgoodsatthetimeofdetention/seizureinthe prescribed format given in Form-2,intriplicate.Duringmakingofsuchinventory,thepackagesoftheValuablegoodsshallbeclearlynumbered.

3.9.2. First copyof the inventory shall begivenby theSeizingofficer to theperson fromwhomthegoodsareseized.Thegoods,togetherwiththeduplicateandtriplicatecopiesoftheinventory,shallbeforwarded,within24hoursoftheseizure/detention,tothecustodianoftheStrongRoom/ValuablesGodown.Thecustodianshallacknowledgethereceiptofthegoodsonboth,theduplicateandtriplicatecopiesoftheinventoryandreturntheduplicatecopy,thereafter,totheSeizingofficerforkeepingthesameintheseizure/casefile.Thecustodianshallputhissignaturewithcomplete,clearandlegiblenameandofficialstamp.

3.10. Packaging and Sealing

3.10.1.TheValuablesthatareseized/detainedshallbepackedinnon-deterioratingcontainers,likehighdensityplasticormetalboxes.Thesecontainersshallbesealedwithwire/metalsealsinsteadofrope/waxseals.Apaperseal/stickermentioningtherelevantdetails,asgiveninformatgivenatForm-9,shallbeaffixedonthecontainers(preferably,tamper-proofseal/stickersshallbeused).ThepackagingandsealingshallbedoneinthepresenceofthepersonfromwhomtheValuablesareseized/detainedandtwoindependentwitnesses.Thepaperseal/stickershallhavethesignaturesofthepersonfromwhomtheValuablesareseized,theindependentwitnessesandtheSeizingofficer.The‘fullnames’shouldbewritten,clearlyandlegibly.Iftamperproofseals/stickersarenotused,alac sealshallbeusedwithapaperslip,mentioningrelevantdetails,asmentionedabove.


3.10.2.TheresponsibilitytokeeptheValuablesinsafecustodylieswiththeSeizingofficertilltheValuablesaredepositedwiththeCustodianintheStrongRoom/ValuablesGodown.

3.11. Receipt of Valuables by the Custodian

3.11.1.Immediatelyonreceiptoftheseizedgoods,alongwiththeduplicateandthetriplicatecopiesoftheInventory,thecustodianshallsatisfyhimselfthatthepackageshavebeenproperlysealed,sealsareintactandtheinventoryhasbeenpreparedinapropermannerindicatingall the details requiredwithregardtothecontentsofthepackages.Thecustodianshallnotacceptthepackageswhichare improperlysealedorwhoseseal isnot intactor if the inventorydoesnotcontain thedetails,asrelevantforthegoods/asmentionedinpara 3.1.4above.

3.11.2.Iftheconditionofthepackagesandtheseals,andthedetailsintheinventoryarefoundtobeinorder,thecustodianshallreceivethegoodsandmakeentriesthereofintheStockRegister(called‘ValuablesRegister’), asper theprescribed formatgivenatForm-5.Heshall, then,acknowledgethereceiptofthesealedpackagesbywayofmakingcrossreferencesofentriesintheduplicateandthetriplicatecopiesofinventoriesandthereafter,retainthetriplicatecopywithhimandreturntheduplicatecopytotheSeizing/Detainingofficer,forkeepingthesameintheseizure/casefile.DigitalPhotograph/VideographofthepackagesshallalsobetakenandpreservedinthecomputeroftheCustodian,sothat,intheeventofanytampering,itcanbecrossverifiedwiththeoriginalpacking.BackupcopiesofsuchPhotograph/VideographshallbekeptattheSystems Unit.

3.12. Safe Custody of Valuables

3.12.1.Theresponsibilityofproperstorageandphysicalcustodyofthepackageswithsealintact,shallbeonthecustodian.Heshall,however,notberesponsibleforthecontentsofthepackages,ifthesamewasreceivedproperlysealed,andisstillwiththesamesealsintactthereon.Thecustodianshallalsoensurethatthepackagesarecarefullystoredandprotectedagainsttheravagesofweather,ants,rodents,insects,etc.

3.12.2.Theprovisionsofthepara3.6.5aboveshallmutatismutandisapplyincaseofsafecustodyofValuablestoo.

3.12.3. If the package shows signs of tampering or damage, the custodian should immediatelybring it to the notice of theDeputy/ Assistant Commissioner in-charge of theDisposal Section,for appropriate action. If the goods are involved in Court proceedings, it will be necessary tobringthemattertothenoticeofthecourt,forgettingnecessaryorderfromthecourtforfurthercourseofaction.Allpackagespendingformorethanfiveyearsshouldcompulsorilybeinspectedfordeteriorationofpackages/sealsandincaseanysuchdeteriorationisfound,thesamemaybebroughttotheknowledgeoftheDeputy/AssistantCommissionerin-chargeoftheDisposalSectionimmediatelyforappropriateaction.


3.12.4.Thecustodianshallberesponsiblefor:maintainingtheStockRegistersinpropermanner;propercustodyoftheRegistersforhanding-overandtaking-overcharge,andinventories;andforsubmittingtheMonthlyReturnof‘goodsripefordisposal’.

3.13. Movement of Valuables

3.13.1.Incaseofseized/confiscatedValuablestobetakenoutforproducingbeforetheCourtorforanyotherpurposeasthesituationmaywarrant,writtenordermustbeissuedbytheDeputy/AssistantCommissionerin-chargeoftheStrongRoom/ValuablesGodown.Suchordershallspecify,amongotherthings,thefollowing:thenameofofficer/custodianwhoshallcarrytheValuablesoutoftheStrongRoom/ValuablesGodown,thepurposeforwhichthegoodsaretakenout,theplacewherethegoodsarebeingtakento,thedateandthetimeofopeningoftheStrongRoom/ValuablesGodown.AseparatefileshallbemaintainedforissuanceofsuchordersbytheDeputy/AssistantCommissionerin-chargeoftheStrongRoom/ValuablesGodown.Wheneverheistransferred,thefileshallbehanded-overtothesuccessor,underaproperacknowledgement.

3.13.2.Theofficer/custodian,whocarriesthegoods,shallverifythedescription,conditionoftheseal,otherrelevantdetailstoensurethatthecorrectpackageistakenoutinrelationtotheseizure/casefile.

3.13.3.AMovementRegistershallbemaintainedbythecustodianforthispurposeintheformatgivenat Form-10.DuecareshouldbetakentoindicatethedetailsofsuchmovementsintheMovementRegisterbythecustodianoneachsuchoccasion;andheshallalsomakeacorrespondingentryintheRemarkscolumnintheValuablesRegister.

3.13.4.Theofficer,whocarriesthepackagestotheCourtoranyotherplace,shallbepresentatthetimeoftheiropeningandsubsequentsealing.

3.14. Inspection

3.14.1.QuarterlyInspectionofsuchseized/confiscatedValuablesstoredintheStrongRoom/Safeshallbecarriedout;andstockofallpackagestakenandconditionofeachpackagelyingthereshouldbeverifiedbytheCommitteeheadedbytheDeputy/AssistantCommissionerin-chargeofValuablesGodownandproceedingsofsuchinspectionshallbedrawnandkeptinthefilemaintainedbytheDeputy/AssistantCommissionerin-chargeofStrongRoom/ValuablesGodown.

3.14.2.TheQuarterlyInspectionsshallbevideo-graphedandasoftcopyofsuchvideorecordingshallbekeptinasealedenvelopewiththeSystems Unit.

3.15. Record Keeping

3.15.1Allfiles/registers/recordsmustbekeptinthesafecustodyoftheSuperintendentofCustoms/CentralExcise/CGSTin-chargeoftheStrongRoom/ValuablesGodown.

3.15.2.TheDisposalSectionshallmaintainaMasterInstructionFilecontainingalltheinstructions


onthestorageandthedisposalofseized/confiscatedgoodsissuedfromtime-to-time,alongwiththisManual. This is important for institutionalmemory. ThisMaster Instruction File should behanded-overtothesuccessorbythecustodianatthetimeofhanding-overthecharge.

3.16. Storage of ‘Goods Other-than-Valuables’

3.16.1.‘GoodsotherthanValuables’should,asfaraspossible,bekeptonracksandalmirahskepton sleepers. The goods should never be stored on the floor. The almirahs and racks should beseriallynumberedandthepartitionsinthealmirahsandracksshouldbelabeledalphabetically.Thealmirahsandracksshouldbesoarranged,andthepackagessosystematicallystored,withlocationentriesmadeinStockRegisterthatthereshouldbenodifficultyatanytimetocheckandlocatethepackages.ThekeysoftheGodowninwhichthegoodsarestored,shouldbekeptinthepersonalcustodyofthecustodian.Specialcareshouldbetakentopreventdamagetothegoodsbyrodentsandinsects.

3.16.2. Storage of conveyances and narcotics has been separately dealtwith inChapter 13 and Chapter 16respectively.

3.17. Other Important Instructions

3.17.1.Gold in all forms, including bullion, ingots, coins, ornaments and crude jewellery; andIndianandForeignCurrencyarecoveredunderNotificationNo.31/86-Cusdated05.02.1986,asamended,issuedunderSection110(1A)oftheCustomsAct,1962.Properrecord,includingentryintheValuablesRegister,mustbekeptonsuchoccasionswhentheactionunderSection110(1B)oftheCustomsAct,1962isinitiated.

3.17.2.Incaseofseizedcurrencyorbearernegotiableinstruments,asthecasemaybe,actionunderSection110(1B)oftheCustomsAct,1962shallbeinitiatedimmediatelyafterseizure,andaproperrecord,includingentryintheValuablesRegister,mustbekept.Thereafter,itshallimmediatelybedepositedwiththebankintheGovernmentAccount.Inthisregard,theSuperintendentin-chargeofStrongRoom/ValuablesGodownshallobtainaCertificatefromthebankregardingsuchdeposit,specifyingdenominationsofcurrencyandtheexchangerateprevailingonthedateofdeposit.

3.17.3.Atthetimeofdisposal,theValuablesshallbetakenupfordisposalbytheInventoryCommittee,soauthorized,bytheAdditional/JointCommissioner.AlltheproceedingsoftheopeningandtheinventoryshallbedoneundervideographyandthesoftcopyshallbekeptinthesafecustodyoftheSuperintendentin-chargeoftheStrongRoom/ValuablesGodown.Inthisregard,aregister for disposalofValuablesshallalsobemaintainedasgivenatForm-11.

3.17.4.Theofficersareadvisedtokeepthemselvesabreastwiththelegalprovisions,onthebasisofwhichdifferentprocedureshaveevolved.Incaseofanyrequirementforfurtherclarity,therelevantprovisionsoftheCustomAct,1962,andNotificationsissuedthereunder,maybereferred.Further,whereverrequired,requisitepermissionfromthecompetentauthoritiesmayalsobeobtained.


3.17.5.AllthePrincipalChiefCommissioners/ChiefCommissionersshouldpaypersonalattentiontoensurethattheguidelines/safeguardsprescribedforcustody,accounting,disposaloftheseized/confiscatedgoods,includingValuables,areenforcedscrupulouslyintheirjurisdiction,soastoavoidany instances of loss, pilferage, damage, theft,misappropriation ormissing/ substitution of thegoods.

3.17.6.Copiesofalltheordersofadjudication/confiscation,appealandreviewshouldbeendorsedtotheCustodian.

3.17.7.The seized goods are required to be properly storedwith adequate security and for thispurpose, ifwarranted, should bemoved, at the earliest opportunity, to the headquarters of theDivision/Commissioneratewheresucharrangementsexist.

3.17.8.Whenever theseizedor thedetainedgoodsareordered tobe returned to theowner, thecustodianshould,aftersatisfyinghimselfthatallthepaymentsduetotheGovernmenthavebeenmadebytheowner,givedeliveryofthegoodsagainsttheowner’sendorsement,onthetriplicatecopyoftheinventorythatthepackageshavebeenreceivedwiththesealsintact.Incasetheownerwishestohaveopendelivery,thecustodianshouldcomplywiththerequestbutthepresenceoftheseizingordetainingofficershould,asfaraspossible,besecured.Iftheseizingordetainingofficerisnotavailable,thepresenceofaGazettedOfficershallbesecured.

***


Form-2 (ReferPara3.1.1)

Inventory of goods detained/ seized (in quadruplicate in case of Sapurdgi and in triplicate otherwise)

1. Ownerofthegoods/Passenger:

a. Name:………………………………………………………………………………………………

b. Father’s/Spouse’sName:……………………………………………………………….

c. Occupation:………………………………………………………………………………………

d. Address:

i. HouseNumber:……………………………………………………………………

ii. Building/Premise:…………………………………………………………………

iii. Street:……………………………………………………….......................................

iv Locality:……………………………………………..................................................

v. City/District,State:……………………………............................................................…

vi. PinCode:…………………………………………………………………………………………

vii. Country:……………………………………………………………………………………………

2. ProofofIdentity:Passport/Other……………………………………………..………

3. Seizing/DetainingOfficer

i. Name:………………………………………………………………………………..…

ii. Designation:…………………………………………………………………………

4. Placeofseizure/detention:

i. HouseNumber:…………………………………………………………………………………


ii. Building/Premise:………………………………………………………………..

iii. Street:…………………………………………………………………………………

iv. Locality:………………………………………………………………………..………

v. City/District,State:……………………………………………………………...

vi. PinCode……………………………………………………………………..…………

5. ProofofAddress:Passport/Other………………………………………………………

6. Dateofseizure(DD/MM/YYYY):………………………………………………………

7. SeizingUnit:……………………………………………………………………………………

8. CaseFileNo.:……………………………………………………………....……………………

9. WitnessNameandAddress:

(i) Witness–1

i. HouseNumber:…………………………………………………………………….

ii. Building/Premise:………………………………………………………………

iii. Street:……………………………………………………………………..……………

iv. Locality:……………………………………………………………...........................

v. City/District,State:…………………………………………...............................

vi. PinCode………………………………………..........................................................

(ii) Witness–2

i. HouseNumber:…………………………….........................................................

ii. Building/Premise:…………..................................................…………………

iii. Street:………………………………………….........................................................


iv. Locality:……………………………………….........................................................

v. City/District,State:…………………………………..........................................

vi. PinCode…………………………………………………............................................

10. Detailsoftheseizedgoods,packagesanditscontents:

S.No. Details of thePackageContaining theGoods

Detailed Description oftheGoods

Quantity(inclearlydefinedunitswith--outanyscopefor

ambiguity)

CountryofOrigin,ifany

Total Estimated

Market Value

Remarks

1 2 3 4 5 6 7

11. SignatureoftheOwner/Passenger:…………………………………………………

12. SignatureoftheSeizingOfficer:…………………………………………………….…

13. SignatureoftheWitness–1…………………………………………………………..…

14. SignatureoftheWitness–2…………………………………………………………..…

15. Aspecimenofthesealaffixedonthepackages

Received with seals intact. Entered in the Valuables Register vide entry no.……………………..dated……………………

SignatureoftheCustodian(Valuables)

Name:

Designation:

GuidelinesforfillingtheProforma

1. Thedetailsoftheitemsshouldbegivenpackage-wiseandasfaraspossible,foreachitem,thevalueandotherdetailsshouldbefurnished.

2. Conditionofthegoodsshouldalsobeindicatedandwhereveraccessoriesarenotavailable,thatfactalsoshouldbegiven.Thedetailsaboutaccessoriesbegivenintheremarkcolumn.

3. Incaseofmanufacturedgoods,theirmake,modelandserialnumbershouldalsobementionedintheinventory.


4. As far as possible, goods of each category should be kept in a separate package, so thatcategory-wisethosepackagescanbedisposedoffirstthathaveaprescribedtime-limitforthemandtheremaininggoodscanbekeptseparately.

5. Preferably,thesignatureoftheownerandthemahazar(Panch)witnessesshouldbetakenonthepackage.Iftheownerisnotavailable,atleastmahazarwitness’ssignatureshouldbetaken.ThepackagesshouldbesealedwiththesealoftheSeizing/Detainingofficerandthesealoftheownerorhisauthorizedrepresentative,ifheisavailable,otherwisewiththatofaGazettedOfficer.

6. Asfaraspossible,thespecimenofthesealonthepackagesshouldalsobeincorporatedintheinventory.

7. TheinventoryshouldbepreparedinQuadruplicateifthegoodsaregoingtobehanded-overtoaSapurdigar,i.e.,personotherthantheDepartmentalGodownOfficerforstorage.Otherwise,theInventorycanbepreparedinTriplicate.TheOriginalwillbehandedovertotheOwner.TheDuplicatewillbekeptinthecasefile,theTriplicatewillremainwiththeCustodianandthequadruplicatewillbegiventotheSapurdigar(wheretheCustodianandtheWareHouseOfficeraredifferent).

***


Form-3 (ReferPara3.3.8and3.6.3)

Stock Card

1. S.NointheSeized/DetainedGoodsRegister:………………………….

2. Dateofreceipt:……………………….

3. Nameoftheownerofthegoods,ifknown:………………………….

4. No.ofpackages:……………………..

5. Descriptionofgoods,quantityandvalue:…………………………….

6. HistoryofConsignment:……………………………………………..

(Here,enterthedateofcheckmadebytheofficer,dateofopeningseal,dateofauction,etc.)

ExampleformaintainingStockCard:IftherearefourpackagesdetainedunderaS.No./Ref.No.,theStockCardforeachpackageshouldindicatethepackageas¼,2/4,3/4or4/4,asapplicable.

***



Stock Register for the Goods ‘other than Valuables’

1 2 3 4 5 6 7 8 9 10 11S.No. Date of

Receipt

Bywhom

Deposited

Nature

of

Sealing

Custom

House/

Commiss

ionerate

CaseFileNo.

Whether

Inventory

(inpre-

-scribed

form)

accompa-

-niedthe

goods?

Nameof

Owner,if

known

No.of

Packages

Description of

goods

Quality Estimated

Value/

duty

Date of

preparation

of detailed

inventory

Nameof

Officers

Presentat

the time of

Preparing

Detailed

Inventory,

if

Necessary

Natureof

Sealing

(after

inventory

and

identifying

marks

given on

packages)

Where

Stored

ParticularsofRe-opening ReleaseoftheGoods

totheOwner

Date and

Time

ofRe-

opening

Namesof

Officers

Presentat

the Time

ofRe-

opening

How

Sealed

Where

Re-

stored

Date of

Release

(if so

ordered)

Name,

Address,

Phone

No.and

Signature

of the

Recipient12 13 14 15 16 17 18 19 20 21

Disposal by the Department

DateofRe-

opening for

Purposesof

Valuation

byJewellery

Expert

AuctionLot

No.&Other

Particulars

oftheLot

inwhich

included

Price

Fetched

at

Auction

Date of

Deliveryto

theBidder

at the

Auction

Signatureof

theRecipient

AmountPaidas

GodownRent

(receiptno.

and date to be

mentioned)

Signature

(withdate)

of the

Custodian

Remarks

22 23 24 25 26 27 28 29

***



Stock Register for Valuables

1 2 3 4 5 6 7 8 9 10 11 12

S.

No.

Date of

Receipt

CaseFile

No.

Deposited

by:Name

and

Designation

of the

Officer

Name

and

Address

of the

Owner

No.of

Pack-

-ages

Whet-

her Accomp

aniedby

Inventory

(inpre-

-scribed

format)

Descrip-

tion of

Goods

Quantity

as per the

Inventory

Condition of

Sealing

Estimated

Value:

Duty:

Date of

Prepa-

-ration

ofInven-

-tory

13 14 15 16 17 18 19 20 21 22

Nameof

Officers

Presentat

the time of

Preparing

Detailed

Inventory

Location

of

Storage

in the

Strong

Room

DateofRe-

opening/

Movement,

ifany

Order

Reference

forRe-

opening/

Movement

andEntry

No.inthe

Movement

Register

Details of

Proceedings

Drawnfor

Re-opening

FileNo.

Mode

of

Dispo-

-sal

Date of

Release/

Disposal

Names

of

Officers

Present

at the

time of

Release

of

Goods

Signature

ofRecip-

-ientwith

Nameand

Address,

Phoneno.

Entry

No.

in the

Disp-

-osal

Regist-

-er

***



FormatoftheRegistershowingsuccessionofCustodianandSupervisoryOfficeroftheStrong Room/ Valuables Godown

FortheCustodian

S.No. NameandDesignation oftheOfficer

Date of Taking-Over

Date of Handing-Over

OrderReference

Counter-signofthe Immediate SeniorOfficer

FortheSupervisoryofficer(GazettedRank)

S.No. NameandDesignation oftheOfficer

Date of Taking-Over

Date of Handing-Over

OrderReference

Counter-signofthe Immediate SeniorOfficer

***



List of Cases ‘Ripe for Disposal’ (in Triplicate)

From

TheOfficer-in-charge(DisposalUnit)

To

_______________

___________________Department

Theunder-mentionedcaseshavebecome‘ripefordisposal’.Kindlyindicatewithinaweekhereof,whetheryouhaveanyobjectiontothedisposal.Incasenoresponseisreceivedby___________,furthernecessaryactionfordisposalofthesegoodswouldbeproceededwith.

S.No. Disposal Unit

Registration No.

OriginalCaseFileNo.

No.ofPackages

Marks &Nos.

Description ofGoods

Weight Value Remarks

1 2 3 4 5 6 7 8 9

Officer-in-charge(DisposalUnit)

Date:___________________

No objection to the disposal of the above mentioned.

Date____________ DEPARTMENT

***



List of Cases in Which Period of Redemption and Appeal has Expired

From

The________________

_____________________Department

To

The Custodian

The goods mentioned hereunder have not been so-far redeemed within the prescribed periodandtheperiodforpreferringappealisalsoover.Necessarystepsmay,therefore,betakentotakepossessionofthesameandthereafter,todisposethemof.

S.

No.

C.H./

Commissionerate

CaseFileNo.

No.of

Packages

Marks

&Nos.

Weight(if

available)

Description

ofGoods

Value Category

ofGoods

Date of

Expiryof

Redemption

Period/

Appeal

Period

Remarks

1 2 3 4 5 6 7 8 9 10

(DeputyCommissioner/AssistantCommissioner/Superintendent

In-Charge_______________Department)

***



Format of the Tamper proof paper label (TobeaffixedonthecontainerinwhichseizedValuablesarekeptandsealed)

CaseFileNumber:

DateandPlaceofSeizure:

PanchnamaDate:

Contents:

NameandSignatureoftheOwnerofthegoods,withdate:

Name,DesignationandSignatureoftheSeizingOfficer,withdate:

NameandSignatureoftheWitness–1,withdate:

NameandSignatureofWitness–2,withdate:

***



Format for Valuables Movement Register

S.No. NameofDC/AC Authorizing

Movement

FileNo.

PurposeofTaking-OutoftheValuables

and the PlacetoWhichTaken

Name,Designation,

SignatureoftheOfficerTakingtheValuablesout

Date and Time of Taking the Valuablesout

GrossWeight

1 2 3 4 5 6 7

Date and Time of Depositing

back of the Valuables

GrossWeight WhetherOpenedandRe-sealedandifso,

the Details Thereof

NameandSignatureof

the Custodian

NameandSignature

of the SupervisoryOfficer

Remarks

8 9 10 11 12 13

***



Format for Register for Disposal of Valuables by the Department

DatefixedforInventoryfor

Disposal

Details of Disposal Orders

DateofRe-opening for the purpose

of valuationof Jewellery/Gold/

Valuables,etc.

Date of Disposal and

Place

Amount of SaleProceeds

Remarks

1 2 3 4 5 6

***


4.1. Transfer of Charge

4.1.1. PropertransferofchargeofGodownsisessentialforproperaccountingofgoods.Atransferof charge, even temporary, should be supervised by the Superintendent (or Deputy/ AssistantCommissioner(DC/AC)incaseoftransferofchargeofValuables)andcloselymonitoredbytheDC/ACatDivision/SectionandtheAdditional/JointCommissionerin-chargeoftheGodownsattheHeadquarters/Commissioneratelevel.Propertransferofchargenotonlyaffordsagoodopportunityforstock-takingbutalsoobviatesanychanceofsubstitution,mis-appropriationandembezzlement.In the past, investigations of many cases of such lapses have failed to pin-point responsibility,primarily,becauseofimpropertransferofcharge.

4.1.2. Onlyexperiencedofficers,havingintegritybeyonddoubt,shallbeappointedascustodians.Thecustodians,soappointed,shouldnotbefrequentlychangedortransferredout.

4.1.3.Wheneveranycustodianoranyotherofficer in-chargeof theconfiscated/seizedgoods istransferred,thetransfershouldbesoarrangedthatthesuccessorisgivensufficienttimetotakechargeofthecompletestockofthegoodsafteraone-to-onecorrelationofgoodswiththerelevantRegisters.

4.1.4.Whereverthepackagesandsealsareintact,itshallnotbenecessarytoopenthepackagesandcounttheindividualarticles.Wheneversealedpackagesarefoundinopencondition,re-inventoryshallbedrawnbyfollowingtheprescribedprocedure.

4.1.5. AChargeReport shall bepreparedonly in a pre-authenticated register called ‘Register ofHanding-overandTaking-overofCharge’preparedintheformatgivenatForm-6 and not in loose sheetsorinanyotherform.ThisregistershallbepermanentrecordandallChargeReportsshallbepreparedonlyinthisregister.Separateregistersshallbemaintainedfordifferent‘StockRegisters’.SeparatepagesmaybeearmarkedfortransferofchargeofdifferentStockRegistersinthe‘RegisterofHanding-overandTaking-overofcharge’.

4.1.6. Theofficertaking-overchargeshallpointoutanydiscrepancies,etc.,intherelevantcolumnof the Charge Report by referring to the serial no. of the Stock Register. Actual details of suchdiscrepanciesshall,however,beenteredintheStockRegister.

Transfer of Charge, Stock-Taking and Inspections

CHAPTER - 4


4.1.7. The officer taking-over the charge shall also take charge of all the Stock Registers andcorrespondingInventories.OncehesignstheRegisterofHanding-overandTaking-overofcharge,hewillbeconstruedtohavetaken-overallthegoodsinthewarehouseaswellasthecorrespondinginventoriesandStockRegisters.

4.1.8. TheofficertransferredfromWarehouse/ValuablesSectionshallsurrendertheDepartmentalsealsissuedtohimbeforehanding-overthechargeofthewarehousetotheofficertaking-overthecharge,underproperreceipt;andrecordofthesameshouldbekeptinthewarehouse.Locksofthemainentryshallbechangedperiodicallytopreventmisuseofduplicatekeys,ifany.CCTVcamerasshallbeinstalledatvulnerablepointsandshouldbeoperationalround-the-clock.TherecordingsoftheCCTVfootageshallbestoredinsuitablemediumtillthenextstockchallenge.

4.1.9. Aftereachtransferofcharge,theChargeReportshallbescrutinizedbytheDeputy/AssistantCommissioner in-chargeoftheDivision/SectionandtheAddl./ JointCommissioner in-chargeatheadquarters/Commissioneratelevel,whoshalltakecorrectivemeasuresonthepointsraisedanddiscrepanciesnoticedthereon,andputupanActionTakenReporttothePrincipalCommissioner/Commissioner.

4.1.10.Wheneverthecustodianproceedsonlongleave,aregularsubstituteshallbepostedinhisplace, anda complete andproper transferof custodyof goods shall takeplace. Such transferofchargeshallalso figure intheRegisterofHanding-OverandTaking-overCharge.However,whenthecustodianproceedsonshortorcasual leave,or inanemergency, thecustodianshouldmakearrangementstoensurethatanyarticles,whichmayberequiredduringhisabsence,arehanded-overtoanotherofficeronproperreceipt,withtheapprovaloftheDeputy/AssistantCommissionerconcerned.ThisofficershallalsoattendtoanyotherurgentorimportantworkrelatingtoGodownandwhen stockof goods is tobe accessedaspart of suchwork, it shall be sodoneonly in thepresenceof theDeputy/AssistantCommissioner in-charge.Full responsibility for theremaininggoodsshall,however,remainwiththecustodianhimself.

4.2. Periodic Stock Challenge, Stock-Taking, Inspections and Reports

4.2.1. Once every six months, a Deputy/ Assistant Commissioner nominated by the PrincipalCommissioner/Commissionerin-chargeforthepurpose,shallconductacompletestock-takingofall thepackagescontaining ‘articlesotherthanValuables’. Inordertoensurethatstock-taking isconductedregularly,thisexercisemaybeconductedinthemonthofJanuaryandJuly.Thereportonthestock-takingshouldbesubmittedinthefollowingmonthandtheactiononthereportshallbetakenimmediately,andinanycase,beforethenextstock-taking.

4.2.2. TheofficersverifyingthestockshallphysicallyverifythestockwithreferencetoInventoriesandStockRegisters,andalsowithreferencetoRegistersof‘Handing-overandTaking-overcharge’.

4.2.3. Theyshouldverifythesealsandsatisfythemselvesthatthesealsareintact.Ifthesealsare


intact,itisnotnecessarytoopenthepackagesandverifycontents.However,ifthesealsareopen/broken,thereasonsthereofmaybeascertainedandcompleteinventoryofthegoodsmustbetaken.

4.2.4.Where substitution or pilferage is suspected, immediate action may be taken to verifythecontentsof thepackagesand in caseanydiscrepanciesare found, such further steps, asarewarranted,mustbetakenwithoutdelay.

4.2.5. The officer deputed for stock challenge, shall compulsorily inspect all the packages fordeteriorationofpackages/sealsandincaseanydeteriorationisnoticed,heshouldbringittotheknowledgeoftheDeputy/AssistantCommissionerin-chargeoftheDisposalUnitforappropriateaction,toensurethatthepackagesremainunderpropersealandanyscopeofpilferageisruled-out.Theofficershallalso,particularly,scrutinizetherecordofdeteriorationofgoodsmaintainedbythecustodianandcheckwhethersuitableactionoutlinedinpara 3.6.5 of Chapter 3hasbeentakenbythecustodianand/orthesupervisingofficer.Ifnot,thesamemustbeurgentlytaken.

4.2.6. Suchofficershallscrutinizethe‘RegisterforHanding-overandTaking-overCharge’tocheck,ifpropertransferofchargehastakenplace&suggestimprovements,ifany.

4.2.7. Heshallexamine,whetherthechargeofindividualcustodiansiscompactandmanageable.

4.2.8. The officer shall critically examine and reportwhether the procedures prescribed in thisManual for storage and preservation of goods, especially Valuables, arms, narcotics drugs andpsychotropic substances, conveyances, etc., are being followed. Compliancewith the proceduressuchastheperiodicaloilingandgreasingofarmsshallbeensured.

4.2.9. Suchofficershallexamine,whetherall thestepsnecessary forexpeditiousdisposalof thegoodshavebeentaken.Heshallpreparealistofcases,whereinthedisposalhasbeenexcessivelydelayedandcallforaStatusReportfromtheparentdepartments.SuchStatusReportshallformpartofhisfinalreporttothePrincipalCommissioner/Commissioner.

4.2.10.TheofficershallsubmitareportregardingthechecksconductedandresultsachievedtothePrincipalCommissioner/CommissionerwithinaweekfromthedateofStockChallenge,coveringalltheabovepoints.SuchreportshouldbescrutinizedbythePrincipalCommissioners/Commissionersthemselvesandtheyshallensurethatappropriateremedialactionistakenimmediately.

***


5.1. Un-claimed/ Un-cleared Cargo (UCC)

5.1.1. Section48oftheCustomsAct,1962dealswiththeUn-clearedCargo(UCC).Thecustodianisrequiredtopreparealistofcargolyingun-claimed/un-clearedinthebondedareaoftheCustomsStation, for more than 30 days from the date of arrival of such cargo in the Customs Station.Continuous interactionwith thecustodian is thekey toensure these listsarepreparedon time.Thereafter,theprocedurefordisposalofsuchcargowouldbeaslaiddownintheCBIC Circular No. 49/2018-Customs dated 03.12.2018.Further,theDeputy/AssistantCommissionerin-chargeofUCCattheCustomsStationshouldensurethataMonthlyStatementintheProformagivenatForm-12,issentbyallthecustodians.

5.1.2. Section 48 gives power to dispose of animals, perishable goods and hazardous goods atanytimewithpermissionoftheproperofficerandevenwithoutNotice.Forothergoods,Noticeis required tobegivenby thecustodian to the importer,asprescribed in theCBIC Circular No. 49/2018-Customs dated 03.12.2018.

5.1.3. Iftheimporterabandonsthegoodsbeforepassingof30daysoftheirimportoratanytimeafterissueofNotice,thecustodianshouldimmediatelytakefurtherstepsforthedisposalofsuchcargo.

5.1.4. Ifthegoodsremainunsoldandpassintothecategoryof‘landed-more-than-one-year-prior’,thenthecustodiancansell thesame following the independentprocedureasdetailed inPara 3 of CBIC Circular No. 50/2005-Cus. dated 01.02.2005,without any reference to Customs, andadjustingthenumberofauctions/tenderstowhichthelotwasalreadysubjectedto,againsttheprescribednumberoffoursuchauctions/tenders.However,evenforsuchgoods,therequisiteNOCfromtheCustomswillberequiredtobeobtainedbythecustodianaspertheprocedurelaiddownin the Circular No. 49/2018-Customs dated 03.12.2018.

5.1.5. Theprocedure laiddown in theCircular No. 49/2018-Customs dated 03.12.2018 shall beapplicabletocargowhichareunloadedataCustomsStation,afterbeingbroughtfromoutsideIndia,onorafter01.04.2018andwhichfallinthecategoryof“un-claimed/un-cleared”intermsofSection 48 of the Customs Act, 1962.ItwouldalsobeapplicabletoallUn-claimed/Un-clearedgoods brought from outside India before 01.04.2018 (un-claimed/ un-cleared for a period not-exceeding-one-year)inrespectofwhich:

Special Provisionsfor Un-Claimed/ Un-Cleared Cargo, Mis-Handled Baggage And Time Expired Bonded Goods

CHAPTER - 5


i. Auctionprocesshasnotstartedyet;or

ii. ListofcargoproposedforauctionhasbeensenttoCustomsbythecustodianbutCustomshasnotyetprovidedthenecessaryinformationasreferredinPara 3(i) and 3(iv) of the Circular No. 49/2018-Customs dated 03.12.2018.

5.1.6. Briefly,theprocedurefordisposalofun-claimed/unclearedcargolyingwiththecustodians,aslaiddowninCircular No. 49/2018-Customs dated 03.12.2018,isasbelow:

i. ThecustodianoftheCustomsStationshallpreparealistofcargolyingun-claimed/un-clearedinthebonded-areaoftheCustomsStationformorethan30daysfromthedateofarrivalofsuchcargointheCustomsStation,andsendthelisttothejurisdictionalPrincipalCommissioner/ Commissioner of Customs. The list shall contain complete particulars,suchasBillofLading/AirwayBillnumber&date,Containernumber,descriptionofgoods,weight,nameoftheconsignee/consignor,etc.Thecustodianshall,simultaneously,updatethelistwithimporter’snameandaddress.Incaseswheretheaddressoftheimporterisnotmentioned in the IGMmessage fromICEGATE, thecustodianshallsendaNotice totheShipping line toprovideaddressof the importer/ consigneewithinoneweek.TheJurisdictionalPrincipalCommissioner/CommissionerofeachCustomsStationshallissueinstructions to theofficersandstaff toensure thatdetailsofall thegoods/shipments,whichareputonholdforinvestigationorotherwisebyDRI/Preventive/SIIBoranyotheragency, are furnished to theDisposalBranchof theCustomsStationand thecustodianimmediately,underproperreceiptandacknowledgement.ThiswillensurethattheDisposalBranchand the custodianare, at all times, awareof thegoods/ shipments/ containersforwhich‘NoObjectionCertificate’fromtheconcernedagencywouldberequiredbeforeinitiatingthedisposalprocess.

ii. From the said list, theCustoms shall segregate shipmentswhich aredisputed/ stayed,shipmentsrequiredtoberetainedforinvestigation/Adjudication/courtprocedure,etc.TheCustomsshall also segregate shipments containingmotorvehiclesorothergoods,requiring License/ Permission/ Certification from Director General of Foreign Trade(DGFT)oranyotherDepartment.TheCustomsshould furnish to thecustodian,within10daysofthereceiptofthesaidlist,thedetailsofshipmentsnottobeincludedintheauctionprocess.TheCustomsshallalsochoose10%shipmentsfromthelistofshipmentssegregated for inclusion for the auction process, forwhich detailed inventory shall bemadeintheirpresenceforsamplecheck.Thisshouldbeconveyedtothecustodian,alongwiththelistofShipments/Containerswhicharerequiredtoberetained.

iii. BasedontheintimationreceivedfromtheCustoms,thecustodianshallissueaNoticetothe importer under Section 48oftheCustomsAct,1962,advisinghimtoclearthegoodswithin10daysfromthedateofissueoftheNotice,failingwhichthegoodswouldbeplacedinpublicauction.NoticeshallbesenttotheimporterontheaddressasgivenintheIGM


messageavailablewiththecustodian,ortheaddressascertainedfromtheShippinglines.Further,acopyof thisNotice issuedtothe importer,shallalsobeaffixedontheNoticeBoardoftheCustomsStation.

iv. Thecustodian, in thenext20days,shallprepareadetailed inventoryof theshipmentswhicharenotrequiredtoberetainedbytheCustomsforanypurpose.Indoingso,theyshallassociatetheCustomsin10%oftheconsignments,forwhichtheCustomshasalreadyintimatedthatinventoryhastobedrawnintheirpresenceforsamplecheck.

v. Within7daysofdrawingupofinventory,thecustodianshallapproachthejurisdictionalCustoms authorities, along with the said inventory, seeking ‘No Objection Certificate’(NOC) in respectof all consignments/containerswhichare tobe takenup forauctionthroughthee-auction/tender. Theinventoryshouldhaveadetaileddescriptionoftheitems,toenableCustomstoeasilyidentifytheregulatoryrequirementsinrespectoftheconsignmentsmentionedthereinanditshallclearlyindicatevariationinthedescriptionofgoodswithrespecttothedescriptionofgoodsmentionedinthelistalreadyforwardedtotheCustoms.

vi. TheCustomsshallexaminethelist,andwithin15daysofreceiptofsuchrequest,intimatetothecustodian,detailsofthelistedshipmentswhichcanstraightawaybetakenupforauction,astheydonotrequireanyregulatoryclearances(NOCfromFSSAI,DrugController,Bureauof IndiaStandards(BIS),etc.),ordonotneedanychemicalanalysis to identifythe contents and fitness for consumption/ usage. The consignments, for which suchunconditionalNOCsareissuedbytheCustoms,shallbetakenupforauctionbye-auctionthroughMSTCtoensuremaximumoutreachandparticipation.Inordertoensurequickandregularturnover,theconcernedcustodianshallattempttohold,atleastoneauctioneverymonth.IncasethelistisincompleteanddoesnothavethecompletedetailsfortheCustomstoclearlypinpointtheregulatoryrequirements,theCustomsshallindicatethedeficienciesinthelist,withinthisperiodof15days.

vii. In case regulatory clearances from agencies other-than-Customs are required, such asNOCfromFSSAI,DrugController,BIS,etc.,orsamplesof theconsignmentarerequiredtobe chemicallyanalyzed to identify the contentsand fitness for consumption/usage,the Customs shall identify such requirement and intimate to the concerned custodianwithin15daysofthereceiptofthecompletelist.Thecustodianwill,then,approachthejurisdictionalCustomsofficer for assistance inobtaining the said regulatory clearance.If,inthisprocess,chemicalanalysisisrequired,theCustomsshalldrawthesamplesandforwardthesametotherespectiveagencyfortesting.Therequiredtestingfeesorsuchotherchargesrequiredtobepaidtotheconcernedagency,shallbepaiddirectlybytheconcernedcustodiantothesaidagency.TheconcernedtestingagencywillberequiredtosubmittheTestReportswithin15daysofreceiptofthesamples.


viii. NOC for such consignments shall be issued by the Customs only after receipt of therequiredclearance/resultofchemicalanalysisfromtheconcernedagency,withoutwhichtheconcernedcustodianshallnotputthesaidconsignmentforauction.

ix. In case the result of chemical analysis, or report from FSSAI, Drug Controller, PlantQuarantine,etc.,indicatethatthesampleisnotfitforconsumption/usage,theCustomsshall inform the custodian about the need for destruction of the same and the custodian shall arrangetodestroythesameattheirexpense,afterobtainingtherequisiteenvironmentalandotherclearancesasperlaw.ThedateoftheproposeddestructionshallbeintimatedtotheCustomsatleast15daysinadvance,toenabletherepresentativeoftheCustomstowitnessthesame,shouldtheneedforthesamebefelt.

x. Thevalueoftheshipment/lotincludedintheAuctionListshallbefixedinnext7daysbyapaneloftheGovernment-approvedValuersappointedbythecustodian,whichshallincludeanexpertontheproductline,withoutinvolvementofthelocalCustomsauthorities.Thevalueassessedby theApproved-Valuerappointedby the custodian, shall form the“ReservePrice”.

xi. Thecustodianshallfixadateimmediatelyafterassessmentofvalueofsuchshipment/lot,forholdingtheauction/tenderandcommunicatethatdatetothejurisdictionalPrincipalCommissioner/ Commissioner and the Deputy/ Assistant Commissioner, DisposalBranchof theCustomsStation.TheDeputy/AssistantCommissionershallnominate, iffeltnecessary,anofficernotbelowtherankofSuperintendent/Appraisertowitnesstheauction/ tender.TheCustomsshallnotwithdrawany consignmentat the lastmomentfromtheauction/tender,exceptwiththewrittenapprovalofthejurisdictionalPrincipalCommissioner/Commissioner.

xii. Theshipment/lotinrespectofwhichNOChasbeengivenbytheCustomsshallbetakenupforauction.Allbidsofvalueequaltoormorethanthereserveprice,orthoseupto5%lessthanthereserveprice,shallbetreatedassuccessfulbidsforsaleofthegoods.Remainingshipments/lotsofthelist,shallagainbetakenupforthesecondauctionagainstthesameReservePrice.Theshipmentsorlots, forwhichbidsarenotreceiveduptotheReservePrice,shallagainbetakenupforthethirdauctionagainstthesameReservePrice.Theshipments/lots,inrespectofwhichthreeunsuccessfulauctionshavealreadytakenplace,shallbeconsideredforthefourthauctionagainstthesameReservePriceasfixedbeforethefirstauctionofsuchshipments/lots.However,inthefourthauction,suchshipments/lotsaretobenecessarilysoldforthehighestbid,regardlessoftheReservePricefixed.Intheeventoftheshipments/lotsnotbeingdisposedofinthefirstauction,subsequentauction/tendershouldbeconductedinatime-boundmannerandsuchshipments/lotsshouldbetakenupinthenextauction.Custodianshallfurnishshipment/lot-wisebidsreceivedinrespectofeachauctiontothejurisdictionalPrincipalCommissioner/Commissionerforapproval.


xiii.Afterthesuccessfulbidderhasbeeninformedabouttheresultoftheauction,aconsolidatedBillofEntry,‘buyer-wise’willbefiledwiththeCustomsintheprescribedformatbythecustodian for clearance of the goods as per Section 46 of the Customs Act, 1962, read with Un-cleared Goods (Bill of Entry) Regulations, 1972 (Regulation 2 & 3).

xiv. TheproperofficerofCustomsshallassessthegoodstodutyinaccordancewiththeextantlaw,within15daysoffilingoftheBillofEntryandafterassessment,informtheamountofdutypayabletotheconcernedcustodian.

xv. Theauctionedgoodsshallbehanded-overtothesuccessfulbidderafterassessmentandtheout-of-chargeordersgivenbytheproperofficer,onpaymentofdues.

xvi. Thesaleproceedsoftheauctionshallbedisbursed,asperSection150oftheCustomsAct,1962.

xvii.Incasetheentireprocessofauctionisnotconcludedwithin180daysofthecommencementof auction, the custodian shall inform the bidder about further extended time, whichmay be required to conclude the auction process. Wherever, the bidder indicates hisunwillingnesstowaitfurther,hissuccessfulbidwillbecancelledandtheearnestmoney,ifany,depositedwiththecustodianbythebidder,willbereturnedtothebidderunderintimationtotheCustoms.Otherwise,theauctionprocessshallbeconcludedwithintheextendedtimeconveyedtothebidder.

xviii. Wherever,anyamountofearnestmoneyisdepositedbythebidderwiththecustodian,thesameshallberefundedtothebidderwithinoneweekofannouncementofauctionresults,wherethebidfailsintheauction.

5.1.7. Inthecaseofunclaimed/unclearedhazardouswaste,theproceduregiveninChapter 17 in para 17.3 shallbefollowedfordisposal.

5.2. Mis-handled Baggage (MHB)

5.2.1. OncetheMHBisfoundtobeabandonedandtobetakenupfordisposal,aninventoryshouldbedrawnupbytheofficerin-chargeoftheMHBinthepresenceofaGazettedofficer.Whilepreparingtheinventory,theperishableitemsshouldbeclearlyidentified,sothatthesamecanbetakenupfordisposalwithoutdelay.

5.2.2. Specific approval for opening the packages and drawing inventory of each lot, shouldbeobtained from theAdditional/ JointCommissioner in-chargewho shall nominateoneor twoGazettedofficer(s)forthepurpose,whoshallalsosigntheinventory.

