Imp No.:- 34/2004
Exp No.:- 34/2004
PUBLIC NOTICE NO. 60/2004 Date-13/09/2004

Sub : Payment of Customs Duty by custodians in respect of auctioned goods – reg.

Attention of all Custodians, Importers, Exporters and Trade is invited to Circular No. 71/2001-Cus. Dated 28.11.2001 issued by CBEC laying down the manner in which sale proceeds from disposal / sale of unclaimed / uncleared goods under Section 150 of the Customs Act, 1962 is required to be apportioned.

It has been laid down under the said Circular that :-

(i) Customs duty shall be determined by backward calculation considering the sale proceeds of unclaimed/uncleared goods as the cum-duty price. For calculation of duty , total sale proceeds without allowing any deduction towards sales expenses or any other charges is to be taken as cum-duty price,

(ii) After determination of the Customs Duty, sale proceeds of Unclaimed / uncleared goods is to be appropriated in the manner as provided in Section 150(2) of Customs Act, 1962.

The above method of apportionment of sale-proceeds from disposal / sale of unclaimed/uncleared goods should be followed by the Custodians as per the above Board’s instructions. The determination of duty shall be as examined in Office Order No. 01/2004 Disposal (General) dated 13.09.2004.

Sd/-
(D.S. SRA)
COMMISSIONER OF CUSTOMS (G)

OFFICE OF THE COMMISSIONER OF CUSTOMS(GENERAL)
NEW CUSTOM HOUSE,BALLARD ESTATE,MUMBAI-400 001.

F.No. S/CWH-D-MISC-55/2004

OFFICE ORDER NO. 01/2004 Disposal (General) Date-13/09/2004

Sub : Payment of Customs Duty by custodians in respect of auctioned Goods – reg.

Attention of all the concerned officers is invited towards Public Notice No. 60/2004 dated 13.09.2004 wherein it has been laid down that customs duty shall be determined by the backward calculation considering the sale proceeds of unclaimed / uncleared goods as the cum-duty price. The following formula is to be applied for calculation of duty amount.

Duty Amount =

Total Sale Proceeds Value X Total rate of Duty in percentage Terms Leviable ______________________________________________ 100 + Total rate of Duty in percentage terms Leviable

For calculating the duty amount, let Total Sale Proceeds of a lot be Rs. 100, the duty will be worked out as Under :

Sale proceeds - Rs. 100/- *
Customs Duty @ 20% *
CVD @ 16% + 2% education cess thereon *
Education Cess @ 2% *
Total % of duty = 40.376%
Duty Amount = 100 x 40.376 = Rs. 28.76 100 + 40.376

Further, in terms of Para 3 (X) of Board ‘s Circular No. 7/2004 dated 28/01/2004, for each consignment which is sold, the Custodian will file a consolidated Bill of Entry, buyer wise, for assessment of the effective rate of duty by the Customs and auctioned goods will be allowed out of charge only after the duty assessed is paid by the Custodian. As per Uncleared Goods (Bill of Entry) Regulations, 1972 it is mandatory for the Custodians to file a Bill of Entry in the form appended ( Form 60 in part-5) to the Regulations. This Bill of Entry shall be deemed to be the Bill of Entry under sub-section (1) of Section 46 of the Customs Act, 1962 and presented to the proper officer. The said Bill of Entry will be noted and assessed at the Office of Deputy Commissioner / Assistant Commissioner of Customs, Docks (Admn.) Import. After the payment of assessed duty in the Cash Department, out of charge will be given by the designated officer.

All Gate Officers and other concerned offices are directed to allow delivery of uncleared / unclaimed goods sold in Auction / Tender by the Custodian only after the above mentioned procedure is complied with and out of charge bill of entry is produced before them. The other normal procedure as applicable in the case of general imports, e.g. procedure relating to retention of Bill of Entry etc., would also be followed in this case.

Sd /-
(D.S. SRA)
COMMISSIONER OF CUSTOMS (G)
MUMBAI

Presented by eximkey.com