Aimed at addressing procedural confusion and operational delays, the Central Board of Indirect Taxes and Customs (CBIC) has issued a fresh set of instructions for the disposal of Red Sanders wood seized by the Directorate of Revenue Intelligence (DRI) and Customs field formations. The update is intended to streamline responsibilities and ensure timely handling of seized Red Sanders stock currently piling up at various ports and customs facilities.
As per the Disposal Manual 2019, the responsibility of custody and disposal of seized goods—including Red Sanders—falls on the Custodian/Warehouse in-charge and the Disposal units of Customs field formations. This framework also applies to seizures made by DRI, which often leaves the goods in the custody of Inland Container Depots (ICDs), Container Freight Stations (CFSs), or Port Trusts.
CBIC has now clarified that jurisdictional Customs field formations must undertake the disposal of Red Sanders even if the seizure was made by the DRI, addressing a long-standing ambiguity that has delayed the clearance of such high-value confiscated goods.
Red Sanders Disposal: Delays, Grievances, and Clarifications
CBIC acknowledged that the pending disposal of Red Sanders has led to numerous grievances from custodial agencies, such as Port Trusts and private warehouse operators, where seized goods are stored. Delays have reportedly caused space constraints and storage issues, besides increasing the risk of material degradation and security concerns.
Adding to the confusion has been the precedent where DRI itself handled the disposal process in certain cases, leading Customs formations to hesitate in initiating action on similar DRI-seized goods.
To end this uncertainty, CBIC has clarified that Customs Disposal Units should treat DRI seizures of Red Sanders like any other seized goods and proceed with disposal processes without delay. This guidance reinforces that notional custody still implies full responsibility for safeguarding and processing such goods, regardless of the agency making the seizure.
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Export of Red Sanders Requires DRI Authorization Under DGFT Quota
While empowering Customs Disposal Units to proceed with the export of Red Sanders, CBIC has noted a key procedural requirement: since there exists a separate DGFT quota allocation for exports by DRI and Customs, the Customs formation handling disposal of DRI-seized Red Sanders must obtain prior authorization from the DRI before filing the Shipping Bill for export.
This step ensures compliance with DGFT’s regulatory controls on the export of Red Sanders, a species classified as endangered and protected under CITES (Convention on International Trade in Endangered Species). The export of Red Sanders is highly restricted and can only take place under strict licensing and quota-based control mechanisms.
CBIC has advised all field formations to adhere to the guidelines already circulated for Red Sanders disposal and emphasized the need for coordinated action between DRI and Customs units to avoid bureaucratic bottlenecks.