Disposal of firearms imported as baggage under transfer of residence – reg. - Customs - 04/2013

Circular No. 04 /2013-Customs F.No.401/179/2012 Cus III Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs ***** New Delhi, dated 15 th January , 2013 To, All Chief Commissioners of Customs. All Chief Commissioners of Customs Central Excise. All Chief Commissioners of Central Excise. Sir / Madam, Subject: Disposal of firearms imported as baggage under transfer of residence reg. The undersigned is directed to refer to Ministry s letter F.No. 497/57/87-Cus-VI, dated 05.01.1998 whereby it was clarified firearms imported as baggage are not allowed to be transferred to any person for consideration or otherwise during the lifetime of the importer and to state that this issue has been re-examined in the context of a reference requesting permission to dispose an imported firearm on ground of old age. 2. In this regard it is observed that DGFT has revised the import policy on disposal of imported firearms vide Public Notice No. 82/2009-2014(RE-2010), dated 17.10.2011. Accordingly, Para 2.43.2 of the Handbook of Procedures Vol.I, 2009-2014 stands modified and amongst other changes it now provides that transfer of imported firearms will not require permission from DGFT after ten years of import. Imports under baggage are exempt from the normal provisions of the Foreign Trade Policy in terms the Foreign Trade (Exemptions from Application of Rules in Certain Cases) Order, 1993. Thus, the said DGFT s Public Notice dated 17.10.2011 does not apply to imports as baggage. The implication is that the relaxation provided by DGFT does not apply to firearms imported as baggage under transfer of residence and the restriction that these cannot be disposed in any manner during the lifetime of the importer continues to apply. This places persons importing firearms as baggage at a disadvantage viz-a-viz other importers. 3. DGFT was consulted in order to address the inequitable situation aforementioned. DGFT has clarified that the relaxation at their end in regard to allowing the disposal of imported firearms was made in consultation with the Ministry of Home Affairs, amongst others. DGFT has also recommended that it is desirable to liberalize the provision of disposal of firearms imported as baggage and harmonize it with their Public Notice. 4. In view of the above, I am directed to state that Government has decided to allow passengers importing a firearm as baggage on transfer of residence to dispose the same after ten years of import . The disposal will be to persons legally entitled to possess the firearm. The condition that no disposal can take place till ten years of import may be endorsed on the arms licence of the passenger at the time of granting the facility under transfer of residence. 5. Further, in view of the sensitive nature of the item viz. firearm, Government has decided that an eligible person would be allowed to import only one firearm under transfer of residence in his/her lifetime. In other words, even though the facility of transfer of residence can be availed every three years at present, a firearm can be imported only once. 6. Board s instruction vide F.No. 497/57/87-Cus-VI dated 05.01.1988 and subsequent Circulars including Circular No. 63/1995 Cus., dated 07.06.1995 stand modified to the aforementioned extent. 7. The change in Government policy may be brought to the notice of all concerned. Difficulty, if any, in implementing this decision may be immediately informed to the Board. (S.C. Ganger) Under Secretary Mailing List: As usual Subject: Restricting Gold Import to salvage Current Account Deficit reference from M/s Sabari Overseas Pvt. Ltd. Proposal Restrict import of gold by allowing such import only by Status Holders against a transferrable Special Import Authorization for a value of 10% of FOB value of the previous years export. - Will restrict import quantity. - No revenue loss as duty will be charges as at present. Comments Eligible importers are: (a) Nominated Agencies MMTC, STC, MSTC, G JEPC etc. AND (b) Premier Trading Houses and Star Trading Houses (Gems and Jewellery only) under the FTP (para 3.10.2) AND (c) Any other agency authorized by RBI SBI and other banks. There is no value limit on import by eligible importers. Thus, restricting the import of Gold to only status holders and that too to 10% of previous year s exports would reduce the imports. However, the proposal would create an oligopoly of status holders which would be bad for domestic consumers. Suggestion Based on CAD determine the import of quantity of gold allowed for import and regulate the same by a licensing scheme. All present eligible categories would be entitled to the import and their individual quotas determined as follows: - Status holders - 10% (or some other %) of previous year s export - Others a fixed % of their previous years business. The import policy is to be formulated by DGFT. *** Circular No.13/2009-Customs Dated: 23 rd March, 2009 . Para 4.2 . Further, major ports notified under the Major Port Trusts Act, 1963 and airports notified under the Airports Authority of India Act, 1994 will continue to be authorised to function as custodians under their respective Acts and these regulations shall not impact their approval as a custodian. In this regard, it may be noted that section 45 of the Customs Act, 1962, which provides for approval of custodians makes an exception to these custodians who are otherwise approved under any law for the time being in force. Accordingly, the Port Trusts of the notified major ports and the Airports Authority of India shall not be required to make an application under Regulation 4 or 9 for approval or renewal under these regulations. However, they would be required to discharge the responsibilities cast upon them as specified in Regulation 6. HANDLING OF CARGO IN CUSTOMS AREAS REGULATIONS, 2009. 