The Central Board of Excise and Customs (CBEC) today issued guidelines for provisional release of seized imported goods pending adjudication under section 110 of the Customs Act, 1962.
This is to ensure uniformity and to streamline the divergent procedure being followed for grant of provisional release of goods under the said provision.
The Boards’ circular issued today said that the Officers should not grant provisional release of goods under section 110 of the Act in cases where the goods seized are prohibited goods under the Customs Act, goods which do not comply with the provisions of any present Rules, Acts, Regulations etc. goods specified/ notified under s. 123 of the Customs Act. It also said that provisional release may not be granted in such cases when the competent authority gives in writing that the release is not in public interest.
Other goods can be released on the request of the owner by furnishing a Bond for the full value or the estimated value of the seized goods.
In addition to Bond, the competent authority can also ask for a Bank Guarantee or Security Deposit to cover the amounts of duty, fine or penalties relating to the said goods. The amount of security deposit may be increased or decreased by the competent authority considering the specific nature of the case.
It also added that the decisions of the Madras High Court in Malabar Diamond Gallery Pvt Ltd v. Additional Director General, DRI, Chennai & Ors, and the Delhi High Court in Mala Petrochemical and Polymers v. Addl Director General, DRI shall be kept in mind while allowing provisional release of goods.
Read the Full Text of the Notification Below.
