Confiscation

  • Where the importer does not have title over the goods or the custodian does not lodge a claim, goods are to be absolutely confiscated. Option to pay fine in lieu of confiscation not available. [Section 125]
  • Prohibited goods may be given option for home consumption only on condition of compliance of the law before clearance. Otherwise option may be given for re-export.  [Section 47]
  • Where required licence to import is not produced or non fulfilment of provisions of allied acts when the goods are imported into India -- such goods are 'prohibited goods'. [Section 2(33)]
  • Confiscation

    ü  Option to pay fine in lieu of confiscation not available where the importer does not have title over the goods or the custodian does not lodge a claim. Such goods are to be absolutely confiscated.  [Section 125]

    ü  Prohibited goods may be given option to pay fine in lieu of confiscation. However, payment of fine will not alter the prohibited nature of the goods and hence cannot be cleared for home consumption.

    ü  Where required licence to import is not produced or non fulfilment of provisions of allied acts at the time of importation of the goods into India -- such goods are 'prohibited goods'. [Section 2(33)]

    ü  Confiscation of goods does not arise where option is offered to the party to pay fine in lieu of confiscation.

    ü  Commission or omission to follow the provisions of the law may be permitted to be made good by the party only where the adjudication officer gives the option to pay fine in lieu of confiscation.

    ü  O-i-O should state "in the event of fine in lieu of confiscation is paid within the time allowed; any request for re-export may be acceded to by the proper offer or any request for clearance for home consumption be acceded to only on being satisfied by the proper officer that the provisions of the law contravened are since complied with."

    ü  Time allowed to pay the fine should be clearly spelt out in the O-i-O.

    ü  It should also be clearly stated in the O-i-O that in the event of the party not paying the fine within the time allowed, the goods would automatically stand confiscated to government.

    ü  On confiscation goods vests with government [s.126] and hence should be taken possession of wherever not already done. The concerned person holding the goods should be duly informed in writing and acknowledgement obtained should be kept in the concerned file.

     

    Though Customs is the border controlling agency, customs officers are not proper officers of the allied acts. No discretion available to relax any provision of an allied Act or Rules or procedures made thereunder.

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