4. Retrospective Application. Any action taken or anything done in respect of appointment of Customs Cargo Service providers, immediately preceding the coming into force of these regulations, shall be deemed to have been done under the corresponding provisions of these regulations. Customs Cargo Service providers already approved on or before the date of coming into force of these regulations shall comply with the conditions of these regulations within a period of three months or such period not exceeding a period of one year as the Commissioner of Customs may allow from the date of coming into force of these Regulations. 9. Application for approval of Customs Cargo Service provider: (1) An application to act as a Customs Cargo Service provider for custody of imported or export goods and for handling of such goods in a customs area shall be made in the form of a letter to the jurisdictional Commissioner of Customs containing details as prescribed in Form A . (2) The Commissioner of Customs shall dispose of the application within forty five days of the receipt of the application. THE MAJOR PORT TRUSTS ACT, 1963 ACT NO. 38 OF 1963 [16th October, 1963.] An Act to make provision for the constitution of port authorities for certain major ports in India and to vest the administration, control and management of such ports in such authorities and for matters connected therewith. Section 2 (b) Board , in relation to a port, means the Board of Trustees constituted under this Act for that port; Sectio n 37. Power of Board to order sea- going vessels to use docks, wharves, etc. (1) When any dock, berth, wharf, quay, stage, jetty or pier erected at any port or port approaches under the provisions of this Act has been completed with sufficient warehouses, sheds and appliances for receiving, landing or shipping goods or passengers from and upon sea- going vessels, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Official Gazette, declare that such dock, berth, wharf, quay, stage, jetty or pier is ready for receiving, landing and shipping or for landing or for shipping goods or passengers from and upon sea- going vessels. (2) As from the date of the publication of such notification for the third time, it shall be lawful for the Board, from time to time, when there is room at such dock berth, wharf, quay, stage, jetty or pier, to order to come alongside of such dock, berth, wharf, quay, stage, jetty or pier for the purpose of landing and shipping goods or passengers or for landing or for shipping the same, any sea- going vessel within the port or port approaches which has not commenced to discharge goods or passengers, or which being about to take in goods or passengers, has not commenced to do so: Provided that before making such order, the Board shall have regard, as far as possible, to the convenience of such vessel and of the shippers, in respect of the use of any particular dock, berth, wharf, quay, stage, jetty or pier: Provided further that if the Board is not the conservator of the port, the Board shall not itself make the order as aforesaid but shall require the conservator of the port, or other person exercising the rights, powers, and authorities of the conservator of the port, to make such order. 38. If accommodation sufficient, all sea- going vessels compelled to use docks, wharves, etc. When a sufficient number of docks, berths, wharves, quays, stages, jetties or piers have been provided at any port or port approaches as aforesaid, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Official Gazette, direct that no goods or passengers shall be landed or shipped from or upon any sea- going vessel within the port or port approaches otherwise than at such docks, berths, wharves, quays, stages, jetties or piers, except with the sanction of the Board and in accordance with such conditions as the Board may specify. Section 41. Board to declare when vessels other than sea- going vessels compelled to use docks, wharves etc. (1) When any dock, berth, wharf, quay, stage, jetty or pier for receiving, landing or shipment of goods or passengers from or upon vessels, not being sea- going vessels, has been made and completed with all proper appliances in that behalf, the Board may, after obtaining the approval of the Collector of Customs, by order published in three consecutive issues of the Official Gazette,-- (i) declare that such dock, berth, wharf, quay, stage, jetty or pier is ready for receiving, landing or shipment or shipment of goods or passengers from or on vessels, not being sea- going vessels, and (ii) direct that within certain limits to be specified therein it shall not be lawful, without the express sanction of