Handling and Storage of Valuable Seized Goods - Concerned with theft of Gold from Customs Godowns, CBEC issues Instructions · TIOL-DDT 2736

Handling and Storage of Valuable Seized Goods - Concerned with theft of Gold from Customs Godowns, CBEC issues Instructions

By Vijay Kumar

CBEC observes that in the recent past, the smuggling of high value goods, especially gold is on the rise, as evidenced by the increasing number of seizures made by Directorate General of Revenue Intelligence and the field formations. At the same time, there have been instances of loss/theft of gold and high value goods from the strong rooms/ seized goods godowns reported by the field formations. Though, there are detailed guidelines for handling and storage of seized/detained and confiscated goods, the recent cases of loss/theft of valuables raise a serious concern over the way these guidelines are implemented by the field formations. In order to prevent such loss/theft of valuables in future, CBEC has issued fresh guidelines for strict compliance by all field formations.

Custodian

Only experienced officers whose integrity is absolutely beyond doubt, should be posted as incharge of the strong room/ valuable godown. Similar check from vigilance & integrity angle should also be ensured for the superior officer who is given the overall supervision of the strong room and custody of the second key.

Whenever the Custodian or his superior officer is transferred, a regular substitute should be provided, who shall take proper charge of the strong room/valuable godown.

(Obviously the added qualifications of experience & whose integrity is absolutely beyond doubt would also be required for the ‘regular substitute' - no temporary substitute here!)

Storage Place/Strong Rooms:

Valuables should be kept in a strong room or in a locker in a nationalized bank, obtained exclusively for the purpose. The packages shall be stored systematically, serial-wise and year-wise to facilitate easy check and location.

The strong rooms storing valuables should have a double lock system, The two keys for operating the strong room should be entrusted to two separate officers; one to the Custodian and the other to a superior/supervisory officer of gazetted rank; It must be ensured that the strong room/valuables godown can be opened only when the two keys are used. Both the Custodian and the Supervisory officer shall collect and deposit keys of strong room/ valuables godown in an iron box bound by thick thread (sutli) and sealed with lac seal over a paper slip bearing the names, designation and signatures of the Custodian and Supervisory officer.

No person other than the Custodian shall enter the strong room/ valuables godown unless otherwise authorised by the Commissioner of Customs. No officer, including Custodian-in-charge of the strong room / godown, shall be allowed to open the strong room/ godown on any holiday (including Saturday/Sunday), except with a prior written permission from the Additional /Joint Commissioner concerned. The reasons for opening on holidays shall be clearly recorded by the Additional /Joint Commissioner while giving such permission.

The strong room/valuables godown shall have additional security features like CCTV Camera at the most vantage point(s) to keep round the clock surveillance.

Inventory:

Whenever any valuables have been seized or detained by a proper officer under the Customs Act, he shall prepare an inventory of such goods. Such detailed inventory of these goods shall be prepared by the seizing officer at the time of detention/seizure. During making of such inventory, the packages of the valuable goods shall be clearly numbered.

Packaging and sealing:

The valuables that are seized /detained shall be packed in non-deteriorating containers like high density plastic or metal boxes. These containers shall be sealed with wire/metal seals instead of rope/wax seals.

Safe custody of valuables:

The responsibility of proper storage and custody of these goods shall be on Custodian.The Custodian shall be responsible for the physical custody of the packages with seals intact.

Movement of Valuables:

In case of seized/ confiscated valuables to be taken out for producing before court or for any other purposes as the situation may warrant, written order must be issued by Deputy / Assistant Commissioner in charge of strong room/ valuables godown.

Inspection:

Quarterly inspection of such seized/ confiscated valuables stored in the strong room/ safe shall be carried out and stock of all packages and condition of each package lying there should be done by the committee headed by Deputy /Assistant Commissioner in charge of valuable godown and proceedings of such inspection shall be drawn and kept in the file maintained by Deputy / Assistant Commissioner in-charge of strong room/ valuables godown.

Clear Instructions:

And finally Board gives clear instructions as:

1. The officers are advised to keep themselves abreast with the legal provisions on the basis of which different procedures have evolved.
2. In case of necessity for further clarity, cross referencing to necessary provisions of the Customs Act, 1962 and notifications issued thereunder may kindly be made.
3. Further, wherever required, requisite permission from competent authorities may also be obtained.
4. When situation warrants discretion on part of the officers, it should be exercised in the context of existing laws.

It is only Government that can give such instructions!

Board wants all Principal Chief/ Chief Commissioners of Customs, Customs (P), Central Excise & Service Tax to pay personal attention to ensure that the guidelines/safeguards prescribed for custody, accounting, disposal of seized/confiscated goods including valuables, are enforced scrupulously in their jurisdiction, so as to avoid any instances of loss, pilferage, damage, theft, misappropriation or missing/substitution of the goods.

Does it require theft of gold worth several crores for the Board to realize that they should have a double locking system for the warehouse?