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TMI BlogGuidelines for the sale of seized/confiscated goldX X X X Extracts X X X X X X X X Extracts X X X X ..... le of seized/confiscated gold (other than gold ornaments/jewellery) shall be routed through all public sector banks (approved by RBI to import and sell gold), MMTC Ltd. and STC Ltd. and related procedures for such sale. 2. With the approval of competent authority, it has now been decided that henceforth seized/confiscated gold will be sold (other than gold ornaments/jewellery/articles) to Reserve Bank of India (RBI) only. In this regard, Board has consulted RBI and Security Printing and Minting Corporation of India Limited (SPMCIL) and also signed a tripartite Memorandum of Understanding (MOU) with them. The MOU, inter alia, provides for roles and obligations of CBIC, RBI and SPMCIL regarding collection, transportation and standardization of seized/confiscated gold, delivery of standard gold bars and payment thereon. The text of MOU is given at Annexure-I . 3. Accordingly, the following guidelines are issued for disposal of seized/confiscated gold (other than gold ornaments/jewellery/articles). 3.1. Henceforth, the seized/confiscated gold (other than gold ornaments/jewellery/articles) shall be sold to RBI only. Any mention of gold in subsequent paragraphs shall refer to g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have reference to the seizure to which the packet belongs. 3.5. SPMCIL will perform preliminary assay procedure at IG Mints in the presence of nominated officer of the focal Customs Commissionerate. SPMCIL will conduct preliminary X-Ray Fluorescence (XRF) analysis for each packet of gold separately HOGS Note wise. The preliminary XRF analysis will be recorded in CCTV camera. It shall carry out pre-melting, and sampling process which will also be recorded in CCTV camera. Upon completion of preliminary XRF analysis, SPMCIL will issue copies of XRF Assay Readings along with the weight slip to the nominated officer of the focal Customs Commissionerate. Based on the copy of the XRF Assay Readings along with the weight slip, issued by SPMCIL, the Deputy/Assistant Commissioner of the focal customs Commissionerate shall prepare a Preliminary Weight Note (PW Note) in the form given at Annexure- V in triplicate. The original copy, shall be sent to the respective field Commissionerate from where the gold was collected; the duplicate copy shall be forwarded to the DoL. Triplicate copy enclosing a copy of XRF Assay Readings along with the weight slip shall be retained by the focal Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the gold handed over by the Customs Commissionerates, the charges payable to SPMCIL, gold deposited with RBI, amount credited by RBI to CBIC, adjustment in weight required on account of melting and refining and balance quantity of gold carried over to the next cycle by SPMCIL. As mentioned supra, SPMCIL should complete the processes on the gold collected from the Customs Commissionerates within one month of such collection. The Principal Commissioner, DoL shall monitor this time limit. DoL shall also make the payment to SPMCIL upon receipt of the invoice from SPMCIL and delivery cum acknowledgement memo from RBI. 3.11. The Customs Commissionerates can treat the Seized/confiscated gold as disposed only when the following processes are completed, namely, - i. Receipt of PW Note from focal Customs Commissionerate; and ii. Necessary entries in their stock register (refer to Para 3.4.1 Form 5 of Chapter 3 of Disposal Manual, 2019) are made accordingly. 4. These guidelines shall come into force from the date of issue. All the formations and officers concerned may be suitably sensitised about the above guidelines. 5. All the field formations shall also ensure that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpression shall, unless excluded by or repugnant to the subject or context, mean and include its legal representatives/partners, executors, heirs, successorin- office, administrators or permitted assignees) of the Third Part. CBIC, RBI and SPMCIL are individually referred to as Party and collectively as the Parties . WHEREAS: A. The CBIC deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central Goods Services Tax, IGST and Narcotics to the extent under CBIC's purview; The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates and the Central Revenues Control Laboratory; B. The RBI is a statutory corporation, established on April 1, 1935, in accordance with the provisions of the Reserve Bank of India Act, 1934 to, inter alia, regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that henceforth the gold seized/confiscated by the field formations of CBIC including DRI under applicable laws shall be sold to RBI. The CBIC is the lawful owner of the gold, which is proposed to be sold. Accordingly, the CBIC moved a proposal to that effect to RBI. 1.3. The RBI, agrees that: i. it shall accept the gold from SPMCIL so confiscated by field formation of CBIC including DRI if that conforms to the LBMA specifications / standards as specified/determined by RBI with due certification for the same from SPMCIL; ii. upon taking delivery of the gold in the presence of SPMCIL authorized representative, RBI shall verify whether the gold proposed to be sold is in conformity with the LBMA specifications as also according to the details given by SPMCIL and thereupon it shall pay the price of gold so purchased as per Article 3.1 (17) of this MoU by crediting the amount to the account of CBIC; iii. in case if the gold is not in conformity with