the Board, to land or ship any goods or passengers out of, or into, any vessel, not being a sea- going vessel, of any class specified in such order, except at such dock, berth, wharf, quay, stage, jetty or pier. (2) As from the date of the publication of the order mentioned in sub- section (1) for the third time, it shall not be lawful, without the consent of the Board, for any vessel of such class,-- (i) to land or ship any goods or passengers at any place within the limits so specified except at such dock, berth, wharf, quay, stage, jetty or pier; or (ii) while within such limits, to anchor, fasten or lie within fifty yards of the ordinary low- water mark. (3) If after the publication of such order, any such vessel shall, while within the limits so specified, so anchor, fasten or lie, it shall be lawful for the Board to cause the same to be removed out of the said limits at the expense of the master or owner or agent of the vessel. Section 42. Performance of services by Board or other person. (1) A Board shall have power to undertake the following services:-- (a) landing, shipping or transhipping passengers and goods between vessels in the port and the wharves, piers, quays or docks belonging to or in the possession of the Board; (b) receiving, removing, shifting, transporting, storing or delivering goods brought within the Board s premises; (c) carrying passengers by rail or by other means within the limits of the port or port approaches, subject to such restrictions and conditions as the Central Government may think fit to impose; 1[ (d) receiving and delivering, transporting and booking and despatching goods originating in the vessels in the port and intended for carriage by the neighbouring railways, or vice versa, as a railway administration under the Indian Railways Act, 1890 ; 9 of 1890[ and] 1 (e) 2[ piloting, hauling, mooring, remooring, hooking, or measuring of vessels or any other service in respect of vessels] (2) A Board may, if so requested by the owner, take charge of the goods for the purpose of performing the service or services and shall give a receipt in such form as the Board may specify. (3) Notwithstanding anything contained in this section, the Board may, with the previous sanction of the Central Government, authorise any person to perform any of the services mentioned in sub- section (1) on such terms and conditions as may be agreed upon. (4) No person authorised under sub- section (3) shall charge or recover for such service any sum in excess of the amount leviable according to the scale framed under section 48 or section 49 or section 50. (5) Any such person shall, if so required by the owner, perform in respect of goods any of the said services and for that purpose take charge of the goods and give a receipt in such form as the Board may specify. (6) The responsibility of any such person for the loss, destruction or deterioration of goods of which he has taken charge shall, subject to the other provisions of this Act, be that of a bailee under section 151, 152 and 161 of the Indian Contract Act, 1872 . 9 of 1872 . (7) After any goods have been taken charge of and a receipt given for them under this section, no liability for any loss or damage which may occur to them shall attach to any person to whom a receipt has been given or to the master or owner of the vessel from which the goods have been landed or transhipped. 44. Accommodation to be provided for customs officers in wharves, etc., appointed under Customs Act . Where the Collector of Customs has, under the provisions of any Act for the levy of duties of customs, appointed any dock, berth, wharf, quay, stage, jetty, pier warehouse or shed or a portion of any warehouse or shed provided at any port under the provisions of this Act for the use of sea- going vessels to be an approved place for the landing or shipping of goods or a warehouse for the storing of dutiable goods on the first importation thereof without payment of duty, within the meaning of the first- mentioned Act, the Board shall set apart and maintain such place on or adjoining such dock wharf, quay, stage, jetty or pier, or in such warehouse or shed or portion thereof, for the use of officers of customs as may be necessary. 45. Dues at customs wharves, etc. Notwithstanding that any dock, berth, wharf, quay, stage, jetty, pier, warehouse or shed or portion thereof at any port has, under the provisions of section 44, been set apart for the use of the officers of customs at the port, all rates and other charges payable under this Act in respect thereof, or for the storage of goods therein, shall be payable to the Board, or to such person or persons as may be appointed by the Board to receive the same. THE INDIAN PORTS ACT, 1908 ACT NO. 15 OF 1908 1 [ 18th December, 1908.] An Act to consolidate the enactments relating to Ports and Port- charges. Section 2(8) major port means any port which the Central Government may by notification in the Official Gazette declare, or may under any law for the time being in force have declared, to be a major port:[ and] Section 6 Power to make rules (jj) for regulating the use of piers, jetties, landing places, wharves, quays, warehouses and sheds when belonging to the Government and for fixing the rates to be paid for the use of the same ;