5.2.3. Thefirst-and-foremosttaskoftheGazettedofficerso-nominatedandofficerin-chargeofMHB,istocertifytheweightofthepackage.Ifthereisanydiscrepancybetweentheactualweightandthe


recordedweight,heshallimmediatelybringittothenoticeoftheDeputy/AssistantCommissionerin-charge.Inventoryshallbedoneinhispresence.

5.2.4. Afterpreparingthecompleteinventory,thebaggageshouldbesealedwiththeseal(s)oftheofficer(s)presentandtheirspecimensealaffixedonthemarginoftheinventory.AlltheprecautionsforpreparingInventoryofdetained/seizedgoods,asoutlinedatpara3.1 of Chapter 3shallmutatis-mutandis,applyinrespectofthesegoodsalso.

5.3. Time-Expired Bonds/ Goods

5.3.1. Section 72 of the Customs Act, 1962empowerstheProperOfficertosellthebondedgoods,whichhavenotbeenclearedby theowneronpaymentofdutywithin the time limitprescribedthereinorwithintheextendedtimelimit,asthecasemaybe,torecoverthedutyleviableonthegoods.Section72alsorequirestheProperOfficertoissueaNoticedemandingthefullamountofduty,togetherwithpenalties,rent,interestandotherchargespayableaftertheexpiryofthetime-limit,beforedetainingandsellingthegoods.AsinthecaseoftheUCC,MonthlyStatementhastobepreparedintheProformagivenatForm-13bytheDeputy/AssistantCommissionerin-chargeoftheBondedWarehouse(s)givingthedetailsoftheTime-ExpiredBondedgoodsandforwardedtotheDC/AC(Disposal)forinitiatingactionfordisposal.Inthiscasealso,theDC/AC(Bond)willensurethattheCategoriesofthegoodsareclearlymarked,sothatpriorityforthedisposalcanbeaccordinglygiven.Thegoods,afterbeingtaken-over,shallbehanded-overtotheDisposalunitfordisposal.

5.3.2. TheDisposalUnitshallmaintainaseparateregisterintheProformagivenatForm-14.

5.3.3. Assoonasthegoodsaredisposedof,thedetailsofsaleproceedsrealizedshallbecommunicatedtotheDC/AC(Bond),whoshouldtakeactionforapportionmentofthesameintermsofSection 150 of the Customs Act, 1962.

5.4. Goods Detained Under Section 142

Goods detained under Section 142 of the Customs Act, 1962 shall also be inventoried in theproforma given at Form-2. These goods, after giving a Notice to the concerned person(s) fromwhosepossession/controlthegoodsweredetained,maybedisposedofafter30daysofdetention,preferablybymethodsgivenunderChapters 7 and 8.Thesaleproceedsshallbeapportioned as per Section 150.

***



Monthly Report to be Given by the Custodians in respect of Perishable/ Hazardous/ Others Goods

1. Serialnumber

2. IGMNo.&date

3. LineNo.andSub-lineNo.

4. BillofEntryNo.,ifany,anddate

5. NameoftheImporter

6. NameoftheSteamerAgent

7. NameoftheCHA(ifBillofEntryhasbeenfiled)

8. Descriptionofthegoods

9. Quantity

10. DateofissueofthefirstNotice

11. DateofissueofthesecondNotice

12. Dateofintimationtothedepartmentfordisposal

13. Remarks

/BYR.P.A.D.//

***



MonthlyReporttobeSubmittedbytheBondOfficer/DC/AC(Bond)

1. Serialnumber

2. BondRegisterNo.

3. Into-BondBillofEntryNo.anddate

4. BillofEntrydate

5. NameoftheImporter/Consignee/Consignor/

6. NameoftheCHA

7. Descriptionofthegoods

8. QuantityandWeightoftheconsignment/shipment

9. ValuedeclaredasperBillofEntry

10. DateofissueofthefirstDemandNotice

11. DateofissueofthesecondNotice/final

12. Dateoftaking-overthegoods

13. Remarks

***



Time-Expired Bond Register

S. No.

TEBNo./

Date of Receipt

BondReference

No.

Importer’s Name&Address

Description oftheGoods/No.ofPkgs.

Valueof the Goods

Dutyon the Goods

Date of the Receiptof

the Disposal Order

SaleProceeds

1 2 3 4 5 6 7 8 9

***


6.1. OnevitalaspectofspeedydisposalofthegoodsistherealisticfixationofRetailPriceincaseofDirectSaleandReserve/FairPriceincaseofsalethroughAuction/Tender.Thesuccessofdisposalof goodswouldbe greatlydependentupon fixationof fair value, keeping into consideration theconditionofgoods,prevailingmarketprice, technologyused in thegoods, levelofobsolescence,methodofstore-keeping,widerpublicityforauctionofthegoods,thetime-gapbetweentheseizingdateanddisposaldate,etc.

6.2. Normally,theseizurevalueistakenasthe‘BookValue’.AsthisBookValueofthegoodswouldserveasareferenceforthepurposeofvaluation,itsrealisticfixationwithreferencetotheprevailingwholesalemarketpricesisveryimportant.Therefore,tendencytoinflatethevalueofthegoodsatthetimeofseizureshouldbediscouraged.Further,hugedifferenceintheBookValueandtheactualsaleproceedscanleadtoauditobjections.Moreover,whentheseizedgoodsareultimatelyorderedto be restored to the owner of the goods after the same have been disposed of, vast differencebetweentheBook-Valueandtheactualsaleproceedscanleadtolitigation.ForascertainingtheBook-Value,thewholesalepricecanbeascertainedthroughcommoditypricespublishedinthebusinessdailies,internetandtheprevailingpricesinnearbymarkets.Theactualsalepriceofsimilarseized/confiscatedgoodssoldthroughretailshops,etc.,canalsobekeptinview.

6.3. Valuation Committee

6.3.1. ThevaluefixedfordirectsaleshallbeasfixedbytheJointPricingCommittee(JPC)formedby the jurisdictional Principal Commissioner/ Commissioner. The JPC shall have the followingcomposition:

i. Additional/JointCommissionerin-chargeofDisposal

ii. Deputy/AssistantCommissioner(DC/AC)in-chargeofDisposal

iii. Superintendentin-chargeofDisposal

iv. AnyotherDeputy/AssistantCommissioner

v. AnyotherSuperintendent

6.3.2.Toensurethattheitemswhichhavebecome‘ripefordisposal’aredisposedofexpeditiously,itshallbetheresponsibilityoftheAdditional/JointCommissionerin-chargeofDisposaltoensurethat the Joint Pricing Committeemeetsasfrequentlyasnecessary.

Valuation

CHAPTER - 6


6.3.3. TheDC/AC(Disposal)shallprepareaconsiderationlistofitemstobevaluedfordisposal,forplacingbeforetheJPCintheProformagivenatForm-15.Thecolumn4,i.e.,‘theconditionoftheitem’shouldbeinvariablyfilled-upandwhereverapplicable,followingdetailsshouldbespecified:

i. Brandnameandcountryoforigin/manufacture.

ii. Whetherinoriginalpackingornot.

iii. WhethertheManual(s)is(are)available.

iv. Whetheraccessoriesareavailableandifnot,detailsofaccessories‘notavailable’.

v. TheyearofreleaseoftheModelbytheManufacturerinthemarket.

vi. WhethertheModelisobsoleteorstillavailableintheMarket.

vii. Whethertheitemwasfoundtobeoldandused.

viii. Whethertheitemsareinworkingcondition.Ifthereareanumberofitemsinonebatch,thenumberofitemswhicharenotinworkingconditionshallbegiven.Wherethegoodsarenotinworkingcondition,whethertheitemcanberepairedornot,maybementioned;iftheDC/ACisnotsureoftheworkingcondition,specificmentioncanbemadetothiseffect.

6.3.4. The JPC shall determine the ‘Fair Price’ of the goods to be disposed of throughauction-cum-tender:

i. ‘Fairprice’ for thepurposeofauctionshouldbe thebestpriceatwhich thegoodscanbesoldundernormalconditionsandshouldbesomewhatlowerthanthepriceatwhichgoodsofthesamekindandinthesameconditioncouldbesoldbythepurchaserinthewholesalemarket,thedifferencerepresentingtheprofitwhichthebuyerattheauctionexpectstomakeand/orthemargintocoverhimagainsttheriskofpossibleloss.

ii. The ‘FairPrice’shouldbefixedbyascertainingtheprobablepriceofsuchgoods inthewholesalemarket,andsubtractingfromitadiscountrepresentingtheprofitofthebuyerattheauction-cum-tender.Thisdiscount(varyingaccordingtothenatureofthegoods)maybe5%to10%morethantheestimatedprofitwhichthebuyerattheauction-cum-tendercanreasonablyexpecttomakeonre-sale,theincreasebeingtheincentivetotheprospectivebuyerattheauction.Therefore,ifanitemcanfetchRs.100inthewholesalemarket,andthemarginofprofitisRs.20,thenthediscountmaybefixedat25%to30%,andthe‘fairprice’wouldbeRs.75orRs.70.

iii. Apart fromprofitmargins and discounts allowed,while fixation of ‘Fair Price’, furtherdiscountsbasedonthefollowingfactorsmaybeallowed,dependinguponthenatureofcircumstances:


a. Sizeofconsignment;

b. Conditionofgoods;Factorsasmentionedatpara 6.3.3 canbetakenintoaccount;and

c. Nowarrantybeingattachedtothegoods.

iv. TheBookValueofthegoodsshallhavenobearingonthe‘FairPrice’.TheCIFvalueandapplicablerateofdutyshouldfindaplaceinthevaluationfileonlytoserveasacomparisonwith the ‘Fair Price’ arrived at, with reference solely to the wholesale market price.Further,suchacomparisonshallbevalidonlyinrespectofgoodswhichhave‘landeduptooneyearbeforethedateonwhichtheyarevaluedforpurposesofdisposal’.Inrespectofgoodswhichhavelandedbeforeoneyearfromthedateonwhichtheyarebeingvaluedforpurposesofdisposal,theBookValueshallnotbeusedevenasatoolforcomparisonwiththe‘FairPrice’determined,withreferencetothewholesalemarket.

v. The‘FairPrice’arrivedinthemannerdescribedaboveshallbethe‘ReservePrice’.

vi. Toensuresecrecy,theJPCPriceSheetshouldbekeptsealedwiththeDC/ACin-chargeofDisposal,whoisin-chargeofauction.

6.3.5 AsdepartmentalofficersmaynotpossesstheexpertisetoassessthetechnicalparametersandarriveataFairPricethatislikelytobeacceptedbypotential/prospectivebuyers,technicalexperts,IncomeTaxRegisteredValuersandCharteredEngineers,etc.,shouldbeactivelyassociatedinthefixationofpriceofthegoodsbytheJPC.Accordingly,forvaluationofmachinery,theassistanceoforganizationslistedintheForeignTradePolicycanbetakenandforvaluationofmotorvehicles,theassistanceofAutomobileAssociationsortheMotorVehicleDepartmentofthelocalStateGovernmentcanbetaken.Inallcases,theiropinionswouldonlybe,inthenatureofrecommendationsandshouldbeapplied,takingintoaccountthefactsandcircumstancesofeachconsignment.TheJointPricingCommittee(JPC)wouldtaketheirrecommendationsintoaccountandfixtheprice.TheProformafor preparing the details of goods for the purpose of valuation is given at Form-16.

***



Consideration List

S.No.

EntryNo.

Date of Seizure/Import

Condition of the Item

UnitofQuantity

Code

JPC,etc.Price, if

Available

WhetheranyChangeinJPCPriceis

WarrantedandifYes,why?

PriceAscertained

in the Market,

including GST,ifnoJPCpriceisAvailable

Priceper UnitFixedbythe

Committee

1 2 3 4 5 6 7 8 9

***


Form - 16 (ReferPara6.3.5)

Proforma for Examination and Valuation

1. NameoftheCFS:2. LotNo.:3. NameoftheVessel:4. IGMNo.:5. LineNo.:6. Importer’sName&Address: 7. CHA’sName&Address:8. Pendingsince:9. DateofissueofFinalNoticeu/s48oftheCustomsAct,1962:10. Marks&Nos.:11. No.ofpackages(LCLContainers)/(Container’sparticulars)incaseofFCL,consignmentsas

perManifest:12. Quantitydeclared:13. GrossWeight:14. NetWeight:15. Quantityineachpackage:16. Totalquantity&weightavailableonthedayofinspection: (a)Detaileddescriptionofthegoods: (b)Brand/CountryofOrigin: (c)Specificationofthegoods: (d)ResidualShelf-lifeavailable (e)Conditionofpacking: (f)Ifpackingisnotintact,whetherthegoodsgotdamaged? Ifso,theextentofdamage: (g)Actualconditionofthegoods:17. ValueasperB/E,Invoice,etc.:18. Goodsrestrictedforimportornot(CTH):19. Duty(Presentrateapplicable):20. Totallandingcost:21. DetailsofMarketEnquiry:22. ReservePriceproposed

[Note:Shelf-lifehastobementionedwhereverapplicable.TestReport,ifany,hastobeattached.]

Signature:Address:

***


7.1. Disposal Methods

7.1.1. Thereisawidevarietyofgoods,varyingintype,brand,age,etc.,lyingwiththeDepartment.Thegoodsandtheirstock,etc.,varyfromplace-to-placeandtime-to-time.Therefore,nostandardizedmethod or approach of disposal can encompass all the peculiarities of the goods kept at different placesthroughoutthecountry,atalltimesandunderallthecircumstances.

7.1.2. Themannerofdisposalofthegoodsmayvaryonthebasisofthetypeofgoods,lots,quantity,condition, quality, etc., and also from time-to-time. However, there are threemajormethods ofdisposal,namely,E-auctionorauctionthroughinternet,publicauction-cum-tender,anddirectsale.Whilethespecificandthegeneralguidelinesarenodoubtimportant,yetofficersresponsiblefordisposal,especially,thePrincipalCommissioner/Commissionermustexercisetheirbestjudgment,discretionand initiative toadoptanyof thesemethods fordisposal,withsuitablemodifications,asdemandedinanygivensituation.Forexample,itmaymakemoreeconomicsensetodisposeofpromptlyatevenalowerpriceofferedforanitemwhichoccupieshugespaceandforwhichtherentpayablemayneutralizeanyhighervaluerealizedatalaterdate.

7.2. Auction

7.2.1. Auctionsalesarethepeculiartypeofsaleofthegoods.Thewayandthemethodofauctionsalesaredifferentfromthoseofordinarysales.AsperSection 64 of the Sale of Goods Act, 1930,inanauctionsale,thesaleiscompletewhentheauctioneerannouncesitbythefallofthehammeroranyothercustomarymanner.Untilthatisdone,abiddercanretracthisoffer.Abidderisalsoatlibertytowithdrawhisbidatanytime,beforeitisacceptedfinallybytheauctioneer.Thebidismerelyanoffer,anditbecomes,irrevocableonly,when,itsacceptanceisannouncedbytheauctioneer.Inshort,thebiddercanretracthisbidtillthehammerfallsoruntilasimilarannouncementismade.Whenthegoodsaresoldinlots,eachlotisprima-faciedeemedtobethesubjectofaseparateContractofSale.Arighttobid,maybereservedexpresslyby,oronbehalfof, theseller,andif it isnotsoexpresslyreserved,itisunlawfulforthesellertobid,eitherhimselfofthroughanyperson.ThesalemaybenotifiedtobesubjecttotheReservedorupsetPrice.

7.2.2. Whenanauctioneersellsthegoods,heimpliedlyundertakesthefollowingfourobligations:

i. Hewarrantshisauthoritytosell.

ii. Hewarrantsthatheknowsofnodefectinhisprincipal’stitle.

iii. Heundertakestogivepossessionagainstthepricepaidintobuyer’shands,and

Auction and Tender

CHAPTER - 7


iv. Heundertakesthatsuchpossessionwillnotbedisturbedbyhisprincipalorhimself.

7.2.3. Auctionsmust be held periodically by the Commissionerates for disposal of the ‘ripe fordisposal’ goods. The periodicity of the auctions shall be decided by the jurisdictional PrincipalCommissioners/Commissionersbasedonthequantumofgoodsavailableforauction.ThefollowingGuidelines/proceduresshallbefollowedforsalethroughauction.

7.2.4. For thepurposeof anAuction, anAuctionCommittee consistingof theDeputy/AssistantCommissioner (Disposal), one Deputy/ Assistant Commissioner nominated by the concernedPrincipalCommissioner/CommissionerandtheSuperintendent(Disposal)shouldbeconstituted.WhereveritisnotpracticabletoformanAuctionCommitteewithoneormoreDeputy/AssistantCommissioner,thePrincipalCommissioner/Commissionermayinhisdiscretion,formaCommitteeconsistingofspecifiedclassesofofficers,lowerinranktothatoftheAssistantCommissioner.ThePrincipalCommissioner/Commissioner,may,similarly,designatetheofficersforconductingvariousitemsofwork connected to anauction.TheAuctionCommittee, at theveryoutset,mustdecideaboutthefollowingissues:

i. LotstobeincludedintheAuction;

ii. ThetimeanddateofAuction;

iii. Thenatureofpublicitytobegiven;

iv. Recommending the appointment of auctioneer and the Terms & Conditions of his appointment;and

v. DraftingtheconditionsofsalethroughAuction.

7.2.5. The Auction Committee may also recommend cases to the Principal Commissioner/Commissionerfordisposalofgoodsbytender-cum-auction,bytenderoranyothermodeofdisposal,wheresuchgoodshavenotfetchedorareunlikelytofetchthe‘fairprice’attheauction.ThePrincipalCommissioner/Commissionershall,accordingly,decidethesematters.TheDepartmentwillbeatlibertytoofferanygoodsforsalebyauction-cum-tender,ortenderorbyprivatetreatyoranyothermeans,‘otherthananauction’,wheneverdeemedfittodoso.

7.2.6. Forthepurposeofsaleofgoodsbywayofauction,thePrincipalCommissioner/CommissionerisrequiredtoappointanAuctioneer.TheAgreementofAppointmentshallinitiallyremaininforceforaperiodofoneyear,whichcanbereviewed&renewedthereafter.

7.2.7. ThedutiesofanAuctioneerare,inter-alia,asfollows:

i. TopreparedraftAuctionNoticeinconsultationwiththeAuctionCommitteeforapprovalofthePrincipalCommissioner/Commissioner.

ii. Togivewidepublicity in respectof the goods tobe auctionedathis cost, in at least twoleadingEnglishnewspapersorHindinewspapers&twovernacularnewspapers.


iii. Toputupthegoodsforsaleinsuchlots,asapprovedbytheAuctionCommittee.

iv. Toarrangeforexaminationofthelot(s)bytheprospectivebiddersbeforethedatefixedforauction,oncomplianceofsuchTerms&Conditions,asmaybespecified.

v. Toconductauction,inthemannerandasperconditionslaiddownbytheAuctionCommittee;andtoannounceandpublishallsuchconditionsathisowncost.

vi. TocollectandimmediatelydeposittheamountofEarnestMoneyandalsoanyotheramountsrealizedorcollectedonthedayofAuction,withtheDepartment,failingwhich,heshalldepositthefullamountwithin24hoursoftheauctionwiththeDepartment.Thiswouldbe,withoutprejudicetoanyotherremedytheDepartmenthas,onaccountofsuchbreachagainsthim.

vii. Tocancelabidforthwith,ifthebidderfailstopaytheearnestmoneyandre-auctionthelot/lots.

viii. Tocollectthebalanceamountofthebidfromthebidderwithinthetimeprescribedfromthedateofauctionorwithinsuchextendedtime,byCash/Draft,asmaybespecifiedbytheAuctionCommitteeanddepositthesamewiththeDepartment.

ix. Toimmediatelycommunicatetothesuccessfulbidder,thedecisionoffinalacceptanceoftheprovisionallyacceptedbids.

x. Toprepareintriplicate,theSaleSheetintheformatgivenatForm-17whichshallbesignedimmediatelyafterthesale,bothbytheAuctioneerandtheSupervisingofficer.

xi. TosendonecopyofthesignedSaleSheettotheCustomsWarehouseSuperintendentandtheothercopytotheChiefAccountsOfficer.

xii. Toprepare,intriplicate,aFinalSaleAccountoncompletionofauctionintheformgivenatForm-18 withinthreeworkingdays,showingtheproceedsrealizedandtosubmitacopythereoftotheofficersupervisingtheauctionsaleandtotheChiefAccountsOfficer.

xiii. Tosubmitaseparatebill,induplicate,forhisCommission.HeshallnotdeducthischargesfromthecollectionsonaccountofAuction.

xiv. TheAuctioneerortheirstaffshouldnot,directlyorindirectlybidfororpurchaseanylotattheauction,exceptwiththepriorpermissionoftheDepartmentinwriting.

7.2.8. TheNoticeissuedbytheAuctioneermuststipulatethattheofficersupervisingtheauctionreservestohimselftherightoffixing‘ReservePrice’forthegoods,putupforsalethroughauctionandofwithdrawingpartorwholeofthegoodsfromtheauction,ifconsiderednecessarybyhim,withoutassigninganyreason.

7.2.9. TheAuctioneershallconducttheauctionsattheGodownsownedorhiredbytheDepartment.


TheAuctioneerwillnotbeentitledtogetfromtheGovernmentanyconveyancecharges,etc.,incurredinconnectionwith the transportof their staff, even ifpropertyorgoodsarestoredatGodownssituatedoutsidetheCustomHouseorplaceofauction.

7.2.10. Onlyonthecompletionofasaleandthecollectionofentiresaleproceeds,theAuctioneershallbeentitledtoaCommissiononthegrossproceedsthereof,paidandcreditedtotheGovernmentaccount.Aresaleshallbetreatedasafreshsale.Thus, incaseofre-sale, theAuctioneershallbeentitled toCommissiononly in respectofproceedsof the resaleandnoton theproceedsof theprevioussale.

7.2.11.Whereregularauctionsareconductedandalargenumberofconsignmentsareavailable,itmaybeadvisabletoprepareacataloguecontaining,inter-alia,thedetailsoflotsandphotographsoftheitems.ThesemayalsobeuploadedontheCommissionerate’swebsite.

7.2.12.Forensuringmaximumparticipation,widespreadpublicitymustbegiventotheauction,asperthefollowingguidelines:

i. AdvertisementofthegoodsinatleasttwoleadingEnglishorHindinewspapersandtwovernacularnewspapers,istheminimumrequirementsofpublicityforauctions.

ii. Thedecisionsontheadditionalmodesandlevelofpublicity,likeusinginternet,T.V.,radio,yellowpages,tradedirectoriesandotherpublicationsavailableinthemarket,puttingupposters in the localandwholesalemarketsof thecommoditiesput forauction,maybetakenbeforehandbythePrincipalCommissioner/Commissionertoencouragemoreandmorepeopletoparticipateintheauction.

iii. The details of auction should also be put up on thewebsite of the Commissionerate/CustomHouseandoftheCBIC.

7.3. Caution Money, Registration of Bidders, Examination of Lots, Earnest Money, etc.

7.3.1. TheCautionMoneymaybefixedinadvance.Itshallbe5%ofvalueofindividualLotwithamaximumlimitofRs.5,00,000/-incaseofnon-ValuablesandmoreincaseofValuables.Biddersmay be asked to deposit the cautionmoney and get registered, after furnishing all the relevantinformation, including telephonenumber, PAN, etc.OnlyRegisteredBiddersmust be allowed toinspectthelotsandbidintheauction.Thecautionmoneyshouldbeadjustedagainsttheearnestmoneyorrefunded,asthecasemaybe,attheconclusionoftheauction.Thereisnoobjectiontotheownerofthegoodsbiddingintheauction.Ifthebidisfairandhehappenstobethehighestbidder,thegoodsmaybesoldtohim.

7.3.2. Theregisteredbidderswouldbeallowedtoexaminethelotsandcouldbringoneadditionalpersonforconsultation&expertexamination.Examinationshallbedoneonlyinthepresenceoftheofficerappointedforthepurpose,whichmaybetheDC/AC(Disposal)and/ortheSuperintendentin-chargeoftheWarehouse.


7.3.3. TheEarnestMoneydepositsbythebidders/purchasersfortheauction,maybefixedatthefollowingratesforconfirmedbids:

i. ForsalesnotexceedingRs.50,000/- Fullpayment.

ii. For sales exceeding Rs. 50,000/- but not exceeding Rs.5,00,000/-(foreachindividuallot)

25% subject to minimum of Rs.50,000/-

iii. ForsalesexceedingRs.5,00,000/-(foreachindividuallot) 25%ofSalesValue

7.3.4. Iftheacceptanceofthebidisprovisionalonaccountofthebidpricebeinglowerthanthe‘reserveprice’, theearnestmoneyshallbe10%of thebidamount.However, ifhavingregardtothe local conditions, it is considerednecessary, to insistonahigher scaleof earnestmoney, thesamecanbefixedprovidedthePrincipalCommissioner/Commissionerissatisfiedthatsuchhigherscalewouldnothaveanyrestrainingeffectontheprospectivebuyers.Further,theNoticeissuedtobidders,givingthegeneralTermsandConditionsofsalebyauction,shouldclearlystipulatethat:

i. Theearnestmoney,asprescribedabove,shallhavetobedepositedonfallofthehammer;and

ii. The balance amount shall be paid within the time period prescribed or as may beannouncedduringtheauction,failingwhichthesaleshallbetreatedascancelledandtheearnestmoneyshallbeforfeitedtoGovernment;andthegoodsshallberesold.

7.3.5. Theotheressentialconditionsofsalewouldbe,asfollows:

i. Goodsshouldbesoldon‘AS-IS-WHERE-IS’basis.

ii. AnAuctionLotRegister,intheproformagivenatForm-19, shall be made before the start oftheauction;

ii. IfthebidderfailstopaytherequiredEarnestmoney,requiredtobepaidimmediatelyafterthelotisknockeddowninhisfavour,thebidshallstandcancelledforthwith.Thecautionmoneypaidbythebiddershallstandforfeitedonaccountofthisactofindiscretion.Theofficer supervising the auction can also debar the said bidder from bidding in the current andfutureauctions.

iv. Ifthebidisnotaccepted,theEarnestMoneywillbereturnedtothebidder.

7.3.6. Ordinarily,thegoodsshouldnotbeputupforauctionmorethanfourtimes.Onlywhenthereisadoubt,and/orthereisawrittenreportoftheSupervisingofficerthatbiddershadformedacartelandthepriceofferedwasnotgenuine,aconsignmentshouldbeputupforauctionforanymoreno.oftime(s).


7.4. SupervisionofAuctionandRoleofSupervisoryOfficers

7.4.1. TheauctionforconfiscatedgoodsshouldnormallybeunderthesupervisionoftheDeputy/Assistant Commissioner/ Superintendent, as may be decided by the Principal Commissioner/Commissioner.However,ifthebookvalueofthegoodsoftheindividuallot/lotsismorethanRs.1crore,theauctionshouldbesupervisedbytheAdditional/JointCommissioner.Incaseofauctionconductedby thePortTrust, the InlandContainerDepot (ICD) or theContainer Freight Station(CFS)forunclearedcargo,thePrincipalCommissioner/Commissionershoulddeputesuitablelevelofficer.

7.4.2.The supervisory officers shall undertake the following responsibilities with regard to theconductoftheauction:

i. Enforcedisciplinebymakingcleartoallthebiddersthattheymustoccupytheseatsallottedtothemonly&displaythebadgewithregistrationnumbertotheCrier/Auctioneer,whilemakingabid;andthattheywereexpectedtoadheretothebusinessethicsandobservediscipline;thatCross-talksanduseofgestureswerestrictlyprohibited,andcouldleadtoforfeitureofCautionMoneyandbaronparticipationintheauction.Iftheofficersupervisingtheauctionsodirects,thebidderswillkeepthemobilephonesoutoftheauctionhalland/ordepositthemwiththesecuritypersonnel.

ii. Strive togetmaximumbidsandprevent formationof cartelbyanymeasure, includingexercisinghisdiscretiontogiveprioritytosomelot(s)overothers;splitorclubthelotsorwithdrawlot(s)fromsale,anytimebeforeorduringtheauction,withoutassigninganyreason.

iii. Maintainarecordofallthebidsateveryauctionofpublicproperty.Butwherethenumberoflotsputupforpublicauctionisverylargeandthebiddingisfast,strictrecordofallbidscannotbemaintainedwithouthamperingthetempoofbidding.Insuchcases,itwouldbesufficienttokeeparecordoftheamountsofthebids,withoutthenamesofthebidders.Completebidlists,includingtheparticularsofbiddersinrespectofcasualauctions(forperishables,etc.),wherepublicityislimited,should,however,bekept.

iv. Nobidshallbedeemedtobeaccepted,withouttheconcurrenceoftheofficersupervisingtheauction.

Withdrawfromsale,thelotorlotsforwhichbidsarelowerthanthereservepriceorifthereisringamongthebidderstokeepthepricefromgoingup.

7.5. Acceptance of Bid and Payment of Balance Money

7.5.1. Thehighestbidintheauction-cum-tendershallbeacceptedbytheChairmanoftheJPC,ifthebidismorethan,orequaltoorclose(notlessthantheFairPriceby10%).Otherwise,thegoods


shallbeputupforauction-cum-tenderthesecondtime.Intheeventofthegoodsnotbeingsoldinthefirstthreeauction-cum-tenders,thegoodsshallbesoldatthehighestbid obtained in the fourth auction-cum-tenderwith theapprovalof thePrincipalCommissioner/Commissioner,unless thePrincipalCommissioner/Commissionerhasstrongreasonforgoingforfurtherauction(s).

7.5.2.When thebids are acceptedprovisionally, subject to confirmationby theDepartment, thefinaldecisionshallbenotifiedtotheauctioneerwithin7workingdaysfromthedateofauction;andtheauctioneershallimmediatelycommunicatetothebidderthedecisionoftheDepartment.

7.5.3. Thebuyershallpaythebalanceamountofthepurchasepricebetween10.00Hrsand18.00Hrs.onanyworkingday,withinthemaximumtimelimit,asperthechartgivenbelow:

i. If a bid amount is less than Rs.5 Lakh, within 5 days from the date of confirmation/approval.

ii. IfabidamountisRs.5LakhtoRs.10Lakh,within7daysfromthedateofconfirmation/approval.

iii. Ifabidamount isAboveRs.10LakhuptoRs.20Lakh,within8days fromthedateofconfirmation/approval.

iv. If a bid amount is Above Rs.20 Lakhs upto 1 Crore, within 12 days from the date ofconfirmation/approval.

v. IfabidamountisAboveRs.1Crore,within15daysfromthedateofconfirmation/approval.

7.5.4. However,lessertimelimitsmaybeprescribed,ifthesameareinvogue,intheCommissionerate.ThePrincipalCommissioner/Commissioner,inexceptionalcircumstancesandonsufficientcausebeingshown,mayallowfurthertimenotexceeding5days.TheamountofcautionmoneyaswellasearnestmoneywouldbeforfeitedtotheGovernment,ifthesuccessfulbidderfailstopaythebalancewithintheprescribedtimelimit.

7.6. Delivery of Auctioned Goods

7.6.1. Thebiddercantakedeliveryofgoodsoftheconfirmedlots,subjecttoreceiptoffullpaymentbythedepartment,andonproductionofproofofpaymentofalltaxes,leviesandmoneys/monies,etc.

7.6.2. Deliveryshouldbetakenwithin3workingdays(called‘FreePeriod’)beyondthelastdateforpaymentallowedhereinabove.ThePrincipalCommissioner/Commissioner,athisdiscretion,onthesufficientcausebeingshown,mayallowfurthertimefortakingthedeliverynotexceeding10daysand,onsuchterms&conditionsashemayspecifyinwriting.


7.7. Sales Through Auction-Cum-Sealed Tender

When thegoodsarenot sold in the firstauction, the secondauction for suchgoodscanalsobeheldunderauction-cum-sealedtender.Theadvantageofauction-cum-sealedtenderisthatitisnotnecessary forapersontocomeout in theopenandbid in theauction.Also,auction-cum-sealedtenderhelps inbreaking formationof cartels.Theguidelines for auction-cum-sealed tender, areoutlinedbelow:

i. Sealedtenderoptionshallbeprovidedafterthegoodshavebeensubjectedtoat leastoneauction.

ii. TheAuctionNoticeshallspecificallyidentifythelotswhichareavailableforauctionaswellassealedtender,andalsospecifytowhomthesealedtendershallbeaddressed.

iii. Sealedtenderscanbeputinaboxplacedforthepurposeintheoffice.Theauctionnoticeshallspecifytheplacewheretheboxislocated.

iv. Thesealedtenderscanbesentbypostalso.Butifthetenderisnotreceivedwithinthedateandtimespecifiedforthereceiptofthetender,suchtendersshallbeignored.Personssendingtendersbyposthavetosendthetendersattheirownrisk

v. Assoonasasealedtenderisreceivedbypost,theofficerreceivingthesameshallaffixhissignature, name, designation on the envelope andput it in the boxmeant for putting thesealedtenders,ifithasbeenreceivedintime.

vi. Beforecommencementoftheauction,theboxcontainingsealedtendersshallbeopenedintheauctionhallinthepresenceofatleasttwowitnesseswhomaybebiddersandwhoshallcertifytothateffect,alongwiththeOfficerwhoissupervisingtheauction.

vii. Withoutopeningthesealedtenders,tendersshallbesegregatedlot-wiseandkeptwiththeofficersupervisingtheauction.

viii. Allthesealedtendersshallbesuper-scribedwiththedetailsgivenbelow,andtendersthatarenotsosuper-scribed,areliabletorejectionwithoutopening.

a) Customsauctionon(date)…………………..

b) Sealedtenderforlotno.(‘itemname’canalsobegivenbutnotnecessary.)

ix. AssoonasthebiddingisoverforaparticularLot,beforeconfirmingtheacceptanceorthedecisionaboutthebid,allthesealedtenderspertainingtothatlotwillbeopenedandifanytenderisfoundhigherthanthehighestbidintheauction,thattenderwillbeconsideredforthepurposeofmakingdecisionaboutthesale.


x. ThetendershallbeintheformgivenatForm-20.

7.8. Sale Through Tender

Though this isa lesscommonmodeof salebutwhen there is cartel formation, it isveryuseful.StandardformoftenderisgivenatForm-21.FormmustnotbesoldfreebutatthepriceofRs.50/-orso,todiscouragefrivoloustendering.Tomaintainsecrecyoffair/estimatedprice,earnestmoneyshouldbefixedatrateshigherthan5%oftheestimatedvalue.Facilityofdepositingearnestmoneyto any other Central Govt. Treasury or byDemandDraft (DD)maybe allowed to accommodateoutstationtenders.

***


Form-17 (ReferPara7.2.7(x))

Sale Sheet (in triplicate)

PRINCIPALCOMMISSIONER/COMMISSIONER……………………………………

1. NameoftheAuctioneer……………………………………….……………………

2. OfficerSupervisingsale……………………………………………………………

3. PlaceofAuction……………………………………………………………………….

4. Auctionconductedby…………………………………….………………………….

5. Dateandtimeofauction………………………………..…….……………………

6. ApproximateNo.ofBidders…………………….………………………………..

7. HighestBid…………………………………………………………………………........

S.No. S.No.asperStockRegister Items Name of the HighestBidderinAuction

1 2 3 4

Total(inwords)Rupees……………………………………………………………

TotalRs.…………………………………………………………………………….

Checked and found correct

Theauctionwasheldundermysupervision.

SuperintendentofCustoms/

Dy./Assistant/Jt./Addl.CommissionerofCustoms

……………………………………

Auctioneer:

Date……………………………….

***


Form-18 (ReferPara7.2.7(xii))

Final Sale Account (in triplicate)

Serial No…………………..

PRINCIPALCOMMISSIONER/COMMISSIONER……………………………

Sale account held at………………………On……………at……………

S.No. S.No.asperStockRegister Accepted bid Remarks

TotalRs………………………………….

Total of accepted bids delivered Rs……………………………………………………….

Totalearnestmoneyabandoned Rs……………………………………………………….

Total realized for sale Rs……………………………………………………….

To

TheDy./AssistantCommissioner/

Superintendent/ChiefAccountsOfficer.

Sir,

I beg to report the sale held at………………………on…………………………………………..by us, the sumofRs……………………………………………….was due to the Government. The samewas deposited in theReserveBankofIndia,videT.RNo………………………….dated………………………Copyenclosed.

Yoursfaithfully

Auctioneer

***


Form-19 (ReferPara7.3.5(ii))

Proforma of Auction Lot Register

1. S.No.:…………………………………………………………………...

2. LotNo.:………………………………………………………………...

3. Ref.No.:………………………………………………………………..

4. Descriptionofgoods:………………………………….………...

5. Location:………………………………………………..…………….

6. CIF/BookValue:…………………………………………………..

7. Dutyinvolved(attimeofimport):……………………….....

8. RF/PP:………………………………………………………………...

9. SalesValue:………………………………………………………….

10. Deposit–particulars:…………………………………………...

11. DateofAuction:……………………………………………………

12. RemittanceParticulars:………………………………………..

13. DateofDelivery:…………………………………………………..

14. Remarks/Ack.ofBidder:……………………………………...

15. Audit:………………………………………………………………….

***


Form-20 (ReferPara7.7(x))

Tender Form

1. Nameandaddressofthebidder

2. Dateofauction

3. LotNo.forwhichsealedtenderismeant

4. Descriptionofthegoodsinthelot(Notcompulsory)

5. PriceofferedinRupees

6. EMDamount

7. D.D.No.

8. DDdrawnon(Bankbranchnameandaddress).

9. DateoftheDD.

10. Signatureofthetenderer

***



Standard Form of Tender

TenderNo.--------------------------------

Dueforreturnon-------------------------

Andwillbeopenedon------------------

At-----------inpublic----------Office

Toremainopentill-----------------------

TENDERFORTHEPURCHASEOF___________________________________________________

To

ThePresidentofIndia

ThroughtheDy./Asstt.CommissionerofCustoms

(Outdoor)

Custom House/ Commissionerate

Theundersignedherebytender(s),forthepurchasefromyouofthegoodsspecifiedincolumnoneoftheScheduleheretoorforsuchportionthereof,asyoumaydeterminebyyouracceptance,atthepricequotedincolumn2ofthesaidScheduleandtotakedeliverythereofbythetimestatedinthecolumn3ofthesaidScheduleandsubjecttotheconditionssetoutinthe“InstructionstoTenders”and“GeneralConditionsofContract”setforthintheSchedulehereto,andalsoagree(s)toholdthisofferopenforyouracceptancetillthedatespecifiedabove.

ReceiptNo……………issuedbytheCustomHouse/CommissionerateTreasuryforRs………………….isenclosedasEarnestMoney.

Theundersignedunderstand(s)thatthetenderdocumentshavebeensoldtohim/them.He/theyis/ are being permitted to tender in consideration of the stipulation on his/ their part that after submittinghis/theirtender,he/theywillnotresilefromhis/theirofferormodifythetermsandconditionsthereof.Shouldtheundersignedfailtoobserveandcomplywiththeforegoingstipulation,theearnestmoneyshallbeforfeitedtoTHEPRESIDENTOFINDIA.

Date:

(Witness) Signatureof

(Address) TendererAddress


THE SCHEDULE

Signatureoftenderer(s)

1st Column 2nd Column 3rd ColumnGoodsforwhichtenderismadeandwheresituated

Price tendered (in figures aswellasinwords)

No.ofdaysguaranteed/grantedfor removal from Godown ofgoods purchased

(Witness)Signatureoftenderer(s)

***


8.1. Internet Auction

8.1.1. Information technology and Internet are extensivelyused inprocurement anddisposal ofgoodsandservices.TenderingandauctionusingInternet,hastheaddedadvantageofdisseminationofinformationtofar-flungareas,witheaseofaccessandresponse.Onecanparticipateine-tendering,e-procurementore-auctionfromanypartoftheworld.Inviewofthemassiveadvantagesofferedby informationtechnology, it isdesirable that theCommissioneratesshouldusee-auctionas theprimarymodeofdisposalofthegoods.

8.1.2. Broadly,theguidelinesfore-auctionarethesame,asthatforthephysicalauctions,giveninChapter7.However, several safeguardsneed tobe followed, including theminimum levelof theofficeformanagingthesoftwareshouldbetheDC/AC.Further,theroleoftheSystemsAdministratorshouldbelimitedonlytoenteringthe‘ReservePrice’andalldiscretionarypowers,includingthatofacceptanceofthebids,willbeexercisedbytheofficersoftherankoftheDC/ACorabove.Thesoftwarefore-auctionshallhavein-builtsafeguards,soastopreventitsmisuse.

8.2. E-auction Through M/s MSTC Ltd.

8.2.1. FieldformationsshallavailtheservicesofM/sMSTCLtd.forconductinge-auction.

8.2.2. Thepersons,whowanttoparticipateine-auctionofCustomsonly,canregisterwithMSTConpaymentofone-timeregistrationfee(non-refundable)ofRs.5000only+ApplicableTaxes(non-refundable).IthasbeenfurtherclarifiedthatregistrationfeewillbeRs.10,000only+ApplicableTaxes(non-refundable),forpersonswhowishtoavailofallthee-auctionsconductedbyM/sMSTCLtd.,includingCustomse-auction.

8.2.3. Currently,1.75%oftheactualsaleproceedsoftheauctionispayabletoM/sMSTCLtd.byCustomsas ‘servicecharge’.AformalSingleContract/Agreementhasbeensignedinthisregard,on behalf of the CBIC through the Principal Commissioner/ Commissioner of Customs (General&MulundCFS),MumbaiwithM/sMSTCLtd.,whichisapplicableacrossalltheformations(basedonpara9.1ofthesaidAgreement).

8.2.4. The procedure for e-auction throughM/sMSTC Ltd. is displayed on theirWebsite:www.mstcauction.com.The e-auctions arebeing conductedbyM/sMSTCLtd. on theirwebsitewww.mstcecommerce.com,undertheheading̀ IndianCustomse-auction/e-tender`.ThewebsitecanalsobeaccessedfromtheCustomswebsitewww.icegate.gov.in.

Internet Auction

CHAPTER - 8


8.3. Registration of Principal/ Seller

8.3.1. TheOrganization/ Seller/ Principal desirous of selling itsmaterials throughM/sMSTCLtd.’se-auctionportalwillhave to firstregisteronlineon theire-auctionwebsite,byclickingon“NewUser”,selecting“Seller”andfilling-uptheSeller’sRegistrationForm.Itismandatorytofillupthee-mailaddress&GSTIN(ifregisteredwithGSTauthorities)andtogenerateauniqueLoginID&Password.ThestepsforonlineregistrationforCustomse-auctionaregivenasunder:

i. Logontothewebsiteatwww.mstcecommerce.com.

ii. Clickonthelink‘Indian Customs e-auction/ tender’ forabriefwrite-upoftheCustomsandCentralExcise/CGSTe-auctionprocess.

iii. ClickonHometobedirectedtotheofficialwebsiteofCustoms-www.icegate.gov.in.

iv. To register as new seller or to enter the bidding area, click on the link ‘Proceed for e-auction/ e-Tender’atthebottomofthepage.

v. Clickonthelink‘Register’togetregistered.

vi. GENERALTERMS&CONDITIONSofe-auctionwillappearonthescreen.Scrolldowntothebottomofthepage,wheretwooptionswillbethere:

a. Register as Buyer, or

b. Register as Seller.

vii. Selectandclickon‘Register as Seller’option.

viii. SELLERSPECIFICTERMS&CONDITIONSwillappearonthescreen.Scrolldowntothebottomofthepage,whereagaintwooptionswillbeavailable:‘Agree’and‘Disagree’.

ix. Selectandclickon‘Agree’button.

x. Seller’sRegistrationFormwillappearonthescreen.Fillupthedesiredinformation.Youwillhavetoselectandclickon‘Customs/ CGST Auction’intheBuyerTypefield.

xi. Allfieldsmarkedwith*aremandatoryandmustbefilledin.

xii. SelectyourUser ID and Passwordandkeepanoteofthesame.

xiii. Pleaseensurethattheemailaddressgivenisavalidoneandispresentlyactive.

xiv. Afterfillinguptheformclickonthe‘Submit’button.


8.3.2. AftersuccessfulonlineregistrationbythePrincipal,M/sMSTCLtd.willsendanautoe-mailconfirmationletter,confirmingthesellerregistrationdetails.

8.4. Registration of Customers/ Bidders

8.4.1. The customers are first required to directly register online onwebsitewww.mstcauction.comandthencompleteoff-lineregistrationformalities.Thepasswordofthecustomerisactivatedonly after they complete the off-line registration formalities, including payment of prescribedregistrationfeesandsubmissionofcopiesofPAN,GSTRegistrationCertificate, latestIncomeTaxReturn,photographandspecimensignature.Aphoto-IDcardisalsoissuedbyM/sMSTCLtd.,tothecustomers.

8.4.2. Onlyregisteredcustomersareallowedtoparticipateinthee-auctions.Duringlivee-auctionbiddings,theidentityofonebiddercannotbeknowntootherbidders,sellersoreventoM/sMSTCLtd.andtherefore,therewillbenopossibilityofanycartelformation.Unregisteredcustomerscanalsoseealldetailsoftheauctionnotice,listofmaterialsandTermsandConditionsofsaleontheirwebsitewww.mstcindia.comandthenregisterwiththemtobid.

