Controlled Delivery
The expression ‘controlled delivery’ is defined under Explanation to Section 109A of Customs Act, 1962 (‘Act’ for short) as the procedure of allowing consignment of such goods to pass out of, or into, the territory of India with the knowledge and under the supervision of proper officer for identifying the persons involved in the commission of an offence or contravention under this Act.
Power to undertake controlled delivery
Section 109A gives powers to Proper Officer or any other officer authorized by him in this behalf to undertake controlled delivery of any consignment of such goods and in such manner as may be prescribed to-
- any destination in India; or
- a foreign country, in consultation with the competent authority of such country to which such consignment is destined.
Regulations
For the purpose, the Central Board of Indirect Taxes and Customs, vide Notification No. 59/2022-Customs (NT), dated 12.07.2022 which came into effect from 12.07.2022.
Goods
Regulation 2(1)(c) defines the term ‘goods’ as one or more of the following kind of substances contained in a consignment whether their nature, quantity or description is correctly declared or not, namely:-
- narcotic drugs, psychotropic substances, precursor chemicals, controlled substances or their substituents;
- gold in all forms, including its jewellery;
- silver in all forms, including its jewellery;
- precious and semi- precious stones;
- liquor and other intoxicating drinks;
- currency and negotiable instruments including counterfeits;
- cigarettes, tobacco and tobacco products;
- wildlife products; and
- antiques and antiquities.
Suspected consignment
Regulation 2(1)(e) defines the expression ‘suspected consignment’ as the consignment of the goods referred to in clause (c) including the baggage of a passenger which is liable to confiscation under the Act or any other law for the time being in force and in respect of which controlled delivery is being undertaken under these regulations.
Procedure to undertake controlled delivery
The following is the procedure prescribed in the Regulations to undertake controlled delivery-
- The proper officer having a reasonable belief, that a suspect consignment is being imported into or exported out of India, in the form of the baggage or otherwise, shall file a report in FORM-I proposing to undertake controlled delivery of such consignment.
- The Form – I shall contain the following particulars-
- Name of Importer/ Exporter/Consignee/ Passenger
- IEC/GSTN/Passport No.
- Other documents-
- Bill of Entry No./ Shipping Bill No./Baggage Declaration No.
- Bill of Lading/ Airway Bill/E-way bill
- IGM/EGM details
- Flight/Ship/ Vehicle details
- Nature of Packaging/ Package details and Marks and Nos. and Gross Weight/ Net Weight
- Port of Import/ Export along with Port Code/Port of Arrival/Departure
- Port of unloading/ loading of the suspect consignment
- Declared Contents of the suspect consignment
- Name of Foreign Customs Administration/ International Organisation making the request for Controlled Delivery
- Whether they have requested for association of their officer(s) with such Operation (Yes/ No)
- Any other relevant details
- Details of offence or contravention that appear to have been committed or likely to be committed under the Customs Act, 1962
- Name of officer undertaking the controlled delivery
- Proposed action
- The said report shall be put up before the specified authority for approval of undertaking such controlled delivery.
- The specified authority (Principal Additional Director General or Additional Director General of the Directorate General of Revenue Intelligence) after due consideration may approve the controlled delivery of the suspect consignment and authorize the proper officer to undertake such controlled delivery.
- In case of controlled delivery to a foreign country, the specified authority shall approve the controlled delivery in consultation with the competent authority of such country to which such consignment is destined.
- The proper officer, on receipt of the approval, may, if required, affix any mark or install any special investigative tools, including devices for track-and-trace monitoring of the suspect consignment, during the course of controlled delivery operation, without impacting or tampering with the nature of the said consignment as far as possible.
- The specified authority, while approving the controlled delivery of the suspect consignment, may also issue a general authorization in FORM-II. In this form the suspected consignment is allowed to and shall not be intercepted by any other enforcement agency established by law for the time being in force under the control of the Government of India or any State Government or Union territory or a foreign country or any other officer of Customs, than those who are mandated by the proper officer in this regard. The name, designation, mobile phone of the officer undertaking the controlled delivery operation is given hereunder and signatures are attested below.
- This form may be presented to any other enforcement authority established by law for the time being in force, under the control of the Government of India or any State Government or Union territory or a foreign country, as the case may be, on demand, in case such other enforcement authority intends to take possession of the suspect consignment, due to infringement of any law for the time being in force.
- The specified officer may issue such authorization in any other form as may be laid down by the competent authority of a foreign country to which suspect consignment is destined
- Where such approval cannot be obtained prior to terminating the controlled delivery, the approval may be obtained immediately afterwards, but not later than 72 hours of terminating the said controlled delivery.
- In case of the controlled delivery undertaken in respect of a suspect consignment destined to a foreign country, the controlled delivery shall be deemed to be completed or terminated at the time and the place, wherefrom the suspect consignment moves out of the customs area or the customs port or the customs airport or a land customs station in India, for a foreign destination.
- Where the controlled delivery is terminated before its completion, the proper officer shall take such necessary action in regard to the suspect consignment as would have warranted in normal course had these regulations not been applied to the said suspect consignment.
- The proper officer shall submit a report to the specified authority in that regard upon completion or termination of the controlled delivery.
- Where the suspect consignment is destined to a foreign country, the specified authority shall, upon receipt of the report under inform, the competent authority of such foreign country, of such completion or termination, as the case may be.
Application to other officers
The manner to undertake controlled delivery specified under these regulations shall mutatis mutandis be applicable to any other officer authorized by the proper officer under section 109A of the Act for undertaking such controlled delivery.
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