TIOL-DDT 2736
02 12 2015
Wednesday

CBEC observes that in the recent past, the smuggling of high value goods, especially gold is on the rise, as evidenced by the increasing number of seizures made by Directorate General of Revenue Intelligence and the field formations. At the same time, there have been instances of loss/theft of gold and high value goods from the strong rooms/ seized goods godowns reported by the field formations. Though, there are detailed guidelines for handling and storage of seized/detained and confiscated goods, the recent cases of loss/theft of valuables raise a serious concern over the way these guidelines are implemented by the field formations. In order to prevent such loss/theft of valuables in future, CBEC has issued fresh guidelines for strict compliance by all field formations.

Custodian

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.

Whenever the Custodian or his superior officer is transferred, a regular substitute should be provided, who shall take proper charge of the strong room/valuable godown.

(Obviously the added qualifications of experience & whose integrity is absolutely beyond doubt would also be required for the ‘regular substitute' - no temporary substitute here!)

Storage Place/Strong Rooms:

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.

The strong rooms storing valuables should have a double lock system, The two keys for operating the strong room should be entrusted to two separate officers; one to the Custodian and the other to a superior/supervisory officer of gazetted rank; It must be ensured that the strong room/valuables godown can be opened only when the two keys are used. Both the Custodian and the Supervisory officer shall collect and deposit keys of strong room/ valuables godown in an iron box bound by thick thread (sutli) and sealed with lac seal over a paper slip bearing the names, designation and signatures of the Custodian and Supervisory officer.

No person other than the Custodian shall enter the strong room/ valuables godown unless otherwise authorised by the Commissioner of Customs. No officer, including Custodian-in-charge of the strong room / godown, shall be allowed to open the strong room/ godown on any holiday (including Saturday/Sunday), except with a prior written permission from the Additional /Joint Commissioner concerned. The reasons for opening on holidays shall be clearly recorded by the Additional /Joint Commissioner while giving such permission.

The strong room/valuables godown shall have additional security features like CCTV Camera at the most vantage point(s) to keep round the clock surveillance.

Inventory:

Whenever any valuables have been seized or detained by a proper officer under the Customs Act, he shall prepare an inventory of such goods. Such detailed inventory of these goods shall be prepared by the seizing officer at the time of detention/seizure. During making of such inventory, the packages of the valuable goods shall be clearly numbered.

Packaging and sealing:

The valuables that are seized /detained shall be packed in non-deteriorating containers like high density plastic or metal boxes. These containers shall be sealed with wire/metal seals instead of rope/wax seals.

Safe custody of valuables:

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.

Movement of Valuables:

In case of seized/ confiscated valuables to be taken out for producing before court or for any other purposes as the situation may warrant, written order must be issued by Deputy / Assistant Commissioner in charge of strong room/ valuables godown.

Inspection:

Quarterly inspection of such seized/ confiscated valuables stored in the strong room/ safe shall be carried out and stock of all packages and condition of each package lying there should be done by the committee headed by Deputy /Assistant Commissioner in charge of valuable godown and proceedings of such inspection shall be drawn and kept in the file maintained by Deputy / Assistant Commissioner in-charge of strong room/ valuables godown.

Clear Instructions:

And finally Board gives clear instructions as:

1. The officers are advised to keep themselves abreast with the legal provisions on the basis of which different procedures have evolved.

2. 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.

3. Further, wherever required, requisite permission from competent authorities may also be obtained.

4. When situation warrants discretion on part of the officers, it should be exercised in the context of existing laws.

It is only Government that can give such instructions!

Board wants all Principal Chief/ Chief Commissioners of Customs, Customs (P), Central Excise & Service Tax to 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.

Does it require theft of gold worth several crores for the Board to realize that they should have a double locking system for the warehouse?

Is the fence eating the grass?

Please also see -

16 kgs of Gold stolen from Customs office [DDT  2580]

Theft of Gold from Customs Office - Two Officers Suspended [DDT 2583]

Theft of Gold from Trichy Customs, CBI searches on - FC also missing [DDT 2593]

Gold Missing from Delhi Customs too? [DDT 2629]

CBEC Instruction in F.No.394/97/2015-Cus (AS)., Dated December 01, 2015

Export Products to SEZ - Payment by Foreign Currency Account

1. SOME exporters supplied export products to some SEZ Units under Advance Authorisation.

2. SEZ units made payments to these exporters from the account other than Foreign Currency Account as required under Rule 30(8) of SEZ Rules.

3. Requests for closure/redemption of the Advance Authorisation holders were held up due to the reason that payments received by the Authorisation holders are not from Foreign Currency Account(FCA) of SEZ Units.

The Government has received a number of representations from exporters to solve the above problem.

The issue was discussed at a High Level Meeting of senior officers and the decision of the meeting is:

As per Rule 30(8) of SEZ Rules, the units are required to make payments from their FCA, in cases of supplies received by them towards fulfilment of export obligation against the Advance Authorisation of the DTA supplier .

The DGFT has advised the SEZ Division of Department of Commerce that all Development Commissioners may be directed to advise concerned SEZ Units to make payment from their FCA to the suppliers in respect of such cases failing which they would-be liable for action under FT(DR) Act, 1992.

DDT understands that DGFT has already initiated action against some exporters who have received payment in Indian Rupees against supplies made to SEZ Units.

What if there is no Foreign Currency Account?: An assessee brings to our notice another issue. In terms of Rule 30 (8) of the SEZ Rules, Drawback is admissible provided payments for the supply are made from the Foreign Currency Account of the Unit. As per RBI Regulations, Foreign Currency Account cannot be opened unless there is Foreign Exchange Remittance for the Unit. An SEZ Unit in the project stage would purchase construction materials required for setting up the project from DTA. To enable availment of Drawback, such Units buy Foreign Exchange from the Banks on Free Sale Basis after undergoing the " financial rigour" of such purchases. Foreign Exchange so purchased, is paid to the DTA supplier and the BRC is obtained accordingly.

