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Guidelines for the sale of seized/confiscated gold - Customs - Instruction No.-27/2021

Extract

..... nd related procedures for such sale. 2. With the approval of competent authority, it has now been decided that henceforth seized/confiscated gold will be sold (other than gold ornaments/jewellery/articles) to Reserve Bank of India (RBI) only. In this regard, Board has consulted RBI and Security Printing and Minting Corporation of India Limited (SPMCIL) and also signed a tripartite Memorandum of Understanding (MOU) with them. The MOU, inter alia, provides for roles and obligations of CBIC, RBI and SPMCIL regarding collection, transportation and standardization of seized/confiscated gold, delivery of standard gold bars and payment thereon. The text of MOU is given at Annexure-I. 3. Accordingly, the following guidelines are issued for disposal of seized/confiscated gold (other than gold ornaments/jewellery/articles). 3.1. Henceforth, the seized/confiscated gold (other than gold ornaments/jewellery/articles) shall be sold to RBI only. Any mention of gold in subsequent paragraphs shall refer to gold other than gold ornaments/jewellery/articles. For this purpose, SPMCIL has been engaged for collection, transportation, conversion into standard gold bars and delivery to RBI. The SPMCIL has .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... CCTV camera. It shall carry out pre-melting, and sampling process which will also be recorded in CCTV camera. Upon completion of preliminary XRF analysis, SPMCIL will issue copies of XRF Assay Readings along with the weight slip to the nominated officer of the focal Customs Commissionerate. Based on the copy of the XRF Assay Readings along with the weight slip, issued by SPMCIL, the Deputy/Assistant Commissioner of the focal customs Commissionerate shall prepare a Preliminary Weight Note (PW Note) in the form given at Annexure- V in triplicate. The original copy, shall be sent to the respective field Commissionerate from where the gold was collected; the duplicate copy shall be forwarded to the DoL. Triplicate copy enclosing a copy of XRF Assay Readings along with the weight slip shall be retained by the focal Customs Commissionerate. 3.6. The gold collected from the Customs Commissionerates will be converted into standard gold bars (around 11-13 kg) at IG Mints. SPMCIL will communicate the quantity of gold converted into standard gold bars and the number of such standard gold bars to the nominated officer of the focal Customs Commissionerate through Out Turn Certificate. Based on .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... ates within one month of such collection. The Principal Commissioner, DoL shall monitor this time limit. DoL shall also make the payment to SPMCIL upon receipt of the invoice from SPMCIL and delivery cum acknowledgement memo from RBI. 3.11. The Customs Commissionerates can treat the Seized/confiscated gold as disposed only when the following processes are completed, namely, - i. Receipt of PW Note from focal Customs Commissionerate; and ii. Necessary entries in their stock register (refer to Para 3.4.1 & Form 5 of Chapter 3 of Disposal Manual, 2019) are made accordingly. 4. These guidelines shall come into force from the date of issue. All the formations and officers concerned may be suitably sensitised about the above guidelines. 5. All the field formations shall also ensure that the seized/confiscated gold is disposed of, in the manner prescribed above, within three months of seizure. 6. Any difficulty that may arise during the course of implementation of these guidelines shall be brought to the notice of Board immediately for making suitable amendments. 7. This Instruction supersedes Board Ministry’s letter F. No. 711/164/93-Cus (AS) dated 08.08.2005 and Board’s .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... s “Party” and collectively as the “Parties”. WHEREAS: A. The CBIC deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods & Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central Goods & Services Tax, IGST and Narcotics to the extent under CBIC's purview; The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates and the Central Revenues Control Laboratory; B. The RBI is a statutory corporation, established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934 to, inter alia, regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy; to maintain price stability while keeping in mind the objective of growth; C. The SPMCIL is a Miniratna Category-I comp .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... o RBI. 1.3. The RBI, agrees that: i. it shall accept the gold from SPMCIL so confiscated by field formation of CBIC including DRI if that conforms to the LBMA specifications / standards as specified/determined by RBI with due certification for the same from SPMCIL; ii. upon taking delivery of the gold in the presence of SPMCIL authorized representative, RBI shall verify whether the gold proposed to be sold is in conformity with the LBMA specifications as also according to the details given by SPMCIL and thereupon it shall pay the price of gold so purchased as per Article 3.1 (17) of this MoU by crediting the amount to the account of CBIC; iii. in case if the gold is not in conformity with LBMA specifications, such gold will be returned to SPMCIL; iv. RBI will be able to take delivery of the gold only at Issue Department, RBI, Fort, Mumbai; and v. The frequency of such transfer of gold shall normally be once every quarter of a year. 1.4. SPMCIL agrees that it shall undertake the following activities, namely, - i. collection of such seized/confiscated gold from the warehouses of the field formations of CBIC; ii. transportation of the gold so collected to its mints located at Mumbai, .