Directorate General of Valuation Central Board of Excise & Customs Government of India

F.No. 605/3/2005-DBK

CIRCULAR NO 33/2005-CUSTOMS,Dated : August 2, 2005

F.No. 605/3/2005-DBK

Sub:- 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.

  1. 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.
  2. 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.
  3. 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.

(M.Subramanyam) Deputy Secretary (DBK)

Tuesday, August 2, 2005