Chapter-7 Confiscation of goods and the auction procedure
Chapter-7 Confiscation of goods and the auction procedure
32. Goods deposited in customs go-down shall be cleared :
(1) The owner of the goods shall arrange for clearance of goods within 90 days from the date of deposit of such goods in the customs go-down. Provided that, the chief of the customs office may notify the owner of the Goods to clear goods within a reasonable time limit before the expiry of the date on the ground that the goods are harmful, perishable, not appropriate to keep in the go-down or unavailability of the go-down space. If the owner of the goods does not clear within the notified time, the chief of the customs may take action pursuant to Section 47 of the Act.
(2) The Manager of the go-down managed by the other person, shall notify the customs office immediately the list of goods not cleared by the owner of the goods under Sub-rule (1).
(3) After receiving the details under Sub-rule (2), the chief of the customs office shall take action immediately pursuant to Section 47 of the Act.
33. No auction without written order :
Without the written order of the Customs Officer, any goods seized under the Act or goods to be auctioned under Sub-section (2) of Section 74 of the Act, shall not be auctioned.
34. Minimum value shall be fixed :
(1) In case of auctioning of the goods, Customs officer shall fix minimum value of such goods for the purpose of auctioning.
(2) In order to fix minimum value under Sub-rule (1), in case of vehicles, heavy equipment and goods purchased under Clause (b) of Sub- section (15) of Section 13 of the Act, the minimum value determined by the committee under Rule 54 shall be the minimum value, for other goods other than mentioned above, the value declared at the time of deposit at the customs office shall be the minimum value for that purpose.
35. Procedure for auction :
(1) The customs office shall invite bid for the auction of the vehicles, or heavy equipment which carries more than minimum value of One Hundred Thousand Rupees, by notifying the public giving a Notice of Twenty One days in the National level daily newspaper with the following particulars:
(a) Vehicles or transportation vehicle’s particulars, engine number, chassis number or year of production,
(b) In case of vehicles which is more than Twenty years old from the date of production, no mention of engine number or chassis number or year of production or could not be mentioned, the re-registration of such vehicle can not be done as vehicle.
(c) Minimum value,
(d) Bid sending procedure; fee for tender document; bid opening time, date and place; bank accounts for depositing Ten percent of the bidding price by the bidder and the true copy of the voucher of deposit;
(e) Any tax or fee to be charged on the auctioned amount,
(f) Time period to take away the auctioned goods,
(g) Place and time for the inspection or observation of; the goods;
(h) Any other particulars.
(2) Except the goods referred to in Sub-rule (1), the other goods shall be auctioned by giving notice of Fifteen days with the following particulars mentioned in the notice displayed in the Public Notice Board of the customs office for the sealed quotation or open bidding. Such notices shall be circulated to the District Administration Office, District Land Revenue Office, District Development Committee, District Treasury office and office of the District Federation of Nepalese Chamber of Commerce and Industry requesting them to display in the Public Notice Board.
(a) particulars mentioned Clause (a), (b), (c), (e), (f), (g), and (h) of Sub-rule (1),
(b) description of the goods,
(c) in case of sealed quotation, quotation sending procedure; fee for sealed quotation document; bid opening time ,date and place,
(d) in case of open bidding, place for open bidding, beginning and closing time and date,
(e) bidding to start from the minimum value of the goods,
(f) before starting the open bidding, Ten percent cash deposit of the minimum value of goods and increment in the amount as the bidding amount increases in the same proportion.
(3) The concerned customs office shall make arrangement for the sale of the sealed quotation document or taking cash deposit, in case of sealed quotation or open bidding as per Sub-rule (1) or (2).
(4), The person bidding either for sealed quotation or open bidding through the notice published pursuant to Sub-rule (1) or (2) shall deposit Ten percent of the accepted value of the auction, which shall not be less than the minimum value, in the bank designated by the customs office and attach the true copy thereof.
(5) If the vehicle used for the smuggling of the goods is deposited in the customs office, and the customs office find that there is parking problem or can not be protected, the customs officer shall arrange for the committee as referred to in Rule 54 to recommend minimum value and auction such vehicle following the procedure of this Chapter.