8.5. Posting of Auction Notice and Reserve Price

8.5.1. AfterregistrationwithM/sMSTCLtd.,thePrincipal/seller(likeCustoms/CGST)shouldsendtheDisposalList/Termstothemnecessarilythroughe-mail(hardcopiescanbesentonlyaspostconfirmationcopy,iffeltnecessary).M/sMSTCLtd.shallpublicizethesaleonthewebsite,alongwithdetailsofMaterialList,e-auctionSchedule(i.e.,Opening&ClosingDate&Time), InspectionSchedule, Terms& Conditions of Sale, etc. Actual display of Auction Notice on thewebsitewillcommenceundertheheading“ViewForthcomingAuctions”,onlyafteractivationbyMSTC.Normally,thee-auctionstartingdate shouldbekeptataminimumgapof15daysafter thedisplayof theSaleNoticeonthewebsitetoallowthecustomersampletimetomakenecessarypreparationforinspectionandbidding.

8.5.2. ItismandatoryforthePrincipaltoposttheReservePrice(RP)ofalltheLotsonthewebsite(throughhisownpassword)atleasttwoworkingdaysbeforetheStartingDateofAuction,otherwisethee-auctionwillnotstartforthoselots.SubjecttopostingofRPbythePrincipalonthewebsite,M/sMSTCLtd.shallactivatee-auctiononeworkingdaybeforetheStartingDateofe-auction.

8.5.3. ThefollowingstepsshallbefollowedforfeedingtheRPs:

i. UsethePrimaryusernameandpasswordtologontothewebsitewww.mstcecommerce.com.

ii. ClickonReserve Price Entry.

iii. Selecttheauctionfromthedrop-downlist.Itwilldisplayallthelotsoftheauction.

iv. Fillupthecolumnagainsteachitem.


[Note:WhilefeedingtheRP,careshouldbetakenabouttheUnitofmeasurementindicatedagainsteachlot.Forexample,iftheunitofmeasurementiskg,thenRPshouldbeinkg,ifitisinlot,thenRPshouldbeinlotandsoon.]

8.6. Sale Intimation Letters

Onclosingofauction,automaticSaleIntimationLetterswillbeissuedtothehighest(H-1)biddersbye-mailasunder:

i. For ‘Confirmed’ Sale:IftheH-1BidisequaltoormorethantheRP,automaticConfirmedSaleIntimationLetterwillbeissuedtotheH-1Bidderandhewillbeadvisedtodeposit25%SecurityDeposit(SD)within3days.OngettingtheSecurityDeposit,M/sMSTCLtd.shallissueSaleOrder/AcceptanceLettertotheParty,advisinghimtopaythebalanceSaleValuewithapplicableDuties/Taxes,within05days.

ii. For ‘PENDING’ Sale: For the lotswhere theH-1bid is less than theRP, theseH1bidswillbekeptonholdas“Pending”decision.However,thePrincipalshouldcommunicatetheirfinalapproval/rejectionoftheH-1bidswithin7workingdaysofclosingofauction,by posting it online on thewebsite. Once approval is accorded online, the systemwillautomatically fireSale IntimationLetter to theH-1bidders fordepositingofSaleDeed(SD)within3days.OngettingtheSD,SaleOrder/AcceptanceLetterwillbeissuedbyM/sMSTCLtd.totheapprovedH-1bidders,advisingthemtopaythebalanceSaleValue,withapplicableduties/taxeswithin05days.

8.7. E-auction Bidding Process

8.7.1. All Bids will be deemed to be for materials on ‘As-is-where-is’ basis and subject to priorinspectionbythecustomers.Therewillbeapre-determinedStarting-TimeandClosing-TimefortheAuctionbidding.Normally,thebiddingforeachitem/lotwillbekeptopenforaperiodofmaximum4hrs.,orasmaybemutuallyagreed.Oncethee-auctionstarts,theRegisteredCustomermaylogontothesameandchooseaparticularlot/itemforbidding.

8.7.2. Oncethebiddingstarts,thehighestbid(hereinafter,referredtoasH-1bid)atanygivenpointoftimewillalwaysbedisplayedonthescreen,withoutshowingthenameoftheH-1bidder.

8.7.3. Anybidder, includingtheH-1bidder,cangoonrevisinghisbidsoasto improveuponthesame.Therewillbenorestrictiononthenumberofsuchbids/revisions,tillthee-auctioncloses.Nodownwardrevisionorcancellationofbidcanbedonebyanybidder.

8.7.4. Thebiddershallhave theoption tomakeeachbid/bid-improvementmanually,orhecanchoosethe“Auto-Bid”modetogive“StandingInstructions”totheSystemtogoonincreasinghisbidbyaspecifiedincrementalvalueanduptoaspecifiedlimit.

8.7.5. Thee-auctionClosing-Timewillbeautomaticallyextendedby8minuteseverytimethelast


H-1bidisreceivedwithin8minutesofthepre-determinedorextendedClosing-Time.ThisprocesswillcontinuetillthelastH-1bidremainsunimprovedforaminimumperiodof8(eight)minutes,soastogiveampleopportunitytoallbiddersandtogeneratethebestcompetition.(Forexample,iftheClosingTimeis3.00pmandthelastH-1bidisreceivedat2.59pm,thentheClosingTimewillbeautomaticallyextendedupto3.07pm,andsoon).

8.7.6. Anytimeduringthee-auction,thebiddersaswellasthePrincipalcanseetheBid-Historyofthelast10bids.ThePrincipalcanaccesstheBid-HistoryofalllotsaftercloseofE-auction.

8.7.7. Immediatelyafterclosingofe-auction,thebidderscanseetheresultonlineonthewebsitebyaccessing the “AuctionLot Status”whichwill show themdetailsof theLotswonby themon‘Confirmed’or‘STA’basis.Suchdisplayof“AuctionLotStatus”willbeavailabletothebiddersfor3(Three)daysfromthedateofclosingofAuction(excludingthedateofclosing).Althoughafterclosingofauction,automaticSaleIntimationLetterswillalsobeissuedbyemailtothesuccessfulH-1bidders(withcopytothePrincipal)advisingthemtopaytheprescribedEMD/SD,thesuccessfulH-1bidderswillberequiredtopaytheEMD/SDwithin3daysfromthedateofclosingofe-auction(irrespectiveofthedateofissueofSaleIntimationLetter).Itwillbetheresponsibilityofthebidderstopersonallyseethee-auctionresultimmediatelyafterclosingofe-auctionandpaytheSDwithinthesaidprescribedtime.

8.7.8. Afterclosingofe-auction, thecompleteBid-Sheetwithnamesof theH-1bidders,whether‘Sold’/‘STA’/‘Rejected’,etc.canbeseenanddownloadedbythePrincipalfromthewebsite.

8.7.9. Thefollowingstepsshallbetakenforpostingonlineapprovalof“Pending”lots:

i. Useyourprimaryusernameandpasswordtologontothewebsite.

ii. Clickon‘Approval’link.

iii. Selectaclosedauctionfromthedrop-downlist.

iv. Thepagewilldisplaythoselotsforwhichapprovalhastobegranted.Itwillindicateinter-aliatheRP,theH-1rateandtheH-1rateasapercent(%)oftheRP.

v. Checktheappropriateboxunder‘Approved’/‘NotApproved’Headingsfromallthelotsandclickonthe‘Submit’buttonattheendofthepage.

8.7.10.OnreceiptoftheEMD/SD,asignedSaleOrder/AcceptanceletterisissuedbyM/sMSTCLtd.tothesuccessfulH-lbidder,advisinghimtosubmitthebalanceSaleValuewithapplicableduties/taxeswithinthestipulatedtime,viz.,5daysfromthedateofissueofSaleOrder.

8.7.11.ThesuccessfulbuyercanmakethepaymentofEMDandthebalancefinalamountbywayofPayOrder/DemandDraftdrawninfavourofthePrincipalCommissioner/Commissioneranddeposit the samewithM/sMSTCLtd.Aftergetting thepayment from thebuyer,M/sMSTCLtd.


will issue Delivery Order and forward the payments to the Principal. Deliverymay be allowedtothebuyerbythePrincipalagainstproductionoftheirPhoto-IDCardissuedbyM/sMSTCLtd.(containingcustomer’sphotograph&specimensignature).Alternatively,thePhoto-IDCard-holdercanauthorizehisrepresentative,alongwiththePhoto-IDCardoraNotarizedcopyofthesame,totakedeliveryofthematerials.

8.8. Post e-auction Activities

8.8.1. IftheH-1bidderfailstopayEMD/SD,thefollowingactionsmaybetaken:

i. An auto e-mail may be issued to the defaulting H-1 bidder, thereby, deactivating hispassword.Thedefaultingbiddermaybedebarredfromparticipatinginthee-auctionsfor6months.Reactivationofthepasswordafter6monthsmaybeallowed,onlyonexaminationofthenatureofthedefaultbyaSpecialCommitteeatM/sMSTCLtd.’sHeadquarter.

ii. TheLotistobeputupforimmediatere-auction.

8.8.2. In case of Sale of Diamonds, Precious & Semi-Precious Stones, along with these generalrequirements,someadditionalrequirements,asprescribedunderChapter 10 shallberequiredtobecompliedwith.

8.9. Terms and Conditions for Auction

M/sMSTCLtd.hasinplacecertainconditionsforconductingofthee-auction,whichareasfollows:

ii. The Principal Commissioner/ Commissioner concerned may withdraw any lot fromauctionortenderatanytimeorcancelthesameatanystage,priortothedeliveryofthegoods.

ii. Incaseofe-Tender,aninterestedbuyercansubmitthebidonlyonce.

iii. Permission/ ‘No Objection Certificate’ is required to be taken by the buyer from theconcernedauthorities,asspecifiedforrespectiveitems.

iv. Buyersmayreferto‘Bidder’sManual’forinstructionsonbiddingprocess.

v. PaymentofPost-BidEMD/SDhastobedone within3(Three)daysfromthedateofclosingofe-auctionbythehighest(H-1)bidderwhosebidisacceptedonConfirmedBasis,non-paymentwillresultincancellationofbid&automaticdeactivationofBidder’spassword.

vi. PaymentofbalanceSaleValuewithDuties&Taxesistobedonewithin5(Five)workingdays from the date of issue of Acceptance Letter/ SaleOrder byM/sMSTC Ltd. (afterreceiptofPost-BidEMD/SDfromthebidder).

vii. IncaseofdefaultinpaymentofthebalanceSaleValuewithintheprescribedtimelimits,


thetimeforbalanceduepaymentmaybeextendedsubjecttoCustoms/CGSTapproval.DeliveryPeriodwillbe7(Seven)dayscountedfromthedateofissueofDeliveryOrderbyM/sMSTCLtd./dateofissueofReleaseOrderbyCustoms/CGST,asthecasemaybe,(includingthedateofissue)inallcases.

viii. E-auctionResult/Status:Thestatusofthehighestbidshavingbeenacceptedon ‘PendingBasis’,mustbepersonallyseenbythebiddersonlinethroughthelink“AuctionLotStatus”immediatelyafterclosingofe-auction,andpaymentofPost-BidEMD/SDmustbemadeaccordingly.

ix. E-mailaddressofthebiddersmustalwaysbekeptvalid,failingwhichthebidderswillbeheldliablefornon-complianceofpaymentorofanyotherinstructionissuedbyM/sMSTCLtd.tothembye-mail.

8.10. Precautions to be Taken

8.10.1.Thebiddershallbesolelyresponsibleforallconsequencesarisingoutofthebidsubmittedbyhim(includinganywrongfulbidding)andnocomplaint/representationwillbeentertainedbyM/sMSTCLtd./thePrincipal,inthisregard.Hence,thebiddersmustbecarefultochecktheBidAmount/No. of “0”/No. ofDigits/Unit ofMeasurement, etc., and rectify theirbid (if required)beforesubmittingitonthelivefloorbyclickingthe‘Bid’button.Incaseofanybidbeingequaltoormorethan5(Five)timesthecurrenthighestbidforaparticularlot,itwillbedisplayedbywayofa‘WARNING’onthebidder’sscreenbeforeheconfirms/submitsthebid.Thereisnoprovisionforputtingbidsindecimals.

8.10.2.Thesalewillbegovernedbythe‘MaterialList’&‘SpecialTerms&Conditions’(STC)displayedonthe“Live”Floor(andnotunder“ForthcomingAuctions”)aswellasthe‘GeneralTerms&Conditions’(GTC)and‘BuyerSpecificTerms&Conditions’(BSTC),alreadyacceptedbythebidderatthetimeofRegistrationwithM/sMSTCLtd.TheMaterialList&STCdisplayedunder“ViewForthcomingAuctions”onMSTC’se-auctionwebsitearetentative,andsubjecttochangeatM/sMSTCLtd.’ssolediscretionbeforethestartofe-auction.TheBSTCandGTCcanbeseenanddownloadedbygoingtotheHomePageofthee-AuctionWebsiteandclickingon“NewUser”.Participationinthee-auctionwillbedeemedtoimplythatthebidderhasmadehimselfthoroughlyawareof,andacceptedtheSTC,BSTCandGTC.IncaseofanyconflictbetweentheSTCandBSTC,theSTCshallprevail.ThePrincipalshallhavetherighttoissueaddendumtotheSTCorBSTCtoclarify,amend,modify,supplementordeleteanyoftheconditions,clausesoritemsstatedthereinandtheaddendum,soissued,shallformapartoftheoriginalSTC.

8.10.3.Eachlotwillhavetobebid,soldanddeliveredonthebasisoftheUnit/‘UnitofMeasurement’(i.e.,UOM)stipulatedintheMaterialListdisplayedontheAuctionFloorof ‘ViewLiveAuctions’againsttherespectivelot.Anyrepresentation/complaintfromthebiddersforthebidtobemade/havingbeenmadeonthebasisofanyotherUOMwillnotbeentertained.


8.10.4.DuringLive-Auction,onlybrief ‘Lot/ Itemdetails’willbeshownunder ‘Lot-Name’on theAuctionFloor,wherebiddersarerequiredtobid.Thecomplete ‘ItemDetails’canbeseenbythebidders by clicking on the respective item hyperlinked under ‘Lot Name’, and it shall be theirresponsibility to do so before bidding, and no representation/ complaint in this regard,will beentertainedbyM/sMSTCLtd./thePrincipalfromthebidderslater.

8.10.5.M/sMSTCLtd./ thePrincipal reserves the right to forfeit anyamount/money lyingwiththemfromthesuccessfulbidderwhodefaultsinmakingtheduepaymentsagainstthee-Auction,eventhoughsuchamount/moneymaybelyingwithM/sMSTCLtd./thePrincipalonaccountofthesaidbidderagainstanyothercontract/transaction.

8.10.6. Allthematerialsputupforsalethroughe-auctionwillbesoldstrictlyon ‘As-iswhere-is’basisand ‘NoComplaintbasis’.M/sMSTCLtd./ thePrincipalreservestheright toaccept/rejectanyoffer/bidwithoutspecifyinganyreasonthereof.Allquantitiesareonlyestimatedandwithoutanyguarantee.Inspection,limitedtovisualcheckingonly,willbeallowedwithpriorappointmentfromthePrincipal.AnyclarificationrequiredmaybesoughtbythebiddersfromthePrincipalatthetimeofinspection,andnodisputeregardingthematerialoritsphysicalcondition/locationwillbeentertainedthereafter.

8.10.7.AllbidswillbevalidforacceptancebyM/sMSTCLtd.foraperiodof60(Sixty)daysfromthedateofclosingofe-auction,excludingthedateofclosing.Incasethe60thdayfallsonaholidayorremainsclosedforM/sMSTCLtd.,suchbidswillbedeemedtobeautomaticallyextendedtobevaliduptothenextworkingdayofM/sMSTCLtd.

8.10.8.Allsaleswillbesubject to ‘ReservePrice’(RP) fixed,subject toapprovalbythePrincipal.ThePrincipalalsohastheoptiontofixalowerlimitoftheRPforanindividuallot.Suchlotwillnotbedeclared“sold”onfinalbiddingbutdeclared“pending”duringe-auction,irrespectiveofreservepricecomparison.ThesaleacceptancewillbeintimatedbythePrincipalwithin7workingdaysfromthedateofe-auction.Oncebidisconfirmed/accepted,thebuyerhastomakeEMD/SDpaymentaccordingly,within3(Three)daysfromthedateofConfirmation/Acceptance.

8.10.9.Itwillbethebidder’sresponsibilitytopersonallyseetheresultofe-auctionbyseeinganddownloading the “Auction Lot Status” from the website immediately after closing of e-auction,whichwillbedisplayedupto7(Seven)daysfromthedateofclosingofe-Auction,excludingthedateofclosing.The“AuctionLotStatus”willshowwhetheranylothasbeenwonbythebidderon‘Confirmed’or‘Pending’basis.Thesuccessfulhighestbidderfora‘Confirmed’bidshallhavetopaytheprescribedEMD/SecurityDepositwithintheprescribedtimecountedfromthedateofclosingofe-auction (excluding thedateof closing). Sale IntimationLetterwillbe issued throughe-mailbyM/sMSTCLtd. immediatelyafterclosingofe-auction,onlyforthepurposeofrecord,andthepaymentofPost-BidEMD/SDwillhavetobemadewithinthestipulatedtime,irrespectiveofthedateofissueofthesaidletter.Thebiddersmust,thereforekeepawatchontheirincominge-mails.Normally,nohardcopyofthe‘SaleIntimationLetter’willbeissued.


8.11. Acceptance of Bid

8.11.1.Thehighestbidintheauction-cum-tendershallbeacceptedbytheChairmanoftheJPCifthebid ismorethan,orequaltoorclose(not lessthantheFairPriceby10%)totheFairPrice.Otherwise,thegoodsshallbeputupforauction-cum-tenderthesecondtime.Intheeventofthegoodsnotbeingsoldinthefirstthreeauction-cum-tenders,thegoodsshallbesoldatthehighestbidobtainedinthefourthauction-cum-tender.Ifanylotsstillremainunsoldafterthethirdofferforsale,thePrincipalCommissioner/CommissionershouldascertainwhethertheJPChasgoodreasonforthegoodsremainingunsold.

8.11.2.Thegoodsshouldnotbewithdrawnfromauction-cum-tenderonflimsygrounds,suchasthepossibilitythatthegoodsmayfetchaslightlyhigherpriceinasubsequentauction.

8.11.3.Allpost-auction/tenderoffers,eveniftheseareforamountshigherthanthesuccessfulbid,shallbestrictlydisregardedandnottakencognizanceofinanymanner.

8.11.4.Inrespectofcomplaintsregardingdeterminationof ‘FairPrice’andacceptanceofbids inauction-cum-tender, the Principal Commissioner/ Commissioner shall immediately ascertainwhether the prescribed procedure has been adhered to. Thematter should not be referred forVigilancescrutinyinaroutinemanner,iftheprescribedprocedurehasbeenfollowed.

8.11.5.Thee-auctionprocedure,assetoutinparagraphsabove,shallnotbeapplicabletogoodsthatarerequired,asperexistinginstructions,tobedisposedofbysaletoNCCForthroughSBIorinanymannerotherthan‘publicauction-cum-tender’.

8.11.6.Theseinstructionsareapplicabletoseized,confiscatedandtime-expiredwarehousedgoodsthathavebecome‘ripefordisposal’,andinrespectofwhichNoticehasbeengiventotheownerofthegoodsasrequiredunderSection150andSection72(2)oftheCustomsAct,1962.

8.12. Payment of EMD/ SD

8.12.1.ThesuccessfulbiddershallhavetodepositPost-BidEMD/SDwithinstipulatedtime,countedfromthedateofclosingofe-auction(excludingthedateofclosingandirrespectiveofthedateofissueofSaleIntimationLetter).Thepost-bidEMD/SDwillbe@25%oftheSaleValueforlotssoldon ‘Confirmed’basis.ThepaymentwillbebywayofPayOrder/DemandDraft (PO/DD)ofanyScheduledBank in favourof thePrincipal, and itmustbe submitted toM/sMSTCLtd.,MumbaioranyofficeofM/sMSTCLtd. (seedetailsonM/sMSTCLtd.’swebsite).ThePost-BidEMD/SDisadjustable towardsmaterialvalue,onlyafterreceiptof thebalanceMaterialValue,alongwithapplicableduties&taxeswithintheduedate,failingwhichthePost-BidEMD/SDwillbeforfeited.

8.12.2.IfthesuccessfulhighestbidderfailstopaythePost-BidEMD/SD(orbalanceSaleValue)intime,thenhispasswordwillbedeactivatedandheshallnormallybedebarredforaminimumperiodof6(Six)monthsfromparticipatinginalle-auctionsanddisposalsalesand,hisRegistrationFee


willbeforfeited.Whileconsideringhisrequestforreactivation,whichwillbeatthesolediscretionofM/sMSTCLtd.,allfactswhicharegermane,willbetakenintoaccount.M/sMSTCLtd.,atitssolediscretion,maytakerecoursetoanyofthefollowingoptionsforsaleoftheunsoldlot:

i. TheUnsoldlotmaybeputupforree-auction,withoutPre-BidEMDORwithPre-BidEMD,asmaybedeemedfit.

ii. TheH-2biddermaybeasked tomatch theH-1Bidalongwithsubmissionof requisiteEMD/SDwithinaperiod,asmaybeprescribed.

iii. Invitebids for therespective lot fromall theotherbiddersof theconcerned lot (otherthanthedefaultingbidder)ORallregisteredcustomersinsealedcovers,alongwiththeprescribedEMD/SecurityDepositwithinthetimestipulatedforfinalizingthesale.

iv. Takeanyotheraction,asmaybedeemedfitbythePrincipal.

8.12.3.DelayedpaymentofPost-BidEMD/SDmaybeaccepted,dependingonthecircumstancesofthecaseorurgencyofdisposal,inconsultationwiththePrincipal,withsuchpenaltyasmaybedeemedfitbyM/sMSTCLtd.Thisshall,however,notconferanyrightonthebiddertomakeanylatepaymentofPost-BidEMD/SD.IncasethesuccessfulbidderpaystheEMD/SD,butfailstopaythebalanceMaterialValue,alongwithapplicableDutiesandTaxes,withintheduedate,thenhisEMD/SDwillbeforfeited.

8.12.4.Payment of Balance Sale Value (along with all applicable Duties & Taxes):OnreceiptofPost-BidEMD/SDfromthesuccessfulbidder,SaleOrder/AcceptanceLetterwillbeissuedbyM/sMSTCLtd.,advisinghimtodepositthebalanceMaterialValuealongwithallapplicableduties&taxestoanyoftheirofficeswithin5(Five)daysfromthedateofissueofSaleOrder/AcceptanceLetter(includingthedateofissue).TheentirebalanceSaleValuewillhavetobepaidbythebuyerinonelump-sum,andnoinstalmentpaymentwillbeallowed,unlessotherwisestipulatedinthe‘Lot/ Item details’. In case of instalment payment being allowed as per stipulation in the ‘Lot/Itemdetails’, thefirst instalmentwillhavetobepaidwithin5(Five)daysfromthedateof issueofSaleOrder/AcceptanceLetter,andsubsequent instalmentsat15(Fifteen)daysinterval,orasmaybestipulatedinthe ‘Lot/Itemdetails’,andthePost-BidEMD/SD(SecurityDeposit)willbeproportionallyadjustedineachinstalment.ThemodeofpaymentwillbeasstipulatedintheSaleOrder/AcceptanceLetterandthepaymentwillhavetobesubmittedbythebuyertoM/sMSTCLtd.,MumbaioranyotherofficethereofforcollectingtheDeliveryOrder.

8.12.5.Default in Payment of Balance Sale Value (along with all applicable Duties & Taxes): In caseofdefaultinpaymentofthebalanceSaleValue(alongwithallapplicableDuties&Taxes)withintheprescribedtimelimits,theduepaymentmaybemade,onlysubjecttotheCustomsapproval,togetherwithadditionalcharges@1%perweekorpartthereof,calculatedontheFull100%SaleValue(alongwithallapplicableDuties&Taxes) foraminimumperiodofoneweekormultiples


thereof.ThePost-BidEMD/SDwillbeadjustedtowardsMaterialValueonlyonreceiptofthebalanceSaleValue(alongwithallapplicableDuties&Taxes)withintheprescribedtime.However,thisshallnotconferanyrightonthebiddertomakeanylatepaymentofthebalanceSaleValue(alongwithallapplicableDuties&Taxes),andM/sMSTCLtd.reservestherightnottoacceptthepaymentofthebalanceSaleValue,withorwithouttheadditionalcharges,aftertheexpiryoftheprescribedpaymenttimelimit.

8.12.6.ExciseDuty,GST,CessoranyotherstatutoryDuty/Tax/Levy/Charge,etc.willbeapplicableandpayablebythebuyer,asprevailingonthedateofactualphysicaldeliveryofthematerials.TheratesofDutiesandTaxesdisplayedonthee-auctionwebsiteareonlyindicativeandbasedontheratesprevailingbeforethecommencementofthee-auction.

8.13. Delivery of Lots

8.13.1.OnpaymentofbalanceSaleValue(alongwithapplicabledutiesandtaxes),thebuyershallobtainDeliveryOrderfromM/sMSTCLtd.onproducinghise-auctionPhotoIDCard.IncasethePhotoIDCardholderdeputesanyrepresentativeforthispurpose,heshouldattestandauthorizethesignatureofhisRepresentativeonhisletter-head,alongwithaself-certifiedNotarizedPhotocopyofhisPhotoIDCard,subjecttothefollowingconditions:

i. Deliveryperiodwillbe7(Seven)dayscountedfromthedateofissueofDeliveryOrder/dateofissueofReleaseOrderbythePrincipal,asthecasemaybe(includingthedateofissue),inallcases.

ii. InthosecaseswherethebalanceSaleValueispaidwithintimebutthebuyerdelaysthepaymentofapplicabledutiesandtaxes,thedeliveryperiodwillbecountedfromthedateofpaymentofthebalanceSaleValue.

iii. The successfulbidder/buyer shall co-ordinate thedateand timewith thePrincipal inadvance and take prior appointment before placement of transport to ensure speedyremovalofmaterials.

iv. Thematerials sold shallbe removedby thebuyers fromanyonesideof the lotasperthesolediscretionofthePrincipalandnosegregationofitemsfromthesoldlotswillbepermitted.

v. Incaseanyhot-work permissionisrequiredfordismantlingoperations,thesamewillhavetobeobtainedbythebuyer fromthePrincipal’sauthorizedrepresentativebeforeliftinganditwillbesolediscretionofthePrincipaltoallowornottoallowsuchhot-workpermissionatbuyer’scost,onlytotheextentoffacilitatingtheloadingandtransportationofthegoods.

vi. Forthepurposeofremovingthematerials,thesuccessfulbiddershallemployorengage


onlyhis/theirownpersonnel,andshallkeepthePrincipalfullyindemnifiedagainstanyclaimswhatsoever,includingclaimforwage,injuries,compensation,death,etc.

vii. While removingmaterials, if any accident or damage to the property/ life, etc., arisesby reason of any act of negligence/ omission/ default or non-compliance with any oftheTerms&Conditionsof statutoryRegulationsorRules applicablewithinPrincipal’spremises,onthepartofthebidder/hisrepresentative(s)oremployeesresultingindeathorinjurytoanypersonsordamagetothepropertyofthePrincipaloranythirdParty,theninsuchanevent,thebidderwillhavetopaycompensationtoanysuchperson,includingthe employees of the Principal for such injury and/ or for damage to any property ofsuchpersons.Thebiddershall,insuchanevent,keepthePrincipalindemnifiedfromanydemand,claimsorproceedingsmade.

8.13.2. Incaseofanydefaultinliftingofmaterialsbythebuyerwithintheprescribedtimelimit,theoutstandingmaterialmaybeliftedwithin14(Fourteen)daysfromtheduedatesubjecttopaymentofGroundRentbythebuyerdirectlytothePrincipal fortheperiodofdelay.AllmattersrelatingtochargingofGroundRentwillbedecidedbytheCustoms.Incaseofgoodssoldonlotbasis,theGroundRentwillbecalculatedonthevalueoftheentirelot,evenifliftedinpart,whereasincaseofthegoodssoldonunit-weightorunit-numberbasis,theGroundRentwillbecalculatedonthevalueofun-liftedquantity.However,itwillbethesolediscretionofthePrincipalnottoallowthebuyertoliftthegoods,withorwithouttheGroundRent,aftertheexpiryofthestipulatedtimelimitfordeliveryorevenwithintheaforesaidadditionalperiodof14(Fourteen)days,andinsuchevent,thesaleofthematerialnotliftedbythebuyer(s)willbeautomaticallycancelled,andallthemoneypaidbythebidder/buyerwillbeautomaticallyforfeited.

8.14. Other Conditions

8.14.1.TheperiodofContractshallbeuptothevalidityperiodoftheDeliveryOrder/ReleaseOrderissuedbyM/sMSTCLtd./thePrincipaloruptotheextendedperiodofvalidityoftheDeliveryOrder/ReleaseOrder,incasetheDeliveryperiodisextendedbythePrincipalathissolediscretion,asthecasemaybe.

8.14.2.Thebidder shallbedeemed to imply that thebidderundertakesnot toexport thegoodsoutsidetheterritoryofIndia,failingwhichthesalewillbeliableforcancellation.Thebidder(s)shallhavenorighttoissueanyaddendumtotheseSpecialTermsandConditionsorBuyerSpecificTermsandConditionstoclarify,amend,supplementordeleteanyoftheconditions,clausesoritemsstatedtherein.

8.14.3.Arbitration/Legal Jurisdictionwillbeapplicableasper therelevantclausesstipulated inthe Buyer Specific Terms and Conditions already accepted by the bidders at the time of OnlineRegistrationbyhimontheM/sMSTCLtd.e-auction.


9.1. Introduction

9.1.1. Public auction has its own advantages and it is definitely preferable to sale by privatenegotiation.Therefore,anattemptshouldbemadetodisposeofthegoodsthroughpublicauctionsas faraspossible.However, therearecertaincommodities,whichshallnotordinarilybesold inpublicauction.Theseshallincludeconsumergoods,electronicgoods,luxuryarticles,goodswhicharetotallybannedorarehighlyrestrictedforimport.Articleswhichareprohibitedforimporthavetobedestroyed(e.g.obsceneliterature,etc.).However,consumergoodsmaybeofferedtoagencies,likeCanteenStoresDepartment(CSD),NationalCooperativeConsumers’FederationofIndia(NCCF),Kendriya Bhandar (KB), Central Government Employees’ Consumer Cooperative Society, Multi-State Consumer Cooperative Societies, State Consumer Cooperatives, Government departments,Municipalities,Government-ownedhotels,Hospitals,CharityInstitutes,etc.,subjecttofulfilmentofconditionsenumeratedinthisChapter.

9.1.2. Itemswhichareusefulforoffice,likephoto-copiers,faxmachines,computersandcomputerparts, educational Compact Discs (CDs), stationery items, Air-conditioners, etc., can be offeredforsaletotheGovt.Departments, includingourowndepartment.ThePrincipalCommissioners/Commissioners/theHeadsoftheOfficecanplaceordersstraightway,withoutcallingforquotationsandpaymentscanbemadebyissuingchequesorbybookadjustment.

9.2. Sales through Retail Counters

9.2.1. Inarrangingdirectsales,thePrincipalCommissioners/Commissionersshouldpaypersonalattention and take special precautions to avoid allegations of favouritism, etc. ‘First-come-first-served’principlemaybeappliedinallcases.Thebaseprice(withoutdiscount)ofdirectsaleshallbesame,irrespectiveofmodeofdisposalandshallbefixedbytheValuationCommittee/JPC.

9.2.2.Where the goods are in good condition, in original packingwith relevantManuals, books&accessoriesandareofinteresttogeneralpublicandconsumers,suchitemsshouldbeselectedforsalethroughretailshops.ThefollowingstepsneedbetakentoimprovetheorganizationandworkingoftheRetailshops:

i. ThelocationoftheRetailshopsshouldbesuchthatitiseasilyaccessibletothepublic;

Direct Sales and Other Modes of Disposal

CHAPTER - 9


ii. WorkinghoursoftheRetailshopsshouldbeprominentlydisplayedontheNoticeBoardoutsidetheshopforthebenefitofthepublic;

iii. General stock position of the important goods available for disposal, along with theirprice,shouldbeprominentlydisplayedonaNoticeBoardandalsoonthewebsiteoftheCommissionerate;

iv. TheNoticeBoardandalso,theCashBillsshallclearlystipulatethatthegoodsoncesoldwillnotbeexchangedortakenback,andthedepartmentdoesn’tguaranteeorgivewarrantyforthegoodssold;and

v. TheworkingoftheRetailshopsshouldbesubjecttoaclosescrutinybyanofficernot-below-the-rankofanAssistantCommissionerandseniorofficersshouldalsopayperiodicalvisitsto the shop to ensure that itsworking is smoothand free frompossiblemalpractices/complaints.

9.2.3. Fixation of Price in Retail shop: The retail price of articlesmay be fixed by the JPC byconductingMarketEnquiries, toascertain thepriceatwhicharticlesof likekind,quality, shape,design,etc.,areavailable in theretailmarketanddeducting therefroma `discount` representingthecompensationforthebuyer intheRetailshopfor(i)absenceofguaranteeregardingquality,workmanshipandthelike;(ii)lackofprovisionforafter-sale–servicefacilities;and(iii)thefactthatthegoodsmaynotalwaysbeintheiroriginalpackingandcondition.Thequantumofsuchdiscountmaybevaried,dependinguponwhethertheyarefastsellingpopularbrandsorotherwise.

9.2.4. Cash Memo: StandardForm(Form-22)ofCashMemosforuseinalltheCustoms,theCGSTandtheCentralExciseCommissioneratesforthesaleofthegoodsthroughRetailshopshasbeenprescribed.Form-22isforsaleofarticlesandwillbeinduplicate.TheoriginalistheCustomer’scopyandshouldbeperforated.ThestandardizationandprintingoftheseFormsintheCentralBoardsofRevenue(C.B.R.)Customsserieswillbedone,afterithasbeeninuseforsometime.NecessaryarrangementsforsupplyoftheFormsmay,therefore,bemadebyCustomHouse/Commissionerateduringtheinterimperiod.AnypracticaldifficultiesencounteredintheuseoftheForms,maybeintimatedtotheBoard.

9.3. Sale to NCCF

Anylotofconfiscated/seizedconsumergoods,whichis‘ripefordisposal’,andwhosevalue does not exceed Rs. Five lakh only,shallbeofferedtoNCCF/KB/OtherCentralGovernmentEmployeesConsumer Cooperative Society/ Multi-State Consumer Cooperative Societies/ State ConsumerCooperatives,atauniform rebate/ discount of 10%subjecttothefollowingconditions:

i. Theyshouldbefunctionalforatleast10precedingyearsandshouldsubmitIncome-TaxReturns(ITRs)andVAT/ST/GSTReturnsshowingtheiractivitiesinsaleofgoodstotheconsumersandthatappropriatetaxeshavebeendulypaidandrelevantlaws/RulesandRegulations,arecompliedwith.


ii. Only thoseCo-operativeSocietiesorNational/State levelCooperativeFederations, thataredulyverifiedandcertifiedasgenuine,everyyearbyanofficernot-below-the-rankoftheAC,andthosethathavebeendulyregisteredunderMulti-StateCooperativeSocietiesAct,2002,orconcernedStateCooperativesAct,shouldbepermittedtopurchasetheconfiscated/seizedgoods.ThegenuinenessofCo-operativeSocieties/Federationmayalsobeverified throughconcernedCommissionerates,orotherfieldformationsofthisdepartment,whereverrequired.

iii. Theyshouldbeobligedtosellsuchseized/confiscatedgoodsdirectlytobonafideconsumers.

iv. A list of goods ‘ripe for disposal’ may be sent to the concerned branches of NCCF by theWarehouseSectiononceamonth,sothatNCCFisawareofthegoodsavailablefordisposal.

v. No ‘pick-and-choose’ of itemswould be allowed. However, the representative of the NCCFmaybeaffordedthefacilityofinspectinggoodsbeforeliftingthem,soastoallowrejectionofdamagedandhence,unsellablegoods.Suchgoodsmaybesoldbypublicauction.

vi. Seized/confiscatedconsumergoodsshallbeofferedon‘firstcomefirstserved’basis.

vii. Completeaccountsmaybecalledforscrutinybythedepartmentas-and-whennecessary,toensurethattheseized/confiscatedgoods,whicharesensitivetosmugglingarenotmisused;ortoverifythattheirdisposalhasnotbeenmadetoasingleparty/individual;ortoensurethatsalehasnotbeenmadetoanyperson,whereinpurchasevouchers,etc.,hadbeenmisusedbyunscrupulouselementsinlegitimizingsmuggling.

viii. Anylotofconfiscated/seizedconsumergoodsofvalue exceeding Rs. Five lakh shall not be solddirectlytotheaforesaidCooperativeSocieties/FederationandshallbesoldbyE-auctionor‘auction-cum-tender’basis.InsuchE-auctionor‘auction-cum-tender’process,allstake-holders/personsincludingNCCF/KB/otherCentralGovernmentEmployees’ConsumerCooperatives/Multi-State/ State Cooperatives/ or National/ State-level Cooperative Federations canalso participate.However, no discount/ rebate shall be available to any organization/ Cooperative for the goods disposed through E-auction/ Auction-cum-tender.

9.4. Sale to Army Canteen/ CSD: The Army authorities/ Military Canteens/ Canteen StoresDepartment (CSD) may be allowed purchase of confiscated/ seized goods, since they provideconsumergoodsofhighqualitytothetroopswherevertheyaresituated.AsinthecaseofNCCF,adiscount/rebateof10%shallbegiven.

9.5. Sales to Research or Educational Institute, Hospitals, Universities, etc.: Educationalaids,Medical equipment, Scientific equipment,Projectors, sophisticatedequipment, etc.,maybeofferedtotheseInstitutes,hospitals.EducationalaidsmaybeprovidedtoEducationalInstitutesatadiscountof10%.

9.6. SaleofConfiscatedConsumerandLuxuryGoodstoDepartmentalOfficersunderCBIC


9.6.1. Departmentalofficerswouldbepermittedtopurchaseonlyconsumergoodforthemselvesandfortheirfamily’suseatadiscountof25%onthepricefixedbytheJointPricingCommittee.

9.6.2. Departmental officers would not be permitted to resell the items of confiscated goodspurchased fromthedepartmental retail shops foraperiodof fiveyears.For thispurpose,everydepartmentalofficermakingthepurchase(s)willberequiredtosignanUndertakingtothiseffectoneveryoccasion.

9.6.3. ThiswillnotexemptthedepartmentalofficerfromthedeclarationasrequiredundertheCCS(Conduct)Rules,1964,relatingtoacquisitionofmovablepropertyandfinancialtransactions.

9.6.4. Toensurethatthedepartmentalofficersdonotappropriatetothemselvesthefavoureditemsandleaveonlyunattractiveitemsforsaletothegeneralpublic,theretailshopsshalldisplaydailyonaNoticeBoard,alistofitemswhichcarryapremiumsuchaselectronicgadgets,likeTVs,mobilephones,gameconsoles,cameras,tabletdevices,laptops,etc.,availableforpurchasebythegeneralpublic,includingdepartmentalofficers.

9.7. Destruction

9.7.1. ThePrincipalCommissioners/Commissionershavefullpowertoorderdestructionofgoodsofthefollowingdescription:

i. Sub-standarddrugs,time-expiredmedicines,chemicalsandtoiletpreparations;

ii. Plants,seedsorbulbs;

iii. Foodstuff,spicesandothergoodswhichareunfitforhumanconsumption;

iv. Obsceneliterature/audioorvideomaterial,prohibitedorbannedbooksandothersuchitems;

v. Worn-outtextilesunfitforuse;and

vi. Goodswhichcannotbedisposedofthroughanyoftheothermodesofdisposal.

9.7.2. Inallthesecases,awrittenreportgivingthedetailsastowhytheitemshouldbedestroyed,shouldbepreparedandtheorderofthePrincipalCommissioner/Commissionerfordestructionshouldbetaken.

9.7.3. Themode/methodofdestructiondecidedby thePrincipalCommissioner/Commissionershouldbeenvironment-friendly.

9.7.4. ForNDPSGoods,proceduresandpowerprescribedinChapter16maybefollowed.Apartfromthis,iflawinforcerequiresthatdestructionshallbedoneinpresenceofanyotheragency/officer,suchasPlantQuarantine,DrugsControl,PortHealthAuthority,PollutionControlBoard,etc., the


destructionshallbesupervisedjointlywiththeseauthorities.Foreverydestruction,aPanchnama shallbedrawn,andthesignaturesofallpersonswitnessingthedestructionmaybetakenonthePanchnama.

9.8. Powerstowrite-offdeficienciesanddepreciationingoodsseizedandconfiscateddueto natural and other causes: Powerstowrite-offdeficienciesanddepreciationingoodsseizedandconfiscatedundertheprovisionsoftheCustomsAct,1962duetonaturalandothercausestotheextentandsubjecttotheconditionsareindicatedbelow:

Officers Monetarylimituptowhichthelossmaybewritten-offineachcase

Deputy/AssistantCommissioner Rs.10,000/-

JointCommissioner Rs.50,000/-

AdditionalCommissioner Rs.1,00,000/-

PrincipalCommissioner/Commissioner WithoutLimit

9.8.1. The amounts mentioned above relate to the value of the seized/ confiscated goods. The‘value’istheMarketValue,whichincludesthedutyleviable,sothatoncethevalueiswritten-off,thequestionofwriting-offthedutyseparatelywillnotarise.

9.8.2. Theaforesaidpowersmaybeexercisedprovidedthat:

i. ThelossdoesnotdiscloseadefectinRulesorprocedure,amendmentofwhichrequiresordersofhigherauthorityoftheFinanceMinistry;and

ii. TherehasnotbeenanyseriousnegligenceonthepartofanyGovt.servantwhichmaycallfordisciplinaryactionbyahigherauthority.

***



CASH MEMO

………………….CUSTOM HOUSE/ CGST COMMISSIONERATE

S.No.:……………….. ORIGINAL/DUPLICATE

Date:………………….

Name&addressoftheCustomer_______________________________________

Name&description of the articles

Distinctive marks and Numbers

Quantity Rate Amount

Rs. Ps. Rs. Ps.

Local tax______________

Total_________________

_________________________________________________________________________________________

E & OE

Customs/CGST Officer

Customer’s Signature

Goods once sold will not be exchanged or taken back.

***


10.1. Cutandpolisheddiamonds,roughanduncutdiamonds,preciousandsemi-preciousstoneshavebeennotifiedunderNotificationNo.31/86-Customsdated1986, issuedunderSection110(1A) of the Customs Act, 1962.ActionstipulatedunderSection110(1B)oftheCustomsAct,1962mustbetakeninallpendingcasesurgently.TheseshouldbesoldthroughPublicauction,forwhichthefollowingadditionalconditionshavebeenprescribed:

i. ThesaleshallbecentralizedinDelhi,Chennai,KolkataandMumbai.

ii. Inordertogetthebestpossibleprice,widespreadpublicity,bothinIndiaandabroad,shouldbegiven.

iii. Thevenueanddateofauctionshouldbedecidedwellinadvanceinordertoensuremaximumparticipation.

iv. TheservicesofreputedAuctioneerfirmmaybetakentoconducttheauction.TheAuctioneershouldbeselectedafterascertaininghispastperformanceinconductingauctions,expertiseinauctioningdiamonds,preciousstones,jewellery,etc.ThecontractbetweenAuctioneerandthedepartmentshouldalso includeresponsibilityof theAuctioneer toadvertise thegoodsfor auction in at least four national newspapers, and in a vernacular language paper. TheDepartmentshould,however,befreetouseotherformsofmedia,ifitsodesires,togivewidepublicity,inIndiaandabroad.ThetermsandconditionsfortheauctioneerwouldbedecidedbythePrincipalCommissioner/Commissionerconcerned.

v. Entirestockofsuchitemsshouldbesegregatedintoidentifiablelots--eitheronthebasisofseizurecasesoranyotherpracticalanddiscerniblecategorization.Each‘lot’mustbeproperlyphotographed.Thephotographswouldserveasarecord,inadditiontothesamebeingusedintheCatalogue,whichshouldbepreparedforthepurposeofgivingwidepublicityandalsoforconductingtheauctions.

vi. CautionmoneyofRs.50,000/-(RupeesFiftyThousandonly)byDemandDraft,PayOrderorBanker’sCheque(B.C.)shallbechargedfromeachprospectivebidder.Onlyonpaymentofthecautionmoney,thebidderswouldberegisteredforbiddingandwillbeeligibletoparticipateintheauction.

