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DISPOSAL MANUAL - 2019
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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
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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
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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
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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
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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
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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.
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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;
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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;
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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)
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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
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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.
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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.
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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
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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’.
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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
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22 DISPOSAL MANUAL - 2019
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
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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
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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.
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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.
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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
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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.
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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.
***
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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:…………………………………………………………………………………
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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:………………………………………….........................................................
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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.
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32 DISPOSAL MANUAL - 2019
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).
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33DISPOSAL MANUAL - 2019
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.
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34 DISPOSAL MANUAL - 2019
Form-4 (ReferPara3.4.1)
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
***
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35DISPOSAL MANUAL - 2019
Form-5 (ReferPara3.4.1)
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
***
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36 DISPOSAL MANUAL - 2019
Form-6 (ReferPara3.5.2)
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
***
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37DISPOSAL MANUAL - 2019
Form-7 (ReferPara3.6.13)
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
***
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38 DISPOSAL MANUAL - 2019
Form-8 (ReferPara3.7.1)
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)
***
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39DISPOSAL MANUAL - 2019
Form-9 (ReferPara3.10.1)
Format of the Tamper proof paper label (TobeaffixedonthecontainerinwhichseizedValuablesarekeptandsealed)
CaseFileNumber:
DateandPlaceofSeizure:
PanchnamaDate:
Contents:
NameandSignatureoftheOwnerofthegoods,withdate:
Name,DesignationandSignatureoftheSeizingOfficer,withdate:
NameandSignatureoftheWitness–1,withdate:
NameandSignatureofWitness–2,withdate:
***
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40 DISPOSAL MANUAL - 2019
Form-10 (ReferPara3.13.3)
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
***
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41DISPOSAL MANUAL - 2019
Form-11 (ReferPara3.17.3)
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
***
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42 DISPOSAL MANUAL - 2019
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
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43DISPOSAL MANUAL - 2019
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
-
44 DISPOSAL MANUAL - 2019
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.
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45DISPOSAL MANUAL - 2019
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
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46 DISPOSAL MANUAL - 2019
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
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47DISPOSAL MANUAL - 2019
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.
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48 DISPOSAL MANUAL - 2019
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.
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49DISPOSAL MANUAL - 2019
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
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50 DISPOSAL MANUAL - 2019
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.
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51DISPOSAL MANUAL - 2019
Form-12 (ReferPara5.1.1)
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.//
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52 DISPOSAL MANUAL - 2019
Form-13 (ReferPara5.3.1)
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
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53DISPOSAL MANUAL - 2019
Form-14 (ReferPara5.3.2)
Time-Expired Bond Register
S. No.
TEBNo./
Date of Receipt
BondReference
No.
Importer’s Name&Address
Description of