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Customs
Circular No- 33/2005 dated 02.8.2005
Seizure
of goods entered for exportation on account of misdeclaration of quantity, value
etc. - provisional release instructions - reg.
The undersigned is directed to invite your
attention to the above mentioned subject and to state that an issue has been
raised as to whether goods entered foe exportation, which are seized for mis-declaration
of quantity, value etc, can be released provisionally pending investigation,
adjudication and appeal proceedings.
2. It has come to the notice of the Board that sometimes goods entered for
exportation are detained or seized by the field formations for mis-declaration
of quantity, value, etc. Such goods are not allowed to be exported even on a
provisional basis pending completion of investigation, adjudication or appeal
proceeding. However, these proceeding usually take a considerable time to
conclude; in the meanwhile, the goods deteriorate and loss their intrinsic
value. Consequently, issues like payment of demurrage charges to the custodians
and export benefits to the exporters arise. Detention or seizure of goods also
adds to congestion in ports, ICDs, etc. It has been observed that such a course
of action benefits neither the department nor the exporter. On the contrary, if
the consignment are allowed to be exported on a provisional basis, pending
completion of investigation and adjudication proceeding, the country would earn
valuable foreign exchange and the exporter would get the appropriate price for
goods.
3. The matter has been examined by the Board. Having regard to the problems
associated with the seizure of export goods, it has been decided the except for
prohibited/contraband goods, the seized goods should be released provisionally
and allowed to be exported to be exported on execution of a bond for an amount
equivalent to the value of seized goods and probable fine and penalty which
might be imposed. However, no export benefits shall be allowed in such cases
until the matter is finally decided, and and the bond to be executed for
provisional release shall contain a clause to this effect.
4. A suitable Order may be issued for the guidance of the staff. Difficulties
faced, if any, in implementation of the Circular may be brought to the notice of
the Board at an early date.
Receipt of the Circular may kindly be acknowledged.
F.No. 605/3/2005-DBK
Sd/-
(M. Subramanyam)
Deputy Secretary (DBK)