Diamonds, Precious & Semi Precious Stones

CHAPTER - 10


vii. The ‘lots’ should be allowed for examination by prospective bidders by following a strictprocedureprescribed for thepurpose toensure, there isno substitution, like, examinationbyonlyonebidderatone time,who canbringoneadditionalperson for consultationandexpertexamination.Theprocedureshall, inter-alia, consistofprescribingApplication formfor inspection, giving details of the bidder (address, name, Telephone No., PAN, details offee payments, etc.). Examination shall be in presence of the Deputy/ Asstt. Commissionernominated for thepurpose, the JewelleryAppraiserof theDepartmentand thewarehouseSuperintendent.

viii. TheReservePrice shallbe fixedbyaPricingCommittee consistingofAddl.Commissioner,Deputy/Asstt.Commissioner, JewelleryAppraiser,aneminentpersoninCommerce/TradeinsuchitemsandaGovernment-ApprovedValuerinrespectoftheseitems.TheselectionofMembersforthePricingCommitteeshallbebythePrincipalCommissioner/Commissionerconcerned.Inordertoensuresecrecy,the‘ReservePricelist’shouldbekeptinsealed-coverwiththeChairmanoftheJPCtobehanded-overtotheDeputy/Asstt.Commissionersupervisingtheauction,onlyonthedayoftheauction.

ix. The‘ReservePrice’maybefixedtakingintoconsiderationthevalueofseizure,escalationinvalueofthesegoodsovertheyears,presentmarketvalue/demandandexistingrestrictionsonimportofthesegoods.

x. Sincethedisposalofdiamonds,etc.,maybespreadoveraperiodoftime,pricesfixedatonetimemaynotholdgoodsubsequently,andthismaycallforperiodicrevision.The‘Reserve/Fairprice’sofixed,shallbeliableforrevisiononceinthreemonthsorsuchtimeasisconsideredreasonablebythePrincipalCommissioner/Commissionerconcerned.

xi. The auction shouldbe attendedby thePrincipal Commissioner/Commissioner, theAddl./JointCommissionerconcernedandotherSeniorOfficerstoensuremaximumfairness.

xii. Arecordofallthehighestbidsforeachlotateveryauctionshouldbemaintained.Therecordofbidlistshouldmentionnamesofbiddersandvalue/Amountofbidforthelotinquestion.

xiii. Thehighestbiddershall,onfallofthehammer,deposit25%ofthevalueofthebidasEarnestMoneyonthespot.Thebidderwillbeinformedabouttheacceptanceorrejectionofbidwithin48hoursofcompletionoftheauctionproceedings,bywayoflistingofsuccessfulbidsontheNoticeBoardoftheCustomHouseatMumbai.

xiv. The successfulbidderwillbe required topay thebalanceamountand takedeliveryof thegoodswithin3daysofthereceiptofthecommunicationregardingacceptanceofhisbid.Ifapartyfailstopaythebalanceamountandtakedeliveryofthegoodswithinthestipulatedperiodasabove,theEarnestMoneyshallbeforfeited.

xv. Incaseofrejectionofbid,therejectionletterwillbeissuedandcautionmoneyandearnestmoneycollectedfromthebidderwillberefundedtohimwithinaweek’stime.


xvi. Allavailablestocksofcutandpolisheddiamonds,roughanduncutdiamonds,preciousandsemi-preciousstonesshouldbetransferredtothePrincipalCommissioner/CommissionerofCustoms(Prev.),Mumbai.

xvii. In the case of Chennai, Kolkata, Delhi and Jaipur, smaller lots of these goods of value notexceedingRs.2lakhsperlotandwhentotalvalueofstock‘ripefordisposal’ofthesegoodsataparticulartimeisless-than-Rs.20lakhs,canbedisposedofbyDisposalUnitsattachedtotheseCommissionerates.Theproceduretobefollowedwillbemutatismutandis,asprescribedaboveexceptthatloweramountofcaution money may be prescribed.

10.2. Thee-auctionofdiamonds,preciousandsemi-preciousstonesisbeingconductedthroughM/sMSTCLtd.ontheirwebsitewww.mstcecommerce.com,theprocedureforwhichisgivenin Chapter 8 of this Manual. The Principal Commissioner/ Commissioner of Customs (Preventive), Mumbai has also issued a Public Notice No.3/2008 dated 29.10.2008 in this regard.

***


Gold, Silver & Other Precious Metals

CHAPTER - 11

11.1. Both Gold and Silver in all forms, including bullion, ingots, coins, ornaments and crudejewellery,arecoveredunderNotificationNo.31/86-Cusdated05.02.1986issuedunderSection110(1A) of the Customs Act, 1962.ActionstipulatedunderSection110(1B)oftheCustomsAct,1962mustbetakeninallpendingcasesurgently.

11.2. Disposal of Gold, in Standard/ Primary Form of Assured Purity

Theprocedurefordisposalbysaleofseized/confiscatedgold(otherthangoldornaments/jewellery)shallbeasfollows:

i. The saleof seized/confiscatedgold found ‘ripe fordisposal’ shallbe routed throughallPublicSectorBanks(approvedbyRBItoimportandsellgold),MMTCLtd.andSTCLtd.,whichalsohaveauthorisation fromtheir competentauthorities/headoffices todispose/selltheseized/confiscatedgoldhanded-overtothem.

ii. Suchgoldshall,asfaraspossible,beinaneasilymarketableformsuchasTTbars,1kgbars,500/100gbars,etc.Crudegold/ jewellerywillbeconvertedby theCustomsto.999/.995puritybeforedeliverytothebankforsale.

iii. Thesalepriceofgold,irrespectiveoftheformofgold(whetherTTbarsof0.999purityor1kg.barsof0.995purity),willbebasedontheclosingmarketpriceofthepreviousday,asreportedinthelocaleditionsofthethreenationalEconomicdailynewspapers.Allapplicabletaxeswillbeextraandchargeabletothebuyer.

iv. Thepricingofgoldwillbeworkedoutbythebank,takingduenoteofthemethodologyas per Form-23.TheCustomswillacceptthepriceworkedoutbythebankonthisbasis.

v. NoCommissionwillbeleviedbythebankontheCustoms.However,allout-of-pocketexpensesincurredbythebankwouldbedeductible(@1%oftheMarketPrice).

vi. Thebankwillarrangeforpaymentof taxes,asapplicable,outof thesaleproceedsofthegoldandwouldsubmit copies thereof to theconcernedPrincipalCommissioner/Commissioner,alongwiththeAdvice/Challanforremittanceofsaleproceeds.ThesaleproceedswillbedepositedimmediatelyaftersaleofgoldintothedesignatedaccounttobeadvisedbythePrincipalCommissioner/Commissionerconcerned.

vii. The concerned Principal Commissioner/ Commissioner will provide copies of the‘AssayingCertificate’alongwiththephysicaldeliveryofgoldandassumeresponsibility


forthefinenessofgoldascertifiedintheAssayingCertificate.Intheeventofanygoldbeing found counterfeit, the same will be returned to the Principal Commissioner/Commissioner concerned. The Department will also ensure that the gold is suitablypackagedasperthepracticeinthemarket.ThebankwouldrendernecessaryassistancetoDepartment.

viii. Thebankwill takephysicaldeliveryof thegold fromthewarehouse/officeagainstasuitable acknowledgment. The control system/ mechanism for this purpose will beworkedoutbythebankandadvisedtotheDepartment.

ix. Thebankwilldecide,atwhichcentre,thegoldistobesoldbasedonvariouscost/otherfactorsandwillalsoexercise itsdiscretion/ judgmentas to: (a)whentosell,and(b)atwhatpricetosell.Althoughithastobeborneinmindthatgoldpricescanfluctuatesignificantly evenduring the course of a single day, theBankwill use its discretion/marketknowledgetogetthebenefitofthe“best”possibleprice.TheconcernedPrincipalCommissioner/Commissionerwill,post-sale,makeanevaluationastowhether,inviewof therangeofpricesprevailingat the timeof sale, the “best”possiblesalehasbeenmade.Theabovearrangementwillbereviewedas-and-whennecessarythroughmutualdiscussion.

x. Thebankwillalsoexplorethescopeformarketabilityofcoins.Thepriceofsuchcoinswillbebasedontheactualgoldcontentonly.

11.3. Disposal of Silver in Primary Form

ThesaleofprimarySilvermaybemadeattheaveragepricereportedinthethreeeconomicdailies---EconomicTimes,BusinessStandardandFinancialExpressonthepreviousdayofsale.TheentireSilverstocks,valuedasabove,maybefirstofferedtoM/sMMTCatadiscountof3%oftheaveragepricefixed.Iftheyfailtoliftthestockwithinthreedays,itcanbesoldinretail,throughtheretailshop,tothepublicon‘first-come-first-served’basis,atadiscountof3%oftheaveragepricefixed,subjecttotheprocedurelaiddownbelow.

i. Goodsshouldbedisposedofin‘as-is-where-is’condition.

ii. Thestockwillbesoldaspertheweightofeachitemasconfiscated,itwillnotbecutorotherwisevariedinsizeandshape.

iii. The sale price of silver sold should be fixed every day, based on the closing bullionexchangepricesof thesamepuritymentioned ineconomicdailies, suchasEconomicTimes,BusinessStandardandFinancialExpressofthepreviousday.Ifpricesofthesamepurityarenotavailableintheaforesaidpapers,thenthepriceshallbeworkedoutonthebasisoftheaverageofpricesofthenearestpurityavailableinthesepapers.

iv. AllstocksofconfiscatedsilvershallbedisposedofbywayofsalethroughCustomsretailshopsonlytoMMTC/Public.


v. Silver should be sold only to MMTC and/ or such individuals, firms, etc., who areregisteredwiththeIncomeTaxauthoritiesasassessees,andtheirPANshallbequotedintheSaleVoucher.

vi. Theweightofeachsilveringot/brickshouldbeenteredinallrecordsuptothethirddecimalinkg,e.g.21.374kg,9.157kg,etc.

vii. Theexistingquantityrestrictionsof210kg.perpersonmayberetainedexceptinrespectofsaletoMMTC.

11.4. Disposal of Gold/ Silver Jewellery

11.4.1.Jewellery,includingfineJewelleryofgold,silverorotherpreciousmetalsand/orhaving/studdedwithdiamonds,preciousand semi-precious stones, shall bedisposedofon ‘as-is where is-basis’,andtheprocedureprescribedfordisposalofdiamonds,precious&semi-preciousstones,shall be mutatis mutandisfollowed.However,whilefixingfairprice,theValuationCommittee/JPCshallalsotakeintoaccountthemetalcontentandworkmanship.

11.4.2.OtherfineJewellery,Goldornaments,uniquecoins,artpieces,etc.,whichintheopinionofthePrincipalCommissioner/Commissionerconcernedcanfetchhigherpricesinpublicauctions/e-auctioneventhoughthegold/silvercontentislow,shallbesoldinpublicauctions.Theprescribedprocedureforsaleinauctionfordisposalofdiamonds,preciousstones&semi-preciousstones,shallmutatis mutandisapply,exceptthatlesseramountofcautionmoneymaybeprescribed.

11.4.3.GoldorSilverinotherforms,coinsbutnotuniquecoins,brokenjewelleryshallbesenttotheGovt.mintforconversionintoprimaryGoldofstandardpurity.TheconvertedGold/Silvermaythereafter be sold as primary-form, throughCommissionerate situated at the sameplacewheremint is situated. If theGold/Silver in formsmentionedatParaabove, cannotbedisposedofbyfollowingtheproceduresprescribedtherein,suchgold/silvermayalsobedisposedofinthemannerprescribedinthispara.

11.5. Disposal of Other Precious Metals

ThedisposalofPlatinum/PalladiumshallbeaffectedbytenderthroughMMTCLtd.,subjecttothefollowingconditions:

i. MMTCwillbepaidservicechargesequivalenttotwopercent(2%)oftheSaleValue.

ii. ThecostofadvertisementmaybechargedseparatelybyMMTC.

iii. ThegoodsshallliewiththeDepartmenttillthesaleisfinalizedbyMMTC.Further,tillthetimetheamountduetotheDepartmentisreceived,thedeliverywouldnotbegiven.


iv. TheMinimumSalePriceshallbefixedbyaJointPricingCommittee.

v. Sinceanumberofnationallaboratories,likeNationalPhysicalLaboratory(NPL),New

Delhi,NationalMetallurgicalLaboratories, Jamshedpurandotheractualusers, in the

Gems & Jewellery Industry may also be interested in buying these metals, so wide

publicitymaybegiventothesesales.

***


Form-23 (ReferPara11.2(iv))

Gold Pricing

1. Quantityofgoldsold ___________g

2. Averagemarketpriceper10grams Rs.___________

(BasedontheclosingmarketpricereportedinthethreeNationalEconomicDailies)

3. Priceofgoldattheaveragemarketprice Rs.___________(i.e.,(1)x(2)/10)

4. Taxesasapplicable Rs.___________5. Total price of gold Rs.___________6. Outofpocketexpenses Rs.___________

(@1%of(3)above)

7. NetpricepayabletoCustoms Rs.___________

(i.e.(3)–(6))

***


12.1. Duetolongtimetakeninadjudicationofcasesinvolvingseizureofforeigncurrency,traveller’schequesandbankdrafts,theirvalidityexpiresanddifficultiesareexperiencedinobtainingthecreditagainstsuchdocuments.Suchdelaysalsoaffordopportunitytotheconcernedpersonstoreceivetheamountagainsttheseizeddocuments,onthepretextofthesehavingbeenlostordestroyed.Therefore,theprecautionstobetakentopreventthesesituationsandrealizetheproceedsoftheconfiscatedforeigncurrency,traveller’schequesandbankdrafts,areasfollows:

i. As soon as the traveller’s cheques and/or bankdrafts and/ or other instruments ofexchangeare seized,an intimation in theProformagivenatForm-24 should be sent tothebank/officeofissue,informingitoftheseizure,sothatthepersonfromwhomtheseareseizedmaynotobtainduplicatesandclaimcashagainstthemfromthebank/officeofissue,onthepretextoftheoriginalshavingbeenlostsomewhere.AcopyoftheintimationshouldalsobesenttotheofficeoftheReserveBankofIndia(RBI)throughwhichthecollectioniseventuallyproposedtobemade.

ii. Adjudication of the seized bank drafts and/ or traveller’s cheques and/ or otherinstrumentsofexchangeshould,asfaraspossible,becompletedsufficientlyaheadoftheexpiryoftheperiodofvalidityofthesedocuments,whichnormallyextendsfrom3to6monthsfromthedate-of-issue.

iii. Theconfiscatedforeigncurrencyshouldbesenttoanyauthorizednationalizedbanks/RBI,asapplicable,immediatelyafterfollowingtheprocedureofSection110(1A)/uponcompletion of adjudication for affording credit of the proceeds to the Governmentaccount.ThenecessarydetailsforthiswouldbeprovidedaspertheProformagivenatForm-25.

iv. The confiscated traveller’s cheques, bank drafts and other instruments of exchangeshould be sent to RBI immediately after the adjudication is completed for affordingcreditoftheproceedstotheGovernmentaccount.ThenecessarydetailsforthiswouldbeprovidedaspertheProformagivenatForm-25.

12.2. Normally,thereisnodifficultyingettingearlycreditsofarasforeigncurrencyisconcerned.In regard to the traveller’s cheques and foreign bank drafts also, the credit can be obtainedimmediatelyprovidedthat:(i)thedocumentsarefullydischarged,i.e.,dulysignedbythepersoninwhosefavourthesewereissued;and(ii)thesearepresentedwithintheperiodoftheirvalidity.Mostoftheconfiscatedbank-draftsand/ortraveller’s-chequesdonot,however,containdischargeofthepayee’s/beneficiary’s,andassuchcannotbeencashedorcreditedintheGovernmentaccountinthe

Currency & Other Monetary Instruments

CHAPTER - 12


normalway.UndertheprocedurefollowedbytheRBI,ittakesabout2-3monthstocollectproceedsinsuchcases.Itshould,therefore,bepossiblefortheRBItosendanintimationofcreditinrespectoftheconfiscatedtraveller’schequesandbankdraftswhicharenotfullydischargedwithinaperiodof4monthsfromthedateofreceiptofthedocumentsbythem.If the intimationisnotreceivedwithinthisperiod,theCommissionerateshouldremindtheRBI.Whereverpossible,dischargeofthepayee/beneficiaryshouldbeobtainedontheconfiscatedbankdrafts,etc.

12.3. WhentheGovernment(i.e.,theDepartment)acquirestitletocheques,hundisandsuchothernegotiableinstrumentsbyoperationoflaw(i.e.,byendorsementanddeliveryasrequiredbySection 50 of the Negotiable Instruments Act),theGovernmentisnotentitledtotherightsofaholderinduecourse thereof,asdefined in thesaidActand therefore, theproceedsofsuchconfiscatedinstrumentscouldberealizedfromtheforeignbanksonlyiforderspassedunderIndianlawswerebindingonthem.Inthecircumstances,beforerealizingtheproceedsoftheseconfiscatedinstrumentsfromtheforeignbanks,theRBIhastofurnishanindemnitytothebankconcernedguaranteeingtherefundoftheamountontheproprietyofthepaymentbeingsubsequentlychallengedbythedrawerforonereasonorother.TheRBI,inturn,obtainsanundertakingfromthePrincipalCommissioner/CommissionerconcernedasperProformagiveninForm-25 torefundtheamounttotheReserveBankondemand.

12.4. WhenevertheRBIapproachesthedepartmentalauthoritiesforrefundoftheamount,thereshouldbenoquestionofchallengingtheproprietyoftherefund-claimandtheamountshouldberefundedforthwithandnot later thansevendays.Time limit,asenvisaged inSection 27 of the Customs Act, 1962,wouldnotapply insuchcasesasthisprovision isapplicableonlytorefundofduty,whereasinthiscase,itisarefundofproceedsofaconfiscatedinstrumentwhichhasbeenrealized,notstrictlybytheenforcementofanyorderpassedbytheGovernmentbutthroughmutualarrangementbetweentheRBIandthepayingbank.

12.5. Theabove instructionsmayalsobeadoptedmutatismutandis in thecaseofseizedPostalSavings Certificates. An intimation of seizure of National Defence Certificates/National SavingsCertificates, etc., issuedbyPostOfficesmaybe sent to thePostOffices in theProformagivenatForm-26,andacknowledgementobtained.

12.6. RBI, vide their letter ECS 39/122 A-88/89 dated 20.7.1988,haveconveyedtheirapprovaltoStateBankofIndia(SBI)receivingtheforeigncurrencyfromtheCustoms/CGSTandcreditingthesaleproceedstotheCustoms/CGSTaccount,subjecttothefollowingconditions:

i. In caseSBI finds that someof the confiscated currencies arenot encashable and theCustoms/ CGST authorities desire to have those currencies destroyed, necessarypermissionfromtheRBI,ExchangeControlDeptt.,shouldbeobtained.

ii. Ifanoccasionarisesforrefundinginforeignexchange--partorfullvalueofconfiscatedforeigncurrency,alreadycreditedtotheGovernmentaccount,theCustomswillarrangetoobtainthroughSBI,prior-approvalofRBIforthereleaseofForeignexchange.


Form-24 (ReferPara12.1(i))

Intimation of the Seizure of Credit Instrument/ Currency

1. Descriptionofthecreditinstrument/currency………………………………

2. Fullnameandaddressoftheperson/bankdrawinginstrument…………….

3. Nameandaddressofthedrawee……………………………………………

4. Nameandaddressofthepayee……………………………………………..

5. Authorityunderwhichseized……………………………………………….

6. Actioncontemplated…………………………………………………………

NB:ThebankofissueoftheCreditInstrumentmaypleasetakenoteoftheaboveseizure.Anyrequestforissueofduplicatesandclaimsforcashagainsttheabove-notedinstrument,shouldnotbeaccededtowithoutpriorreferencetothisCommissionerate.Undertakingoffurthercommitmentsinrespectof the above instrumentwith the drawer/ payeemay please be deferred, until the confiscationproceedingscontemplatedarecompleted.

Customs/CGSTOfficer

(Seal)

AddressoftheIssuing/DrawingBank

CopytotheManager,ReserveBankofIndia,PublicAccountsDepartment

***


Form-25 (ReferPara12.1(iii))

ProformaforSendingConfiscatedCreditInstruments/CurrenciestoRBIforAffordingCredit to the Government Accounts

From:

The Principal Commissioner/ Commissioner of Customs/ CGST

To

TheReserveBankofIndia/AuthorizedNationalizedBanks

Subject:ConfiscationofCreditInstruments/CurrenciesundertheCustomsAct,1962andtheForeign Exchange Management Act, 1999.

Dear Sir,

1 Wehavecausedtobehanded-overtoyouforcollectionandcredittoGovernmentaccountTraveler’scheques/BankDrafts/Currencies,asperdetailsgivenintheattachedstatement.

2. Thesecheques/drafts/currenciesarebeing,hereinafter,referredtoasthecheques.

3. We,hereby,representandwarrantthatwearedulyentitledtoarrangeforthecollectionforandonbehalfofthePresidentofIndiaofeachofthecheques,byvirtueofthechequeshavingbeendulyconfiscatedbyus,inexerciseofthepowersconferredundertheCustomsActandtheForeignExchangeManagementAct(FEMA).We,hereby,requestthattheaggregateofthefaceamountsofthechequesbecollectedandcreditedtotheGovernmentaccount.

4. In order to induce you to complywith our above request,we hereby agree to indemnifyandholdTHERESERVEBANKOFINDIAharmlessandindemnifiedfromany-and-allclaims,demandsand/oractions,whichmaybeassertedorinstitutedagainstitbyanythirdparty(ies)withrespecttoalloranyofthecheques,andatanytimeuponitsrequest,toappearanddefendagainsteachandeverysuchclaim,demandand/oraction.Inanyevent,wewillpayanyjudgement(s),whichmaybeobtainedagainstthesaidBankandwillreimburseitforanyandallexpenses,whichmaybeincurredbyitinconnectiontherewith.

Yoursfaithfully,

ForandonbehalfofthePresidentofIndia

***



ProformaforIntimationofSeizureofNationalDefenceCertificate(NDC)/NationalNationalSavingsCertificate(NSC),etc.,IssuedbyPostOffices

1. NumberofCertificate(includingprefixedalphabets)……………………………..2. Itsdenominationorfacevalue…………………………………………………..3. TypeofCertificate(i.e.,singleholdertypeorjointholder‘A’typeorjointholder‘B’type,ascan

beseenfromtheCertificate)…………………………………………………..4. Name(s)ofholder(s)…………………………………………………..5. Postofficeofissue…………………………………………………..6. Dateofissue…………………………………………………..7. RegistrationNo.givenbyPostOfficeonlefthandbottomcornerofCertificate.………………8. Authorityunderwhichseized…………………………………………………..9. Actioncontemplated…………………………………………………..NB: ThePostOfficeof issueof theCertificate(s)mayplease takenoteof theaboveseizure.Anyrequestforissueofduplicate(s)andclaimsforcashagainsttheabovenotedCertificate(s)neednotbeaccededtowithoutpriorreferencetothisCommissionerate.

Seal Customs/CGSTOfficerNo. Dated ------------------------------------------------------------------------------------------------------------------------------ AcknowledgementtobedetachedandreturnedbythePostOfficeReceivedfromtheCustoms/CGSTCommissionerate/Office………………………..anintimationabouttheconfiscationofthefollowingSavingsCertificate(s). 1. No.oftheCertificate2. Denomination3. Name(s) of the holder(s)4. NameofPostOfficeofissue5. Date of issue

Anoteofthisseizurehasbeenmadeintherecordsofthisoffice.

(Name&date) (PostMaster)

Stamp of Office

To

TheCustoms/CGSTOfficer…………………………………………………………………His/herNo……….…………………………dated……………………………………..refers.

***


13.1. Disposal of Seized/ConfiscatedMotorVehicles&Vessels

13.1.1.Conveyances have been notified, vide Notification No. 31/86 dated 5.2.1986, underSection 110(1A) of the Customs Act, 1962.Despitethis,seizedconveyanceare,inmanycases,notbeingdisposedof,pendingcompletionofadjudicationproceedings,Courtcases,etc.,foralongtime,leadingtodeteriorationwithoutanybenefittoanyone.Continuedstorageofsuchconveyancesmayalsoresultinconsiderableexpenditureongaragingfacilitiesandmaintenancecharges.Accordingly,itmustbeensuredthat:

i. PromptactionistakenintermsofSec.110(1B)oftheCustomsAct1962todisposeofallseizedvehicles.

ii. Wheretheorderofconfiscationmentionsfineinlieuofconfiscationorofre-shipment,theperiodallowedforre-shipment/redemptionshouldbeonlyupto120days.Incaseoptionofre-exportofvehicle isgiven,as incaseofCarnet, theperiodallowedforre-export normally shall be twomonths. If the party does not clear the conveyance bypayingupthefineinlieuofconfiscation,ordoesnotarrangetore-exportthevehiclewithinthepermittedperiod,afinalNoticeoftendaysshouldbegiven,afterwhichtheconveyanceshouldbedisposedof.

iii. Wheretheconveyancehasbeenconfiscatedabsolutely,stepsshouldbetakentodisposeof the confiscatedmotor vehicle or vessel straight-away,withoutwaiting for furtheroutcomeinappeal/review.

iv. FortheconveyancesseizedundertheNDPS Act, 1985 oranyotherAct,actionunderSection 451 of the Code of Criminal Procedure, 1973,shallbeinvariablytaken,forwhichanApplicationintheconcernedTrialCourtmustbefiledandpursuedduringthetrial,soastoobtaintheordersofCourtbeforethefinaljudgmentinthecase.Ifnosuchactionhasbeentakentilldate,thesamemustbetakenimmediatelyandpursuedwiththeTrialCourttogettheordersofdisposalfromtheCourtbeforethefinalorders.IncaseofappealspendingwithHighCourt,theHighCourtmustbeapproachedforgettingearlyordersofdisposaloftheconveyances,pendingdecisionintheappeals.

v. Utmostcareshouldbetakentoensurethatconveyancesaresoldattheearliestandatthebestavailablemarketprice,aftergivingwidepublicity,soastoavoidanylosstotheownerintheeventoftheadjudicationorderbeingsetasideonappealorrevision,andtoavoidanypossibledisputewiththeownerregardingtheadequacyofthepriceatwhichtheconveyanceorvesselwassold.

Vehicles & Vessels

CHAPTER - 13


vi. The position in respect of the conveyances, pending disposal, should be reviewedperiodicallyandactionasnecessarytodisposethemofshouldbetakenexpeditiously.Ifthereisanydelayornegligenceonthepartofanyoftheofficersconcerned,appropriateactiontofixtheresponsibilityandinitiatedisciplinaryactionshouldbetaken.

13.1.2. Conveyancesmaybesoldbypublicauction/e-auction-cum-tenderormaybeappropriatedtothedepartment.

13.2. Disposal of Conveyances with Secret Chambers

Theconveyanceswith‘built-insecretchamber’usedforsmuggling,shallbedisposedofaftersuchchambersarecompletelyremoved.Ifsuchsecretchamberscannotberemoved,theordersoftheBoardshouldinvariablybetakenbeforedisposingofsuchconveyances.

13.3.MaintenanceofSeized/ConfiscatedConveyances

13.3.1.The seized/ confiscated conveyance should be properly looked after during storage.Wheneverthereisadelayinthedisposalofvehicles,vehiclesshouldbejackedandwherevergaragefacilitiesarenotavailable,temporaryshedsshouldtobeerectedfortheirproperstorage.Vehiclesmaybehanded-over to theAutomobileAssociation, if suchorganizationexists at theplace, andvesselsentrustedtotheCustodiansofthePortonmutuallyagreedterms&conditions.Particularcareshouldbetaken,ofthesparepartsandtools.

13.3.2.For the proper upkeep and maintenance of seized/ confiscated vehicles/ vessels, the Head of the Department has been delegated powers for incurring expenditure upto Rs. 2,000/- per two-wheeler, Rs. 5,000/- per four-wheeler, Rs. 10,000/- per six-wheeler and Rs. 50,000/- per vessel per annum. The expenditure should be incurred, having regard to thefollowingconsiderations:

i. TheseizedvehiclesshouldnotbeputtoDepartmentaluse(exceptincaseofexigency,please refer Para 13.4).

ii. Dismantlingofconveyancestotheextentminimumpossible,soas to findouthiddenarticles,ifany.

iii. Theseizedconveyanceshouldbeproperlylookedafterduringstoragebyrunningtheenginesandauxiliarymachinery/equipmentperiodically,inflatingthetyres(incaseofvehicles),checkingtheengines,etc.,andforkeepingtheminaproperstateofroad/sea-worthinessandtokeepthem,asfaraspossible,inproperrunningorder.

iv. Thevesselsmaybebottom-cleanedandifnecessary,becradled

v. Theservicesofamechanicmayberequisitionedtokeeptheconveyanceingoodorder.Butthismayberesortedto,onlyincasesofabsolutenecessityandwiththepermissionoftheofficernot-below-the-rankofAssistantCommissionerincaseofvehicles&PrincipalCommissioner/Commissionerincaseofvessels.


13.4.DepartmentalUseofSeized/ConfiscatedConveyances

TheconveyanceswhichhavebeenfinallyconfiscatedandhavebecomeGovernmentproperty,canbeusedforGovernmentpurposesinanyexigency.However,theuseoftheseizedconveyancesshould,bekepttotheminimumandtheseshouldonlyberunfromtime-to-timetokeeptheminproperworkingconditionandpreventtheirdeterioration.TheHeadsoftheDepartmentshouldpersonallyensurethatseizedconveyances,etc.,arenotrununnecessarily.

13.5.AppropriationofConfiscatedConveyancesforDepartmentalUse

Beforesellingconfiscatedconveyances, thepossibilityofutilizingthesameforthedepartmentaluse should be fully explored. These conveyances should, however, be utilized only after takingprior-approvaloftheBoard.Atthetimeofmakingsuchproposals,thefollowingparticularsoftheconveyancesshouldbefurnished:

i. Dateofseizure;

ii. Dateof theorderunderwhich itwas confiscated,duty, redemption fine, andpenaltyimposedandrealized;

iii. Nameoftheowneroftheconveyances;

iv. Makeoftheconveyances,itsmodel,enginehorsepowerandseatingcapacity;

v. General conditionof the conveyances and itsmechanical condition, andapproximatemarketvalue,andtheprobableperiodforwhichitcanrendersatisfactoryservice,withorwithoutrepairs;

vi. Totalmileagerunbytheconveyances;

vii. Incaseofvehicle,theclearanceoverroad;

viii. TheareawheretheconveyancesisproposedtobeutilizedintheCommissionerateandthespecificpurposethereof;

ix. Financialimplicationoftheproposal,e.g.,approximateamountofexpenditurelikelytobeincurredtomaketheconveyancesroad/sea-worthy,runningcostandotherrecurringandnon-recurringexpenditure;and

x. Costofappropriation.

***


14.1.DisposalofSeized/ConfiscatedDrugFormulations

14.1.1.Drugformulations,ordinarilyfallintwocategories.

i. Thefirstcategoryconsistsofsuchdrugformulations,whicharelabelledinaccordancewiththeprovisionsoftheDrugsandCosmeticsAct,andtheRulesframedthereunder.Ifthesamplesdrawnfromtheseized/confiscatedconsignmentsofsuchformulationsarefoundtobeofstandardquality,thesemaybereleasedforuseinhospitalsonly.

ii. The second category consists of formulations which are not labelled in accordancewith the provisions of theDrugs andCosmeticsAct and theRulesmade thereunder.TheDrugsController (India)hasopined that such formulationswouldbedeemed tobe “misbranded”drugsunder thisAct. Further, itwouldordinarilynotbepossible tore-label such products as the information to be given on the labelwould have to beprovidedbythemanufacturer.Hehas,therefore,advisedthatsuchseized/confiscateddrugformulations,fallinginthecategoryof‘misbranded’drugs,shouldbedestroyed.

14.1.2.TheStateDrugControllers/ZonalandPortOfficersof theDrugController (India) shouldinvariablybeconsultedinthecaseofseized/confiscateddrugformulationsandactiontoreleasethemtohospitalsortodestroyasthecasemaybe,shouldbetakenonlyontheadvicegivenbytheseauthorities.ItisemphasizedthattheconsultationfromDrugControllersshouldbedone,withoutfail,atdifferentstages,fromthetimeofseizuretilldisposal,particularlyinregardtoidentificationofthemedicine/drug,itsphysicalconditionandqualityandvaluation.Further,aCertificateshouldbeobtainedfromtheCompetentAuthorityforascertainingwhetherthemedicine/druginquestionwasdamagedordeterioratedandalso,whetheritwasfitforhumanconsumption.Vide Circular F.No.545/1/78-LCI dated 21.12.1978 [refer Appendix –1]

14.1.3.This Manual categorizes Medicines and drugs that remain efficacious only for a limitedperiod,underCategory-IIIofperishableitemsandtheseshouldbedisposedofwithin6monthsoftheirseizureor,wherethedateofexpiryisindicated,wellbeforethatdate.However,theprocedure,asdetailedinthecurrentchapter,mustbestrictlyfollowed.

14.2. Disposal of Bulk Drugs

FollowingdirectionshavebeengivenbytheDrugControllerofIndia,NewDelhitoallZonalofficersandDrugsControllers,videletter No. X-11038/50/80-D dated 09.12.1980 [refer Appendix–II],regardingproceduretobefollowedinthisrespect:

Medicines/ Bulk Drugs/ Drug Formulations

CHAPTER - 14


i. Whenevera request is received from theCustomsorCentral IndirectTaxauthoritiesfor advice on the disposal of confiscateddrugs, aDrug Inspectormaybe deputed toinspect the consignment to seewhether the containers of the drug are damaged, soas toaffect thequalityof thedrug, andwhether the containersare labelledwith theessentialparticulars,suchasthenameofthedrug,nameofthemanufacturer,dateofthemanufactureanddateofexpiry,incaseofdrugshavingalimitedlifeperiod.

ii. Ifoninspection,theDrugInspectorreportsthatthecontainersaredamaged,soastoaffectthequalityoftheproductorthecontainersdonotbeartheessentialparticularsonthelabel,thentheconsignmentofdrugconcernedshouldnotberecommendedtobedisposedofbypublicauction.

iii. Ifthecontainersofthedrugarefoundtobeintactandnotdamaged,andtheyarealsolabelledwithnecessaryparticulars,thenrepresentativesamplesmaybedrawnandgottested.

iv. Ifthesesamplesarereportedtobe‘notofstandardquality’,thenthedrugsinquestionshouldnotberecommendedtobedisposedofbypublicauction.

v. Ifthesamplesarereportedtobeof‘standardquality’,thenthedrugsinquestionmayberecommendedtobesoldbypublicauction.Theauthoritiesrequisitioningthedrugsshouldbe licensedandthedrugspermittedtobesoldonlytomanufacturersholdingvalidmanufacturinglicensesundertheDrugsandCosmeticsAct.

vi. Theprocedureoutlinesabovewouldbeapplicableonly to “bulk drugs” seizedby theCustoms/ Central Indirect Tax Authorities. Confiscated formulations should not beallowedtobesoldbyauction.

***


FIRE ARMS

CHAPTER - 15

15.1. Toensuremaximumsafetyofseized/confiscatedprohibited/non-prohibitedboreandservicepatternweapons, theirstorageshouldbedonecentrally(e.g., intherespectiveCommissionerateHeadquarters)underpropersecurity,safetyandsupervision.Forthispurpose,aHistorySheetwitheachweapon,toindicatemake,typeofweapon,registernumber,briefcircumstancesofseizure/confiscation,etc.,shallbepreparedandshallbekeptasrecords,alongwiththeSeizurememo.

15.2.PolicyGuidelinesforDisposalofConfiscatedFireArms

15.2.1. Prohibited bore weaponswillbeconfiscatedandappropriatedonlyforthedepartmentaluse/orgiventopersonsspecificallyallottedbytheMinistry,exceptthefollowing:

i. Disposal of war-like stores and their components, etc.: Detailsofallconfiscatedwar-likestores,i.e.,Missiles,WeaponsofMassDestruction,grenades,rocketlaunchers,mines,nightvisiondevices,HHGs&MMGs,etc.,andtheircomponentsandsuchotherstoresofsimilarnature,shallbe intimatedto theMinistryofDefence forobtainingdisposalinstructions,throughDGRI,bytheconcernedPrincipalCommissioner/Commissioner.

ii. Disposal of Prohibited fire arms and Prohibited bore fire arms: Details of certain selectedtypesofconfiscatedautomaticfirearms,e.g.,7.62mmSLRs,AK-47rifles,7.62mmLMGs,9mmcarbine,etc.,andtheirammunitionsaftertakingcareoftheDepartmentalrequirements,beintimatedtotheMinistryofHomeAffairs,forreallocationtounitsofArmy/CentralPara-MilitaryForces(CPMF)/StatePoliceForcesinvolvedinCIOperation,asperordersofMHA(ProvisioningBranch).

iii. Service pattern and other Prohibited bore fire arms: Details of all confiscated servicepatternandotherProhibitedbore firearmsandtheirammunition,whichareclassifiable under categories I(b), I(c) of Schedule I of the Arms Rules, 2016,whichshall,inter-alia,includeallsemi-automaticandotherfirearmsofthetypeinuseoftheArmedForcesorCentralPara-MilitaryForces/PoliceForcesortheStatePoliceForcesshall,aftertakingcareoftheDepartmentalrequirement,beintimatedtotheMinistryofHomeAffairs(ProvisioningBranch),GovernmentofIndia,fordisposalinstructions,inrevisedProformagivenatForm-27.

15.2.2.Confiscated Non-Prohibited bore weapons cannot be sold to Departmental officersandinsteadaschemeforloaningofweaponshasbeenintroduced.SuchweaponswouldbegiventotheDepartmentalofficersonleaseterms,onaselectivebasis,subjecttotheconditionthaton


retirement/superannuation,theseweaponswouldbereturnedtotheDepartment.TheleaseoffirearmstoDepartmentalofficerswillbegovernedbytheinstructionscontainedinPara 15.2.4 of this Chapter.

15.2.3. Sale of confiscatedNon-ProhibitedBore (NPB)weapons to theMembers ofParliament:

i. Ifaftermeetingtheaboverequirements,Non-ProhibitedBoreconfiscatedweaponsareavailable,thesecanbesoldtothesittingMembersofParliament(MP)on‘first-come-first-served’basis,afterreceivingtheirconfirmationinwritingthattheydonotown/possessanyweaponatpresent.TheordersoftheMinisterofStateforFinance(Revenue)willbeobtainedineachspecificcase.

ii. OnlyoneweaponwillbeallottedtoanMPfromtheconfiscatedstockandnoreplacementwillbepermissible,evenincases,thefirstweaponallottedhaseitherbeenlostorstolenorbecomedefectiveornon-serviceableduetoexcessiveuseorobsolescence.

iii. Theresale/transferofNPBweapon,afteritissoldtotheMemberofParliamentissubjecttotheconditionthatsuchapersonwillnotdisposeitofforaperiodoftenyears,fromthedateofpurchase.Thereafter,heshallbefreetodisposeitoforkeepit.However,onhisdemise,thedisposalofsuchweaponwillbedealtbyhislegalheirsinaccordancewiththegenerallaws.

iv. ThesalepriceofNPBweapontobesoldtotheMPwillbegovernedbytheinstructionscontained in para 15.2.4.5 of this Chapter.

v. ThesaleofNPBweapontotheMPshasbeencentralizedinDelhiandthiswillbedoneonly by the Principal Commissioner/ Commissioner of Customs (Preventive), NewCustomHouse,IGIAirport,NewDelhi.

vi. All Commissionerates shall transfer the NPB weapons which have become ‘ripe fordisposal’tothePrincipalCommissioner/CommissionerofCustoms(Preventive),NewDelhi immediately. They will also transfer all the NPB weapons surrendered by theofficersatthetimeoftheirretirement/superannuation.

vii. ThePrincipalCommissioner/CommissionerofCustoms(Prev.),Delhiwill informtheMinistryaboutthebalanceoffirearmsavailablewiththemintheprescribedformatonamonthlybasistoenabletheMinistrytotakedecisionontherequestsreceivedfromtheMembersofParliament.

viii. Any relaxation in the existing guidelines would require the specific approval of theHon’bleFinanceMinisterineachcase.


15.2.4.LoaningofFirearmstotheDepartmentalOfficers

15.2.4.1.ConfiscatedweaponsofNon-ProhibitedBoremay,insuitablecases,beloanedtoexecutiveofficersof theCBIC,who require them for self-protection in the courseofperformanceof their duties, on the condition that the weapons are returned by the officers to theDepartment,whennolongerrequiredandinanycase,ontheirretirement/superannuationortheirleavingtheDepartmentforanyreasons,whatsoever.Theguidelines,inthisregard,areasfollows:

i. TheweaponswillbeloanedonlytoofficerswhopossessavalidArmslicense.

ii. Notmorethanoneweaponwillbegiventoanindividualofficer.

iii. TherequestoftheofficershouldbeforwardedbytheconcernedPrincipalCommissioner/Commissioner,whoaftersatisfyinghimselfoftheaboverequirement,shallrecommendtherequestoftheofficertotheDirectorateofLogistics,forfurtheractioninthematter.

15.2.4.2.The followingprocedure shall be followed for loaningof Firearms to theDepartmentalofficers:

i. AremarkinredinkshouldbeaffixedintheServiceBookoftheofficerconcernedtotheeffectthat___________boreRevolver/Pistolofmake_________bearingnumber_________hasbeenloanedtotheofficer.

ii. ThisremarkshouldbeattestedbytheHeadoftheDepartment.

iii. The Officer should give an Undertaking in the Proforma given at Form-28. This UndertakingshouldbekeptinthecustodyofthecontrollingHeadoftheDepartmentoftheofficerconcerned.

iv. AcopyoftheUndertakingshouldbeforwardedtotheDirectorateofLogistics.

v. TheDirectorateofLogisticsshouldmaintainaRegister,whichshouldclearlyindicatethenamesoftheofficertowhomtheweaponhasbeenloaned,thedateofsuperannuationoftheofficerandthemake,modelandthenumberoftheweapon.AyearlyreviewoftheRegistershouldbedonebytheDirectorateofLogisticstoensurethat inallcaseswheretheofficershaveretiredorleftthedepartment,duringtheperiodofthereview,theweaponshavebeenresumedandtakenbackintostock.

vi. As-and-whenweapons are returned, the second copy of theUndertaking kept in theServiceRecordshouldbecancelledby theHeadof theDepartmentconcerned,underintimationtotheDirectorateofLogistics.SuitableentriesshouldbemadeintheServiceBookoftheofficerconcerned,regardingtheresumptionofweaponsandcancellationoftheUndertakinggivenbytheofficer.TheDirectorateofLogisticsshould,onreceiptof


thisintimation,enterthefactofresumptionintheRegistermaintainedbyitandcanceltheoriginalUndertaking.

vii. During their tours, the officers of the Directorate of Logistics should inspect theCommissioneraterecordof theweapons loanedoutandsatisfy themselvesthat inallcases,wheretheloaneeofficershaveretired/leftthedepartment,theweaponsloanedtothemhavebeenresumed.

viii. WhereloaneeofficerhasbeentransferredoutoftheCommissionerate,theUndertakinggiven by him should be transferred to his new Commissionerate, alongwith ServiceRecords.

15.2.4.3.Sale of Ammunition totheExecutiveofficersofCBIC, towhomtheweaponshavebeenallottedonloan-basisshallbegovernedbythefollowingguidelines:

i. TheammunitionwillbesoldatapriceequivalenttoC.I.Fvalue.Inaddition,allapplicabletaxes,ifany,willalsohavetobepaid.

ii. Theofficerswillbeallowedtopurchase25roundsofammunitionatatime,subjecttothenumberofroundspermittedintheArmslicense.

iii. Thedepartmentalofficersalreadypossessingfire-arms,onrequest,willalsobeallowedtopurchasetheammunition,subjecttothenumberofroundsofammunitionreferredtoin(ii)above.

iv. TheammunitionmaybesoldtoofficersaftertheproductionofvalidArmslicenseandthefire-armtheypossess.

15.2.4.4.Recoveryofcostofweaponsinthecaseoflossbydepartmentalofficers:

Thefollowingcourseofactionmaybetakenineachcaseofreportedlossofweapon,whichisallottedtotheDepartmentalofficers:

i. If a confiscated weapon leased to a departmental officer is lost for any reason, itsreplacement cost will be recovered from him immediately, i.e., regardless of anydepartmentalaction,attheratefixedbytheCustomsdepartmentforsaleofsuchweapontotheMPs/VIPs,etc.

ii. Adepartmentalinquirymaybeconductedagainsttheofficer,preferablyafterobtainingareportfromthepoliceregardingtheirinquiryundertheArmsAct.Incasethepoliceinquirypointstowardsnegligenceorseriouslapseorfraudonthepartoftheofficer,afineequivalenttothereplacementcostofthelostweaponmaybeimposedontheofficer,inadditiontoimpositionofanyotherfine/penalty/punishmentasmaybecontemplatedunderCCS(CCA)ConductRules,1965.


iii. TheDirectorateofLogisticsshouldperiodicallyconductreviewoftheleasedweapons,inconsultationwithCommissionerates.Incasewhereitisfoundthatcontinuanceofleaseofweaponisnotwarranted,duetochangedcircumstances,theleasedweaponshouldbesurrenderedbytheallotteeofficertothepoolforre-allotmentorsaletoMPs/VIPs.

