Guidelines for handling and storage of valuable goods that are seized/ confiscated by the Department.

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,lf���TION F.No.394/97/2015-Cus (AS) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs (Anti-Smuggling Unit) ***** New Delhi, dated 1 51 December, 2015 To All Principal Chie£'ChiefCommissioners of Customs All Principal Chie£'ChiefCommissioners of Customs (Preventive) All Principal Chief/Chief Commissioners of Customs & Central Excise All Principal Chie£'ChiefCommissioners of Central Excise All Principal Chie£'Chief Commissioners of Central Excise and Service Tax All Principal Directors General/P,iiectors General All Principal Commissioners/Commissioners Web Master, CBEC. Madam/Sir, Subject: Guidelines for handling and storage of valuable goods that are seized/ confiscated by the Department- reg. 110 1962 of Customs Act, In terms of Section if the proper officer has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods that may include valuables such as gold. In the recent past, the smuggling of high va Jue goods, especially gold is on the rise, as evidenced by the increasing number of seizures made by Directorate General of Revenue Intelligence and the field formations. At the same time, there have been instances of loss/theft of gold and high value goods from the strong rooms/ seized goods godowns reported by the field formations. Though, there are detailed guidelines for handling and storage of seized/detained and confiscated goods, the recent cases of loss/theft of valuables raise a serious concern over the way these guidelines are implemented by the field formations. In order to prevent such loss/theft of valuables in future, the following guidelines are in continuation of the existing instructions/circulars in this regard for strict compliance by all field formations. The previous instructions/guidelines in this regard shall be deemed to be modified and revised to the extent specified in this instruction. issued re-inforcing/ re-iterating and 2. ii. Valuables: For the purpose of these guidelines, the valuables include: 1. diamonds, precious and semi-precious stones, pearls, gold/silver; articles including jewellery made of or containing these valuables mentioned at (i) above; high value watches; currency including foreign currency; and such other articles of small bulk and high value as Commissioner of Customs may by special or general order specify as valuables. iii. 1v. v. Page 1 of 13 3. Custodian 3.1. Only experienced officers whose integrity is absolutely beyond doubt, should be posted as incharge of the strong room/ valuable godown. Similar check from vigilance & integrity angle should also be ensured for the superior officer who is given the overall supervision of the strong room and custody of the second key. 3.2. Whenever the Custodian or his superior officer is transferred, a regular substitute should be provided, who shall take proper charge of the strong room/valuable god.own. The details of handing over/taking over shall be entered in a register for which the format is given in Annexure-1. 4. Storage Place/Strong Rooms: 4.1. Valuables should be kept in a strong room or in a locker in a nationalized bank, obtained exclusively for the purpose. The packages shall be stored systematically, serial-wise and year-wise to facilitate easy check and location. 4.2. When the valuables are stored in a strong room, following measures must be taken strictly: 1. The strong rooms storing valuables should have a double lock system, ii. The two keys for operating the strong room should be entrusted to two separate officers; one to the Custodian and the other to a superior/supervisory officer of gazetted rank; iii. It must be ensured that the strong room/valuables godown can be opened only when the two keys are used. iv. Both the Custodian and the Supervisory officer shall collect and deposit keys of strong room/ valuables godown in an iron box bound by thick thread (sutli) and sealed with lac seal over a paper slip bearing the names, designation and signatures of the Custodian and Supervisory officer. The name and designation should be clear and legible. Preferably, tamper proof paper seal/sticker may be used. v. The locks of the strong room/ valuables godown shall be sealed when not in use. The lock shall be covered with fabric tape and sealed by lac over paper slip bearing the names, designation and signatures of the Custodian and Supervisory officer. The name and designation should be clear and legible. Preferably, tamper proof paper seal/sticker may be used. 4.3. No person other than the Custodian shall enter the strong room/ valuables godown unless otherwise authorised by the Commissioner of Customs. No officer, including Custodian-in-charge of the strong room I godown, shall be allowed to open the strong room/ godown on any holiday (including Saturday/Sunday}, except with a prior written permission from the Additional /Joint Commissioner concerned. The reasons for opening on holidays shall be clearly recorded by the Additional /Joint Commissioner while giving such permission. 