TMI BlogGuidelines for the valuation and disposal by auction-cum-tender of seized, confiscated and time - expired goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... 2/2004-Cus IV dt. 27.06.2005 to suggest effective measures to put in place a permanent mechanism for the expeditious disposal of unclaimed, uncleared, seized and confiscated cargo. 2. The Board has considered the findings/recommendations of the Task Force. The Task Force has identified the unrealistic fixation of fair/reserve price as the single most important reason for the delay in the disposal of uncleared, unclaimed, seized and confiscated goods, including time - expired warehoused goods. Therefore, the procedure set out in the following paragraphs is prescribed for the valuation and disposal by auction- cum- tender of seized, confiscated and time-expired warehoused goods. 3.1 The disposal by sale of seized, confiscated and time - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the buyer at the auction-cum-tender can reasonably expect to make on resale, the increase being the incentive to the prospective buyer at the auction. Therefore, if an item can fetch ₹ 100 in the wholesale market, and the margin of profit is ₹ 20, then the discount may be fixed at 25% to 30%, and the fair price would be ₹ 75 or ₹ 70. While fixing the quantum of discount representing the margin of profit for the buyer at the auction, due importance should be given to the condition of the goods, the type of packing, the fact that no warranty and after-sale service is attached to the goods, the size of the consignment etc. 3.7 The book value of the goods shall have no bearing on the Fair Price. The CIF value and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -cum-tender on flimsy grounds, such as the possibility that the goods may fetch a slightly higher price in a subsequent auction. 3.12 All post-auction/tender offers, even if these are for amounts higher than the successful bid, shall be strictly disregarded and not taken cognizance of in any manner. 3.13 In respect of complaints regarding determination of Fair Price and acceptance of bids in auction-cum-tender, the Commissioner shall immediately ascertain whether the prescribed procedure has been adhered to. The matter should not be referred for Vigilance scrutiny in a routine manner if the prescribed procedure has been followed. 3.14 All Custom Houses shall immediately introduce e-auction, and physical auction shall be discontinue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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