15.2.4.5. Pricing of Weapons for the Sale to MPs/ VIPs:

i. ThepricingofNon-ProhibitedBore(NPB)weaponsallottedtoMPs/VIPswillbemadeonthebasisoftheprevailingCIFpricesofthesimilarweaponsforimportintoIndiaplustheCustomsDutyleviable,prices,asillustratedbelow(Taxesasapplicablewillbechargeableonthispriceinaddition).

Illustration: Suppose the C.I.F. price of a particular model of an NPB weapons is Rs. 8,000/-. The Sale price of the said weapon shall be fixed/ determined as under:

a) C.I.F. price Rs. 8,000/-b) Customs Duty Ad-valorem as applicable Rs.12,000/-c) C.I.F. cum duty price (a) + (b) Rs.20,000/-d) 10% of C.I.F. cum duly price(c) Rs. 2,000/-e) Sale Price (c) + (d) (Taxes will be charged extra,

as applicable)Rs.22,000/-

ii. Thoughnormallynoregularimportsofweaponsarepermitted,butoccasionalreleaseoftheweaponstoreturningIndiandiplomats,etc.,onTransferofResidence(TR)ispermittedandthepricesfordutypurposesarebeingdetermined.ThesepricescouldbemadeuseoffordeterminingthelikelyCIFpricesofidentical/similarmodelsofweaponsofthesamemanufacturer.

iii. WhereverpricesofparticularmodelsofweaponsforsalebytheDepartmenttoMPs/VIPsarenoteasilyforthcoming,thelatestavailablepricelists,asavailableonInternetcouldbetakenintoaccount.Asthesepricesinthecountryofsalearegenerallyinclusiveofalltaxes& incidentals,etc.,anaveragedeductionof33%couldbegivenover thesepricesfornotionallyarrivingattheCIFpricesfortheparticularmodels(orsomewhatnearestcomparable/similarmodels)forimportintoIndia.

15.3. Disposal of Obsolete/ Obsolescent, Confiscated, Seized/ Recovered Fire Arms and Ammunition of Prohibited/ Non-prohibited Bores and Country-Made Weapons

As disposal of seized fire arms,which are obsolete/ obsolescent, is required to be done by theconcernedofficesinaneffectivemannerandtoavoidunnecessarypilingupofweaponsinGovernmentArmories, thedisposalofaforesaidcategoriesofarmsandammunitionshallberegulated in themannerindicatedinthefollowingparagraphs:


i. First&foremost,theobsoletefirearmsarerequiredtobecondemned.Forthispurpose,theprocedureprescribedbytheArmytowardscondemnation/declaringúnserviceabilityofthefirearms,beingpresentlyfollowedbysomeoftheCentralPara-MilitaryForces,maybeadopted.Agistofsuchprocedure,prescribedbyMinistry of Home Affairs, vide no.V-11020/14/96-ARMS (PB) and V-11020/7/97-Arms (PB) both dated 16.10.2001, presentlybeingfollowedinCRPFisgivenbelow:

“According to guidelines issued in the Electrical & Mechanical Engineering Regulations No.SA/ A-16.8 of Indian Army and Standing Order 11/ 76 of CRPF, an Electrical & Mechanical Assistant Engineer (Small Arms) [EMAE(SA)] is authorized to declare a fire arm unserviceable. In CRPF, the officers who have undergone EMAE(SA) course at the Army Training Centre, are called as Arms Inspector (SA) and made available to the Arms workshops. By virtue of the technical knowledge attained by them during the course, they are authorized to carry out technical examination of fire arms and sentence them unserviceable. The qualified Arms Inspecting Authority is acceptable as competent authority for conditioning the arms as unserviceable/ Beyond Economical Repair (BER).

A Fire arm can be declared unserviceable in the following circumstances:

1. In case of damage occurred due to accident/ failure caused during the firing. If a fire arm is damaged during the firing or accident, a board of officers is constituted to conduct a COI for investigating the circumstances under which the arm was damaged. Before finalizing the COI, a technical opinion is obtained from Ammunition Technician Officer/ Arms Inspection Authority (AIA) regarding the probable cause of damage. The AIA is required to furnish this report regarding the damage/ condition of the weapon in the proforma prescribed for this purpose.

2. As per existing rules and regulations, technical inspection of arms is made once in a year by our AIA. During the inspection, if a weapon is found damaged, the AIA sentence the weapon as repairable or unserviceable, considering its condition. If an arm is sentenced unserviceable ‘not due to fair wear and tear’, the AIA suggest the concerned head of office to conduct a COI for investigating the circumstances under which the fire arms got damaged. During the technical inspection, the AIA follows the gauging limits/ standards as prescribed for declaring the weapon unserviceable. Further, in case of arm damaged ‘due to unfair wear and tear’, the AIA is supposed to give his recommendation considering the extent of damage and the cause of the weapon, as per existing rules.”

ThejurisdictionalCommissionermaytaketheassistanceofEngineersattached


toArmy/CentralParaMilitaryForces in their jurisdiction inorder to get theobsoletefirearmsdeclaredasunserviceable/BER.

Precautionstopreventmisuseofseized/confiscatedarms/ammunitions

In order to prevent misuse of various categories of arms and ammunition confiscated forfeited, seized/ recovered by the Central Para Military Force/ the State Police Forces, there is a need to develop and ensure proper accountability regarding storage and registration of such weapons. For this purpose, all such weapons captured/ confiscated/ surrendered shall be taken on charge of memo of seizures, to be signed by the persons involved in the confiscation/ seizure/ capture. An FIR shall be lodged by the seizing authority with the nearest police station on the basis of memo of seizure explaining the complete circumstances of the case, for further necessary action, under the relevant provisions of law. The weapons shall be handed-over to the concerned authorities as per the Seizure memo. Keeping in view the safety of these weapons/ Arms/ Ammunition, their storage should normally not be allowed in the Police Stations. To ensure maximum safety of confiscated/ seized/ captured prohibited, prohibited bore and service pattern weapons, their storage should be done, centrally (e.g., in the respective State/ Force, Headquarters, under proper security, safety and supervision). For this purpose, a History Sheet with each weapon to indicate make, type of weapon, register number, brief circumstances of confiscation, capture, seizure, etc., shall be prepared and shall be kept as records, alongwith the memo of seizure. A specific time of three months for moving the lot of weapons from intermediate storage place to final place should be observed. The details of seizure, FIR lodged and confiscation orders obtained from competent courts shall be maintained by the State Police/ CPMF Headquarters and reported to the Ministry of Home Affairs.

Disposal of ammunition: The instructions contained herein above shall mutatis-mutandis apply to the disposal of the corresponding categories of ammunition.”

ii. Thedestruction/defacing/mutilationofweaponswillbesupervisedbyaCommitteeconsistingof the Additional/ Joint Commissioner concerned, two officersof the rank of the Deputy/AssistantCommissioner.Thewoodenbuttscanbebrokenandthemetalpartoftheweaponscanbedestroyedbyputtinginfurnacesafterensuringthatthereisnoexplosivematerialinside.

iii. A recordofweaponsdestroyed/defaced/mutilated shouldbemaintained in the followingProforma:

i. Fullnomenclatureofweaponspecifiescaliberandtypeofweapons,i.e.,revolver,pistol,shotGun,rifle,stemcarbine,etc.

ii. Registerednumberandmanufacturer’sparticulars (i.e., firmname, countryoforigin,countrymade,etc.)


iii. Reasonsforconfiscation/surrender,givingfulldetailsofOwner,ifany

iv. Reasons/ authority for destruction, giving reference of competent authorities givingorders for destruction

v. Details

vi. Anyotherremarks,ifany

Certifiedthattheweapon,asstatedabove,hasbeenphysicallydestroyed/defaced/mutilatedin-full,inourpresence,totheextentthateventhepartscannotbereused.

Signature&Designationofthreeofficers:

1.

2.

3.

Date:______________

Place:______________

iv The instructions contained herein above shall mutatis-mutandis apply to the disposal ofcorrespondingcategoriesofammunition.

***


Form-27 (ReferPara15.2.1(iii))

Statement of Stocks of Confiscated/ Forfeited Service Pattern and Prohibited Bore Arms

S. No.

Descrip-tion

of the weapon

Caliber Wheth-er the

weapon is free from encum- -brances or orders of compe--tent Court for its use has been obtained

Indicate, if the

weapon is ser-

-viceable or other-

wise

Opening Stock

Stock added during

the Month

To--tal

Stock trans-ferred

to CPO/ State Police during

the Month,if any

Bal-ance as on last day

of the Month

Remarks.Indicate if

this weapon is required by State Police

for its use and state the num--ber required

1 2 3 4 5 6 7 8 9 10 11

***


Form-28 (ReferPara15.2.4.2(iii))

UndertakingforLoaningofNon-ProhibitedBoreArmstoDepartmentalOfficers

I, ________ , son/ daughter of ________ , resident of _____________ , herebyundertake to abide by thefollowingstipulationsmadebytheGovernmentofIndiawhichmaybechangedoramendedfromtimetotime.

1. Theloanedarm/weapon/Ammunitionswillbereturnedwhennolongerrequiredorinanycase onmy attaining superannuation or voluntary retirement or resignation or dismissalfromserviceoranyothernaturalcalamity,whicheveroccursearlier.

2. The Government of India is, and shall continue to be, the owner of the arm/ weapon/Ammunitionsandthatthisisgivenpurelyonloan-basisbytheGovernmenttomeandthattherecannotandshallnotbealegalheirorsuccessororclaimantfortheloanedgun/weapon/Ammunitionstome.

3. Incaseoflossordamageortheftoraccidentoranyothernaturalcalamityoractofnature,I undertake to pay full price/ cost of the loaned arm/ gun/weapon/ ammunitions to theGovernmentofIndiaasdeterminedbytheGovernmentofIndia.

4. Iacknowledgethatforthepurposeofrecoveryofthecost,thesameshallbecalculatedonthebasisofthepriceplustherateoftheCustomsdutyasfixedbytheGovernmentfromtime-to-timeandatanyparticulargivensituation.

Mydateofsuperannuationis____________

The Schedule

Descriptionofweapon

Maker’sName

Description

S.Number

INWITNESSWHEREOF theMortgaging or/ Borrower has hereunto set his hand and Shri/Ms.___________________forandonbehalfofthePresidentofIndiahashereuntosethishand.


*Signedbythesaid

(Nameanddesignationoftheborrower)

________________________________

in the presence of

1.______________________________

2._____________________________

(SignatureofWitnesses)

________________________________

(Signature&DesignationoftheBorrower)

________________________________

Signedby(NameandDesignation)

________________________________

forandonbehalfofthePresidentof

India in the presence of

1.______________________________

2._____________________________

(SignatureofWitnesses)

________________________________

(Signature&DesignationoftheOfficer)

***


16.1. WithaviewtobringuniformityinapproachindrawingsamplesfromseizedNarcoticdrugsandPsychotropicsubstances,particularlywithregardtothenumberofsamplesdrawn,quantityofsample,methodofsealing,modeofpacking,dispatchofsamples,etc.,tothelaboratoryconcernedfortestingpurposesaswellasinthehandlingofdrugsamplesatdifferentstagesandplacesanddisposalofseizeddrugs, a standard procedure is outlined in the Standing Order No. 1/89 dated 13.6.1989 issued by the Ministry under Section 52A(1) of the NDPS Act, 1985 read with NCB Standing Order No. 1/88 and 2/88 latter dated 11.04.1988. (These instructions are given in Appendix-III A, Appendix-III B and Appendix-III C)

16.2.Notification in F.No. V/2/2004-N.C.II dated 16.01.2015 (GSR 38(E)), prescribes inpara-2(Appendix- III D) thatallnarcoticdrugs,psychotropicsubstances, controlledsubstancesandconveyancesshallbedisposedofunderSection52AofthesaidAct.Mostofthenarcoticdrugsandpsychotropicsubstancescannotbeconclusivelyprovedtobesuchdrugsorsubstancesmerelyby visual examination in the Trial Court and they require to be proved by Chemical analysis tobe conductedbyChemists authorizedunderSection293of Cr. P.C. 1973.NotificationNo.74F.No.50/53/76-Ad.II dated 17th July 1976,asamendedvideNotificationdated2nd February 1977,havedeclaredChemistsofdifferentgradesworkinginCentralRevenuesControlLaboratories(CRCL)asChemiststotheGovernmentforthepurposeofSection 293 of Cr.P.C.

16.3.As regards to materials, apparatus, utensils, any other articles (other than narcotic drugs,psychotropicsubstances,controlledsubstancesandconveyances),seizedalongwithNarcoticDrugsorPsychotropicSubstances,orinrespectofwhichanyoffenceispunishableunderChapterIVoftheNarcoticDrugsandPsychotropicSubstancesAct,1985,theyshallbedealtaspertheprovisionsofthe Section 451 of the Criminal Procedure Code (Cr.P.C.),whichisreproducedbelow:

“451. Order for custody and disposal of property pending trial in certain cases: When any property is produced before any criminal court during any enquiry or trial, the court may

make such order as it thinks fit for the proper custody of such property, pending the conclusion of the enquiry or trial, and, if the property is subject to speedy natural decay, or if it is otherwise expedient so to do, the court may after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of.

Explanation: For the purpose of this Section “property” includes-

a. Property of any kind or document which is produced before the court or which is in its custody,

NARCOTICS(Also Refer Drug Law Enforcement Field of Officers’ Handbook on www.narcoticsindia.nic.in)

CHAPTER - 16


b. Any property regarding which an offence appears to have been committed or which appears to have been used for the commission of any offense.”

16.4. Disposal/ destruction of seized drugs and compliance of Supreme Court Orders

16.4.1.TheHon’ble Supreme Court, in its Order dated 11.04.12, in the case of UOI vs Mohanlal and Anr. held that thehazardousnatureof the substance seized in largequantities all over thecountry,must not be let loose on the societybecauseof human failure or failure of the system,thatispurportedtohavebeenputinplace.SincetheNDPSActprovidesforpre-trialdisposalofdrugs (Sec 52A of NDPS Act),thepost-trialdisposalcanalsobedonefollowingtheCourtorder.Accordingly,Ministry, vide F.No.591/06/2012-Cus (AS) dated 07.08.2013,thefollowingactionplanisstipulated:

i. PrincipalChiefCommissioner/ChiefCommissionertolookintothematterpersonallyandtoensureall-outeffortsaremadefordisposalofnarcoticdrugs lyinginCustomsMalkhanas/Godownsandpre-trialdisposalapplicationsarefiledforissuanceoforderfordisposal, eitherbywayofdestructionordisposal throughdesignatedauthorities,fromthecourts.

ii. Whereverthecasesattainedfinalityandthecontrabandseizedarenotdestroyed,thesameshallbedisposedofasperguidelinesexpeditiously.

iii. TheofficersdealingwithNDPScasesmaybeaskedtodrawattentionoftheconcernedMagistratesofthecourtstotheaboveSupremeCourt’sorderswhileseekingordersforpre-trialdisposal.

iv. All jurisdictionalCommissioners shouldchalkout time table forensuringdisposalofnarcoticdrugsandpsychotropicsubstanceslyinginstockandensurethatthesameisdisposedof/destroyedinatime-boundmannerattheearliestpossible,followingtheprescribedprocedure.

v. Principal Commissioner/ Commissioner, Directorate of Logistics shall monitor theprogress of disposal/ destruction of narcotic drugs by the field formations and keeptrackoftherecordsperiodicallybyseekingreportsfromthefieldformations.

vi. AconsolidatedquarterlyreportondetailsofdisposalofcontrabandsseizedundertheNDPSAct1985shallbesubmittedtotheBoardby15thdayofthemonthsucceedingthequarter.

16.4.2.NotificationG.S.R.38(E)inF.No.V/2/2004-NC.IIindicates the procedure for disposal of all narcoticdrugs,psychotropicsubstances,controlledsubstancesandconveyancesunderSection 52A of the NDPS Act,asgiveninAppendix-IIID.Subsequently,videitsfurtherOrder dated 28.01.2016 in Union of India vs. Mohanlal and Anr., the Hon’ble Supreme Court had observed (in para 19) thattherearecertaindifferencesbetweenthisNotificationandtheStandingOrderNo.1/89,butheldthattheNotificationG.S.R.38(E)inF.No.V/2/2004-NC.IIwouldprevailtotheextentof the differences therein. Accordingly, the following procedures are prescribed:


16.5. General Procedure for Sampling, Storage, Etc.

16.5.1.Sampling,classification,etc.,ofdrugs:Allthedrugsshallbeproperlyclassifiedcarefully,weighedandsampledonthespotofseizure.

16.5.2.Drawal of samples: AfterseizureofthegoodsanddepositinthedesignatedGodowns,theInvestigatingOfficershallapplytotheMagistrateunderSection 52A of the NDPS Act 1985 in the mannerprescribed.AftersuchapplicationtoMagistrateunderSub-Section (2) of Section 52A of the Act,theInvestigatingOfficershallensurethatsamplesofthematerialseizedaredrawninthepresenceoftheMagistrateandcertifiedbytheMagistrate.

16.5.3. Quantity to be drawn for the sampling: Thequantitytobedrawnineachsampleforchemicaltestshallnotbelessthan5gramsinrespectofallnarcoticdrugsandpsychotropicsubstances,saveincasesofopium,ganjaandcharas(hasish),whereaquantityof24gramsineachcaseisrequiredforchemicaltest.Thesamequantitiesshallbetakenfortheduplicatesamplealso.Theseizeddrugsinthepackages/containersshallbewellmixedtomakeithomogeneousandrepresentativebeforethe sample (in duplicate)isdrawn.

16.5.4. Method of drawal:

16.5.4.1.Single container/ package: In thecaseofSeizureofa singlepackage/ container,onesample(induplicate)shallbedrawn.Normally, it isadvisabletodrawonesample(induplicate)fromeachpackage/containerincaseofseizureofmorethanonepackage/container.

16.5.4.2. Bunch of Packages/ Containers: However, when the packages/ containers seizedtogetherareofidenticalsizeandweight,bearingidenticalmarkingsandthecontentofeachpackagegivenidenticalresultsoncolortestbythedrugidentificationkit,conclusivelyindicatingthatthepackagesareidenticalinallrespects,thepackages/containersmaybecarefullybunchedinlotsof10packages/containers,exceptinthecaseofganjaandhashish(charas),whereitmaybebunchedinlotsof40suchpackages/containers.Foreachsuchlotofpackages/containers,onesample(induplicate)maybedrawn.

Bunching for:-

i. Hasish and Ganja:Where aftermaking such lots, in the case of Hashish and Ganja,less than20packages/containersremain,and inthecaseofotherdrugs, less than5packages/containersremain,nobunchingwillbenecessary.

ii. Other drugs: Ifsuchremaindersare5ormorethan5inthecaseofotherdrugsandsubstances, and 20 ormore in the case of Ganja and Hashish, onemore sample (induplicate)maybedrawnforsuchreminderpackage/container.

16.5.4.3. Drawal of representative samples: While drawing one sample (in duplicate) fromaparticular lot, itmustbeensured that representativesample inequalquantity is taken froma


package/ container of that lot andmixed together tomake a compositewhole fromwhich thesamplesaredrawnforthatlot.

16.5.5. Storage of samples- Procedure: The sample in duplicate should be kept in heat-sealedplasticbags,asitisconvenientandsafe.Theplasticbagcontainershouldbekeptinapaperenvelopewhichmaybesealedproperly.Suchsealedenvelopemaybemarkedasoriginalandduplicate.BoththeenvelopeshouldbeartheS.No.ofthepackage(s)/container(s)fromwhichthesamplehasbeendrawn.TheduplicateenvelopecontainingthesamplewillalsohaveareferenceoftheTestMemo.Thesealsshouldbe legible.Thisenvelopewhichshouldalsobesealedandmarked ‘Secret-Drugsample/TestMemo’istobesenttothechemicallaboratoryconcerned.

16.5.6. Dispatch of samples for testing: TheSeizingofficersoftheCentralGovernmentDepartments,viz.,Customs,CentralExcise,CGST,CentralBureauofNarcotics,NarcoticsControlBureau,DirectorateofRevenueIntelligence,etc.,shoulddispatchsamplesoftheseizeddrugs,withendorsementfromtheMagistrate,tooneoftheLaboratoriesoftheCentralRevenuesControlLaboratory(CRCL)nearesttotheirofficedependingupontheavailabilityofthetestfacilities.

16.5.7. Preparation of inventory: Aftersampling,detailedinventoryofsuchpackages/containersshallbepreparedforbeingenclosedwiththePanchnama.Originalwrappersshallalsobepreservedforevidentiarypurposes.

16.6. Procedure for Receipt and of taking Custody of Drugs and their Storage

16.6.1.Alldrugsshouldinvariablybestoredinsafesandvaultsprovidedwithdouble-lockingsystem.AgenciesoftheCentralandStateGovernmentsmayspecificallydesignatetheirGodownsforstoragepurposes.TheGodownsshouldbeselectedkeepinginviewtheirsecurityangle,proximitytocourts,etc.

16.6.2. Maintenance of Godowns and procedure for depositing drugs: Such Godowns, as amatterofrule,shallbeplacedunder theover-allsupervisionandchargeofaGazettedofficeroftherespectiveenforcementagency,whoshallexerciseutmostcare,circumspectionandpersonalsupervisionasfaraspossible.EachSeizingofficershalldepositthedrugsfully-packedandsealedintheGodownwithin48hoursofsuchseizure,withaforwardingmemoindicatingNDPSCrimeNo.asperCrimeandProsecution(C&PRegister)underthenewlaw,nameoftheaccused,referenceofTestMemo,descriptionofthedrugs,totalno.ofpackages/containers,etc.

16.6.3. Acknowledgement to be obtained: TheSeizingofficer,afterobtaininganacknowledgementfor such deposit in the format (Form-29)shallhand-oversuchacknowledgementtotheInvestigatingofficerofthecase,alongwiththecasedossiersforfurtherproceedings.

16.6.4. Action to be taken by Godown in-charge before acceptance of drugs for deposit: The Officer-in-chargeoftheGodown,beforeacceptingthedepositofdrugs,shallensurethatthesameareproperlypackedandsealed.Heshallalsoarrangethepackage/containers(case-wiseandlot-wise)forquickretrieval,etc.


16.6.5. Maintenance of Godown Register: TheGodown-in-chargeisrequiredtomaintainRegisterwhereinentriesofreceiptshouldbemadeasperformatatForm-30.

16.6.6.InspectionbyInspectingOfficers:ItshallbeincumbentupontheInspectingOfficerstomakefrequentvisitstotheGodownforensuringadequatesecurityandsafetyandfortakingmeasuresfortimelydisposalofdrugs.TheInspectingOfficersshouldrecordtheirremarks/observationsagainstCol.15oftheFormatatForm-30.

16.6.7. Prescription of periodical Reports and Returns: The Heads of the respective enforcement agencies(bothCentralandStateGovernments)mayprescribesuchperiodicalReportsandReturns,astheymaydeemfit,tomonitorthesafereceipt,deposit,storage,accountinganddisposalofseizeddrugs.

16.6.8. Pre-trial disposal of drugs: Sincetheearlydisposalofdrugsassumesutmostconsiderationand importance, theenforcementagenciesmayobtainorders forpre-trialdisposalofdrugsandotherarticles(includingconveyance,ifany)byhavingrecoursetotheprovisionsofsub-Section(2)ofSection52AoftheNDPSAct.

16.7. Action by Police and Other Empowered Officers for Pre-Trial Disposal

16.7.1.Filing of Charge Sheet/ Complaint: Complaints by the respective enforcement agenciesmustbefiledaftercompletionofinvestigation,withintheperiodstipulatedbytheNDPSAct,onaprioritybasis.Thisrequirestometiculouslyadheredto.

16.7.2. Documents to accompany Application: WhilemovingtheApplicationundersub-Section(2)ofSection52Aof theNDPSAct,productionofall seizedarticles/drugs,etc.,alongwith thePanchnama(inoriginal)anddetailedInventorythereof,isessential.Theinventoryshallbecompleteinallrespectsandcontainsuchparticulars,asmayberelevanttoestablishnexus/identityofarticles.TheChemicalAnalysisReportshouldalsobesimultaneouslyfiled.

16.8. ProcedureforDisposal

16.8.1.Relevantextracts(para4to13)oftheNotificationdated16.1.2015, are reproduced for compliance:

“4. Mannerofdisposal.

(1) Whereanynarcoticdrug,psychotropicsubstance,controlledsubstanceorconveyancehasbeenseizedandforwardedtotheofficer-in-chargeofthenearestpolicestationortotheofficerempoweredunderSection53of thesaidActor if it is seizedbysuchanofficerhimself,heshallpreparean inventoryofsuchnarcoticdrugs,psychotropicsubstances,controlledsubstancesorconveyancesasperAnnexure1tothisNotificationandapplytoanyMagistrateundersub-Section(2)ofSection52AofthesaidActasperAnnexure2tothisNotificationwithinthirtydaysfromthedateofreceiptofChemicalAnalysisReportofseized narcotic drugs,psychotropicsubstancesorcontrolledsubstances.


(2) AftertheMagistrateallowstheApplicationundersub-Section(3)ofSection52AofthesaidAct,theofficermentionedinsub-paragraph(1)shallpreservetheCertifiedInventory,photographsandsamplesdrawninthepresenceoftheMagistrateasprimaryevidencefor the case and submit details of the seized items to the Chairman of the Drug Disposal Committee for a decision by the Committee on the disposal, and the aforesaid officershallsendacopyofthedetailsalongwiththeitemsseizedtotheofficer-in-chargeoftheGodown.

5. DrugDisposalCommittee.

The Head of the Department of each Central and State drug law enforcement agencyshallconstituteoneormoreDrugDisposalCommittees,comprisingthreeMemberseach,whichshallbeheadedbyanofficernot-below-the-rankofSuperintendentofPolice,JointCommissioner of Customs and Central Excise, JointDirector ofDirectorate of RevenueIntelligence or officers of equivalent rank and every such Committee shall be directlyresponsibletotheHeadoftheDepartment.

6. Functions.

ThefunctionsoftheDrugDisposalCommitteeshallbeto:-

(a) meetasfrequentlyaspossibleandnecessary;

(b) conductadetailedreviewofseizeditemspendingdisposal;

(c) orderdisposalofseizeditems;and

(d) advise the respective Investigation Officers or Supervisory Officers on the steps to beinitiatedforexpeditiousdisposal.

7. ProceduretobefollowedbytheDrugDisposalCommitteewithregardtodisposalofseizeditems.

(1) Theofficer-in-chargeofGodownshallpreparealistofalltheseizeditemsthathavebeencertifiedunderSection52AofthesaidActandsubmitittotheChairmanoftheconcernedDrugDisposalCommittee.

(2) After examining the list referred to in sub-paragraph (1) and satisfying that therequirementsofSection52AofthesaidActhavebeenfullycompliedwith,themembersoftheconcernedDrugDisposalCommitteeshallendorsenecessaryCertificatestothiseffectanDthereafterthatCommitteeshallphysicallyexamineandverifytheweightandotherdetailsofeachoftheseizeditemswithreferencetotheSeizureReport,ReportofChemicalAnalysisandanyotherdocuments,andrecorditsfindingsineachcase.


8. PowerofDrugDisposalCommitteefordisposalofseizeditems.

TheDrugDisposalCommitteecanorderdisposalof seized itemsup to thequantityorvalueindicatedintheTablebelow,namely:

Sl.No. Nameofitem Quantityperconsignment1. Heroin 5Kg2. Hashish(Charas) 100Kg3. HashishOil 20Kg4. Ganja 1000Kg5. Cocaine 2Kg6. Mandrax 3000Kg7. Poppystraw Upto10MT8. Othernarcoticdrugs,psychotropicsubstances,

controlledsubstancesorconveyancesUptothevalueofRs.20lakh:

Provided that if the consignments are larger in quantity or of higher value than thoseindicatedintheTable,theDrugDisposalCommitteeshallsenditsrecommendationstotheHeadoftheDepartment,whoshallordertheirdisposalbyaHigh-levelDrugDisposalCommittee,speciallyconstitutedforthispurpose.

9. Modeofdisposalofdrugs.

(1)Opium, morphine, codeine and thebaine shall be disposed of by transferring to theGovernmentOpiumandAlkaloidWorksundertheChiefControllerofFactories.

(2)Incaseofnarcoticdrugsandpsychotropicsubstancesotherthanthosementionedinsub-paragraph(1),theChiefControllerofFactoriesshallbeintimatedbythefastestmeansofcommunicationavailable,thedetailsoftheseizeditemsthatarereadyfordisposal.

(3) TheChiefControllerofFactoriesshallindicatewithinfifteendaysofthedateofreceiptofthecommunicationreferredtoinsub-paragraph(2),thequantitiesofnarcoticdrugsandpsychotropicsubstances,ifany,thatarerequiredbyhimtosupplyassamplesunderRule67BoftheNarcoticDrugsandPsychotropicSubstancesRules,1985.

(4) Suchquantitiesofnarcoticdrugsandpsychotropicsubstances,ifany,asrequiredbytheChiefControllerofFactoriesundersub-paragraph(3)shallbetransferredtohimandtheremainingquantitiesofnarcoticdrugsandpsychotropicsubstancesshallbedisposedofinaccordancewiththeprovisionsofsub-paragraphs(5),(6)and(7).

(5)Narcotic drugs, psychotropic substances and controlled substances having legitimatemedicalorindustrialuse,andconveyancesshallbedisposedofinthefollowingmanner:-


(a)Narcoticdrugs,psychotropicsubstancesandcontrolledsubstanceswhichare intheformofformulationsandlabelledinaccordancewiththeprovisionsoftheDrugsandCosmeticsAct,1940(23of1940)andRulesmadethereunder,maybesold,bywayoftenderorauctionorinanyothermannerasmaybedeterminedbytheDrugDisposalCommittee, after confirming the composition and formulation from the licensedmanufacturermentioned in the label, to a person fulfilling the requirements of theDrugsandCosmeticsAct,1940(23of1940)andtheNarcoticDrugsandPsychotropicSubstancesAct,1985(61of1985)andtheRulesandOrdersmadethereunder,providedthataminimumof60%oftheshelf-lifeoftheseizedformulationremainsatthetimeofsuchsale;

(b)Narcoticdrugs,psychotropicsubstanceandcontrolledsubstancesseizedintheformofformulationsandwithoutproperlabellingshallbedestroyed;

(c)Narcoticdrugs,psychotropicsubstancesandcontrolledsubstancesseizedinbulkformmaybesoldbywayoftenderorauctionorinanyothermanner,asmaybedeterminedbytheDrugDisposalCommittee,toapersonfulfillingtherequirementsoftheDrugsand Cosmetics Act, 1940 (23 of 1940) and the Narcotic Drugs and PsychotropicSubstancesAct,1985(61of1985),andtheRulesandOrdersmadethereunder,afterconfirming the standards and fitness of the seized substances for medical purposes fromtheappropriateauthorityundertheDrugsandCosmeticsAct,1940(23of1940)andtheRulesmadethereunder;

(d)ControlledsubstanceshavinglegitimateIndustrialusemaybesold,bywayoftenderorauctionorinanyothermannerasmaybedeterminedbytheDrugDisposalCommittee,to a person fulfilling the requirements of the Narcotic Drugs and PsychotropicSubstancesAct,1985(61of1985)andtheRulesandOrdersmadethereunder;

(e)Seizedconveyancesshallbesold-offbywayoftenderorauctionasdeterminedbytheDrugDisposalCommittee.

(6) Narcotic drugs, psychotropic substances and controlled substances which have nolegitimateMedicalorIndustrialuseorsuchquantityofseizeditems,whichisnotfoundfitforsuchuseorcouldnotbesold,shallbedestroyed.

(7) Destruction referred to in sub-paragraph (b) of para (5) and in para (6) shall be byincineration, in incineratorsfittedwithappropriateairpollutioncontroldevices,whichcomply with emission standards and such incineration may only be done in placesapprovedbytheStatePollutionControlBoardorwhereadequatefacilitiesandsecurityarrangementsexistandinthelattercase,inordertoensurethatsuchincinerationmaynotbeahealthhazardorpolluting,consentoftheStatePollutionControlBoardorPollutionControlCommittee, as thecasemaybe, shallbeobtained,and thedestructionshallbecarriedoutinthepresenceoftheMembersoftheDrugDisposalCommittee.


10. IntimationtotheHeadoftheDepartmentondestruction:TheDrugDisposalCommitteeshall intimate the Head of the Department regarding the programme of destruction at leastfifteendaysinadvance,sothat,incasehedeemsfit,hemayeitherhimselfconductsurprisechecksordeputeanofficerforconductingsuchsurprisechecksandaftereverydestruction operation, the Drug Disposal Committee shall submit to the Head of theDepartmentareportgivingdetailsofdestruction.

11. Certificate of destruction: A Certificate of destruction (in triplicate) containing all therelevantdata,likeGodownentrynumber,grossandnetweightoftheitemsseized,etc.,shall be prepared and signedby the Chairman and theMembers of theDrugDisposalCommittee as per format at Form-31andtheoriginalcopyshallbepastedintheGodownRegisteraftermakingnecessaryentriestothiseffect,theduplicatetoberetainedintheSeizureCaseFileandthetriplicatecopyshallbekeptbytheDrugDisposalCommittee.

12. DetailsofsaletobeenteredinGodownRegister:As-and-whentheseizednarcoticdrug,psychotropicsubstance,controlledsubstanceorconveyanceissoldbywayoftenderorauctionorinanyothermannerdeterminedbytheDrugDisposalCommittee,appropriateentryindicatingdetailsofsuchsaleshallbemadeintheGodownRegister.

13.Communication to Narcotics Control Bureau: Details of disposal of narcotic drugs,psychotropicsubstances,controlledsubstancesandconveyancesshallbereportedtotheNarcoticsControlBureauintheMonthlyMasterReports.”

***



Godown Receipt

RECEIVED(No.)____________packages/containerssaidtocontain_______________(DescriptionofDrugs)sealedwiththesealNo.____________________of___________________________________________________(Name&Designation)SeizingOfficerandenteredintoGodownRegistervideentryNo._________

Facsimileoftheseal_______________________

Place:

SignatureoftheOfficer

In-chargeofGodownwith

Fullname&officialseal

Date:

Time:



Format of Register to be Maintained by the Godown-in-Charge

1. GodownentryS.No.…………………………………………………………………………

2. N.D.P.S.CrimeNo.…………………………………………………………………………

3. Descriptionofdrugsinthesealedpackages/containersandothergoods,ifany…………..

4. No.ofpackages/containers(drug-wise)……………………………………………………

5. Quantityofdrug(packages/containers)…………………………………………………….

6. ParticularsoftheTestMemos………………………………………………………………..

7. Name(s)andaddress(es)ofaccused……………………………………………………………

8. NamewithofficialdesignationandaddressofSeizing/Depositingofficer…………………….

9. Facsimileofthesealputonthepackages/containersbytheSeizingofficer………………….

10. Dateandtimeofdeposit……………………………………………………………………….

11. Particularsofexitandre-entryforexhibitingtocourt…………………………………………

12. Dateandtimeofremovalfordisposal…………………………………………………………

13. DisposalparticularsincludingdestructionordispatchtoCentralGovernmentOpiumfactory…

14. Certificateofdisposalincludingpricepaymentparticulars,fromGovernmentOpiumfactory,whereapplicable………………………………………………………………………………

15. RemarksoftheInspectingOfficer(s)…………………………………………………………

InspectingOfficers:InthecaseofCentralEnforcementAgency:(1)D.G.NCS,(2)Dy.D.G.NCB,(3)NarcoticsCommissionerof India, (4)Dy.NarcoticsCommissioners, (5)D.G.BSF, (6)DyD.G.BSF,(7) Sr.OfficersofCBI, (8)PrincipalCommissioner,Customs&CentralExcise, (9)Commissioner,Customs&CentralExcise,(10)AssistantCommissionerofCustoms&CentralExcise.

In the case of State EnforcementAgencies: (1)D.G. of Police, (2) I.G. of Police, (3)Dy. I.G.P., (4)Superintendent of Police, (5) State Excise Commissioners, (6) Dy. Excise Commissioners, (7)SuperintendentofExciseandequivalentofficerofStateGovernmentintheauthorizeddepartment.

***


Form-31 (ReferPara16.8(ii))

(Note: Other annexures are also prescribed in the draft seizure, sampling, storage and Disposal Rules circulated in 2018.)

***

[See Paragraph 11 of Notification No. GSR 38 (E) dated the 16-01,2015 in F.No. V/2/2004-NC II


17.1. Consumer Goods: Thefollowingguidelinesaretobefollowedbydepartmentfordisposalofconfiscated/seizedgoods:

i. Sale through Army canteen/ CSD: It is reiterated that theArmyauthorities/MilitaryCanteens/CanteenStoresDepartment (CSD)maybe allowedpurchaseof confiscated/seizedgoods,sincetheyprovideconsumergoodsofhighqualitytothetroops,whereverthey are situated. The earlier Instructions dated 10.2.64 issued in this regard, providethatconfiscatedgoods,asmuchascanconvenientlybemadeavailable,aftermeetingtheearlier demands ofArmy authorities/Military Canteens/CSD and/ or the Consumers’CooperativeStores, are to be offered to the Central Government Employees’ ConsumerCooperativeSocietyLtd.

ii. Sale through NCCF/ KB/ Consumer Cooperatives: Any lot of confiscated/ seizedconsumer goods of value not exceeding Rupees Five lakhswhichare‘ripefordisposal’shallbeofferedtoNCCF/KB/OtherCentralGovernmentEmployees’ConsumerCooperativeSociety/ Multi-State Consumer Cooperative Societies/ State Consumers’ Cooperatives,subjecttoprescribedconditions.MostoftheseconditionshadbeenprescribedinvariousinstructionsoftheBoardissuedearlierandhavebeenreiteratedhere:

(a)Theyshouldbefunctionalforatleast10precedingyearsandshouldsubmitIncome-TaxReturnsandVAT/ST/GSTreturnsshowingtheiractivitiesinsaleofgoodstotheconsumersandthatappropriatetaxeshavebeendulypaidandrelevantlaws/RulesandRegulationsarecompliedwith.

(b)OnlythoseCo-operativeSocietiesorNational/StatelevelCooperativeFederations,thataredulyverifiedandcertifiedasgenuine,everyyearbyanofficernot-below-the-rankofAC,andthosethathavebeendulyregisteredunderMulti-StateCooperativeSocieties Act, 2002 or concerned State Cooperatives Act, should be permitted topurchasetheconfiscated/seizedgoods.ThegenuinenessofCo-operativeSocieties/FederationsmayalsobeverifiedthroughconcernedCommissioneratesorotherfieldformationsofthisdepartment,whereverrequired.

(c) Theyshouldbeobligedtosellsuchseized/confiscatedgoodsdirectlytobonafideconsumers.

(d) No ‘pick and choose’ of items would be allowed.

Disposal of Miscellaneous Goods

CHAPTER - 17


(e)Seized/confiscatedconsumergoodsshallbeofferedon‘first-come-first-served’basis.

(f)Anylotofconfiscated/seizedconsumergoodsofvalueexceedingRs.FivelakhsshallnotbesolddirectlytotheaforesaidCooperativeSocieties/FederationsandshallbesoldbyE-auctionorauction-cum-tenderbasis.

(g)Complete accounts may be called for scrutiny by the department as-and-whennecessary, to ensure that the seized/ confiscated goods, which are sensitive tosmugglingarenotmisused;ortoverifythattheirdisposalhasnotbeenmadetoasingleparty/ individual;or toensure thatsalehasnotbeenmade toanypersons,wherein purchase vouchers, etc., had beenmisused by unscrupulous elements inlegitimizingsmuggling.

iii. Sale through e-auction/ Auction-cum-tender: Confiscated/ seized goods of all other typesandconfiscated/seizedconsumergoodsexceeding value of Rupees Five lakhs in single lot, may be disposed through e-auction or auction-cum-tender, sinceitoffersenhancedtransparencyandaccountability forquickdisposalofgoods. Insuche-auction or auction-cum-tender process, all persons including NCCF, KB, other CGEmployees’Consumer Cooperatives, Multi-State/ State Cooperatives or National/ StatelevelCooperativeFederationscanalsoparticipate.

17.2. Foodstuffs seized for contravention of Food Safety and Standards Act, 2005 (FSSA): The followingproceduremaybefollowedfordisposalofgoodsseizedundertheFSSA,2005:

i. Inrespectofsmallconsignmentscomprisingofgoodsunfitforconsumption,theirgoodsshouldbedestroyedafterconfiscation.

ii. In case of other consignments, the detention/ seizure may be reported to the localFood Safety and Standards Authority of India (FSSAI) officer for his opinion whetherthe consignment isunfit forhumanconsumption. If theDirector is of theopinion thatthe consignment is unfit for human consumption, the same should be confiscated anddestroyed.Iftheconsignmentisreportedtobemisbranded,thepartymaybepermittedtopaythefineinlieuofconfiscationofthegoodsandclearthemafterconfiscationaftersuitablyre-brandingthegoods.

iii. Innocaseshouldarticles,theimportofwhichisprohibitedunderFSSAAct,beauctioned.

17.3. Hazardous Waste: There are two categories of hazardous wastes: (a) banned and (b)regulated.Thedisposalofthesetwocategoriesofhazardouswasteshallbecarriedoutunderthesupervision of the Monitoring Committee constituted vide order No.23-16/96-HSMD-Vol.III dated 20.11.2003 of Ministry of Environment and Forests,(HSMDivision)onHazardousWasteManagement.NamesandconstitutionoftheMonitoringCommitteeisgiveninthesaidletter.MinistryofEnvironmentandForestsmaybecontactedonthelatestconstitutionofMonitoringCommittee.


The Committee has been empowered to oversee the implementation of theHon’ble Supreme Court’s orders on hazardous waste management in the WP No. 657 of 1995.Accordingly,

i. In respect of ‘banned’ category, they should be either re-exported, if permissible, ordestroyedattherisk,costandtheconsequenceoftheimporter;and

ii. Regardingthosethatare ‘regulated’andarepermittedforrecyclingandreprocessingwithinthepermissibleparametersbyspecifiedauthorizedpersons,havingtherequisitefacilities,videtheRulesasamended,maybereleased/disposedoforauctionedasperRules to the registered recyclers/ re-processors. Also, before allowing clearance forrecyclinganddomesticuse,clearanceshouldbeobtainedfromtheMonitoringCommitteeonHazardousWasteManagement.

HazardousWasteRules2016andrelevantSchedulescanbeaccessedathttp://enfor.nic.in/,underthe sub-heading `Divisions`, under which the HazardousWaste Substances Management (HSM)Divisionislisted.

17.4. Trade Goods other than Hazardous chemicals/ wastes: Trade goods, like chemicals,industrialrawmaterials,machineryparts,motorvehicleparts,etc.,otherthanhazardouschemicals,maybedisposedofbypublic auction/ e-auction-cum-tender.Restrictionsregardingrequirementsof license, if any,mustbecomplied.Clearance fromFSSAIshouldbeobtained in respectof foodarticles. Chemicals, drugs, foods and food articles, which are time-expired should be destroyedunderCustomssupervision,aftergettingthedestructionordersfromtheconcernedofficer.

17.5. Plants and Seeds: Abandoned/confiscated/unclaimedseedsandplantsmaybehanded-overtotheNationalBureauofPlantsGeneticResources,NewDelhi.

17.6. Live Stock: The live-stock ismentioned in Category-I goods and thus, should be disposedof,accordingly.Pendingdisposal,thesameshouldbemaintaineddepartmentally.Wherenosuchfacilityisavailablewiththedepartment,thelivestockmaybehanded-overtothevillagehead-manforpropermaintenancebeforedisposal.

17.7. Cattle: The Hon’ble Supreme Court, vide its Order dated 04.08.2017, directed that the sale of cattle would be made in consonance with Prevention of Cruelty to Animals (Care and Maintenance of Case Property Animals) Rules, 2017 (PCA Act).UnderthePCAAct, theStatePoliceOfficersandnotCustomsofficers,areempoweredtomakeseizureandhence,thecomplianceofprovisionsofPCARulesforsaleofcattlecanonlybedonebytheStatePoliceOfficers.Accordingly,theBoardhasdecidedtodiscontinueauctionofseizedcattle,soastocomplywiththeOrderdated04.08.2017oftheHon’bleSupremeCourt.Therefore,Customs/CGSTofficersshouldnottake-overseizedcattlefromBSFandrequestBSFtohandthemovertoStatePolice.Further,incasesofseizureofcattlebyCustoms/CGSTOfficers,theStatePoliceAuthoritiesshouldinvariablybeinvolvedandtheseizedcattlemaybehanded-overtothemwhocansell/disposeofthesameinconsonancewithPCARules,2017.