4.4. When the valuables are stored in locker/safe, the key of the safe or the locker shall be kept securely in the personal custody of the Custodian. It should also be ensured that the access to the safe or the locker shall not be allowed by the Bank Manager except on a written authorization in an agreed form bearing the running number, signed by the Deputy/Assistant Commissioner in charge of the disposal Section of the Commissionerate. Such authorization should be issued normally in the name of the Custodian or in exceptional circumstances when the Custodian is not available, in the name of any other responsible officer. The serially Page 2 of 13 the details required with regards to the contents of the packages. The Custodian shall not accept the packages if the package is improperly sealed or the seal is not intact or if the package does not contain the details as mentioned in para 6.1 above. 7.2 If the condition of the packages, seals and the Inventory are found to be in order, the Custodian shall receive the goods and make entries thereof in the Stock Register (Valuables Register) for which prescribed format has been given in Annexure - IV. He shall then acknowledge the receipt of the sealed packages by way of making cross references of entries in the duplicate and triplicate copies of inventories and thereafter retain the triplicate copy with him and return the duplicate copy to the seizing I detaining officer for keeping the same in the seizure case file. Digital photograph I videograph of the packages shall also be taken and preserved in the computer of the Custodian so that in the event of any tampering, it can be cross verified with the original packing. Back up copies of such photograph, videograph shall be kept at the systems unit. 8. Safe custody of valuables: 8.1. The responsibility of proper storage and custody of these goods shall be on Custodian. The Custodian shall be responsible for the physical custody of the packages with seals intact. He shall, however, not be responsible for the contents of the packagels if the same was received properly sealed with the seals intact thereon. The Custodian shall also ensure that the packages are carefully stored and protected against the ravages of weather, ants, rodents, insects etc. 8.2. The Custodian should take adequate precautions against theft and pilferage and keep watch on the condition of the goods and immediately report each such case to the Commissioner. Any incident of the theft/loss/substitution of the goods, which comes to light should not only be immediately examined personally by the concerned Commissioner, but it should also be, with the exception for petty cases, immediately reported to the Principal Accounts Officer and the Statutory Audit Officer etc. as laid down under Rulel6 of General Financial Rules. Board should also be kept infonned of all such cases, on immediate basis, with a report of action initiated. 8.3. If the package show signs of tampering or damage, the Custodian should immediately bring it to the notice of the Deputy/Assistant Commissioner, in charge of Disposal Section, for appropriate action. Where the goods are involved in court proceedings, it will be necessary to bring the matter to the notice of the court and for getting necessary order from the court for the further course of action. All packages pending for more than five years should compulsorily be inspected for deterioration of packages/ seals and the same may be brought to the knowledge of the Deputy/Assistant Commissioner Disposal for appropriate action. The Custodian shall be responsible for maintaining the Stock Registers in the proper 8.4. manner; proper custody of Registers for handing over; and Taking over charge and Inventories and for submitting the monthly return of goods ripe for disposal. 9. Movement of Valuables: 9. l. In case of seized/ confiscated valuables to be taken out for producing before court or for any other purposes as the situation may warrant, written order must be issued by Deputy I Assistant Commissioner in charge of strong room/ valuables godown. Such order shall specify, among other things, the following: the name of officer/Custodian who shall carry the valuables out of the strong room/valuables godown, the purpose for which the goods are Page 4of 13 ,;;--' Superintendent in charge of strong room/valuables godown shall obtain a certificate from the bank regarding such deposit specifying denominations of currency and the exchange rate prevailing on the date of deposit. 