Now if it is insisted that the payment is made from the Foreign Currency Account of the SEZ Unit, this would be an impossible situation - even though payment is made in foreign currency.

DGFT Office Memorandum in F.No.01/94/180/80/AM14/PCA/294., Dated: July 15, 2015

High-tech amphibious inspection vehicle of Dubai Customs

DUBAI Customs has launched an amphibious car for detecting illicit and hazardous substances in Dubai Creek and surrounding areas. The vehicle, which functions as a mobile lab, is equipped with high-end solar-powered technologies and can detect prohibited substances from up to a distance of 300 metres. The objective of the project is to aid Customs inspectors in the execution of their duties and responsibilities as well as putting an end to illegal goods entering the United Arab Emirates (UAE).

The amphibious car will monitor ships and vehicles and remotely detect substances considered to be a threat to the region. The equipment on board the mobile lab is capable of scanning the perimeter, body and internal parts of a sea vessel. More than 10 high-tech inspection devices are part of this unique and innovative project, which is the first of its kind in the world. The lab equipment can analyse and give speedy results for over 60,000 chemical substances.

It is the first amphibious laboratory in the world that can detect illegal and hazardous substances, such as drugs and radioactive materials, smuggled in steamboats and wooden dhows. It is equipped with advanced cameras that can send live videos and images to the main control room.

Its solar-powered operation makes it eco-friendly, the remote inspections add to the efficiency of the inspection process, and the mobility reduces the need for fixed inspection centres.

WCO reported that the project reflects Dubai Customs' eagerness to adapt modern technologies and improve the Department's efficiency.

Government Means Business

RECENTLY the PMO invited some clerks and Private Secretaries for an interactive session in the PMO for assessing their suitability for posting in the PMO. Some of these babus simply did not turn up - see the respect they have for the Prime Minister's Office.PMO has not taken lightly to this impudence. It has asked the Ministry concerned to seek explanation from them as to why they did not appear for the interaction. They can all produce certificates that they had stomach-ache or backache or some other ache which cannot be disproved. The babus are having too much of a good time and it is time they learn a little accountability and responsibility.

In another case this week, an IPS officer was appointed as CVO in Hindustan Petroleum Corporation Ltd. (HPCL). As she did not take charge of the post, her appointment is cancelled.

This officer is debarred from consideration for central deputation for a period of five years w.e.f. 04.02.2015.

In addition to the debarment from central deputation, she is also debarred from being considered for any foreign training and also from being given cadre clearance for being deputed on foreign assignments/consultancies abroad during the period of debarment.

Selection to a post involves an elaborate process and if the selected officers do not join, it causes immense damage to the system.

CJI Retires -Eligible for NHRC - Leaves it to God.

CHIEF Justice of India HL Dattu retires today. It is fine with him whether he gets appointed as Chairperson of the National Human Rights Commission(NHRC) or not. This is a post reserved for former Chief Justices of the Supreme Court. Former? Can't the present CJI be appointed or can he be appointed a day after his retirement.

As per the Act, the Commission shall consist of:

a) a Chairperson who has been a Chief Justice of the Supreme Court;

(b) one Member who is or has been, a Judge of the Supreme Court;

(c) one Member who is, or has been, the Chief Justice of a High Court;

Please observe the highlighted words. It can be inferred that:

1. The Chairperson has to be a person who has been a Chief Justice of the Supreme Court; that is the present Chief Justice is not eligible. That means only former Chief Justices are eligible. Does this mean that a Chief Justice who retired yesterday can be appointed as Chairperson today, but not yesterday, for yesterday he was the CJI and not has been the CJI.

2.   However, this restriction is not applicable to Members. A Member can be a person who is, or has been the Judge of the Supreme Court or the Chief Justice of a High Court. So, both serving and retired judges are eligible.

So, Justice Dattu will become eligible only tomorrow.

Justice TS Thakur takes over as CJI today. Justice Thakur was appointed a Judge of the Karnataka High Court in 1994, when Justice Dattu practiced in the same High Court and appeared before Justice Thakur. Justice Dattu joined as a judge junior to Justice Thakur in the Karnataka High Court in 1995.

Justice Dattu became the Chief Justice of a High Court in 2007, while Justice Thakur became the Chief Justice of a High Court in 2008.

Justice Dattu was elevated to the Supreme Court on 17.12.2008 and Justice Thakur on 17.11.2009. Thus Justice Dattu who had appeared before Justice Thakur became his senior in the Supreme Court and went on to become the Chief Justice of India.

Complexities of appointing judges!

Age was on the side of Justice Thakur and he also has now become the Chief Justice of India.

Judges need to go on holidays: The outgoing CJI said, "There is pressure on my judges so they need to go on holidays... they do a lot of work during holidays. I have never been to places like CP and Khan market during my tenure in SC but, of course, I have taken my wife to Medanta and Apollo. Judges have to sacrifice and I too have sacrificed a lot."

12th year of DDT - Thanks for Greetings

DDT humbly thanks all the kind and enlightened Netizens who greeted us on DDT entering the 12th year.

It is fabled that when the ancient demi-god, was making a causeway across the sea, to rescue his consort from captivity, the faithful squirrel brought at the end of its tail, a few grains of sand, not indeed, hoping to advance the high enterprise in any appreciable degree, but to show an inclination to serve.

DDT hopes to serve as the squirrel in this bridge building enterprise.

Until Tomorrow with more DDT

Have a nice day.

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