17.8. Wild-Life:

i. Allwild lifetrophies,animalparts,productsetc.,wherenocaseispendinginaCourtof law,maybeoffered to theRegionalWildlifeauthorities situatedatDelhi,Mumbai,ChennaiandKolkataortheChiefWildlifeWardensoftheStateforthepurposeofusingthe same as specimens for Govt. organizations, public museums for education andawarenesspurposeorforexchangepurposewithothercountries,whoaresignatoriestoCITES(ConventionofInternationalTradeinEndangeredSpecies)onWildFaunaandFloraafterobtainingpermissionfromthejurisdictionalPrincipalChiefCommissioner/ChiefCommissioner.

ii. Afewspecimen/samplesofconfiscatedwildlifetrophiescanbekepttoimparttrainingtoofficersintheCommissionerate.TheCommissionerate/DirectoratemayalsoenquirefromNACIN/RegionalTrainingInstitutes(RTI)andfromtheNationalCustomsMuseumatGoa,iftheywouldbeinterestedinkeepingafewsamples.Anysuchspecimenretainedhas to be informed to the concerned ChiefWildlifeWarden and if necessary, properapprovaltaken.

iii. Forwildlifetrophies,animalparts,productsincludingskins,etc.,whichareonthevergeofrottingshouldbedestroyedbyburningafterdueintimationandpermissionoftheWildLifeAuthoritiesandintheirpresenceandsubjecttocomplianceofotherprovisions,relatingtodisposalofconfiscatedgoods.

17.9. Antiquities:

i. Allconfiscatedantiquities,whentheybecome‘ripefordisposal’shouldbehanded-overtotheArchaeologicalSurveyofIndia(ASI)free-of-charge.Itwillbetheresponsibilityof theArchaeologicalSurveyof India todisposeofsuchantiquitiesbywayofgifts todifferentMuseumsorInstitutions,orifnecessary,byothermeans.

ii. For the purpose of handing-over such confiscated antiquities to the ArchaeologicalSurvey of India, the Principal Commissioner/ Commissioner will contact the local/regional Superintending Archaeologists, Archaeological Survey of India, or DeputySuperintendingArchaeologists,andprovidethemwithalistofconfiscatedantiquities‘ripefordisposal’.TheSuperintendingArchaeologistswillmaketheirownarrangementsfortakingoversuchantiquities.TheywillalsogiveaproperreceipttotheCustomHouse/Commissionerate,indicatingthedetailsofantiquitiesreceived.

iii. Withaviewtoensuringspecializedcareofseizedantiquitiesinexceptionalcircumstances,speciallywhereaseizedantiquityisofnationalimportanceandtheArchaeologicalSurveyofIndiaortheirlocal/regionalSuperintendingArchaeologistmakesarequestinwritingfordeliveryofsuchseizedantiquity, thePrincipalCommissioner/Commissionermay


alsohand-oversuchseizedantiquitytothelocal/regionalSuperintendingArchaeologistoftheArchaeologicalSurveyofIndia.Incaseofsuchseizedantiquitieshanded-overtotheArchaeologicalSurveyof India, itwillbeclearlyunderstood that theywillnotbeavailable foropendisplayeitherby theArchaeologicalSurveyof Indiaorsuchof theMuseumsorInstitutionstowhomtheyentrustthecustodyofsuchseizedantiquities,untiltheyhavebecomedueforformaltransferafterbecoming‘ripefordisposal’afterconfiscation.DuringtheperiodtheseizedantiquityisinthecustodyoftheArchaeologicalSurvey of India before final transfer, it will be the Archaeological Survey of India’sresponsibilitytolookafterthemwithduecaretopreventanydeteriorationordamageor loss.TheArchaeologicalSurveyofIndiawillalsoberesponsibleforreleasingsuchseizedantiquities intheircustodytotheCustoms/CGSTauthoritiesfor inspectionorproductionbeforetheAdjudicatingAuthoritiesortheCourts,asmayberequired,untilthefinalandformaltransferoftheantiquitiesafterconfiscation,etc.,isaffected.ItwillbetheresponsibilityoftheArchaeologicalSurveyofIndiatokeep,asfaraspossible,suchantiquitiesatMuseums/InstitutionssituatedinthesametowninwhichtheofficeoftheAdjudicatingofficer/Courtislocated,sothatthoseareeasilyavailableforadjudication/Courtcase,etc.

iv. If,afteradjudicationinanyparticularcase,itisdecidedbytheadjudicatingauthorityorreversedinappeal/revisionorasaresultofaCourtorderthattheseizedantiquityisnotliabletoconfiscation,ontherequestoftheCustoms/CGSTauthorities,theArchaeologicalSurveyofIndiawillreturntheantiquitytothem.

17.10. Cigarettes of Foreign Origin: Seized/confiscatedCigarettesshouldbedisposedofbysaleto NCCF/ Kendriya Bhandar and other Consumer Cooperatives or by e-auction. The followingguidelinesshallreferwhiledisposingofSeized/confiscatedcigarettesofforeignorigin:

i. Thecigarettepacketsshallhave,interalia,specifiedhealthwarningtocover85%oftheprincipaldisplayareaofthepackage;60%shallcoverpictorialwarningand25%shallcover textualhealthwarning; theplacementof thewarning; the language tobeusedonthepackage;everypackageofcigaretteshouldhavenameoftheproduct;nameandaddressofthemanufacturerorimporterorpacker;originoftheproduct(forimportedgoods);quantityoftheproductanddateofmanufacture.[CigarettesandotherTobaccoProducts (Prohibition of Advertisement and Regulation of Trade and Commerce,Production, Supply andDistribution) Act, 2003 (COTPA 2003) and the Rules framedthereunder,maybereferred].

ii. Cigarette packets shall have the name and address of the manufacturer or packer or importerandthemonthandyearinwhichthecommodityismanufacturedorpre-packedor imported [The Legal Metrology Act, 2009 and the Legal Metrology (Packaged Commodity) Rules, 2011refer.]


iii. Everyseizuremustbe investigated,withregardtocounterfeitingandwherefoundtobeillicitlymanufactured,theymustbedestroyedintermsofRule11oftheIntellectualPropertyRightsRules2007(IPRRules).

iv. PrecautionmayalsobetakentocomplywiththestatutoryprovisionsoftheCigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA 2003)andtheRulesframedthereunder.TheMinistry of Health and Family Welfare, vide Notification GSR 727 (E) dated 15.10.2014 notified the Cigarettes and other Tobacco Products (Packaging and Labelling) Amendment (COTP) Rules, 2018,whichcame into effect from 01.04.2018 [GSR. 283 (E) dated 26.03.2018].TheCOTPRulesarestrictinnatureandtheircompliancerequiresthattheprintingofpictorialandtextualwarningonCigarettepacketsisinspecifiedformat,colours,resolution,fontandlanguage.

v. Further, the MoH&FW vide Cigarettes and other Tobacco Products (Packaging and Labelling) Second amendment Rules, 2018 notified by G.S.R. 331 (E) dated 03.04.2018hasspecifiedanewsetofhealthwarningswhichcameintoforceonthe1stdayofSeptember,2018.

vi. In addition to the existing statutory requirements, compliance of the amendment inhealthwarningspecificationsprescribedbyCOTP Amendment Rules, 2018mayalsobeensured,beforeclearanceofimportconsignmentsordisposalofseized/confiscatedtobaccoproducts,includingcigarettes.

vii. Thecigarettepacketswhichdonotcomplywiththeprovisionsof lawsshouldnotbereleasedforhomeconsumptioninthedomesticmarketandshouldbedestroyed.Suchdestruction shall be carried out in compliance of Pollution Control laws in force, inconsultationwiththerespectiveStatePollutionControlBoards.

17.11. Fertilizers: Seized/Confiscatedfertilizersmaybesoldtoanypublicundertaking,authorizedtoimportthesamebytheMinistryofFertilizers&Chemicals,atthepricefixedbythesaidMinistrycurrently, subject tosuchdiscountalso fixedby theMinistry.Provisionsof theFertilizerControlOrder,1985,needtobeadheredtoaswell.

17.12.Petroleum products:Seized/ConfiscatedpetroleumproductssuchasHSD,Motorspirit,etc.,beingcanalizedproductsmaybesoldtoPublicSectorUndertaking(PSUs)havingarefinery,suchasBPCL,HPCL,IOC,etc.,inaccordancetotheMinistryofPetroleum&NaturalGasInstructionNo.P-21027/29/2001dated21.12.2001at S.No. (4),which stipulates that in theabsenceof anyspecificcommercialunderstanding,thepriceoftheoff-specproductinclusiveofalldutiesandtaxespayablebytherefinery,wouldbetheRefineryGatePrice(RGP)of furnaceoil(180centi-stokes)applicableatthetimeofreceiptofproductattherefinery.


17.13.Cylindersfilledwithrefrigerantgases:InaccordancetotheCorrigendumdated15.02.2011totheCircularNo.9/20009dated19.06.2009,seizedorconfiscatedcylindersfilledwithrefrigerantgases,viz.,CFC-11,CFC-12,HCFC-22andotherOzoneDepletingSubstances(ODS)asgiveninSchedule1oftheOzoneDepletingSubstances(Control&Regulations)Rules,2000,maybedisposedoftooneoftheauthorized/approvedrefrigerantfillingplants,providedtheyarespecificallypermittedinwriting todecant suchgases inapprovedcylindersby theChiefControllerofExplosives.TheintimationtothiseffectmaybegiventotheDirector(Ozone),MinistryofEnvironment&Forest,whowillensurethatthecorrespondingquantityis,accordingly,debitedfromtheprescribedquotaoftheconcernedmanufacturer.Thefollowingfirmsaredulyauthorisedtohandledisposalofseized/confiscatedcylindersfilledwithrefrigerantgases:

i. M/sSRFLtd.,A-16,ArunaAsafAliMarg,QutabInstitutionalArea,NewDelhi.

ii. M/sChemplastSanmarLimited,8,CathedralRoad,Chennai-600086.

iii. M/sGujaratFlurochemicalsLimited,A-6,ConnaughtPlace,NewDelhi.

iv. M/sNavinFluorineIndustriesLtd.,7thFloor,MafatlalCentre,NarimanPoint,Mumbai-86.

17.14.Muriate of Potash (MoP) seized/ FollowingGuidelinesShallbeapplicablefordisposalofMoP:

i. The field formations may get the stock of seized/ confiscated MoP inspected by theFertilizerInspectorofCentralFertilizerQualityControlandTrainingInstitute(CPQCTI),Faridabad and its 3 Regional Fertilizer Testing Laboratories at Chennai, Kalyani Distt.Nadia(WestBengal)andNaviMumbai,toascertainwhetheritisStandardGradeFertilizerorNon-StandardGradeFertilizer.Theircontactdetailsareasfollows:

a. The Director, Central Fertilizer Quality Control and Training Institute, N.H. IV,Faridabad,Haryana(Phoneno.0129-2414712,e-mail:[email protected])

b. TheDeputyDirector,RegionalFertilizerControlLaboratory,P.B.MadhavaramMilkColony,Chennai600051,TamilNadu(Phoneno.044-25552744,e-mail:[email protected])

c. TheDeputyDirector,RegionalFertilizerControlLaboratory,PlotNo.28-29,Sector24,Turbhe,NaviMumbai-400703(Phoneno.022-27838425,e-mail:[email protected])

d. The Deputy Director, Regional Fertilizer Control Laboratory, B.C.K.V. Campus,PO. Kalyani-741235, Distt, Nadia (West Bengal) (Phone no. 033-25829291, email:[email protected])

ii. Alternatively,thefieldformationsmaygetthestockinspectedbytheCompetentAuthoritiesoftheStateGovernmentconcernedaswell.TheCommissioner/DirectorofAgriculture,GovernmentofStateconcerned,maybecontactedinthisregard.


iii. Standard fertilizer grade MoP may be disposed through e-auction via MSTC or anyother agency approved by the Board; such e-auction shall be restricted to FertilizerManufacturers, Mixture Manufacturers and Research Institutions concerned withagriculture/horticulture.

iv. Non-StandardgradeMoPshallbesoldonlytoFertilizerMixtureManufacturers,intermsofclause13oftheFertilizer Control Order (FCO) 1985,whocanuseitasrawmaterialformanufacturingtheNPKMixturesofFertilizers.DisposalofNon-standardfertilizertoindustrialunitsisnotpermissibleunderFCO1985.

v. The formationsmay takeefforts to reachout to theFertilizerManufacturers,ResearchInstitutesandMixtureManufacturersinformingabouttheMoPavailabilityandrequestingthem toparticipate in the auction. In the event of not getting adequate response in e-auction,physicaltendermethodcanberesortedto.

vi. Acopyofe-AuctionNoticeandfinalDisposalOrdershouldbeendorsedtotheDoFandtheDAConthefollowingaddresses:

a. TheDirector/UnderSecretary,DepartmentofFertilizer(DOF),MinistryofChemical&Fertilizers,ShastriBhawan,NewDelhi110001;

b. TheDirector/Under Secretary,Department ofAgricultureCooperation&FarmersWelfare (DAC), Ministry of Agriculture & Farmer’s Welfare, INM Division, KrishiBhawan,NewDelhi110001.

vii. Field formations should also ensure that no parallel investigation from any agency ispending(includinginvestigationwithrespecttosubsidy),beforedisposalofthestockofMoP,whichis‘ripefordisposal.’

17.15Seized/confiscatedforeignoriginliquor

17.15.1.ThefieldformationsbroughttothenoticeoftheBoard,thefollowingdifficultiesindisposingofseized/confiscatedforeignoriginliquornamely:

i. Lack of response from Canteen Store Department (CSD) or from other DefenceEstablishments;

ii. Lackof response fromotherbiddersonaccountofproblemsassociatedwithgettingclearancesfrom:

(a) StateExciseDepartment;

(b) FoodSafetyandStandardsAuthorityofIndia(FSSAI);


iii. DenialofpermissiontosellbyStateExciseAuthorities;

17.15.2.ThematterwasexaminedinconsultationwithFoodSafetyandStandardsAuthorityofIndia(FSSAI)&CanteenStoresDepartment(CSD).

17.15.2.1. Atpresent,CSDisbuyingliquorofforeignbrandsdirectlyinbulkquantity.Astheseized/confiscatedliquorisinassortedbrandsandindifferentquantities,theyarenotinapositiontobuythestockfromCustoms.

17.15.2.2. FSSAIhasstatedthat:-

i. AsperFood Safety and Standards (Import) Regulations, 2017,theAuthorisedOfficershallfollowtheprocedureofinspection,sampling,testingandclearance,laiddownundertheseRegulations,fordisposalofallcasesofunclearedorunclaimedarticlesoffood;

ii. FSSAIhasalsocategoricallyemphasizedthatwithoutobtaininga“NoObjectionCertificate”(NOC) from FSSAI, the imported food products including seized/ confiscated foreign-originLiquorshouldnotbereleasedtothemarketforsale/consumptionandifsamplingisnotfeasibleincasesofseizedlots/batchesofoneortwobottles,thensuchstockshallbedestroyedbytheCustoms;

iii. FSSAIhasalsoinformedthatthereisprovisiontominimizethecostofsamplingofimportedhighpricedalcoholicbeverages.AspertheirOrder F. No. 1-1619/ FSSAI/ Imports/ 2016 dated 06.03.2017 (Appendix-IV) ,aminiature/representativesampleof100ml(intwonumbers)willbetakenforlaboratoryanalysis;

iv. FSSAIhasalsoclarified that there isnode-minimusclause/exemption fromtestingofsmalllots.

17.15.3. Inviewoftheabove,thefollowingguidelineswereissued:

17.15.3.1. ThePrincipalCommissioner/CommissionershallconstituteLiquorDisposalCommitteeheaded by a Chairman of the rank of Additional/ Joint Commissioner and with the followingmembers, namely, Deputy/ Assistant Commissioner in-charge of theWarehouse/ Disposal, anyotherDeputy/AssistantCommissioner,Superintendentin-chargeofWarehouse/DisposalandanyotherSuperintendentofCustoms.

17.15.3.2.ThefunctionsoftheLiquorDisposalCommitteeshallbeto:

i. meetasfrequentlyaspossibleandnecessary;

ii. conductadetailedreviewofseized/confiscatedliquorpendingdisposal;


iii. orderdisposalofseized/confiscatedliquor;and

iv. advise the respective investigation Section/ Agency on the steps to be initiated forexpeditiousdisposalofseized/confiscatedliquor.

17.15.3.3.Theofficer-in-chargeofWarehouseshallpreparealistofalltheseized/confiscatedliquorthathavebecome‘ripefordisposal’andsubmitittotheChairmanoftheconcernedLiquorDisposalCommittee.TheLiquorDisposalCommitteeshallsatisfyitselfthattheconsignmentsare‘ripefordisposal’,shallendorsenecessarydocumentsandthereafter,thatCommitteeshallphysicallyexamineandverifythelotsize,weightandotherdetailsofeachoftheseized/confiscatedconsignmentsandrecorditsfindingsineachcase.

17.15.3.4. ThenearestFSSAIofficeshallbeapproachedforsampling,testingandobtainingNOCfordisposalofstockofLiquorwhichis‘ripefordisposal’.

17.15.3.5. Modesofdisposalareasfollows:

i. Thestockof liquorforwhichNOCsfromthenearestFSSAIofficeareobtained,shallbedisposedofthroughe-auctioninvitingqualifiedbidders,whoshallinturncomplywiththeapplicableStateExciseLaws;

ii. IfitisnotpossibletoobtainNOCfromFSSAIforthereasonssuchasdifficultyinsamplingduetosmalllotsize,etc.,suchstockshallbedestroyed.

17.15.3.6.Ifthestockistobedestroyedintermsoftheparaabove,theproceduresimilartotheonenotifiedfordestructionofNarcoticsandPsychotropicSubstances(NDPS)aspertheNDPS (Seizure, Storage, Sampling and Disposal) Rules, 2016,orsuchRulesnotifiedbyDepartmentofRevenuefromtimetotime,maybefollowed.

17.15.3.7. The Liquor Disposal Committee shall intimate the Principal Commissioner orCommissionerconcernedregardingtheprogrammeofdestructionatleastfifteendaysinadvancesothat, incasehedeemsfit,hemayeitherhimselfconductsurprisechecksordeputeanofficerforconductingsuchsurprisechecks;andaftereverydestructionoperation, theLiquorDisposalCommitteeshallsubmittothePrincipalCommissionerorCommissioner,areportgivingdetailsofdestruction.

17.15.3.8. ACertificateofDestructionshallbepreparedintriplicateandsignedbytheChairmanandMembersoftheLiquorDisposalCommittee.TheformatoftheCertificateisgivenatForm 32.TheoriginalcopyoftheCertificateofdestructionshallbepastedintheWarehouseRegisteraftermakingnecessaryentriestothiseffect,theduplicatetoberetainedintheseizurecasefileandthetriplicatecopyshallbekeptbytheChairmanoftheLiquorDisposalCommittee.


17.16 . Unmanned Aircraft Systems (UAS)/ Unmanned Aerial Vehicle Systems (UAVS)/ Remotely Piloted Aircraft Systems (RPAS)/ Drones (CBIC Circular-32/ 2019-Customs, dated 20.09.2019)

17.16.1.UnmannedAircraftSystems(UAS)/UnmannedAerialVehicleSystems(UAVS)/RemotelyPilotedAircraftSystems(RPAS)/Drones,(herein-afterreferredtoas‘Drones’)ofvariousfrequenciesbroughtbythepassengersatdifferentAirportsoratFPOs,etc., incontraventionofthestatutoryrequirements,arebeingabsolutelyconfiscatedasperlegalprocess.Accordingly,theCustomsfieldformationssoughtBoard’sguidelinesforthedisposalofsuchconfiscatedDrones.

17.16.2.Thematterwasexaminedinconsultationwiththeregulatoryagencies,suchastheDirectorGeneralofCivilAviation(DGCA),theWirelessPlanningandCoordination(WPC)WingofMinistryofCommunicationsandInformationTechnologyandtheMinistryofHomeAffairs(MHA).Duringsuchconsultation,thefollowingpointsemanated,namely:

i. DGCA’sDrone guidelines on ‘Requirements for Operation of Civil Remotely Piloted Aircraft System (RPAS)’, which are available at http://dgca.nic.in/cars/D3X-XI.pdf prescribetheregulatoryrequirementsandprocedurerelatingtolicenseandoperationofDrones.

ii. The Drones owned/ operated by National Technical Research Organisation (NTRO),Aviation Research Centre (ARC) and Central Intelligence Agencies are exempted fromobtainingUIN.

iii. TheDronesarerequiredtogetEquipmentTypeApproval(ETA)fromWPCWing.Thereisnoexemptiontoanyagency/organisationinthisregard.

iv. TheMHAhascategoricallydirectedthattheDronesshouldnotbeauctioned/soldassuchorevenindismantledconditionintheopenmarketandthatduetosecurityreasons,theseshouldbehanded-overtotheDefence/SecurityForcesonly.

17.16.3.Onitspart, theIntegratedFinancialUnit(IFU)oftheMinistryofFinancehasconcurredwiththeproposalfortransferofsuchDronestotheeligibleagencieswithintheGovernment,freeofcharge on gratis-basis.

17.16.4.Inthecircumstance,thefollowingguidelineshavebeenprescribedfordisposalofconfiscatedDroneswhichare‘ripefordisposal’:

17.16.4.1.AlltheformationsshallprepareaninventoryofDrones,availableasondate,accordingtotheirtype,make,model,etc.ThedroneswillbeclassifiedinaccordancewiththeDGCAguidelines.Para3.1oftheseguidelinesprovidesthecategorizationoftheDrones,asfollows:

“3.1 Civil RPA is categorized in accordance with Maximum All-Up-Weight (including payload) as indicated below:


i. Nano:Lessthanorequalto250grams.

ii. Micro:Greaterthan250gramsandlessthanorequalto2kg.

iii. Small:Greaterthan2kgandlessthanorequalto25kg.

iv. Medium:Greaterthan25kgandlessthanorequalto150kg.

v. Large:Greaterthan150kg.”

17.16.4.2.AlltheDronesofallthecategoriesshallbetransferredtotheWarehousesofthefollowingCustoms formations, namely, Chennai (Airport), Delhi (IGIA), Kolkata (Airport) and Mumbai(Airport),whichshallbethefocalCommissioneratesforstocking,segregation,jointinspectionbyallagenciesanddistribution.Forthispurpose,alltheCustomsZoneshavebeenmappedtothesefocalCommissioneratesasindicatedbelow:

S. No. Customs / CGST Zone Focal Customs Commissionerates

1. Chennai,Tiruchirappalli(P),Thiruvananthapuram(Kochi),Bengaluru,Visakhapatnam,Hyderabad

Chennai(Airport)

2. Kolkata,Bhubaneshwar,Guwahati,Patna(P) Kolkata(Airport)

3. Mumbai-I,Mumbai-II,Mumbai-III,Pune,Ahmedabad,Nagpur

Mumbai(Airport)

4. Delhi,Delhi(P),Bhopal Delhi(IGIA)

17.16.4.3. TheCustomsformationsshallonlytransferthestockofDronesthatis‘ripefordisposal’.Adequateprecautionshallbetakensothatnopilferage/losstakesplaceduringsuchtransfer.TheSuperintendent in-chargeofWarehouse shall prepare the list ofDronesandget theapproval ofthe Principal Commissioner/ Commissioner concerned before such transfer. The list of Dronesshall contain category, type,make, quantity and any other informationwhichmay be availableonthepackage;dueacknowledgementofreceiptoftheDronesatthedestinationFocalCustomsCommissioneratesandacorrespondingreceiptentryshallbemade in theWarehouse/DisposalRegister.TheProformasformaintainingarecordofthetransferandacknowledgementaregivenat Form-33.CopiesshallbekeptbytheWarehouseSectionsofthetransferringCustomsZonesandFocalCustomsCommissionerates.

17.16.4.4.AttheFocalCustomsCommissionerates,thegeneralprincipleofidentification,segregationanddistributionofthestockoftheseized/confiscatedDronesshallbeasfollows:

i. InregardtothestockoftheDronesthatispresentlyavailable,thefollowingactionwillbetaken:


a. TherequirementsofDRIandtheCustomsfieldformationsshallbemetfirstfromtheavailablestockofDrones.Forthispurpose,anyCustomsfieldformationrequiringtheDronesfortheiroperationalpurposeshallmakearequesttoDGRI,whichshallmakearecommendationforapprovaltotheBoard.Aftersuchapproval,theDRImayincludetherequirementofthefieldformation(s)toitsownrequirementfordeterminingtheirtotalrequirement;andconveythesametoalltheFocalCustomsCommissionerates.

b. TheFocalCustomsCommissioneratesshallintimateDRIandtheapprovedCustomsfieldformationabouttheavailability/receiptoftheDrones,andtheDRI/Customsfield formationwill then identify and take possession of the Drones as per theirrequirement.

c. The remaining stock of Drones will be distributed equally betweenMOD &MHA(andtheirconstituentorganizations/Agencies)afterajointinspectionthatwillbeconductedbythenodalofficersofMODandMHA(ortheirrepresentatives).

ii. As regards the future stock of the Drones that are received by the Focal CustomsCommissioneratesfromtimetotime,requirementsofDRIandCustomsfieldformationsshall be met first. Thereafter, the MOD & MHA (and their constituent organizations/Agencies)shallbeinvitedforajointinspectiontobeconductedbythenodalofficersofMODandMHA(ortheirrepresentatives)bi-annuallyinthesecond/thirdweekofJanuaryandJuly.IncaseeitherMinistrydoesnotturnupforsuchjointinspectionorforgoesitsquota,thesamewouldbemadeavailabletotheother.

iii. Intheevent,theDRI(orCustomsfieldformation)doesnotrequireanyDrones,thesameshallbe intimatedby theDRI to theFocalCustomsCommissionerateand theavailablestockwillthenbedistributedequallybetweentheMoD&theMHA(andtheirconstituentorganizations/Agencies.). IncaseeitherMinistry forgoes itsquota, thesamewouldbemadeavailabletotheother.

iv. ForthejointinspectionandsegregationoftheDronesbydifferentagencies:

a. TheAdditional/JointCommissionerofCustomsin-chargeofWarehouseanddisposalof theFocalCommissionerateshallbethecontactpoint forcoordinationwithDRI,MODandMHA;

b. TheAdditionalDirector/JointDirector(Policy),DRI-HeadquarterortheAdditional/JointDirectorofZonalUnitnominatedbyDG-DRIshallbethenodalofficerfortheDRI;and

c. TheNodalofficersofMODandMHAaregivenatAppendix-V.

a. MODandMHAwillcommunicatethechangeoftheNodalOfficers(orauthorized


representatives) as-and-when such change happens, to the Commissioner(Investigation–Customs),CBIC.TheNodalofficersshallpreferablybeatthelevelofDirector/DeputySecretary.

b.TheAdditional/JointCommissionerofCustomsin-chargeoftheWarehouseandDisposaloftheFocalCustomsCommissioneratewillintimatethedateandtimeofsuchinspectionwellinadvancetotheagenciesconcernedandsuchdateshallbemutuallyconvenientforalltheagencies;

c.ThetransferoftheDroneswithintheCBICaswellastoMODandMHAissubjecttothefollowingconditions:

i.The Drones shall be supplied on gratis basis (free of cost), on ‘as-is-where-is’condition;

ii.It will be the responsibility of the recipient to comply with all the regulatoryrequirementsasmentionedaboveandDGCAconditions/restrictionsregardingpossession and utilization of the Drones. The recipient shall produce all thenecessary documents to this effect to the Additional/ Joint Commissioner ofCustomsconcernedattheFocalCustomsCommissionerateatthetimeoftakingoveroftheDrones;

iii.NoDronewouldberesoldaftertheendoftheirlifeorwhentheybecomeobsoleteorirreparable.SuchDronesshallbedestroyedbyalltherecipient;

iv.Proper acknowledgement shall be obtained and kept by the respective FocalCustoms Commissionerate upon transfer of Drones to the recipients mentioned above.SuchacknowledgmentshallcontainthedetailsoftheDronesincludingthecategory,type,make,quantityandanyotherinformationwhichmaybeavailableonthepackage.AProformainthisregardisgivenatForm-34.

v.Upon transferof theDrones,a suitableentry to thiseffect shallbemade in theWarehouseRegisterattheFocalCustomsCommissionerate.

***


Form- 32 (ReferPara17.15.3.8.)

CERTIFICATE OF DESTRUCTION OF FOREIGN ORIGIN LIQUOR

(in triplicate)

Thisistocertifythatthefollowinglotofliquorweredestroyedinourpresence.

S.No

Case

Det

ails

(FileNum

ber)

Deta

ils o

f the

goo

ds

Seizingagency

Date

of s

eizu

re

PlaceofSeizure

Warehouseentrynum

ber

Quantity(inbottles)

Quantity(inLiters)

2. Whereandhowdestroyed.

Signature(s), name(s) and designation(s) of Chairman/ Members of the Liquor Disposal Committee.

***


Form-33 (ReferPara17.16.4.3.)

Document for Transit Acknowledgment for Confiscated Drones

S. No. Category Make/ Type Any other R e l e v a n t I n f o r m a t i o n Available on the Package

Quantity (in number)

(1) (2) (3) (4) (5)

Signature:

Date:

Name:

Designation:SuperintendentofCustoms,

WarehouseSection,………Commissionerate

Acknowledgement

Receivedtotal..........Drones,aslistedabove,aftercheckingandtallyingwiththeentriesmentionedintheabovetable.

Signature:

Date:

Name:

Designation:SuperintendentofCustoms,

WarehouseSection,

………Commissionerate

***


Form-34 (ReferPara-17.16.4.4.(iv)(c)(c)(iv))

Transfer of Confiscated Drones to Recipient

S.No. Category Make/Type AnyotherRelevantInformation Available on the Package

Quantity(innumber)

(1) (2) (3) (4) (5)

Acknowledgement

HandedoverandreceivedstockofdronesaftercheckingandtallyingwiththeentriesmentionedintheaboveTable.

OfficerHandingover

Signature:

Date:

Name:

Designation:Additional/JointCommissionerofCustoms,WarehouseSection,………Commissionerate

OfficerReceiving

Signature:

Date:

Name:

Designation:(Not less than the rank of Director/Deputy Secretary)

Agency:

Ministry:

***


APPENDIX – I (RefertoPara14.1.2)

M/F Deptt. of Rev. F. No. 545/1/78-L.C.I dated the 21st December, 1978.

Subject: P.A.C. Recommendations contained in para graphs 3.70, 3.71, 3.72. 3.74 and 3.75 of the 76th Report of the PAC (6th Lok Sabha) – issue of instructions – Reg.

Iamdirectedtoencloseacopyoftheparagraph3.70,3.71,3.72,3.74and3.75ofthe76th ReportofthePublicAccountsCommittee(6thLokSabha)regardingpara17oftheAuditReportfor1975-76relating,inter-alia,tothelossofrevenuetoGovernmentduetounder-valuationofseizeddrug‘Frusemide’whichwasdisposedofinauctionsale.

2. Inpara3.70,3.71and3.72,thePublicAccountsCommitteehavedesiredissueof(i)suitableinstructionstoensurethatAppraisersarenotallowedtoassumeexcessivepowersand(ii)necessaryguidelinesregardingfunctioningoftheValuationCommitteetosafeguardagainstthelapsesresultinginlossofrevenuetoGovernmentduetounder-valuation,aswasnoticedinthedisposaloftheseizeddrug‘Frusemide’.

Inpara3.74,theCommitteehasrecommendedissueofsuitableinstructionsbytheBoardsothatrepresentativesofthecanalisingagenciesinvariablyparticipateinthedeliberationsoftheValuationCommitte,asandwhencanaliseditemsaretobevaluedbythem.

Inpara3.75, theCommitteehasdesired that responsibility shouldbe fixed for the lapsesinnot consulting theDrugsControlleron thequestionwhether theDrug ‘Frusemide’wasdamagedornot,andnecessaryinstructionsissuedtoensurethataCertificateofthecompetentauthorityisobtainedinvariablyinsuchcasesinfuture.

3. TheDirectorateofInspection(CustomsandCentralExcise)wereasked,inter-alia,tolookintothe above procedural lapses and suggest suitable recommendations on the general procedure fordisposalofseized/confiscatedgoods.Inthereportsubmittedbythem,theDirectorateofInspection(Customs&CentralExcise)haveobservedthattheinstructionsissuedfromtimetotimewhicharepresentlyinregardingfixationof“fairprice”,areclearandunambiguousand it was because these instructionswere not properly followedwhile disposing of theconfiscateddrugreferredtoabovethatitbecamethesubjectmatterofanAuditPara.TheyhaveparticularlyreferredtotheinstructionscontainedinBoard’sletterno.

* i)F.No.4/63/57-Cus.III/Cus.IVdated7.9.1961(Sl.No.24)


* ii)F.NO.30/51/66-LCIdated7.1.1967(Sl.No.66)

* iii)F.No.30/69/67-LCIdated23.9.1967.(Sl.No.72)

theyhavealsostatedthatinstructionscontainedinpara34**onpages1493–1495oftheCentralManualoftheAppraisingDepartment.VolumeIV,andinPara758*oftheManualofthePreventiveDepartmentof theBombayCustomsHouse(Extractsenclosed)relatingtoexerciseofpowersbyvariousofficersforfixationoffairpricesandforacceptanceofbidsatauctionshouldbereiteratedforcompliance.Accordingly,youarerequestedtoissuesuitableinstructionstotheformationsunderyouforstrictcomplianceoftheseinstructions.

4. Asregardsseizedmedicines/drugs,itisnecessarytoimpressuponthestaffthattheAssistantDrugs Controller should be consulted, without fail, at different stages from the time ofseizuretilldisposal,particularlyinregardtoidentificationofthemedicine/drug,itsphysicalconditionandquality,andvaluation.AsobservedbythePublicAccountsCommitteeinpara3.75referredtoabove,beforesuchitemsaredisposedof, it isimperativethataCertificatefrom the competent authority is obtained for ascertainingwhether themedicine/drug inquestionwasdamagedordeterioratedandalsowhetheritwasfitforhumanconsumption.

Asmodification and drugs which are seized, are often found to have a limited period ofpotencyorarelikelytodeteriorateonstorage,theirexpeditiousdisposalmaybeconsideredinconsultationwiththeAssistantDrugController.

5. AsobservedbythePACinpara3.74,itisalsonecessarytoensurethatwhilemakingmarketenquiriesinrespectofcanaliseditems,representativesoftheconcernedcanalisingagenciesarealsoinvariablyconsultedinregardtofixationoffairprices.

6. Receiptofthislettermaypleasebeacknowledged.

(*Pl.SeeAppendix–I)

(**Pl.SeeAppendix–II)

RECOMMENDATIONS OF THIS COMMITTEE.

3.70 TheCommittee find that the fair price ofRs. 40,000/-was fixed for the frusemideby theAppraiseroftheBombayCustomHouseandthesamewasacceptedbytheValuationCommitteeconsistingoftwoAssistantCollectorandaWarehousinginspectorbesidestheAppraiserhimself.TheValuationCommitteeacceptedthepriceasfixedbytheAppraiserasamatterofcoursewithoutanyeffort tomake independentenquiriesaboutpricewhichcouldbemostadvantageous to theGovernment.AccordingtotheFinanceSecretary“hadanyelementarymarketenquirybeenmade,theycouldneverfixthepriceofRs.40,000/-.”ThishasresultedindefraudingthenationalExchequertothetuneofaboutRs.2.31lakhsinasinglecase.


3.71 The Committee desire that suitable instructions may be issued forthwith to ensure thatAppraisersarenotallowedtoassumeexcessivepowersinordertoobviatetherecurrenceofsimilarcasesinfuture.

3.72 TheCommitteealsofeelthatthereisneedtoissuenecessaryguidelinesregardingfunctioningoftheValuationCommitteetosafeguardagainstsuchlapse.

3.74 TheCommitteefindsthatnoguidelineshavebeenprescribedforthevaluationofcanaliseditems. Also the representative of the State Trading Corporation does not participate in thedeliberationsof theValuationCommittee inrespectofcanalised items.The importsofcanaliseditems are regulated only through canalising agencies, like State Trading Corporation, etc. whoaretheappropriateauthoritieswhichkeepabreastofthelatestprice,etc.ofthecanaliseditems.TheCommittee feels that in thesecircumstances, it isveryessential thata representativeof thecanalisingagencyshouldparticipateinvariablyinthedeliberationsoftheCommitteeasandwhenthecanaliseditemsaretobevaluedbythem.TheyaccordinglyrecommendthatsuitableinstructionsforthepurposemaybeissuedbytheBoardforcompliancebytheconcernedauthorities.

3.75 TheCommitteehasinformedthatatthetimeofthedisposalofthedrug,theAppraiserhadrecordedintheregular“containerdamaged”.However,noCertificatewasobtainedbytheDepartmentfromthecompetentauthority,i.e.DrugController,inregardtothedamageofthedrug.TheevidencethatwasgivenbeforetheCommitteewasquitevagueandperfunctoryandtherecanbedoubtastowhethertherewasanyseriousdamageatall.Explainingthereasonsthereof,thedepartmentofRevenuehaveintimatedthat‘itappearsthatitwasanadministrativefailure’.TheCommitteecannotviewwithequanimity theunconcernof theCustoms indisposingof thedrugwhich in this casewaspurchasedbyamanufacturerofdrugandcouldcausehealthhazard,ifitwasreallydamaged.TheCommitteedesiresthatresponsibilityforthislapseshouldbefixedandnecessaryinstructionsissuedtoensurethatCertificateofthecompetentauthorityisobtainedinvariablyinsuchcasesinfuture.

***


Appendix – II (RefertoPara14.2)

Copy of Drugs Controller Letter No. X-11038/50/80-D dated 9.12.1980.

Sub:Disposalofconfiscateddrugs

Youmusthavebeenreceivingrequests fromCustomsandExciseauthorities foradviceondisposalofdrugsseizedbythelandcustomsandexciseauthorities.ThisquestionalsocameupfordiscussioninthemeetingofPublicAccountsCommitteeofParliament.ItisdesirablethatanuniformpolicyregardingtheStateDrugsControlAuthorities.Thefollowingprocedureissuggested:-

1. WheneverarequestisreceivedfromtheLandCustomsorExciseauthoritiesforadviceonthedisposalofconfiscateddrugs,aDrugInspectormaybedeputedtoinspecttheconsignmenttoseewhetherthecontainersofthedrugaredamagedsoastoeffectthequalityofthedrugandwhetherthecontainersarelabelledwiththeessentialparticularssuchasthenameofthedrug,nameofthemanufacturer;dateofthemanufactureanddateofexpiryinthecaseofdrugshavingalimitedlifeperiod.

2. If,oninspection,theDrugInspectorreportsthatthecontainersaredamagedsoastoaffectthequalityoftheproductorthecontainersdonotbeartheessentialparticularsonthelabel,thentheconsignmentofdrugconcernedshouldnotberecommendedtobedisposedofbypublicauction.

3. Ifthecontainersofthedrugarefoundtobeintactandnotdamaged,andtheyarealsolabelledwiththenecessaryparticulars,thenrepresentativesamplesmaybedrawnandgottested.

4. Ifthesesamplesarereportedtobenotofstandardquality,thenthedruginquestionshouldnotberecommendedtobedisposedofbypublicauction.

5. If the samples are reported to be of standard quality, then the drugs in questionmay berecommendedtobesoldbypublicauction.TheauthoritiesquestioningthedrugsshouldbelicensedandthedrugspermittedtobesoldonlytomanufacturersholdingvalidmanufacturinglicencesundertheDrugsandCosmeticsAct.

6. Theprocedureoutlinedabovewouldbeapplicableonlyto“bulkdrugs”seizedbytheCustoms/ExciseAuthorities.Confiscatedformulationsshouldnotbeallowedtobesoldbyauction.

***


APPENDIX III-A (RefertoParaNo.16.1)

GOVERNMENT OF INDIAMINISTRY OF FIANCNE

(Department of Revenue)

STANDING ORDER NO.1/89 DT.13.06.89

“WHEREAS the Central Government considers it necessary and expedient to determinethemannerinwhichthenarcoticdrugsandpsychotropicsubstances,asspecifiedinNotificationNo.4/89datedthe29thMay,1989(F.No.664/23/89-Opium,publishedasS.O.381(E)),whichshall,as soonasmaybe, after their seizure,bedisposedoff,having regard to theirhazardousnature,vulnerabilitytotheft,substitutionandconstraintsofproperstoragespace;

Now,therefore,inexerciseofthepowersconferredbysub-Section(1)ofSection52aoftheNarcoticDrugs andPsychotropic SubstancesAct, 1985 (61of 1985), (hereinafter referred to as‘the Act’), the Central Government hereby determines that the drugs specified in the aforesaidNotificationshallbedisposedoffinthefollowingmanner,namely:-

SECTION I - DRUGS MEANT FOR DISPOSAL

1. Narcotics Drugs :

1) Opium

2) Morphine

3) Heroin

4) Ganja

5) Hashish(Charas)

6) Codeine

7) Thebaine

8) Cocaine

9) Poppystraw


10) Anyothermanufactureddrug,asdefinedunderclause(xi)ofSection2oftheAct

Psychotropic Substances:

1) Methaqualone

2) T.H.C.

3) Amphetamine

4) Anyotherpsychotropicsubstance,asdefinedunderclause(xxiii)ofSection2 of the said Act

SECTION II- GENERAL PROCEDURE FOR SAMPLING, STORAGE ETC.

2.1 Alldrugsshallbeproperlyclassified,carefully,weighedandsampledonthespotofseizure.

2.2 Allthepackages/containersshallbeseriallynumberedandkeptinlotsforsampling.Samplesfromthenarcoticdrugsandpsychotropicsubstancesseized,shallbedrawnonthespotofrecovery,induplicate,inthepresenceofsearchwitness(Panchas)andthepersonfromwhosepossessionthedrugisrecovered,andamentiontothiseffectshouldinvariablybemadeinthepanchanamadrawnonthespot.

2.3 Thequantitytobedrawnineachsampleforchemicaltestshallnotbelessthan5gramsinrespectofallnarcoticdrugsandpsychotropicsubstancessaveincasesofopium,ganjaandcharas(hasish)whereaquantityof24gramsineachcaseisrequiredforchemicaltest.Thesamequantitiesshallbetakenfortheduplicatesamplealso.Theseizeddrugsinthepackages/containersshallbewellmixedtomakeithomogeneousandrepresentativebeforethesample(induplicate)isdrawn.

2.4 InthecaseofSeizureofasinglepackage/container,onesample(induplicate)shallbedrawn.Normally,itisadvisabletodrawonesample(induplicate)fromeachpackage/containerincaseofseizureofmorethanonepackage/container.

2.5 However,when the packages/containers seized together are of identical size andweight,bearingidenticalmarkingsandthecontentofeachpackagegivenidenticalresultsoncolortestbythedrugidentificationkit,conclusivelyindicatingthatthepackagesareidenticalinallrespects,thepackages/containersmaybecarefullybunchedinlotsof10packages/containers/exceptinthecaseofganjaandhashish(charas),whereitmaybebunchedinlotsof40suchpackages/containers.Foreachsuchlotofpackages/containers,onesample(induplicate)maybedrawn.

2.6 Whereaftermakingsuchlots,inthecaseofhashishandganja,lessthan20packages/containersremain,andinthecaseofotherdrugs,lessthan5packages/containersremain,nobunchingwillbenecessaryandnosamplesneedbedrawn.


2.7 Ifsuchremaindersaremore in thecaseofotherdrugsandsubstancesand20ormore inthecaseofganjaandhashish,onemoresample(induplicate)maybedrawnforsuchareminderpackage/container.

2.8 While drawing one sample (in duplicate) from a particular lot, it must be ensured thatrepresentativesampleareinequalquantityistakenfromapackage/containerofthatlotandmixedtogethertomakeacompositewholefromwhichthesamplesaredrawnforthatlot.

2.9 Thesample induplicateshouldbekept inheat sealedplasticbagsas it is convenientandsafe.Theplasticbagcontainershouldbekeptinapaperenvelopewhichmaybesealedproperly.Suchsealedenvelopemaybemarkedasoriginalandduplicate.BoththeenvelopesshouldbeartheS.No.ofthepackage(s)/containersfromwhichthesamplehasbeendrawn.Theduplicateenvelopecontainingthesamplewillalsohaveareferenceofthetestmemo.Thesealsshouldbelegible.Thisenvelopewhichshouldalsobesealedandmarked‘secret-drugsample/Testmemo’istobesenttothechemicallaboratoryconcerned.

3.0 TheSeizingofficersof theCentralGovernmentDepartments,viz.,Customs.CentralExcise,Central Bureau of Narcotics, Narcotics Control Bureau, Directorate of Revenue Intelligence etc.shoulddispatch samplesof the seizeddrugs tooneof theLaboratoriesof theCentralRevenuesControlLaboratorynearesttotheirofficedependingupontheavailabilityoftestfacilities.TheotherCentralAgencieslikeBSF,CBIandotherCentralPoliceOrganizationsmaysendsuchsampletotheDirector,CentralForensicLaboratory,NewDelhi.AllStateEnforcementAgenciesmaysendsamplesofseizeddrugstotheDirector/DeputyDirector/AssistantDirectoroftheirrespectiveStateForensicScienceLaboratory.

3.1 Aftersampling,detailedinventoryofsuchpackages/containersshallbepreparedforbeingenclosedtothepanchanamaOriginalwrappersshallalsobepreservedforevidentiarypurposes.

SECTIONIII-RECEIPTOFDRUGSINGODOWNSANDPROCEDURE.

