Subject: Unclaimed/uncleared cargo-guidelines for disposal and sharing of revenue between Port Authorities & Customs

            It is directed to refer to Board’s Circular No. 50/97-Cus. Dated 17.10.97 on above mentioned subject. In the said Circular, guidelines fror disposal of unclaimed/uncleared cargo and sharing of sale proceeds on the basis of 50:50 between the custodian and Customs were issued as a one-time measure in respect of cargo landed prior to 31.12.96. In the light of severe congestion at ports, the issue was examined again by the Export Promotion Board in its meetings held on 20.3.99 and 24.9.99, and it was decided that all goods received before 31^st December 1998 and lying uncleared would be disposed of through auctions. The sale proceeds would be shared on 50:50 basis between the port authorities and Customs and no charge, would be levied on the shipping companies.

2.        In view of the above, the matter has been examined again by the Board, and it has been decided that guidelines issued for disposal of unclaimed/uncleared cargo landed prior to 31.12.96 vide Circular No. 50/97-Cus. dated 17.10.97 would also be followed in respect of goods landed during 1.1.97 to 31.12.98.

3.        It is reiterated that instructions are being issued as an interim administrative arrangement to ensure disposal of unclaimed/uncleared cargo to reduce the congestion at Ports. As the requirement under section 150(2) of the Customs Act, 1962 is mandatory, the sharing of proceeds on the ratio of 50:50 is being adopted on a rough and ready basis, but in the final accounting of all auctioned goods requirement under the low needs to be adhered to. Our therefore require the concerned Custodians to submit consignment wise accounts after the goods have been disposed of, so as to ensure that full duty as applicable under section 150(2) is received from the disposal value.

4.        Please acknowledge receipt of this Circular. Difficulties, if any, may kindly be brought to the notice of the Board at an early date.