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... s per 1,000 fine gold; (7) “transporter” means the transporter engaged by SPMCIL; (8) “XRF analysis” means X-Ray Fluorescence Spectroscopy. This is non-destructive analytical method used to determine the chemical composition (percentage of gold) of the material; (9) “Fire Assay” means the destructive analytical testing method to ascertain the content of gold and other elements in the material. 2.2. The terms not defined in this MoU but defined in the respective laws of the parties shall have the same meaning for the purposes of this MoU. ARTICLE 3 OBLIGATIONS OF THE PARTIES 3.1 The parties agree to fulfill the following obligations, as applicable to each party: (1) The gold shall be collected by the SPMCIL on receiving written communication from CBIC Field Formations; (2) Adequate precautions shall be taken by the CBIC field formations and SPMCIL during collection of seized/confiscated gold from the field formations; (3) SPMCIL shall be responsible for safe and secure transportation of the gold from the field formations to its refining centres at IG Mint Mumbai/Kolkata/Hyderabad; (4) SPMCIL, after taking delivery of the gold from the warehouses o .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... the SPMCIL shall bear the weight, fineness, Mark and Serial Number. (14) The gold collected from the warehouses of the field formations of CBIC shall be converted into standard bars at IG Mints (Mumbai/Kolkata/Hyderabad) and the quantity in terms of standard bars will be conveyed to the officer nominated by CBIC. (15) The SPMCIL shall also communicate the quantity of gold in terms of standard bars, serial number, gross weight, fineness and fine weight of the consignment along with the details of authorized representative/s accompanying the gold and the details of the vehicle to the designated officer of the RBI. (16) The SPMCIL shall then deliver the standard gold bars to the RBI at Issue Department, RBI, Fort, Mumbai preferably within one month of collection, which may be further extended on the basis of mutual agreement between the parties; (17) The price of the fine gold to be purchased by RBI shall be determined based on the average LBMA rate of gold for the preceding 30 days from the date of receipt of gold by the RBI at Mumbai and the same shall be converted into INR (rounded off to the nearest INR) using the Financial Benchmarks India Private Limited (FBIL) USD: Rupee excha .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... ll make their best efforts to settle promptly such disputes through direct negotiation within sixty (60) days from the date either Party has notified the other Party. 5.2 In case disputes between CBIC and SPMCIL are not mutually settled between the disputing parties within the stipulated period of time, the aggrieved party/parties shall have a right to take recourse of Administrative Mechanism for Resolution of Disputes (AMRD) for resolution of disputes as per the procedure laid down and provisions mentioned in OM No. 334774/DoLA/AMRD/2019 dated 31.03.2020 issued by Department of Legal Affairs, Ministry of Law & Justice, Government of India. 5.3 Disputes involving RBI will be resolved through consultations. ARTICLE 6 MISCELLANEOUS 6.1. This MoU shall be effective from the……………. and shall remain valid for the period of five (5) years 6.2 This MoU along with annexure attached to it fully integrates the understanding between the parties. 6.3. This MoU may be amended, in writing, by the Parties at any point of time by mutually agreed terms and the amendments made, if any, upon consideration shall for part of this MoU. Annexure-II (to Board’s .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... /Assistant Commissioner of Customs Annexure-IV (to Board’s Instruction No27/21-Customs dated 03.12.2021) Note on Handing over Seized/Confiscated Gold (HOGS Note) Reference: Intimation Vide F. No………….. dated………. ORIGINAL/DUPLICATE/TRIPLICATE/QUADRAPLICATE 1. Serial Number of HOGS Note (packet wise) : ####/YYYY 2. Reference No. of the seizure 3. Name of the Customs Commissionerate 4. Date : 5. Details of Seized/Confiscated gold handed over S.No. Description Number of Pieces Quantity (in grams upto three decimal places) Remarks, if any, about purity and certifying person 1. Gold in Bullion 2. Gold in other forms Total Quantity Handed over by Received by Signature: (Name of the Customs officer) Superintendent of Customs (Warehouse and Disposal) Signature: (Name of the Representative of SPMCIL) Designation Signature: Name of the Witness-1: Address Signature: Name of the Witness-2 Address Acknowledgement The Receipt of the above HOGS Note by the Directorate of Logistics/Focal Customs Commissionerate is acknowledged and the details were entered vide No. XXXX/ YYYY dated DD/MM/YYYY in the Gold Disposal Account Ledger/ Register for Foca .....

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Guidelines for the sale of seized/confiscated gold - Customs

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..... ellip;……..Customs Commissionerate. Signature: Date: Superintendent, Directorate of Logistics/ ……….Customs Commissionerate Annexure-VII (to Board’s Instruction No27/21-Customs dated 03.12.2021) Register for Focal Commissionerate for entering details of Receipt of HOGS Note, issuance of PW and FW Notes S.NO Document (HOGS Note/PW Note/FW Note) Document Number Document date From/To (Name of the Commissionerate /DoL) Date of Receipt/ Issue Remarks Annexure-VIII (to Board’s Instruction No27/21-Customs dated 03.12.2021) Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs (CBIC) Office of the Principal Commissioner/Commissioner of Customs …………………… …………………… …………………… …………………… F.No. …………………………… dated…………………. To The General Manager, Reserve Bank of India …&hellip .....

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