3.2 All drugs invariably be stored in safes and vaults provided with double-locking system.AgenciesoftheCentralandStateGovernmentsmayspecificallydesignatetheirGodownsforstoragepurposes.TheGodownsshouldbeselectedkeepinginviewtheirsecurityangle, juxtapositiontocourtsetc.

3.3 Such Godowns, as a matter of rule, shall be placed under the over-all supervision andchargeofaGazettedofficeroftherespectiveenforcementagencywhoshallexerciseutmostcare,circumspectionandpersonalsupervisionasfaraspossible.EachseizingofficershalldepositthedrugsfullypackedandsealedintheGodownwithin48hoursofsuchseizure,withaforwardingmemoindicatingNDPSCrimeNo.asperCrimeandProsecution(C&PRegister)underthenewlaw,nameoftheaccused,referenceoftestmemo,descriptionofthedrugs,totalno.ofpackages/containers,etc.


3.4 The seizing officer, after obtaining an acknowledgement for such deposit in the format(Annexure- 1)shallhandoversuchacknowledgementtotheInvestigatingofficerofthecasealongwiththecasedossiersforfurtherproceedings.

3.5 TheOfficer-in-chargeoftheGodown,beforeacceptingthedepositofdrugsshallensurethatthesameareproperlypackedandsealed.Heshallalsoarrangethepackage/containers(case-wiseandlot-wise)forquickretrieval,etc.

3.6 TheGodown-in-chargeisrequiredtomaintainregisterwhereinentriesofreceiptshouldbemade as per format at Annexure-II

3.7 ItshallbeincumbentupontheInspectingofficersofthevariousDepartmentsmentionedatAnnexureIItomakefrequentvisitstotheGodownforensuringadequatesecurityandsafetyandfortakingmeasuresfortimelydisposalofdrugs.TheInspectingOfficersshouldrecordtheirremarks/observationsagainstCol.15oftheFormatatAnnexure II.

3.8 TheHeadsoftherespectiveenforcementagencies(bothCentralandStateGovernments)mayprescribesuchperiodicalreportsandreturns,as theymaydeemfit, tomonitor thesafereceipt,deposit,storage,accountinganddisposalofseizeddrugs.

3.9 Since the early disposal of drugs assumes utmost consideration and importance, theenforcementagenciesmayobtainordersforpre-trialdisposalofdrugsandotherarticles (including conveyance,ifany)byhavingrecoursetotheprovisionsofsubSection(2)ofSection52AoftheAct.

Section IV-ACTION TO BE TAKEN BY POLICE AND OTHER EMPOWERED OFFICERS FOR PRE-TRIAL DISPOSAL

4.0 Where any narcotic drug or psychotropic substance has been seized and forwarded theofficer-in-chargeofthenearestpolicestationortotheofficerempoweredunderSection53,theofficer,referredtoinparagraphNo.3.3oftheordershallprepareaninventoryofsuchnarcoticdrugsorpsychotropicsubstancescontainingsuchdetailsrelatingtotheirdescription,quality,quantity,modeof packing,marks, numbers or suchother identifyingparticulars of thenarcotic drugs orpsychotropicsubstancesorthepackinginwhichtheyarepacked,CountryoforiginandsuchotherparticularsasmaybeconsideredrelevanttotheidentityoftheaforesaiddrugsinanyproceedingsundertheActandmakeanapplicationtoanyMagistrateforthepurposeof-

a. Certifyingthecorrectness&oftheinventorysoprepared:or

b. Taking,inthepresenceofsuchMagistrate,photographsofsuchdrugsorsubstancesandcertifyingsuchphotographs.

c. Allowingtodrawrepresentativesamplesofsuchdrugsorsubstances,inthepresenceof


suchMagistrateandcertifyingthecorrectnessofanylistofsamplessodrawn.

4.1 Whereanapplicationismadeundersub-Section(2)ofSection52AoftheAct,theMagistrateshall,assoonasmaybe,allowtheapplication.

4.2 NotwithstandinganythingcontainedintheIndianEvidenceAct,1872(1of1872)ortheCodeofCriminalProcedure,1973(2of1974),everycourttryinganoffenceunderthisAct,shalltreattheinventory,thephotographs,ornarcoticdrugsorpsychotropicsubstancesandanylistofsamplesdrawnundersub-Section(2)ibidandcertifiedbytheMagistrate,asprimaryevidenceinrespectofsuchoffence.

WhilepreferringanapplicationunderSection52A toanymagistrate, emphasismaybe laidon‘expediencyofdisposal’.Thegroundsthatmaybehighlightedmaypertainto-

i. riskofpilferage,theftandsubstitution:

ii. constraintsofstorageandhazardousnature:

iii. highpotentialandvulnerabilityofabuse:

iv. hightemptationstotraffickers

v. Diminutioninthevalueofotherarticles(includingconveyances),duetolongstorage,etc.

4.4 SincethefilingofCharge-Sheet/Compliantisaconditionprecedenttoexpeditiousissueofordersforpre-trialdisposal,complaintsbytherespectiveenforcementagenciesmustbefiledaftercompletionof investigationwith-instipulatedperiodof90daysofseizure/Arrest,onaprioritybasis.Thisrequirestobemeticulouslyadheredto.

4.5 Whilemoving the application under sub-Section (2) of Section 52A of theAct as above,productionofallseizedarticles/drugs,etc.alongwiththePanchnama(inoriginal)anddetailedinventory thereof is essential. The inventory shall be complete in all respects and contain suchparticulars,asmayberelevanttoestablishnexus/identityofarticles.Thechemicalanalysisreportshouldalsobesimultaneouslyfiled.

4.6 AfterthecourtordersarepassedforPre-trialdisposalofdrugs,thosedrugwhichhaveno legitimate value (excepting opium, morphine, codeine and the baine, which are required to betransferredtotheGovernmentOpiumandAlkaloidWorksUndertakingatGhazipurorNeemuch,asthecasemaybe)arerequiredtobedestroyed,consistentwiththewiththeguidelinesissuedunderthisorderandnotrepugnanttothecourt’sorder.

4.7 Asbulkofseizuresofdrugsrelatetoillicitimportorexport,andaremadeatthepointsof


entryorexitorintransittraffic,suchdrugsareliabletoseizureunderSection110oftheCustomsAct,1962andconfiscationunderSections111or113ibid.Insuchcases,itwouldbeappropriatetoinitiateproceedingundertheCustomsActalso.

Section V - CONSTITUTION & FUNCTIONS OF DRUG DISPOSAL COMMITTEE

5.0 A three Member Committee of the respective enforcement agencies (both Central andState),knownas the “NarcoticsDrugsandPsychotropicSubstancesDisposalCommittee”shouldbe constituted to discharge its functions from the Headquarters of the respective Heads of theDepartment.TheCommitteewillbeheadedbyanofficernotbelowtherankof

(i) Deputy Collector of Customs and Central Excise with two Members of the rank ofAssistantCollectorofCustomsandCentralExciseincaseofaCustomsandCentralExciseCollectorate.

(ii) DeputyNarcoticsCommissionerwithtwomembersoftherankofAssistantNarcoticsCommissionerinthecaseofNarcoticsCommissioner’sorganization

(iii) Deputy Director of Revenue Intelligencewith twomembers of the rank of AssistantDirector.

(iv) DeputyDirectorandtwootherofficers,asmaybeauthorizedbytheDirector-General,NarcoticsControlBureauinthecaseofthatorganization:

(v) DeputyInspector-GeneralofPolicewithtwomembersoftherankofSuperintendentofPoliceinrespectofStatePoliceinrespectofStalePoliceOrganizations;and

(vi) DeputyCommissionerofExcisewithtwoofficersoftherankofAssistantCommissioners,inrespectofStateExciseOrganizations.

5.1 TheCommitteewillbedirectlyresponsibletotheHeadofDepartmentconcerned.

5.2 ThefunctioningoftheCommitteewillbeto

a. Undertakedetailedanalysisofdrugspendingdisposal,and

b. Advisetherespectiveinvestigatingofficers/supervisoryofficersonthestepstobeinitiatedforexpeditiousdisposal.

5.3 TheCommitteeshallmeet,asfrequentlyaspossible,asmaybeconsiderednecessaryforquickdisposal of drugs and at least onceintwomonths.WhiletheCentralAgenciesshallendorseacopyof theMinutesof suchMeetingsdirectly to theNarcoticsControlBureau, theStateEnforcement


AgenciesconcernedshallreportthesametotheirrespectiveStatePoliceHeadquarters(CID),who,inturn,maykeeptheNarcoticsControlBureauinformedoftheprogressmadefromtimetotime.

5.4. TheOfficers-in-chargeofGodownsshallpreparea listofall suchdrugs thathavebecomeripe for Disposal to the Chairman of the respective Drug Disposal Committee. After examiningthattheyarefitfordisposalandsatisfyingthattheyarenolongerrequiredforlegalproceedingsand the approval of the Courthasbeenobtainedforthepurpose, theMembersoftherespectiveDrug Disposal CommitteeshallendorsenecessaryCertificatestothiseffect.TheCommitteeshallthereafter,physicallyexamineandverifythedrugconsignmentswithreferencetotheSeizure Report andotherdocuments,likeChemicalAnalysis,etc.,includingitsweighmentandrecorditsfindingsineachcase.

5.5 ThecompositesampleshallbedrawnforgettingthesametestedbytheCentralRevenueControlLaboratoryortheStateForensicScienceLaboratory/StateDrugsControlLaboratoryconcerned.Ifnovariation,eitherinpurityorquantityisfound,thesameshallbeorderedfordestructionbytheDepartment.Whereanyminorvariationsarenoticed,adetailedreportmaybesubmittedto theHeadofDepartmentoftheenforcementagencyconcerned.Inthecaseofwidervariations,themattershallbeimmediatelyreportedtotheNarcoticsControlBureauindicatingthefollow-upactiontakeninthisregard.ThedestructionofdrugsinsuchcasescanbedoneonlyafterobtainingtheordersoftheHeadoftheDepartmentconcerned.

5.6 TheCommitteeshallbeempoweredtoorderdestructionoftheseizeddrugsinthefollowingcases:

Name of the drug Quantity (Kgs.)

1. Heroin 2

2. Hashish(Charas) 50

3. HashishOil 10

4. Ganja 500

5. Cocaine 1

6. Mandrax 150

7. Otherdrugs UptovalueofRs.5lacs

5.7 The Disposal Committee shall intimate the Head of the Department concerned about the


programofdestruction (givingcompletedetails) inadvance (at least15daysbefore thedateofdestruction)sothat,incasehedeemsfit,hemayeitherhimselfconductsurprisechecks,ordeputeanofficersforconductingsuchsuprisechecks.TheDisposalCommitteeshallinformtherespectiveHeadsofDepartmentinrespectofeverydestructionmadebyitindicatingthedateofdestruction,quantitiesdestroyed,etc.

5.8 In those caseswhere the quantities exceed the above limits, destruction shall be orderedand take place onlyunderthesupervisionbytheHeadoftheDepartmenthimselfalongwiththeChairmanandMembersoftheDrugDisposalCommittee.

5.9 Alldrugs,exceptingopium,morphine,codeineandthebaine,shallbedestroyedbyincinerationinsuchplaceswhereadequatefacilitiesandsecurityarrangementsexistforthesameafterensuringthatthismaynotbeahealthhazardfromthepointofviewofpollution.Opendestructionofsuchdrugsmayalsoberesortedto,whereverconsideredfeasibleandnecessary,afterduepublicitytogaintheconfidenceofpublic.Widepublicity,insuchcaseswouldbeconsequential.

Section VI- MISCELLANEOUS

6.0 ACertificateofDestruction(intriplicate)Annexure III containing all the relevant data like Godownentryno.,fileNo.,grossandnetweightofthedrugsseized,etc.shallbepreparedanddulyendorsedbythesignatureoftheChairmanaswellasMembersoftheCommittee.ThiscouldalsoservethepurposeofPanchanama.TheoriginalcopyshallbepostedintheGodownRegisteraftermakingnecessaryentriestothiseffect,theduplicatetoberetainedintheseizurecasefileandthetriplicatecopywillbekeptbytheDisposalCommittee.

6.1 The procedure outlined above should be followed by all Central and State enforcementagenciesconcerned.Othergoods(includingconveyance),ripefordisposalmaybedisposedoffbypublicauctionorinsuchmannerasisdeemedconvenientinthebestinterestsoftheGovernment.

***


ANNEXURE 1 (Para3.4OFAPPENDIXIII-A)

GODOWN RECEIPT

RECEIVED(No.)____________packages/containerssaidtocontain_______________(DescriptionofDrugs)sealedwiththesealNo.____________________of(Name&Designation)seizingofficerandenteredintoGodownregistervideentryNo._________

Facsimileoftheseal_______________________

Place:

SignatureoftheOfficer

InchargeofGodownwith

Fullname&officialseal

Date:

Time:

ANNEXURE-II (Para3.6OFAPPENDIXIII-A)

FORMAT OF REGISTER REQUIRED TO BE

MAINTAINED BY THE GODOWN IN CHARGE

1. GodownentryS.No.

2. N.D.P.S.CrimeNo.

3. Descriptionofdrugsinthesealedpackages/containersandothergoods,ifany

4. No.ofpackages/containers(drugwise)

5. Quantityofdrug(packages/containers)

6. Particularsofthetestmemos.

7. Name(s)andaddress(es)ofaccused

8. NamewithofficialdesignationandaddressofSeizing/DepositingOfficer


9. Facsimileofthesealputonthepackages/containersbytheSeizingOfficer

10. Dateandtimeofdeposit

11. Particularsofexitandre-entryforexhibitingtocourt

12. Dateandtimeofremovalfordisposal

13. DisposalparticularsincludingdestructionordispatchtoCentralGovernmentOpiumfactory

14. CertificateofDisposalincludingpricepaymentparticulars,fromGovernmentOpiumfactory,whereapplicable

15. RemarksoftheInspectingOfficer(s)

Inspecting Officers: InthecaseofCentralEnforcementAgency:(1)D.G.NCS,(2)Dy.D.G.NCB,(3)NarcoticsCommissionerof India, (4)Dy.NarcoticsCommissioners, (5)D.G.BSF, (6)DyD.G.BSF,(7) Sr.OfficersofCBI, (8)PrincipalCommissioner,Customs&CentralExcise, (9)Commissioner,Customs&CentralExcise,(10)AssistantCommissionerofCustoms&CentralExcise.

In the case of State Enforcement agencies : (1)D.G.ofPolice,(2)I.G.ofPolice,(3)Dy.I.G.P.,(4)Superintendent of Police, (5) State Excise Commissioners, (6) Dy.Excise Commissioners, (7)SuperintendentofExciseandequivalentofficerofStateGovernmentintheauthorizeddepartment.

***


ANNEXURE III (PARA6.0OFAPPENDIXIII-A)

IN TRIPLICATE

CERTIFICATE OF DESTRUCTION OF NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES (PARA 9, 10 OF THE STANDING ORDER NO. /88) - DETAILS OF DRUGS AND SUBSTANCES DESTROYED

Particularsofthedrugs

Seizurecase fileref.No.

GodownRegister entryNo.

(1) (2) (3)

As recorded in the Godownregister

Weightascertainedon Physicalverification

(4) (5)

GrossNet GrossNetWeightWeight WeightWeight(a)(b) (a)(b)

Namesandaddresses ofthewitnesses

Date/Place/Modeofdestruction

(6) (7)

ItiscertifiedthataCommitteeconsistingofS/Shri__________________supervisedthedestructionofnarcoticdrugsandpsychotropicsubstancesparticularisedabove,inthepresence_________________offollowingwitnesses.Deletewhateverisnotapplicable.

SIGNATURE

WITHDATE

(CHAIRMAN)

SIGNATURE

WITHDATE

(MEMBER)

SIGNATURE

WITHDATE

(MEMBER)

***


APPENDIX III B (RefertoParaNo.16.1)

STANDING ORDER No 1/88

DRAWAL, STORAGE, TESTING AND DISPOSAL OF SAMPLES FROM SEIZED NARCOTICS DRUGS AND PSYCHOTROPIC SUBSTANCES- PROCEDCURE

1.1 It has been brought to the notice of this Bureau by the Chief Chemist, Central RevenuesControl Laboratory that different investigating officers of various enforcement agencies adoptdifferentProceduresindrawingsamplesfromseizednarcoticdrugsandpsychotropicsubstances,particularlywithregardtothenumberofsamplesdrawn,quantityofthesample,sealing,modeofpacking,despatchofsamplesetctotheconcernedlaboratory,fortest.Ithasbeenalsobeenfoundthathandlingofsamplesatdifferentstagesandplacesanyalsobecomeanissueofdisputeduringthetrial,andhenceaclearanduniformprocedureisnecessarytoavoidanydoubtorconfusionatanylevel.Withaviewtobringuniformityofapproachinsuchmatters,andalsotoprovideforasecuresystemofhandlingofdrugsamplesitisdecidedtostandardizetheprocedureswithregardtodrawing,forwardingandtestingofsamples.

1.2 Itmaybenotedthatalldrugsandpsychotropicsubstances,materials,apparatusutensils,oranyotherarticlesinrespectofwhichorbymeansofwhichanyoffencepunishableunderchapterIVoftheNarcoticDrugsandPsychotropicSubstancesActhavetobeprovedonlyinrelationtosuchdrugsorpsychotropicsubstanceswhichareliabletoconfiscation.

1.3 Anillicitnarcoticdrugsorpsychotropicsubstancesrecoveredfromaperson,place,conveyance,etc.,arematerialevidenceastheyareliabletoconfiscation.Further,theyconstituteprimaryevidenceforanyact,omissionorcommissiononthepartofapersonrenderinghimliableforpunishmentunder ChapterIVoftheNDPSAct,1985.MostofthenarcoticdrugsandpsychotropicsubstancescannotbeconclusivelyprovedtobesuchdrugsorsubstancesmerelybyvisualexaminationinthetrialcourtandtheyrequiretobeprovedbychemicalanalysistobeconductedbychemistsauthorizedunderSection293ofCr.P.C.1973.TheprovisionsofsubSection4ofSection293ofCr.P.C.arereproducedhereunderforreadyreference:- Section 293(4) of Cr. P.C. 1973. This Section applies to the following government scientific

experts,namely:-

(a) anyChemicalExaminerorAssistantChemicalExaminertoGovernment.

(b) TheChiefInspectorofExplosives;

(c) TheDirectorofFinger-printBureau;


(d) TheDirectorHoffikinInstituteofBombay;

(e) TheDirector (DeputyDirectororAssistantDirector)of aCentral Forensic ScienceLaboratoryorastateForensicScienceLaboratory;

(f) TheSerologisttotheGovernment;

Note:-Sub-Section (4) of Section 293 has been amended to include Deputy Directors and Assistant Directors of Central and State Forensic Science Laboratories in the list of Government Scientificexperts.

Government of India vide notificationNo. 74F.No. 50/53/76-Ad-II dated 17 July 1976, asamended vide notification dated 2nd February 1977, have declared chemists of different gradesworkinginCentralRevenuesControlLaboratoriesasChemiststoGovernmentforthepurposesofSection293ofCr.P.C.

1.4 Ifthedrugsseizedarefoundinpackages/containers,thesameshouldbeseriallynumberedforpurposesofidentification.Incasethedrugsarefoundinlooseformthesameshouldbearrangedto be packed in unit containers of uniform size and serial numbers should be assigned to each package/container.Besidestheserialnumber,thegrossandnetweight,particularofthedrugandthedateofseizureshouldinvariablebeindicatedonthepackages.Incasesufficientspaceisnotavailableforrecordingtheaboveinformationonthepackage,aCardBoardlabel,shouldbeaffixedwithasealof theseizingofficerandonthisCardBoard label,abovedetailsshouldberecorded.whosepossessionthedrugisrecovered,andmentiontothiseffectshouldinvariablybemadeinthepanchnamadrawnonthespot.

1.6 Quantity of different drugs required in the sample.

Thequantitytobedrawnineachsampleforchemicaltestshouldbe5gramsinrespectofallnarcoticdrugsandpsychotropicsubstancesexceptinthecasesofOpium,GanjaandCharas/Hashishwhereaquantityof24gramsineachcase isrequiredforchemical test.Thesamequantitiesshouldbetakenfortheduplicatesamplealso.Theseizeddrugsinthepackages/containersshouldbewellmixedtomakeithomogeneousandrepresentativebeforethesameinduplicateisdrawn.

1.7 Numberofsamplestobedrawnineachseizurecase

a. Inthecaseofseizureofsinglepackage/containeronesampleinduplicateistobedrawn.Normally,itisadvisabletodrawonesampleinduplicatefromeachpackage/containerincaseofseizureofmorethanonepackage/container.

b. However,whenthepackage/containerseized togetherareof identicalsizeandweight,bearing identical markings and the contents of each package give identical results on colour testbyU.N.kit,conclusivelyindicatingthatthepackagesareidenticalinallrespects/thepackages/containermaybecarefullybunchedinlotsof10packages/containersmaybe


bunchedinlotsof40suchpackages/container.Foreachsuchlotofpackages/containers,onesampleisduplicatemaybedrawn.

c. Whereaftermakingsuchlots, inthecaseofHashishandGanja, lessthan20packages/containersremain,andincaseofotherdrugslessthan5packages/containersremain,nobunchingwouldbenecessaryandnosamplesneedbedrawn.

d. Ifitis5ormoreincaseofotherdrugsandsubstances;and20ormoreincaseofGanjaandHashish,onemoresampleinduplicatemaybedrawnforsuchremainderpackage/containers.

e. While drawing one sample in duplicate from a particular lot, it must be ensuredthat representative drug in equal quantity is taken from each package/ containerof that lot and mixed together to make a composite whole, from which the samplesaredrawnfor that lot.Subject to thedetailedprocedureof identificationof packages/container as indicated in Para 1.4 each package/ container should be securely sealedandanidentificationslippasted/Attachedoneachoneofthematsuchplaceandinsuchmanneraswillavoideasyobliterationofmarksannumbersontheslip.Wheremorethanonesampleisdrawn,eachsampleshouldalsobeseriallynumberandmarkedasS-1,S-2,S-3andsoon,bothoriginalandduplicatesample.ItshouldcarrytheserialnumberofthepackagesandmarkedasP-1,2,3,4andsoon.

1.9 Itneednoemphasisthatallsamplesmustbedrawnandsealedinthepresenceoftheaccused,Panchnamawitnessesandseizingofficerandallofthemshallberequiredtoputtheirsignaturesoneachsample.TheofficialsealoftheSeizingOfficerandallofthemshallberequiredtoputtheirsignaturesoneachsample.TheofficialsealoftheSeizingOfficershouldbeaffixed.Iftheperson,fromwhosecustodythedrugshavebeenrecovered,wantstoputhisownsealonthesample,thesamemaybeallowedonboththeoriginalandtheduplicateofeachofthesamples.

1.10 Packing and sealing of samples:

TheSamplesaretobedrawninduplicate.TheoriginalenvelopeshallhavetheoriginalSample.ItwillhaveatestmemowhichinturnshallhaveallthedetailsofSampledrawntheduplicateenvelopecontainingthesamplewillalsohaveareferenceofthetestmemo.Thesealsshouldbelegible.Thisenvelopealongwithtestmemosshouldbekeptinanotherenvelopewhichshouldbesealedandmarked“secret-Drugsample/Testmemo”tobesenttotheconcernedchemicallaboratory.

1.11 Laboratories to which samples may be sent.

TheSeizingOfficersoftheCentralGovernmentDepartments,viz.Customs,CentralExcise,CentralBureau of Narcotic, Narcotics Control Bureau, D.R.I., etc should dispatch samples of the seizeddrugstooneoftheLaboratoriesoftheCentralRevenuesControlLaboratorynearesttotheirofficesdependingupon the availability of test facilities. The addresses of theDy. Chief Chemists of the


CentralRevenuesControlLaboratoriesaregivenbelow:

1. GeneralManager,Govt.OpiumandAlkaloidWorks,Ghazipur(U.P.).

2. GeneralManager,Govt.OpenanAlkaloidWorks,Neemuch(M.P.).

3. ChiefChemist,CentralRevenueControlLaboratory,PusanRoad(IARI),newDelhi

4. Dy.ChiefChemist,officeofthecollectorofCustomshouse,Chennai600001

5. Dy.ChiefChemist,ChemicalLaboratory,Customshouse,Calcutta1

6. Dy.ChiefChemist,NewCustomsHouse,BallardEstate,Mumbai400038

7. Dy. Chief Chemist, Central Excise Laboratory, Estrellia Batteries compound, DharaviRoad,Mumbai400019

8. ChemicalExaminer,OfficeoftheCommissionerofCustoms,CustomsHouse,Cochin9.

9. ChemicalExaminer,CentralExciseLaboratory,Yashkamal,Building,8thfloor,Baroda5(Gujarat)

10. ChemicalExaminer,CentralExciselaboratory,CentralExciseLaboratory,CORILRefinery,Vishakhapatnam(AP)

11. ChemicalExaminer,CustomsHouse,Kandla,Gujarat

12. ChemicalExaminer,CustomsHouseLaboratory,Sada,MARMUGOAGOA403803.

13. ChemicalExaminer,CustomsHouseLaboratory,AssamOilRefinery,Dibboi(Assam)

14. Chemical Examiner, Central Excise Laboratory, Assam Oil Refinery, Distt. Begusarai(Bihar)

15. ChemicalExaminer,HPCL,Refinery,corridorRoad,Trombay,Mumbai400074

TheotherCentralAgencies, likeBSF, CBI andotherCentral Police organizationsmay send suchsamples to theDirector,CentralForensicLaboratory,NewDelhi.All StateEnforcementAgenciesmaysentsamplesofseizeddrugsandpsychotropicsubstancestotheDirector/DeputyDirector/AssistantDirectoroftheirrespectiveStateForensicScienceLaboratory.

TheAddressesofStateForensicScienceLaboratoriesaregivenbelow

1. Director,Forensicsciencelaboratories,govt.ofBiharPatna-800023

2. Director,PoliceForensicSciencelaboratory,Rajasthan,NehruNagar,Jaipur-6

3. Director, Forensic Science Laboratory, mini Punjab secretarial plot no. 2, sector 9-AChandigarh


4. Director,StateForensicSciencelaboratory,RasulgarhBhubaneshwar-10(Orissa)

5. Directorforensicsciencelaboratory,Haryanamadhubn(karnl)

6. Director,ForensicScienceLaboratory,AndhraPradeshRedHillsHyderabad-

7. Director,ForensicScienceLaboratory,Trivandrum-10

8. Director,StateForensicScienceLaboratoryGovtofwestBengal,BalgachiRoad

9. Director, Forensic Science Laboratory, Gujarat State, New Mental Corner,Ahmedabad-380016.

10. Director,ForensicScienceLaboratory,MaharashtraState,Vidyanagari,Kalina,Santacruz(East),Mumbai-400098.

11. Director,ForensicScienceLaboratory,CivilLines,Sagar(M.P.)-470001.

12. Director,ForensicScienceLaboratory,Mahanagar,Lucknow(U.P.).

13. Director,ForensicScienceLaboratory,Sector18,Chandigarh.

14. Director, Forensic Science Laboratory, Bureau of Police Research and Development(MHA),Govt.ofIndia,O.V.Campus,Ramnathpur,Hyderabad-500013.

15. Director,ForensicScienceLaboratory,C.B.I.,Block-4,C.G.O.Complex,LodhiRoad,NewDelhi.

16. Director,ForensicScienceLaboratory,Junagarh(Gujarat).

17. ChemicalExaminertotheU.P.Govt.,Agra(U.P.).

18. Govt.Examinerofquestioneddocuments,RailwayBoardBuilding,Shimla(H.P.).

19. Director,ForensicScienceLaboratoryOppositeC.D.Hospital,SriNagar(J.K.)

1.12 Test Memo

TheSamplesofseizeddrugsorsubstancesshouldbedispatchedtotherespectivelaboratoriesunderthecoverofaTestMemowhichshallbepreparedintriplicateinProforma NCB-I. This Test Memo willbeseriallynumberedforeachuniteffectingtheseizure.Theseizingofficerwillcarefullyfill-upcolumn1to8oftheTestMemoandputhissignaturewithofficialseal.TheoriginalandduplicateoftheTestMemoshouldbesenttotheLaboratoryconcernedalongwiththesamples.Thetriplicateshallberetainedinthecasefileoftheseizingofficer.

1.13 Mode and time limit for dispatch of sample to Laboratory.

Thesamplesshouldbesenteitherbyinsuredpostorthroughspecialmessengerdulyauthorisedforthepurpose.Despatchofsamplesbyregisteredpostorordinarymailshouldnotberesorted


to.Samplesmustbedespatched to theLaboratorywithin72hoursof seizure toavoidany legalobjection.

1.14 EachUnitofeveryEnforcementAgencywillmaintainaRegisterofsamplestomonitortheprogressoftesting,whichwillhavethefollowing:-

CrimeNo. DateofSeizure Name&AddressofOffender Description of seized drugsandyetqty.

1 2 3 4

Nameoftheofficerdrawingand dispatching the samples

S.No.ofsamplesandS.No.ofPackages/containersfromWhichsamplesweredrawn

TestMemoReference

5 6 7

Name&DesignationofCustodian of sample

Theauthoritytowhomdispatched DateofreceiptofanalysisResultandItsreference

8 9 10

Resultinbrief DateofreceiptofremnantSample Date of Destruction/ disposal of remnant

samples11 12 13

Remarks14

TheregistershouldbereceivedonceamonthbytheHeadofunitandonceinthreemonthsbythesupervisingofficer.

1.15 Receipt in the Laboratory

ThesealedenvelopecontainingthesamplesreceivedintheLaboratoryconcernedshouldbecarefullyopenedsoastopreservethesealsontheenvelopetobesentbackalongwiththereportonthetestforevidencepurposes. In the laboratoryeverysample received for testmustbegivenadistinctLaboratorynumber.Aseparateregister forNarcoticDrugsandPsychotropicSubstancesshallbemaintained. The Laboratory may further sub-divide the register Agency-wise. The Laboratorynumbershouldformacontinuousseries,beginningonthe1stJanuaryeveryyearandendingonthe31stDecember.ThesampleclerkmustenterthelaboratorynumberandthedateofregistrationontheTestMemo,eachsamplemustbegivenaseparatenumberandallthenumbersmustbeentered


onthememo.

The samples andmemoshavingbeenmarkedwithLaboratorynumbers shouldbe entered in aRegister.Theheadingsofthecolumnsintheregisterwillbeasindicatedbelow:-

S.No. (Lab.No.)

Date of receipt Nameoftheofficerdrawing&despatchingthesample

TestMemoRef.&Date

1 2 3 4

Descrtption of the drug as per the

Test Memo

Towhomallotted Dateofreceiptbytheconcernedchemistwithhissignature

5 6 7

Details of Test results Date of despatch of remnant samples

Remarks

8 9 10

Note:Columns&6shouldbefilleduprespectivelyatthetimeofactualforwardingofthesampletotheconcernedchemist.

Allotment of Samples

SamplesofnarcoticdrugsandpsychotropicsubstancesshouldbetakentothechemicalexaminerorsuchofficerintheLaboratoryforthispurpose.Hewillmarkthesampletoachemist.WhilesodoingthechemicalexaminerorsuchofficerwillkeepinviewtheprovisionsofSection293ofCr.P.C.Thesampleclerkwillhandoverthesampleandtestmemostothechemistnamedasaboveandobtainhisinitialforreceiptinhisregister.Alldrugsamplesmustreachsuchchemistthesamedayandthechemistwillkeepthesamplesinhissafecustodyunderlockandkeyinhissteelalmirah,providedforthepurpose.

Examination of sample with reference to Test Memo

OnreceiptofthesamplessuchchemistwillexaminethesameandrecorditsweightintheTestMemo.HewillcomparethemarkingsontheTestMemoswiththemarkingsonthepackages/containers.Itwillbehisresponsibilitytoensurethatheteststherelevantsample.

Expeditious test

Expeditiousanalysisofnarcoticdrugsandpsychotropicsubstancesisofessencetoallofreceiptofthesample.However,wherequantitativeanalysisrequireslongertime,theresultsofthequalitativetestshouldbedispatchedtotheofficerfromwhomthesampleswerereceivedwithintheaforesaidtimelimitontheoriginalcopyoftheTestMemo,sothatcourtproceedingscanstartimmediately.


Inthenext15daystheresultsofquantitativetest(purityofthedrug)shouldbeindicatedontheduplicateTestMemoandsenttotheofficerfromwhomthesampleswerereceived.

1.18 Test Register

AllresultsofboththequalitativeandquantitativetestsshouldbeenteredintotheRegisterofsamples(para1.15).ThisRegisterisintendedtoserveasareferenceandassuchshouldbequitedurable.ItshouldcarrytheresultsandthedateofdespatchwithreferencetotheTestMemo.ThereshouldbeclearandadequatereportingoftheresultsintheTestMemo.Assoonastheanalysisisoverthetestresultshouldbedespatchedbyregisteredpostinthenameoftheofficerwhoforwardedthesamplefortest.

1.19 Remnants of samples

Remnants of all narcotic drugs and psychotropic substances samples should be returned withreferencetotheTestMemototheanalysisofthedrug.

1.20 Custody of duplicate sample

DuplicatesampleofallseizedNarcoticdrugsandPsychotropicsubstancesmustbepreservedandkeptsafetyinthecustodyoftheInvestigatingofficeralongwiththecaseproperty.Normallyduplicatesamplemaynotbeusedbutincaseoflossoriginalsampleintransitorotherwiseoronaccountoftrialcourtpassinganorderforasecondtest,theduplicatesamplewillbeutilised.

1.21 Disposal of Test Memo

AssoonasthetestresultinoriginalorduplicateorbothTestMemosarereceived,thesamewillbefiledintheCourt,tryingthecasealongwithCharge-Sheet/ComplaintbytheInvestigatingofficer.Hewillkeepanattestedcopyofthesameinhiscasefile.

1.22 Disposal of Remnant sample/ duplicate sample and the drug

At present, the remnant sample/ duplicate sample and seized narcotic drugs and psychotropicsubstancescanbedisposedofaftertheproceedingsofprosecutionisoverorbyobtaininganorderfromsuchcourtunderSection110oftheCustomsAct,1962and/or451ofCr.PC.WhileobtainingtheorderofthecourtundertheaforesaidSection,itisnecessarythatspecificorderinrespectoftheremnantsample/duplicatesampleisalsoobtained.

Aftersuchorderhasbeenobtained,thedrugorsubstancealongwiththesamplesincludingremnantsshall be disposed of in the manner prescribed.Pleaseacknowledgethereceiptofthestandingorder.

***


APPENDIX –III C (RefertoParaNo.16.1)

NARCOTICS CONTROL BUREAU

NEW DELHI

STANDING ORDER NO. 2/88

Dated: 11.4.88

Subject: Receipt, custody, storage and disposal of seized/confiscated narcotics drugs andpsychotropicsubstances.

Consequentupontheenforcementof theNarcoticDrugsandPsychotropicSubstancesAct,1985with effect from 14.11.1985, the enforcement activities against drug traffickers in the countryhavebeensteppedupresultinginseizuresofhugequantitiesofnarcoticsdrugsandpsychotropicsubstance(hereinafterreferredtoasthe‘drugs’).Forsuccessfulprosecutionofthedrugoffenders,ithasbeenfeltnecessarytoformulateauniformprocedurefordrawalofsamplesoftheseizeddrugs,whichformtheprimaryevidenceinthecourseofprosecutionproceedingsbeforethecourtsoflawkeeping this inview, the ‘NarcoticsControlBureau, theCentralAuthority createdunderSection4(3)of‘TheNarcoticDrugsandPsychotropicAct,1985(hereinafterreferredtoasthe‘newlaw’)whichfunctionsastheapexcoordinatingandenforcementagencyinthecountryhasformulatedandcirculated,astandingOrderNo.1/88dated15.3.1988(copyenclosed).

2. Recognizing the importance of despatch, transit, receipt, safe custody, storage, properaccountinganddisposal/destructionoftheseized/confiscateddrugs,andtheneedforevolvingauniformprocedureforregulatingtheabovementionedoperations,bothbytheCentralandStatedrug lawenforcementagencies in the country, theNarcoticsControlBureauhas formulated thefollowingproceduretobecompliedwithinthisbehalf.

3.1 Alldrugsshouldbeproperlyclassified,carefullyweighedandsampledonthespotofseizure.

3.2 Allthepackages/containersshouldbeseriallynumberedandkeptinlotsforsampling.TheproceduresetoutinStandingOrderNo.1/88referredtoaboveshouldbescrupulouslyfollowed.

3.3 Aftersampling,detailedinventoryofsuchpackages/containersshouldbepreparedforbeingenclosedtothePanchanama.Originalwrappersmustalsobepreservedforevidentiarypurposes.

3.4AftercompletionofPanchanama,thedrugsshouldbepackedinheatsealedplasticbags.Forbulkquantitiesofganja,insteadofplasticbags,gunnybagsmayalsobeutilizedwhereverthosearenotreadilyavailable.


3.5 Agencies of theCentral and StateGovernment,whohavebeen vestedwith the powers ofinvestigationunderthenewlaw,mustspecificallydesignatetheirGodownsforstoragepurposes.TheGodownsshouldbeselectedkeepinginviewtheirsecurity,angle,juxtapositiontocourts,etc.

3.6 Alldrugsmustinvariablybestoredinsafesandvaultsprovidedwithdouble-lockingsystem.

3.7 Such Godowns, as a matter of rule, be placed under the over-all supervision and chargeof a Gazetted Officer of the respective enforcement agency, who should exercise utmost care,circumspection and personal supervision, as far as possible. Such officers should not be belowtherankofSuperintendentintheDepartmentsofCustoms,CentralExcise,DirectorateofRevenueIntelligence,CentralBureauofNarcotics,NarcoticsControlBureau,C.B.I.,B.S.F.,etc.,centralagenciesand Station House Officer/officer incharge of a Police station, Superintendent of State Excise,NaibTehsildarofRevenue,DrugInspectorofDrugControlDepartment,etc.intheStatesandU.T.enforcementagencies.Theywillpersonallybeheldaccountableforsafetyandsecurityofthedrugs.

3.8 Each seizing officer should deposit the drugs fully packed and sealedwith his seal in theGodownwithin48hoursofseizureofsuchdrugs,withaforwardingmemoindicating.

i. NDPSCrimeNo.asperCrimeand,ProsecutionRegisterunderthenewlaw(i.e.NDPSAct)

ii. Name(s)ofaccused

iii. ReferenceofTestMemo

iv. Descriptionofdrugsinthesealedpackages/containersandothergoods,ifany

v. Drug-wisequantityineachpackage/container

vi. Drug-wisenumberofpackages/containers

vii. Total number of all packages/containers

3.9 The seizing officer, after obtaining an acknowledgement for such deposit in the format(Annexure-I),willhandoverthesametotheInvestigatingOfficerofthecase,alongwiththecasedossierforfurtherproceedings.

4.0 Theofficer-in-chargeoftheGodown,beforeacceptingdepositofdrugs,willensurethatthedrugsareproperlypackedandsealed.Hewillalsoarrangethepackages/containers(case-wiseandlot-wise)forquickretrieval,etc.

4.1 TheGodownin-chargeisrequiredtomaintainaregisterwhereinentriesofreceiptshouldbemade (as per format at Annexure-II)

4.2 It will be incumbent upon the Inspecting Officers of the various departmentsmentioned


at Annexure-II tomake visit to the Godowns for ensuring adequate security and safety and fortakingmeasuresfortimelydisposalofdrugs.TheInspectingOfficersshouldrecordtheirremarks/observationsagainstcol.15oftheFormatatAnnexure-III.

4.3 TheHeadsof respectiveenforcementagencies (bothCentralandStateGovernments)mayprescribesuchperiodicalreportsandreturns,as theymaydeemfit, tomonitor thesafereceipt,deposit,storage,accountinganddisposalofseizeddrugs(ReferAnnexureIII).

Annexure – III

4.4 WhilequarterlyreturnsofdisposalofdrugsbytheCentralGovernmentagenciesconcernedshall be furnished to the Director-General, Narcotics Control Bureau by the 15th of themonthfollowingthequarter(intheformatatAnnexure-III),thestateenforcementagenciesarerequiredtosubmittheirreportstotheStatePoliceHeadquarters(CID)insuchformasmaybeprescribedbythemforthepurpose.TheStatePoliceHeadquarters(CID),inturn,willkeepDirectorGeneral,NarcoticsControlBureauinformedofthesameasperAnnexure-III.

4.5 Since the early disposal of drugs assumes utmost consideration and importance, theenforcement agencies should obtain orders for pre-trial disposal of drugs and other articles(includingconveyance,ifany)byhavingrecoursetotheprovisionsofSection451oftheCriminalProcedure”Code,1973(extractsenclosedatAnnexure-IV)andthoseoftheprovisionsofSection110(IA),(IB)and(IC)oftheCustomsAct,1962readwithGovernmentofIndia’snotificationNo.31/86-Cus.(AS)datedthe5thFebruary,1986issuedinthisbehalfwhichspecifies“Dangerousdrugsandpsychotropicsubstances”.

4.6 WhilepreferringtheapplicationunderSection451beforetheCourtofSessionimmediately,emphasismaybelaidon“expediencyofdisposal”.

Thegroundsthatmaybehighlightedmaypertainto.

i. Riskofpilferage,theftandsubstitution

ii. Highpotentialandvulnerabilityofabuse

iii. High temptations to traffickers

iv. Diminutioninthevalueofotherarticles(includingconveyances)duetolongstorage,etc.

4.7 Since the filing of charge-sheet/plaint is a condition precedent for expeditious issue ofordersforpre-trialdisposal,complaintsbytherespectiveenforcementagenciesmustbefiledaftercompletionofinvestigationwithinthestipulatedperiodof90daysofseizure/arrest,onaprioritybasis.Thisshouldmeticulouslybeadheredto.

4.8 WhilemovingtheapplicationunderSection451oftheCriminalProcedureCodeasabove,


productionofallseized/Articles/drugs,etc.,alongwiththePanchanama(inoriginal)anddetailedinventorythereof,isessential.Theinventoryshouldbecompleteinallrespectsandcontainsuchparticularsasmayberelevanttoestablishnexus/identityofarticles.Thechemicalanalysisreportshouldalsobesimultaneouslyfiled.

4.9 After the court orders are passed for pre-trial disposal of drugs, those drugswhich haveno legitimate commercial value (excepting opium,morphine, codeine and the baine, which arerequiredtobetransferredtotheGovernmentOpiumandAlkaloidWorksUndertakingatGhazipurorNeemuch,asthecasemaybe)arerequiredtobedestroyedconsistentwiththeguidelinesissuedunderthisorderandnotrepugnanttothecourt’sorder.

5.0 Asbulkofseizuresofdrugsrelatetoillicit importorexportandaremadeatthepointsofentryorexitorintransittraffic,suchdrugsareliabletoseizureunderSection110oftheCustomsAct,1962andconfiscationunderSection111or113ibid.Insuchcases,itwouldbeappropriatetoinitiateproceedingsundertheCustomsActalso.

5.1 TherelevantprovisionsofSection110(IA),(IB),(IC)arereproducedatAnnexure-V.

5.2 AthreememberCommitteeoftherespectiveenforcementagencies(bothCentralandStates),knownastheNarcoticsDrugsandPsychotropicSubstancesDisposalCommitteeshouldbeconstitutedto discharge its functions from theHeadQuarters of the respectiveHeads ofDepartments. TheCommitteewillbeheadedbyanofficernotbelowtherankof–

i. Deputy Collector of Customs and Central Excise with two members of the rank ofAssistantCollectorofCustomsandCentralExciseinthecaseofaCustomsandCentralExciseCollectorate.

ii. DeputyNarcoticsCommissionerwithtwomembersoftherankofAssistantNarcoticsCommissionerinthecaseofNarcoticsCommissioner’sOrganisation;

iii. Deputy Director of Revenue Intelligencewith twomembers of the rank of AssistantDirectorinthecaseoftheDirectorateofRevenueIntelligence;

iv. DeputyDirectorandtwootherofficersasmaybeauthorisedbytheDirectorGeneral,NarcoticsControlBureauinthecaseofthatorganisation;

v. DeputyInspectorGeneralofPolicewithtwomembersoftherankofSuperintendentofPoliceinrespectofStatePoliceOrganisations;and

vi. DeputyCommissionerofExcisewithtwoofficersoftherankofAssistantCommissioners,inrespectofStateExciseOrganisation.

TheCommitteewillbedirectlyresponsibletotheHeadoftheDepartmentconcerned.


5.3 ThefunctionoftheCommitteewillbeto

a. Undertakedetailedanalysisofdrugspendingdisposal

b. Advisetherespectiveinvestigationofficers/supervisoryofficersonthestepstobeinitiatedforexpeditionsdisposal.

The Committee will meet, as frequently as possible as may be considered necessary for quickdisposalofdrugsandatleastonceintwomonths.WhiletheCentralagencieswillendorseacopyoftheMinutesofsuchMeetingsdirectlytoNarcoticsControlBureau,theStateenforcementagenciesconcernedwillreportthesametotheirrespectiveStatePoliceHeadQuarters(CID),who,inturn,willkeeptheNarcoticsControlBureauinformedoftheprogressmadefromtimetotime.

