Collectors told to open customs welfare shops

25 Oct, 2004

The Central Board of Revenue (CBR) has directed all collectors of customs to immediately start 'Customs Staff welfare Shops' for selling of confiscated goods like air conditioners, TV sets and VCRs etc to custom, sales tax and central excise officials.
The CBR on Sunday issued instructions to all regional collectors that the proposed welfare shops be set-up in Ramazan and compliance report should be submitted to the Board on top priority basis.
The CBR has asked the collectors that all goods ripe for disposal as per provisions of Section 169 (IV) and Section 201 of the Customs Act, 1969 shall be disposed off through welfare shops as per laid down procedure.
Other consumer goods like cooking oil, ghee, sugar, soap/detergents etc may also be purchased from the local manufacturers on subsidised prices for sale to the employees of the customs department.
Sources said that special quota would be allocated to the custom officials on the occasion of marriages of their children to reduce financial burden in the wake of price hike.
However, the selling of goods to custom officials would not suspend their sale to authorised organisation like Utility Stores Corporations (USCs). The goods would be sold from the custom warehouses after payment of duties and taxes.
The monthly ceiling for purchase of goods for each customs official shall not exceed ten percent of his/her salary or Rs 1500 per month whichever is less.
The sales will be entirely against cash payment and credit sales will not be allowed under any circumstances at these shops.
The CBR has directed all collectors of customs to constitute a management committee for effective working of these shops. President of the committee would be Additional Collector whereas two Deputy/Assistant Collectors, one Superintendent or Deputy Superintendent would work as its members.
Proper security and safety arrangements shall be made to ensure that no pilferage of goods takes place and goods are not damaged.
Value of the goods shall be appraised in accordance with the advice issued by the controller of Customs Valuation.
Removal of goods to the shops shall be allowed only after payment of their price including duty and taxes other charges, if any, due thereon.
To ensure facilitation to all custom officials including staff, the CBR has clarified that except for the entitlement to purchase goods in a month, no discrimination, whatsoever, shall be made between customers and the principle of 'first-come-first-served' shall be observed.
In case of goods in short supply, the Committee shall arrange the sale in an equitable manner, ie like drawal of lots or any other like manner, so as to ensure that all customers get equal opportunity to buy such goods, as per their entitlements.
Regarding quota, the committee can increase the quota per month of any official for genuine reasons subject to the condition that total purchase during a year does not exceed upper limit to which the official is entitled.
Appropriate ration card system/computerised data base shall be adopted for ensuring that only authorised quotas are issued. No commercial quantity of any item shall be sold to an individual official/officer.
On the occasion of marriages of the children of the functionaries, the Committee, after approval from the Collector can allow appropriate special quota for purchases from the shop.
The Sales Tax and Central Excise officials shall also be entitled to make purchases from these shops as per ceiling given in their order.
Durable goods like Air conditioners, TV Sets, VCR etc can be purchased only one in 5 years by each customs official.
For the pricing of goods displayed at the welfare shops, there shall be uniform prices of all items sold in the customs welfare shops in all the collectorates.

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