Confiscation can be understood as seizing of any goods by an authority. In India, an officer of Customs can seize any goods, if he has reason to believe that the same are liable to confiscation, under the Customs Act, 1962. Chapter XIV of Customs Act, 1962 deals with Confiscation of goods and conveyances and imposition of penalties. In this article, the specific issue that is dealt with is how are the goods confiscated by customs authority disposed of?

The disposal of goods confiscated by customs is regulated vide Circular No 11/2012, amended by Circular No. 39/2016. The circular lays down the following points for due disposal of confiscated goods -

  • Sale of NCCF/KB/Consumer Cooperatives - Any lot of confiscated/seized consumer goods, which is ripe for disposal and whose value does not exceed INR 5 lakh, shall be offered to NCCF/KB/Other Central Government Employees Consumer Cooperative Society/Multi-State Consumer Cooperative Societies/State Consumer Cooperatives, at a uniform rebate/discount of 10% (superseding existing Board’s circulars/instructions to this effect only), subject to the specified conditions.

  • Sale through e-auction / auction cum tender- goods of all types and confiscated/seized consumer goods whose value exceeds INR 5 lakhs shall not be sold directly to the aforesaid cooperative Societies/Federation and shall be sold by e-auction or auction-cum-tender basis. In such e-auction or auction-cum-tender process, all stakeholders/persons including NCCF/KB/other Central Government employee’s consumer cooperatives/Multi-State/State cooperatives or National/State level Cooperative Federations can also participate, subject to the fulfilment of prescribed conditions

  • Sale through Army Canteen/CSD- Confiscated goods, as much as can conveniently be made available, after meeting the earlier demands of Army authorities/Military Canteens/CSD and/or the consumer’s cooperative stores, are to be offered to the Central Government Employees Consumer Cooperative Society Ltd.