5.4 The officers-in-charge of Godownswill prepare a list of all such drugs that have becomeripefordisposaltotheChairmanoftherespectivedrugdisposalcommittee.Afterexaminingthattheyarefitfordisposalandsatisfyingthattheyarenolongerrequiredforlegalproceedingsandtheapprovalofthecourthasbeenobtainedforthepurpose,theMembersoftherespectivedrugdisposalcommitteewillendorsenecessarycertificatestothiseffect.Thecommitteewillthereafter,physicallyexamineandverifythedrugconsignmentswithreferencetotheseizurereportandotherdocumentslikechemicalanalysis,etc.,includingitsweighmentandrecorditsfindingineachcase.

5.5 Inthecaseoftamperingwithseal,etc.,thecompositesamplewillbedrawnforgettingthesametestedbytheCentralRevenueControlLaboratoryortheStateForensicScienceLaboratory/StateDrugControlLaboratoryconcerned.Ifnovariation,eitherinpurityorquantityisfound,thesamewillbeorderedfordestructionbytheDepartment.Whereanyminorvariationsarenoticed,aDepartmentoftheenforcementagencyconcerned.Inthecaseofwidervariations,themattershouldbeindicatingthefollow-upactiontakeninthisregard.ThedestructionofdrugsinsuchcasescanbedoneonlyafterobtainingtheordersoftheHeadoftheDepartmentconcerned.

5.6 TheCommitteewillbeempoweredtoorderdestructionoftheseizeddrugsinthefollowingcases:-

Name of Drug Quantity (kgs)

Heroin 2

Hashish (Charas) 50

Hashish Oil 10

Ganja 500

Cocaine 1

Mandrax 150

Other Drugs uptovalueofRs.5lakhs


The Disposal Committee should intimate the Head of the Department concerned about the programmeofdestruction(givingcompletedetails) inadvance(at least15daysbefore thedateof destruction), so that, in casehedeems fit, hemay eitherhimself conduct surprise checks, ordeputeanofficerforconductingsuchsurprisechecks.TheDisposalCommitteeshouldinformtherespectiveHeadsofDepartmentsinrespectofeverydestructionmadebyit,indicatingthedateofdestruction,quantitiesdestroyed,etc.

Inthosecaseswherethequantitiesexceedtheabovelimits,destructioncouldbeorderedandtakeplaceonlyunderthesupervisionbytheHeadoftheDepartmenthimself,alongwiththeChairmanandMembersoftheDrugsDisposalCommittee.

5.7 Alldrugsexceptingopium,morphine,codeineandthebaineshallbedestroyedbyincinerationinsuchplaceswhereadequatefacilitiesandsecurityarrangementsexistforthesameafterensuringthatthiswillnotbeahealthhazardfromthepointofviewofpollution.

5.8 A Certificate ofDestructing (in triplicate) (Annexure-VI) containing all the relevant data,Time,godownentryno., fileno.,grossandnetweightofthedrugsseized,etc.,shallbepreparedanddulyendorsedbythesignatureoftheChairmanaspurposeofPanchanama.TheoriginalcopywillbepastedinGodownRegisteraftermakingnecessaryentriestothiseffect,theduplicatetoberetainedintheseizurecasefileandthetriplicatecopywillbekeptbytheDisposalCommittee.

6. Theprocedure,asoutlinedinSectionIIoftheOpiumManual(Vol.III),willcontinuetoapplyfordrugslikeopium,morphine,codeineandthebaine.DisposalofpoppystrawshallcontinuetoberegulatedbytheprocedureasstipulatedbytherespectiveStateExciseDepartmentinthisbehalf.

7. Othergoods(includingconveyance)ripefordisposalmaybedisposedofbypublicauctionorinsuchmannerasisdeemedconvenientinthebestinterestsoftheGovernment.

***


ANNEXURE I (ASAPPENDIXIII-C)

GODOWNRECEIPTS(NO.II)

RECEIVED(No.)……………………………………………………………………………..

packaging/containerssaidtocontain…………………………………………………………

(Description of Drugs) sealed with the seal No. ……………………………………………… of(Name and Designation) seizing Officer and entered into Godown register vide entry No.…………………………………………………………………………..

Fascimileoftheseal…………………………………………………………….

Place:

Date:

Time:

SignatureoftheOfficer-in-chargeofGodown

withfullnameandofficialseal

ANNEXURE II (ASAPPENDIXIII-C)

FORMAT OF REGISTER REQUIRED TO BE

MAINTAINED BY THE GODOWN IN CHARGE

N.C.B.in

1. GodownentryS.No.

2. N.D.P.S.CrimeNo.

3. Descriptionofdrugsinthesealedpackages/containersandothergoods,ifany

4. No.ofpackages/containers(drug-wise)


5. Quantityofdrug(package/container-wise)

6. Particularsofthetestmemos.

7. Name(s)andaddress(es)ofaccused

8. Namewithofficialdesignationandaddressofseizing/depositingofficer

9. Facsimileofthesealputonthepackages/containersbytheseizingofficer

10. Date and time of deposit

11. Particularsofexitandre-entryforexhibitingtocourt.

12. Date and time of removal for disposal

13. DisposalparticularsincludingdestructionorDespatchtoCentralGovt.OpiumFactory.

14. Certificateofdisposal includingpricepaymentparticulars, fromGovt.OpiumFactory,whereapplicable.

15. RemarksoftheInspectingOfficer(s)

ANNEXURE-III (ReferPara4.4ofAPPENDIXIII-C)

FORMAT OF QUARTERLY RETURN TO BE FURNISHED BY THE

CENTRAL ENFORCEMENT AGENCIES TO N.C.B.

Nameofthedrug:

OpeningBalanceason1stdayofthequarter:

ReceiptsduringtheQtrs.:

Qty.DispatchedtoOpiumfactories:

Qty.disposalbydestruction:

StockinhandattheendofQtr:

Remarks:


APPENDIX III D (RefertoParaNo.16.1)

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

NewDelhi,the16thJanuary,2015

G.S.R. 38(E).—In exercise of the powers conferred by Section 52A of the Narcotic Drugs andPsychotropic SubstancesAct, 1985, (61of 1985), hereinafter referred to as the saidAct, and insupersessionofnotificationnumberG.S.R.339(E),dated10thMay,2007,exceptasrespectsthingsdoneoromitted tobedonebeforesuchsupersession, theCentralGovernment,havingregardtothehazardousnature,vulnerabilitytotheft,substitution,andconstraintsofproperstoragespace,inrespectofanynarcoticdrugs,psychotropicsubstances,controlledsubstancesorconveyances,herebyspecifiesthenarcoticdrugs,psychotropicsubstances,controlledsubstancesandconveyanceswhichshall,assoonasmaybeaftertheirseizure,bedisposedof,theofficerswhoshalldisposethemofandthemanneroftheirdisposal.

2. Items to be disposed of.–Allnarcoticdrugs,psychotropicsubstances,controlledsubstancesandconveyancesshallbedisposedofunderSection52AofthesaidAct.

3. Officerswhoshallinitiateactionfordisposal.-Anyofficerin-chargeofapolicestationoranyofficerempoweredunderSection53ofthesaidActshall initiateactionfordisposalofnarcoticdrugs,psychotropicsubstances,controlledsubstancesorconveyancesunderSection52AofthatAct.

4. Manner of disposal.- (1) Where any narcotic drug, psychotropic substance, controlledsubstanceorconveyancehasbeenseizedandforwardedtotheofficer-in-chargeofthenearestpolicestationortotheofficerempoweredunderSection53ofthesaidActorifitisseizedbysuchanofficerhimself,heshallprepareaninventoryofsuchnarcoticdrugs,psychotropicsubstances,controlledsubstancesorconveyancesasperAnnexure 1tothisnotificationandapplytoanyMagistrateundersub-Section(2)ofSection52AofthesaidActasperAnnexure 2tothisnotificationwithinthirtydaysfromthedateofreceiptofchemicalanalysisreportofseizednarcoticdrugs,psychotropicsubstancesorcontrolledsubstances.


(2)AftertheMagistrateallowstheapplicationundersub-Section(3)ofSection52AofthesaidAct,theofficermentionedinsub-paragraph(1)shallpreservethecertifiedinventory,photographsandsamplesdrawninthepresenceoftheMagistrateasprimaryevidencefor the case and submit details of the seized items to the Chairman of the Drug Disposal Committee for a decisionby the Committee on the disposal and the aforesaid officershallsendacopyofthedetailsalongwiththeitemsseized,totheofficer-in-chargeoftheGodown.

5. Drug Disposal Committee.-TheHeadoftheDepartmentofeachCentralandStateDrugLawEnforcementAgencyshallconstituteoneormoreDrugDisposalCommitteescomprisingthreeMemberseach,whichshallbeheadedbyanofficernotbelow the rankofSuperintendentof Police, Joint Commissioner of Customs andCentral Excise, JointDirector ofDirectorateofRevenue Intelligenceor officersof equivalent rank; and every suchCommittee shall bedirectlyresponsibletotheHeadoftheDepartment.

6. Functions.-The functions of the Drug Disposal Committee shall be to-

(a)meetasfrequentlyaspossibleandnecessary;

(b)conductadetailedreviewofseizeditemspendingdisposal;

(c)orderdisposalofseizeditems;and

(d)advise the respective investigation officers or supervisory officers on the steps to beinitiatedforexpeditiousdisposal.

7. Procedure to be followed by the Drug Disposal Committee with regard to disposal of seized items.-

(1) The officer-in-charge of Godown shall prepare a list of all the seized items that have beencertifiedunderSection52AofthesaidActandsubmitittotheChairmanoftheconcernedDrugDisposalCommittee.

(2) Afterexaminingthelistreferredtoinsub-paragraph(1)andsatisfyingthattherequirementsofSection52AofthesaidActhavebeenfullycompliedwith,themembersoftheconcernedDrug Disposal Committee shall endorse necessary Certificates to this effect and thereafterthatCommitteeshallphysicallyexamineandverifytheweightandotherdetailsofeachoftheseizeditemswithreferencetotheseizurereport,reportofchemicalanalysisandanyotherdocuments,andrecorditsfindingsineachcase.

8. Power of Drug Disposal Committee for disposal of seized items.-The Drug Disposal CommitteecanorderdisposalofseizeditemsuptothequantityorvalueindicatedintheTablebelow,namely:-


TABLE

(1) (2) (3)Sl. No. Name of item Quantity per consignment1. Heroin 5Kg2. Hashish(Charas) 100Kg3. HashishOil 20Kg4. Ganja 1000Kg5. Cocaine 2Kg6. Mandrax 3000Kg7. Poppystraw Upto10MT8. Other narcotic drugs, psychotropic substances,

controlledsubstancesorconveyancesUptothevalueofRs.20lakhs:

ProvidedthatiftheconsignmentsarelargerinquantityorofhighervaluethanthoseindicatedintheTable,theDrugDisposalCommitteeshallsenditsrecommendationstotheHeadoftheDepartmentwhoshallordertheirdisposalbyahighlevelDrugDisposalCommitteespeciallyconstitutedforthispurpose.

9. Mode of disposal of drugs.-(1)Opium,morphine,codeineandthebaineshallbedisposedofbytransferringtotheGovernmentOpiumandAlkaloidWorksundertheChiefControllerofFactories.

(2) Incaseofnarcoticdrugsandpsychotropicsubstancesotherthanthosementionedinsub-paragraph(1), theChiefControllerofFactoriesshallbe intimatedbythefastestmeansofcommunicationavailable,thedetailsoftheseizeditemsthatarereadyfordisposal.

(3) TheChiefControllerofFactoriesshall indicatewithin fifteendaysof thedateofreceiptofthe communication referred to in sub-paragraph (2), the quantities of narcotic drugs andpsychotropicsubstances,ifany,thatarerequiredbyhimtosupplyassamplesunderrule67BoftheNarcoticDrugsandPsychotropicSubstancesRules,1985.

(4) Suchquantitiesofnarcoticdrugsandpsychotropicsubstances,ifany,asrequiredbytheChiefControllerofFactoriesundersub-paragraph(3)shallbetransferredtohimandtheremainingquantitiesofnarcoticdrugsandpsychotropicsubstancesshallbedisposedofinaccordancewiththeprovisionsofsub-paragraphs(5),(6)and(7).

(5)Narcoticdrugs,psychotropicsubstancesandcontrolledsubstanceshavinglegitimatemedicalorindustrialuse,andconveyancesshallbedisposedofinthefollowingmanner:-

(a) narcoticdrugs,psychotropicsubstancesandcontrolledsubstances,whichareintheformofformulationsandlabeledinaccordancewiththeprovisionsoftheDrugsandCosmetics


Act,1940(23of1940)andrulesmadethereunder,maybesold,bywayoftenderorauctionor in any othermanner, asmay be determinedby theDrugDisposal Committee, afterconfirming the composition and formulation from the licensed manufacturer mentioned inthelabel,toapersonfulfillingtherequirementsoftheDrugsandCosmeticsAct,1940(23of1940)andtheNarcoticDrugsandPsychotropicSubstancesAct,1985(61of1985)andtherulesandordersmadethereunder,providedthataminimumof60%oftheshelflifeoftheseizedformulationremainsatthetimeofsuchsale;

(b)narcotic drugs, psychotropic substance and controlled substances seized in the formofformulationsandwithoutproperlabeling,shallbedestroyed;

(c)narcotic drugs, psychotropic substances and controlled substances seized in bulk formmaybe soldbywayof tenderor auctionor in anyothermanner asmaybedeterminedbytheDrug,DisposalCommittee,toapersonfulfillingtherequirementsoftheDrugsandCosmeticsAct,1940(23of1940)andtheNarcoticDrugsandPsychotropicSubstancesAct,1985(61of1985),andtherulesandordersmadethereunder,afterconfirmingthestandardsandfitnessoftheseizedsubstancesformedicalpurposesfromtheappropriateauthorityundertheDrugsandCosmeticsAct,1940(23of1940)andtherulesmadethereunder;

(d)controlledsubstanceshaving legitimate industrialusemaybesold,bywayof tenderorauctionorinanyothermannerasmaybedeterminedbytheDrugDisposalCommittee,toapersonfulfillingtherequirementsoftheNarcoticDrugsandPsychotropicSubstancesAct,1985(61of1985)andtherulesandordersmadethereunder;

(e)seizedconveyancesshallbesoldoffbywayoftenderorauctionasdeterminedbytheDrugDisposalCommittee.

(6) Narcoticdrugs,psychotropicsubstancesandcontrolledsubstances,whichhavenolegitimatemedicalorindustrialuseorsuchquantityofseizeditemswhichisnotfoundfitforsuchuseorcouldnotbesold,shallbedestroyed.

(7) Destructionreferredtoinsub-paragraph(b)shallbebyincineration, in incineratorsfittedwithappropriateairpollutioncontroldevices,whichcomplywithemissionstandardsandsuchincinerationmayonlybedoneinplacesapprovedbytheStatePollutionControlBoardorwhereadequatefacilitiesandsecurityarrangementsexistandinthelattercase,inordertoensurethatsuchincinerationmaynotbeahealthhazardorpolluting,consentoftheStatePollutionControlBoardorPollutionControlCommittee,asthecasemaybe,shallbeobtained,and the destruction shall be carried out in the presence of the Members of the Drug Disposal Committee.

10. Intimation to Head of Department on destruction.-The Drug Disposal Committee shall intimatetheHeadoftheDepartmentregardingtheprogrammeofdestructionatleastfifteen


daysinadvancesothat,incasehedeemsfit,hemayeitherhimselfconductsurprisechecksordeputeanofficerforconductingsuchsurprisechecksandaftereverydestructionoperation,the Drug Disposal Committee shall submit to the Head of the Department a report giving detailsofdestruction.

11. Certificate of destruction.-A Certificate of Destruction (in triplicate) containing all therelevantdatalikeGodownentrynumber,grossandnetweightoftheitemsseized,etc.,shallbepreparedandsignedbytheChairmanandMembersoftheDrugDisposalCommitteeasper format at Annexure 3andtheoriginalcopyshallbepastedintheGodownregisteraftermakingnecessaryentriestothiseffect,theduplicatetoberetainedintheseizurecasefileandthetriplicatecopyshallbekeptbytheDrugDisposalCommittee.

12. Details of sale to be entered in Godown register.-Asandwhentheseizednarcoticdrug,psychotropic substance, controlled substance or conveyance is sold by way of tender orauctionor inanyothermannerdeterminedby theDrugDisposalCommittee, appropriateentryindicatingdetailsofsuchsaleshallbemadeintheGodownregister.

13. Communication to Narcotics Control Bureau.-Details of disposal of narcotic drugs,psychotropicsubstances,controlledsubstancesandconveyancesshallbereportedtotheNarcoticsControlBureauintheMonthlyMasterReports.

ANNEXURE 1 (OFAPPENDIXIII-D)

INVENTORY OF SEIZED NARCOTIC DRUGS, PSYCHOTROPIC SUBSTANCES, CONTROLLED SUBSTANCES AND CONVEYANCES

[underSection52A(2)oftheNarcoticDrugsandPsychotropicSubstancesAct,1985]

CaseNo.--------------------------

Seizingagency:---------------------

Seizingofficer:----------------------

Dateofseizure:--------------------

Placeofseizure:----------------------

Nameanddesignationoftheofficerpreparingthisinventory:-------------------


TABLE

Sl.No. NarcoticsDrug/Psy--chotropicSubstanc--es/Con--trolledSubstanc--es/Con--veyance

Quality Quantity Mode of packing

Mark and numbers

OtheridentifyingParticulars

of seized items of packing

Countryoforigin

Remarks

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Signature,nameanddesignationoftheofficer

CertificationbytheMagistrateundersub-Section(3)ofSection52AoftheNarcoticDrugs and Psychotropic Substances Act, 1985

Whereastheaboveofficerappliedtomeundersub-Section(2)Section52AoftheNarcoticDrugsandPsychotropicSubstancesAct,1985tocertifytheaboveinventory,andsub-Section(3)ofthatSectionrequiresanyMagistratetowhomanapplicationismadetoallowtheapplicationassoonasmaybe,I,havingbeensatisfiedthattheaboveinventoryisaspertheseizuredocumentsandtheconsignmentsofseizedgoodsrelatedtothecasepresentedbeforeme,certifythecorrectnessoftheaboveinventory.

Signature,nameanddesignationoftheMagistrate

***


Annexure 2 (OFAPPENDIXIII-D)

APPLICATION FOR DISPOSAL OF SEIZED NARCOTIC DRUGS, PSYCHOTROPIC SUBSTANCES, CONTROLLED SUBSTANCES AND CONVEYANCES UNDER Section 52A (2) OF THE NDPS ACT, 1985

[Application to be made by the officer in-charge of a police station or an officer empowered under Section 53 of the Narcotic Drugs and Psychotropic Substances Act, 1985 who has custody of the seized narcotic drugs, psychotropic substances, controlled substances and conveyances]

To,

LearnedMagistrate,

______

Sir,

Sub: Application for certification of correctness of inventory, photographs and samples of seized narcotic drugs, psychotropic substances, controlled substances and conveyances.

1. Allnarcoticdrugs,psychotropicsubstances,controlledsubstancesandconveyanceshavebeenidentifiedbytheCentralGovernmentunderSection52Aof theNarcoticDrugsandPsychotropicSubstancesAct,1985asvulnerabletotheftandsubstitutionvideNotificationNo.……….dated…………

2. Asrequiredundersub-Section(2)ofSection52Aof theNarcoticDrugsandPsychotropicSubstances Act, 1985, I submit the enclosed inventory of seized narcotic drugs, psychotropicsubstances,controlledsubstances,and/orconveyancesandrequestyouto-

(a)certifythecorrectnessoftheinventory;

(b)permit taking, inyourpresence,photographsof theseized items in the inventoryandcertifysuchphotographsastrue;and

(c)allowdrawingofrepresentativesamplesinyourpresenceandcertifythecorrectnessofthelistofsamplessodrawn.

3.I requestyoutoallowthisapplicationundersub-Section(3)ofSection52AoftheNarcoticDrugsandPsychotropicSubstancesAct,1985sothattheseizednarcoticdrugs,psychotropicsubstances, controlled substances, and/or conveyances can thereafter be disposed of aspersub-Section(1)ofSection52AofthesaidActretainingthecertificate,photographsandsamplesasprimaryevidenceaspersub-Section(4)ofSection52A(4).

Yoursfaithfully,

Signature,nameanddesignationoftheofficer

Date:


CERTIFICATE BY THE MAGISTRATE UNDER SUB-Section (3) OF Section 52A OF THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985

I allow the above application under sub-Section (3) of Section 52A of the Narcotic Drugs andPsychotropicSubstancesAct,1985andhereby,certifythecorrectnessoftheenclosedinventory,theenclosedphotographstakenandthelistofsamplesdrawninmypresence.

Signature, name and designation of the Magistrate

Date:

***


ANNEXURE3OFAPPENDIXIII-DCERTIFICATE OF DESTRUCTION

[SeeParagraph11ofNotificationNo.datedthe……….]

Thisistocertifythatthefollowingnarcoticdrugs,psychotropicsubstancesandcontrolledsubstances,weredestroyedinourpresence.

1.CaseNo.

2.NarcoticDrug/PsychotropicSubstance/ControlledSubstance:

3.Seizingagency:

4.Seizingofficer:

5.Dateofseizure:

6.PlaceofSeizure:

7.Godownentrynumber:

8.Grossweightofthedrugseized:

9.Netweightofthenarcoticdrugs,psychotropicsubstances,controlledsubstancesdestroyed(aftertakingsamples,etc.):

10.Whereandhowdestroyed.

Signature(s), name(s) and designation(s) of Chairman/Members of the Drug Disposal Committee.

[F.No.V/2/2004-NC.II]

SATYANARAYANADASH,UnderSecy.

***


APPENDIX-IV (REFERPARA17.15.2.2(iii))

File No. 1-1619/FSSAI/Imports/2016

Food Safety and Standards Authority of India

(A Statutory Authority established under Foods Safety and Standards Act, 2006)

(Imports Division)

FDA Bhawan, Kotla Road, New Delhi-110002

Dated,6thMarch,2017

ORDER

AnumberofrepresentationshavebeenmadetoFSSAIrequestingtodefinethesamplesizeofhighpricedimportedalcoholicbeveragesAfterthoughtfulconsideration,itisdecidedthatinthecaseofimportofhighpricedliquor,miniature/representativesampleof100ml(intwonumbers)canbetakenforlaboratoryanalysissubjecttoconditionthatimportedconsignmentshallbeaccompaniedwithtestcertificateoftheregulatorybodyofexportingcountrythattherepresentative/miniaturesampleandimportedconsignmentpertainstothesamebatch.

(Rakesh Chandra Sharma)

Director (Imports)

To:

1. AlltheAuthorisedOfficers,FSSAI

2. Director Customs

3. AdvisorLab,FSSAIwithrequesttocommunicatetoalllaboratories

4. PPStoChairperson,FSSAI

5. PStoCEO,FSSAI,

6. CITO,FSSAI(foruploadingonwebsite)


APPENDIX - V (ReferPara17.16.4.4.(iv)(c))

List of Nodal Officers

S. No

Organization NodalOfficer Contact No./Mobile No.

1. SPG Sh.SunilKumar,SSO/Tech 011-23015964/9968534765

2. CRPF Sh.VaibhavKumarSrivastava,Assistant Commandant

9899359226

3. NSG MajorSurenderSingh 9001733778/7976966601

AC-IIThoratBM 9340730105

4. NTRO MajDSSidhu(Retd),SeniorAviator 8019500111

5. CISF Sh.ShrikantKishore,DIG 011-25673068/011-49654286

6. BSF Sh.D.S.Bisht,Commandant(Ops) 9856182908

DC(Mod),ProvDte,BSF

DC(R&D),Comn&ITDte,FHQ.BSF

7. ITBP Sh.R.P.S.Raghuvanshi,Commandant(NodalOfficer)

011-24360486

Sh.HemChandraKapil,Dy.Commandant

9410738312

NikhilYadav,Sub-Inspector 8882298991

8. DGI,GSBranch

ColPrashantPande,YSM 011-23018398

Note:Theabovelistsubjecttochangefromtimetotime.Theformationsarerequestedtoascertainthechanges.

***


APPENDIX-VI LIST OF CIRCULARS/INSTRUCTIONS USED IN DISPOSAL

MANUAL

Sr.No.

Sr.NoofOldDisposal Manual 1990

PageNo.ofOldDisposal Manual 1990

CIRCULAR NO & DATE SUBJECT Where new Instruction

/Circularfiguringin

Disposal Manual 2019

1 1 1 D.5570/BI/151dt.18.6.51GoldreceivedbyMint

from CustomsPara11.1ofChapter11

2 2 1 5(31)Cus.1/51dt.10.8.51Gold,confiscated

-disposalPara11.1ofChapter11

3 3 1 2/6/53-LCdt.3.12.54Perishablegoods

-ProcedurePara2.3.1ofChapter2

4 4 2 21/23/55-CUS-IVdt.10.9.56Procedurefordisposalof

confiscatedgoodsChapter 2

5 6 9 7/3/56-LCIIdt.3.12.56***Disposalofconfiscated

ForeignCurrencyChapter12

6 5 10 2/16/56-LCIdt.16.11.56Perishablegoods-

DelegationofPowers

Para2.3.1&2.8ofChapter

2

7 8 11 21/23/55-Cus.IVdt.8.12.56Procedurefordisposalof

confiscatedgoods

Chapter 2 ( This

Instructionisactuallythe

text/structureofChapter

2)

8 9 26 16(1)/57/-Cus.IV.dt.6.2.57Disposal of Arms and

Ammunitions

NewProceduredetailed

atpara15.2ofNewDraft

Manual

9 10 26 30/1/57-LCIdt.3.5.57Medicine-perishable

goods Para14.1.3ofChapter14

10 14 30 11/3/59-Cus.IVdt.28.7.59Confiscatedsilver

OrnamentsandCoins

Para11.3andPara11.2,

respecticely,ofChapter11

11 18 32 11/21/60-Cus.IVdt.23.9.60SilverOrnaments&

Coins

Para11.3andPara11.2,

respecticely,ofChapter11

12 21 44 11/12/60-Cus.IVdt.26.6.61Confiscated/Abandoned

Plants&SeedsPara17.5ofChapter17


13 22 44 11/2/61-Cus.IVdt.17.7.61

Regardingissueof

Vouchersforretailsale

ofconfiscated&seized

goods

Para9.2ofChapter9

14 24 45F.No.4/63/57-Cus.III/Cus.

IVdt07.09.61

Disposalofconfiscated

detained and uncleared

goodsbyCustomHouse

orPortTrust/Port

Commissioners-Fixation

of reserve / fair prices

Chapter6

15 33 53 30/13/62-LCIDt.28.12.62Disposalofconfiscated

SilverPara11.3ofChapter11

16 34 54 30/27/62-LCIDt.3.1.63Disposalofgold&gold

jewelleryPara11.4ofChapter11

17 38 58 1(117)-B/63Dt.29.1.64

Copyoflettertothe

MintMasterforwatchof

silver sale

Chapter-11

18 46 65

F.No.30/56/64-LCIdt

10.11.64

Disposal-Procedure

forreceipt,storageand

disposalofseizedgoods-

storageofValuables-

Instructions reg

Chapter3

19 48 67 30/62/64-LCIDt.13.1.65GoldJewelleryandGold

OrnamentsPara11.4ofChapter11

20 49 67 30/6/65-LCIDt.24.2.65 Retailsale Para9.2ofChapter9

21 73 83 30/72/67-LC.Idt10.10.67

Disposalofconfiscated

goods-fixationofprices

inconsulatationwith

other collectors of

Customs and Central

Excise

Chapter6

22 78 87/88 30/90/66-LCIDt.23.1.68Trade goods through the

DGS&DChapter9

23 79 89 30/90/66-LCIDt.2.2.68 Trade goods Chapter9

24 82 93 30/80/66-LCIDt.17.4.68ConfiscatedDiamonds,

precious stonesPara10.1ofChapter10

25 86 95/96 30/21/63-LCIDt.3.7.68Disposalofrough&

uncut diamondsPara10.1ofChapter10

26 94 98/99 30/52/68-LCIDt.4.11.68Disposalofrough&

uncut diamondsPara10.1ofChapter10


27 96 99 30/38/68-LCIDt.22.11.69DisposalofArms&

Ammunitions

NewProceduredetailed

atChapter15ofNew

DisposalManual2019

28 97 99/100MHANo15/44/47/Police

Dt.13.11.47Firearms

29 98 100/101MHA9/25/55/PoliceIVDt.

19.8.55

ConfiscatedArms&

Ammunitions

30 99 101MHANo.9/9/58-Police(I)

Dt.2.4.58

Disposal of obsolete

PoliceWeapons

31 100 102MHANo.23/2/60P.IVDt.

8.12.60Arms Act – Disposal

32 116 109 6577/m(Cus)70Dt.16.10.70DisposalofPerishable

goodsPara2.4ofChapter2

33 121 111 30/76/70-LCIDt.27.2.71 Arms&AmmunitionsChapter15ofDisposal

Manual,2019

34 127 112 3/1/71-Ad.VDt.21.11.72 Arms&AmmunitionsChapter15ofDisposal

Manual,2019

35 130 114 549/6/72-LCIDt.12.3.73 Arms&AmmunitionsChapter15ofDisposal

Manual,2019

36 139 118 549/86/73-LCIDt.2.11.74 Arms&AmmunitionChapter15ofDisposal

Manual,2019

37 143 119/121 549/16/76-LCIDt.11.8.76PACrecommendations

on damaged goodsAnnexure–IofChapter-14

38 146 123 545/24M/77-LCI(I)25.8.77 Cut&PolishDiamond Chapter10

39 148 124 545/3-M/78Dt.10.2.78Stockverificationof

ValuablesPara4.2ofChapter4

40 151 125 549/59-M/77Dt.4.5.78Resumingofsaleof

DiamondChapter10

41 152 125 549/59-M/77Dt.12.5.78Disposal – sensitive to

smugglingChapter11

42 159 129/131545/1-M/78-LCIDt.

21.12.78PACrecommendations Annexure-IofChapter-14

43 164 133 549/59-M/77-LCIDt.2.6.79 SensitivetoSmugglingCovered under relevant

SectionsofChapter9

44 168 137549/59-M/77-LCIDt.

26.6.79

Discountof10%to

Military/ParaMilitary

organisations

Covered under relevant

SectionsofChapter9

45 169 137549/59-M/77-LCIDt.

26.6.79

Discountof12½%to

NCCFetc.


SectionsofChapter9

46 176 140545/38/79/-LCIDt.

27.12.79

Disposal of drugs

Chemicals regardingChapter14


47 177 140 549/123/79-LCIDt.30.1.80Disposalofconfiscated

watches


SectionsofChapter9

48 179 141 549/61/79-LCIDt.24.6.80

Discontinuation of sale

ofconfiscatedgoodsto

departmentofficersfrom

retail sale

Chapter9

49 185 144 549/90/79-LCIDt23.1.81 SnakeskinPara17.8(iii)ofChapter

17

50 186 144 549/101/79-LCIDt31.1.81BoreArms&

AmmunitionsPara15.2ofChapter15

51 188 145 549/86/79-LCIDt5.3.81 DisposalMisc.items Chapter17

51 194 153 549/90/79-LCIDt.28.7.81 SnakeskinPara17.8(iii)ofChapter

17

53 195 154549/90/79-LCI(AS)Dt.

5.9.81Snakeskin

Para17.8(iii)ofChapter

1754 198 157 549/8/80-LCIDt.1.10.81 Perishablegoods Para2.4ofChapter2

55 214 166711/35/82-LC(AS)

Dt.17.6.83

FireArms–salesto

Dept.OfficersPara15.2.4ofChapter15

56 219 172715/1/83-LC(AS)Dt.

19.1.84

Precious&Semi

PreciousStonesChapter10

57 231 183/184F.711/18/84-LC(AS)Dt.

26.3.85

SaleoffireArmstoDept.

OfficersPara15.2.4ofChapter15

58 234 185F.711/18/84-LC(AS)Dt.

8.11.85

SaleofArmstoDept.

OfficersPara15.2.4ofChapter15

59 238 188/189F.711/8/84-CUS(AS)Dt.

7.4.86Seized/confiscateddrugs Chapter16

60 242 191F.711/31/85-CUS(AS)

Dt.3.9.86Disposal of snake skin


17

61 253 209/210F.No.711/61/88-CUS(AS)

Dt.–

Minutes of meeting –

Animal skin


17

62 - 233F.No.711/61/88-CUS(AS)dt

7.8.92

Destruction of snake

skinPara17.8ofChapter17

63 - 244F.No.711/130/93-CUS(AS)

Dt.12.12.94Silver Para11.3ofChapter11

64 - 246F.No.711/164/93-CUS(AS)

Dt.12.3.96

GoldthroughCustoms

RetailshopPara11.3(Iv)ofChapter11

65 - -CircularNo.50/97dt

17.10.1997

DisposalofUnclaimed/

UnclearedPara5.1ofChapter5

66 - 268F.No.711/164/93-CUS(AS)

Dt.5.3.98

Gold&Silver–

Deposition nearest to

cities

Chapter11


67 _ _F.No.711/39/2004-Cus(AS)

dt.17.09.2004

Guidelinesforthe

valuation and disposal

byauction-cum-tender

ofseized,confiscated

andtime-expiredgoods

Para6.2ofthechapter6

68 _ _Circularno57of2016dt

01.12.2016

Guidelinesforthesaleof

seized/confiscatedgold

-Reg.

Para11.2ofChapter11

69 _ _CiruclarNo.7/2004dated

28.01.2004

Disposal of

Unclaimed/Uncleared

cargo-regarding

Para5.1ofChapter5

70 - -CircularNo.20/2019dated

19.07.2019

GuidelinesforDisposal

ofMuriateofPotash

Seized/confiscatedby

Customs

Para17.14ofChapter17


11.09.2019

DisposalofSeized/

confiscatedForeign

OriginLiquor



20.09.2019

DisposalofUnmanned

AircraftSystem(UAS)/

UnmannedAerialVehicle

(UAVs)/Remotely

PilotedAircrafts(RPAS)/

Drones


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APPENDIX VII LIST OF EARLIER CIRCULARS/INSTRUCTIONS RESCINDED

Sr.No. Sr.NoofOldDisposal Manual1990

PageNo.ofOldDisposalManual1990

CIRCULARNO&DATE SUBJECT

1 11 26-2921(52)56-Cus.dt.1.7.57

Disposalofconfiscatedandabandoned goods

2 12 29100/11/58-LCIdt.12.3.58

DisposalofchequesandPostalOrdersofforeignorigin(Pakistan)

3 16 3121/91/57-Cus.IVdt.12.10.59

Procedurefordisposalofgoods in Calcutta Custom House

4 19 32 30/7/60-LCIdt.3.2.61 Bookadjustmentstationery

5 35A 55-56 30/29/62LCIDt.18.5.63 ConsumerGoods

6 37 5711(81)-ST/63Dt.30.12.63

SalesTax

7 40 59 30/6/64-LCIDt.12.2.64 SalesTaxlevy

8 41 5930/11/64-LCIDt.26.2.64

Int.Deptadjustmentgold&silver

9 44 6530/11/61-LCIDt.19.6.64

InterDept.adjustmentGold&silver

10 50 6730/36/65-LCIDt.19.5.65

Camphor&Menthol

11 52 6830/32/65-LCIDt.25.6.65

SupplyoflistofconfiscatedgoodsforCSDC(I)Deptt.

12 56 69/7030/80/65-LCIDt.10.12.65

Stepforexpeditiousdisposal

13 58 7130/36/65-LCIDt.11.2.66

SaleofConfiscatedcamphor,cassia,etc

14 60 7330/36/65-LCIDt.19.3.66

Disposal – sale of Confiscatedmenthol


15 62 7430/103/65-LCIDt.15.9.66

PowerofChiefInspector&principal Dock Appraiser to supervise auction

16 63 7530/21/63-LCIDt.23.9.66

Disposalofrough&uncutDiamond

17 67 7830/91/66-LCI(Pt.VII)Dt.17.1.67

Disposal–reviewbythePAC

18 69 80 30/13/66-LCIDt.1.2.67 Disposal of Camphor

19 70 80/8130/10/67-LCIDt.15.3.67

Delayindisposal–stepforexpeditiousdisposal

20 71 8130/45/67-LCIDt.14.6.67

Disposalofconfiscatedgoods

21 74 8330/43/67-LCIDt.23.10.67

SalesTax

22 80 89/91 30/43/67-LCIDt.8.2.68 SalesTax

23 88 96

DeptofExpenditureUoNo.2426dt28.6.68received under Ministry’sletterF.No.16/3/68-AdmIVAdt18.7.68

DelegationofPowers-Maintainence of seized RoadVehicles-Incurrringofexpenditure

24 91 97/99 14/4/68-LCIDt.23.9.68 Delayindisposal

25 92 9830/33/67-LCIDt.25.9.68

Disposal of consumer and luxurygoods

26 93 981/35/68-LCIAd.VIIIDt.1.11.68

ProperStorage–hiringofgarage

27 85 94/95 30/33/67-LCIDt.7.6.68 Traded goods

28 102 102/103 30/12/69-LCIDt.7.2.69 SaleofclovesthroughSTC

29 103 103 30/9/69-LCIDt.12.2.69 Disposalofnotifiedgoods

30 106 104/10530/85/68-LCIDt.26.2.69

TradegoodsthroughDGS&D

31 107 10530/62/69-LCIDt.26.6.69

SaleofconfiscatedgoodsofChinese origin

32 108 105/106 30/23/69-LCIDt.6.9.69 PaymentofsalesTax


33 109 10630/68/69-LCIDt.18.9.69

ClovestoSTC–debitingoflicence

34 111 10730/68/69-LCIDt.13.3.70

Saleofcloves

35 112 10730/12/70-LCIDt.31.3.70

SaleofconfiscatedRadiantyarn

36 113 10730/107/69-LCIDt.10.4.70

Complainw.r.t.cigarettes/Notifieditem

37 114 108TCBombay’sletterDt.17.6.70

ActualusersofMetallicYarn

38 117 10930/21/70-LCIDt.24.11.70

Disposal of consumer goods

39 118 109/11030/58/70-LCIDt.24.11.70

Liquor–salestolicenseddealer

40 119 11030/23/70-LCIDt.06.01.71

Disposalofconfiscatedclove

41 120 110 30/23/70-LCIDt.6.1.71Saleofclovetoimportquotaholder

42 123 111549/93/71-LCIDt.31.7.71

Disposal of Cloves

43 124 111/11230/62/69-LCIDt.14.9.71

Disposal of goods – Chinese origin

44 125 112549/112/71-LCIDt.25.5.72

Disposal of Tape recorder andCameras–officeuse

45 126 112549/42/72-LCIDt.15.7.72

Binoculars,Telescopes-officeuse

46 128 113549/94/72-LCIDt.14.12.72

Recommendationofthecommittee on Disposal

47 129 114549/118/71-LCIDt.22.12.72

Cut&PolishedDiamond

48 131 115549/53/73-LCIDt.16.8.73

DisposalofconfiscatedMenthol/Thymol

49 132 115549/93/73-LCIDt.30.11.73

Clove&otherspices


50 133 115549/84/73-LCIDt.3.1.74

Scotchwhiskey&liquorrequiringlicence

51 135 116549/102/71-LCIDt.21.5.74

SyntheticYarn

52 136 116/117549/58/71-LCIDt.23.5.74

Tradegoods/Yarnprocedure

53 137 117549/60/74-LCIDt.26.6.74

Liquor&Cigarettes–Importlicense

54 138 117549/90/74-LCIDt.31.8.74

Medicine/Drugs – reference from Collector Ahmedabad

55 140 118549/110/74-LCIDt.6.11.74

SaleschemeoftapeRecorders,Calculators&other educational aid to Educationalinstitutions

56 142 118/119549/139/75-LCIDt.28.8.75

Disposal of consumer and luxurygoods–Instructionsreg.

57 144 121R&BF.No.545/16/76–LCIDt.15.9.76

Quickdisposalofdamagedgoods

58 147 123/124549/59/M/77LCI(Vol.II)Dt.7.11.77

Resumingofsaleof-Instruction

59 149 124549/59-M/77-LCIDt.01.05.1978

TapeRecorders,CalculatorsforDept.use

60 150 125 549/59M/77Dt.4.5.78Resumingofsale–stoppageofsaletoNCCF

61 154 127549/59-M/77-LCIDt.15.6.78

Radiant&MetallicYarn

62 157 128549//59-M/77-LCIDt.1.12.78

SaleofSyntheticYarn

63 158 128549/59-M/77-LCIDt.1.12.78

DisposalofSmall&Heterogeneous items

64 162 132549/19/79-LCIDt.9.3.79

NylonYarn

65 163 132/133544/21/79-LCIDt.8.5.79

PACreportStockverification


66 165 134/136549/81-M/77-LCIDt.16.6.79

PACreport

67 170 138549/59-M/77-LCIDt3.7.79

Telexmessage–disposal-Watches-HMT

68 171 138549/59-M/77-LCIDt25.7.79

ConfiscatedWatchesHMT

69 173 139 545/21/79Dt30.10.79ReminderregardingStockverificationtobecarriedoutregularly

70 174 139549/82/79-LCIDt.30.11.79

ConfiscatedWatchmovements

71 175 139549/123/79-LCIDt.22.12.79

ConfiscatedWatches–allmeasures

72 178 141549/132/79-LCIDt.29.2.80

Disposal-salethroughNCCFincrease of sale points

73 181 142 549/54/79-LCIDt5.9.80Listofparamilitaryorganization,listofparamilitaryorganization

74 183 142/143549/40/79-LCIDt24.11.80

Liquor–expeditiousDisposal of

75 184 143 549/8/79-LCIDt8.1.81Disposalofmedicines,ref.fromC.ExciseChandigarhreg.

76 189 145CopyofMOF(DR)F.NO.549/7/1979-LCI(AS)dated27.04.1981

Disposal-seized/ConfiscatedCanalisedDrugsandMedicine-Procedureregarding disposal of

77 192 152549/47/80-LCI(AS)Dt.4.6.81

WatchesHMT

78 193 152/153711/31/81—LCI(AS)Dt.25.6.81

VideoTapeRecorderstoEducationalInstitutions

79 196 155715/14/81-LC(AS)Dt.1.10.81

Valuationofdisparities-PAC

80 197 155/157715/14/81-LC(AS)Dt.1.10.81

PACrecommendationsonperishable goods


81 202 160711/7/82-LC(AS)Dt.22.3.82

Disposalofelectricallyoperatedcalculators-officeuse

82 205 161711/18/82-LC(AS)Dt.28.7.82

ListofWildLifeitemsripefor disposal

83 206 161/162549/35/80-LCIDt.9.8.82

Watchmovement

84 208 162A711/31/81-LC(AS)Dt.20.8.82

VideoCassetteRecorder–toEducationalInstitutions

85 209 163711/10/82-LC(AS)Dt.15.9.82

Seized/confiscatedliquor–importquota

86 220 173/174711/15/84-LC(AS)Dt.22.3.84

SalesTaxonthesale

87 223 178711/39/84-LC(AS)Dt.28.5.84

D.P.Ostatement

88 225 179F.349/4/84-LC(AS)Dt.23.7.84

Notifications-copies-

89 228 182F.711/9/84-LC(AS)Dt.25.9.84

ReadymadeGarments

90 229 183F.393/137/84-Cus(AS)Dt.30.10.84

Notification–copies-

91 230 183F.711/72/84-LC(AS)Dt.26.12.84

Perishablegoods–sensitivetosmuggling-watches

92 232 184F.No.394/36/85-Cus-(AS)dated30.08.85

Disposal of Arms and AmmunitiontoNationalSecurityGuard

93 235 186F.715/12/85-CUS(AS)Dt.9.12.85

Typewriters&binocularsforDept.use

94 241 190F.393/1/86-CUS(AS)Dt.22.8.86

DisposalHMTwatches

95 244 192F.711/30/86-CUS(AS)Dt.30.1.86

Reviewofexistingarrangement of storage

96 251 202/203394/1/DPO(AS)89Dt.14.10.88

D.P.O.Proformaclarifications


97 252 209F.No.398/40/DPO(AS)89Dt.3.8.89

D.P.O.Proforma

98 257 223/224F.No.664/126/89-OPIUMDt.711/.11.89

DestructionofDrugwithinfixedtime

99 258 224F.No.A-CUS(AS)27020/65/89AD.IVDt.9.1.90

DepositofGoldwithMint-

100 - 234F.No.711/100/93-CUS(AS)dt3.8.93

DisposalofSilver

101 235F.No.711/100/93-CUS(AS)Dt.10.8.93

DisposalofSilver

102 237F.No.711/164/93-CUS(AS)Dt.26.11.93

DepositionofGoldwithMint

103 238F.No.711/130/93-CUS(AS)Dt.16.9.94

SilverthroughCustomsRetailshop

104 - 239 Disp/Misc/9dt.14.10.94 Discount for silver

105 - 240F.No.711/164/93-CUS(AS)Dt.17.11.94

GoldthroughCustomsRetailshop

106 - 269F.No.711/70/93-CUS(AS)dated19.05.96

DisposalofdisperseDyestoM/sNCCF

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Notes