12.3. At the time of disposal, valuables shall be taken up for disposal by the Inventorisation Committee so authorised by the Additional/Joint Commissioner. All The proceedings of opening and inventorisation shall be done under videography and the soft copy shall be kept in the safe custody of Superintendent in charge of strong room I valuables godown. In this regard, a register for Disposal of valuable by the Department shall also be maintained as given in Annexure -VI. 12.4. The officers are advised to keep themselves abreast with the legal provisions on the basis of which different procedures have evolved. In case of necessity for further clarity, cross referencing to necessary provisions of the Customs Act, 1962 and notifications issued thereunder may kindly be made. Further, wherever required, requisite pennission from competent authorities may also be obtained. 12.5. When situation warrants discretion on part of the officers, it should be exercised in the context of existing laws. 12.6. All Principal Chief/ Chief Commissioners of Customs, Customs (P), Central Excise & Service Tax should pay personal attention to ensure that the guidelines/safeguards prescribed for custody, accounting, disposal of seized/confiscated goods including valuables, are enforced scrupulously in their jurisdiction, so as to avoid any instances of loss, pilferage, damage, theft, misappropriation or missing/substitution of the goods. 13. in implementation of the aforesaid guidelines may be brought to the notice of the Board. These guidelines shall be widely circulated to all field formations. Difficulties, if any, our fait�, � \ y_ 6 '< V� \7 (M.G. Thamizh Valavan) Director (AS) .,,,.,-- 14. This letter may kindly be acknowledged. This issues with the approval of the Hoard. Encl: As above Page 6 of 13 -· ANNEXURE-Il Inventory of goods detained/seized l . Owner of the goods/ Passenger: a. Name: .................................................................................... .. b. Father's/Spouse's Name: .............................................................. . c. Occupation: .............................................................................. . d. Address: i. Door Number: .................................................................. . ii. Building/Premise: .............................................................. . iii. Street: ............................................................................ . 1v. Locality: ......................................................................... . v. City/District: .................................................................... . vi. Pin Code: ........................................................................ . vii. Proof Address: Passport Number/O ther: .................................... . 2. Seizing/Detaining Officer: a. Name: .................................................................................... .. b. Designation: ............................................................................. . 3. Place of seizure/detention: 1. Door Number: .................................................................. . ii. Building/Premise: .............................................................. . iii. Street: ............................................................................ . 1v. Locality: ......................................................................... . v. City/District: .................................................................... . vi. Pin Code: ................................. ,. .................................... .. vii. Proof Address: Passport Number/Other: 4. Date of Seizure (DD/MM/YYYY): 5. Seizing Unit: 6. Case file No.: 7. Witnesses (i) Witness -1 a. Name: ..................................................................................... . b. Father's/Spouse's Name: .............................................................. . c. Occupation: .............................................................................. . d. Address: 1. Door Number: .................................................................. . ii. Building/Premise: .............................................................. . iii. Street: ............................................................................ . iv. Locality: ......................................................................... . v. City/District: .................................................................... . vi. Pin Code: ........................................................................ . Contd ... . ANNEXURE-11 (contd .... ) Page 8 of 13 . Format of the Tamper proof paper label (To be affixed on the container in which seized valuables are kept and sealed) Annexure- Ill \. Case File Number: 2. Date and Place of Seizure: 3 Panchnama date: 4. Contents: 5. Name and Signature of the Owner of the goods with date: 6. Name, Designation and Signature of the Seizing Officer with date: 7. Name and Signature of the Witness -1 with date 8. Name and Signature ofWitness-2 with date Page 10 of 13 Format for Register for Disposal of Valuables by the Department Annexure -VI i--Date fixe !lnventorisa dispos d for tion for al 1 Details of disposal orders Date of Reopening for the purpose of valuable of Jewellery/ Gold/ 3 valuable etc. sale Date of A.mount of disposal proceeds and place Remarks, if any 5 2 4 6 Page 13 of 13

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