LBMA specifications, such gold will be returned to SPMCIL; iv. RBI will be able to take delivery of the gold only at Issue Department, RBI, Fort, Mumbai; and v. The frequency of such transfer of gold shall normally be once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government of India; (6) Standard Gold Bars mean gold bars that conform to the specifications / standard prescribed by the London Bullion Markets Association (LBMA) i.e., each standard gold bar will weigh around 11-13 kg and will have a fineness of at least 995 parts per 1,000 fine gold; (7) transporter means the transporter engaged by SPMCIL; (8) XRF analysis means X-Ray Fluorescence Spectroscopy. This is non-destructive analytical method used to determine the chemical composition (percentage of gold) of the material; (9) Fire Assay means the destructive analytical testing method to ascertain the content of gold and other elements in the material. 2.2. The terms not defined in this MoU but defined in the respective laws of the parties shall have the same meaning for the purposes of this MoU. ARTICLE 3 OBLIGATIONS OF THE PARTIES 3.1 The parties agree to fulfill the following obligations, as applicable to each party: (1) The gold shall be collected by the SPMCIL on receiving written communication from CBIC Field Formations; (2) Adequate precautions shall be taken by the CBIC field formations and SPMCIL during collection of seized/confiscated g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g shall be borne by the CBIC. (11) Additional Charges shall be recovered by SPMCIL, if the gold tendered is found to be brittle or if it requires special treatment. (12) All weighments on SPMCIL s Balance shall be final and undisputed. (13) Standard Gold Bar manufactured by the SPMCIL shall bear the weight, fineness, Mark and Serial Number. (14) The gold collected from the warehouses of the field formations of CBIC shall be converted into standard bars at IG Mints (Mumbai/Kolkata/Hyderabad) and the quantity in terms of standard bars will be conveyed to the officer nominated by CBIC. (15) The SPMCIL shall also communicate the quantity of gold in terms of standard bars, serial number, gross weight, fineness and fine weight of the consignment along with the details of authorized representative/s accompanying the gold and the details of the vehicle to the designated officer of the RBI. (16) The SPMCIL shall then deliver the standard gold bars to the RBI at Issue Department, RBI, Fort, Mumbai preferably within one month of collection, which may be further extended on the basis of mutual agreement between the parties; (17) The price of the fine gold to be purchased b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the force majeure conditions continue beyond 1 (one) month, the Parties shall jointly decide about the future course of action. ARTICLE 5 DISPUTE SETTLEMENT 5.1 In the event of a dispute, controversy or claim arising out of or relating to this MoU, or the breach or invalidity thereof, between CBIC and SPMCIL, the Parties concerned will make their best efforts to settle promptly such disputes through direct negotiation within sixty (60) days from the date either Party has notified the other Party. 5.2 In case disputes between CBIC and SPMCIL are not mutually settled between the disputing parties within the stipulated period of time, the aggrieved party/parties shall have a right to take recourse of Administrative Mechanism for Resolution of Disputes (AMRD) for resolution of disputes as per the procedure laid down and provisions mentioned in OM No. 334774/DoLA/AMRD/2019 dated 31.03.2020 issued by Department of Legal Affairs, Ministry of Law Justice, Government of India. 5.3 Disputes involving RBI will be resolved through consultations. ARTICLE 6 MISCELLANEOUS 6.1. This MoU shall be effective from the . and shall remain valid for the period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reserve Bank of India on . 2. It is requested to collect the seized/confiscated gold available for disposal as indicated in the table below. S.No. Description Number of pieces Quantity (in in grams up to three decimals) Remarks 1. Gold in Bullion 2. Gold in other forms Yours sincerely, (Name) Deputy/Assistant Commissioner of Customs Annexure-IV (to Board s Instruction No27/21-Customs dated 03.12.2021) Note on Handing over Seized/Confiscated Gold (HOGS Note) Reference: Intimation Vide F. No .. dated . ORIGINAL/DUPLICATE/TRIPLICATE/QUADRAPLICATE 1. Serial Number of HOGS Note (packet wise) : ####/YYYY 2. Reference No. of the seizure 3. Name of the Customs Commissionerate 4. Date : 5. Details of Seized/Confiscated gold handed over S.No. Description Number of Pieces Quantity (in gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt (to be used by DoL/Customs Commissionerate) The Receipt of the above PW Note by the Directorate of Logistics/Customs Commissionerate is acknowledged and the details were entered vide No. XXXX/YYYY dated DD/MM/YYYY in the Gold Disposal Account Ledger/ Valuables Disposal Register maintained by Directorate of Logistics/ ..Customs Commissionerate. Signature: Date: Superintendent, Directorate of Logistics/ ...Customs Commissionerate Annexure-VI (to Board s Instruction No27/21-Customs dated 03.12.2021) Note on Final Weight (FW Note) 1. Name of the Focal Commissionerate : 2. Name of the IG Mint : 3. S.No. of FW Note : ####/YYYY 4. Date : 5. Details of reference document issued by SPMCIL [Out Turn Certificate (OTC)] : 6. Details of PW Notes that correspond t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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