36. Tender Approval or Re-tendering :
(1) The application of bidding or quotation received pursuant to Rule 35, shall be opened at the time and place mentioned in the public notice and the customs officer shall prepare comparative chart of bidding amount or shall prepare the evidence for the highest price bidding amount in case of public auction.
(2) On the basis of Comparative chart or higher bidding amount as per Sub-rule (1), the bidder bidding the minimum price or more than the minimum price shall be approved. In case of number of bidders who have quoted more than the minimum price, the bidding of highest price shall be approved.
(3) After the approval of the bidding amount pursuant to Sub-rule(2), the bidder shall be given Seven days notice to deposit the balance amount and clear the goods.
(4) If the bidder does not deposit the balance amount and does not clear the goods within the specified period pursuant to Sub-rule (3), the deposit amount shall be confiscated and may award the tender to the Second, Third or Fourth lowest bidder respectively. In case of the approval of the lowest bidder, if the auction is not realized, the deposit shall be confiscated and re-tender for the sale shall be processed.
(5) In case of re-tendering pursuant to Sub-rule (4), the Seven days notice for second bidding, sealed quotation, or public auction shall be given.
(6) In case the goods could not be sold at the minimum value even in the second time tendering, as per Rule 54, the committee shall revalue the minimum price and fix the revised minimum price and notice for re-tender in the manner mentioned in the Rule 35, shall be issued. In case the goods could not be sold through bidding in the revised minimum price, the customs officer may sale the goods directly at the minimum price fixed in the presence of the representative of concerned District Administration Office and District Treasury Office.
(7) If the goods could not be sold pursuant to Sub-rule (6), with the approval of the Director General, the customs officer shall struck off the records of such goods from the customs record and destroy such goods in the manner as referred to in Sub-rule 25.
(8) In case of auctioning of the vehicles which are more than Twenty years from the date of production or engine number or chassis number or production date not mentioned; the vehicle or engines or chassis shall be destroyed in the successful bidder’s expense and it shall be noted in the customs declaration form.
(9) Notwithstanding anything contained in these Rules, the customs office shall sell the gold, silver, diamonds and other precious stones and ornaments and other articles made there from, to the Nepal Rastra Bank at current market price confiscated or government property not cleared by the owner if the Nepal Rastra Bank is willing to purchase them. If Nepal Rastra Bank is not willing to purchase them or if any quantity is left over after it does so, such articles, with the approval of the Department, and the minimum value fixed as per the Rule shall be sold by public auction in case the minimum value of such articles is up to One Hundred Thousand Rupees or through bidding in case the minimum value of such articles is more than One Hundred Thousand Rupees.
(10) Notwithstanding anything contained in these Rules, in case of selling of goods by taking approval pursuant to the prevailing law, such goods shall be sold to the licensee only.
(11) Notwithstanding anything contained in thsee Rules, in case the National Trading Limited, Salt Trading Corporation, Sajha Bhandar Limited, Tara Gaon Bikash Samiti or, cooperatives show willingness to purchase goods to be auctioned, the customs officer shall sell such goods negotiating directly at the price not less than the fixed minimum price or more than the minimum price.
(12) Notwithstanding anything contained in this Chapter, in case the goods confiscated or seized by the customs office under the Act or purchased under Clause (b) of Sub-section (15) of Section 13 of the Act, include rotten or worn-out items which are liable to depreciation of value or consumer items which have less than three months expiry date or items which can not be preserved in the customs office because of lack of space or animals or birds , these shall be sold by auction on the day they reach the customs office or on the following day by putting notice in the Notice Board. The highest price of open bidding may be approved by the customs officer as per this Sub-rule.
(13) In case there is no position of the customs officer and which may hamper the bidding process, the Director General may make appropriate arrangement for this purpose.
Explanation: For the purpose of this Chapter, “Customs Officer” means Chief of Customs office of the Gazetted rank or in his/her absence, he officiating chief of the customs office.
(14) Notwithstanding anything contained in these Rules out of the Ten percent amount collected out of the auction of the goods or commodities stored in the go-down or places which are in the ownership of the Terminal Management Company or the amount collect from the go- down rent, the amount which so ever is lesser, shall be returned to the Terminal Management Company.
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