BASCAP & REACT recommend amending the Indian system of submission of bond and bank guarantee to Indian Customs

BASCAP and React are recommending the Indian Customs to amend the existing system of customs enforcement with it’s  cumbersome compliances of submission of bank guarantee and as a result large sums of rights owner’s funds stay held by Customs for indefinite period of time. The delays in adjudication and destruction of goods further exaggerate the problem.

 Under such circumstances and after discussions with the CBIC (Central Board of Indirect Taxes and Customs), the new recommended system has been drafted on lines of the WCO (2011) model legislation which suggests, the adoption of simplified procedures.

 In most of the cases it has been observed that the importer does not make a claim on his goods as they are IPR infringing. In several instances, it has been observed that the importer cannot be traced. Hence, it is unnecessary to complicate the whole process by requiring the right holder to execute consignment specific bond and bank guarantee followed by a long process of adjudication.

 Therefore, the importer should be provided a window of 10-20 days to object to detention of goods. In case he doesn’t, then goods should immediately proceed for destruction. In cases where the importer objects and claims that goods are genuine, both importer and right holder should be required to submit consignment specific bond and bank guarantee. We are hopeful that the Indian Customs will agree to our suggestions and implement the suggested model.