Gold, silver, jewellery put under controlled delivery list; authorities allowed to place tracking devices in suspected consignments

Gold, silver, stones, jewellery have been placed under controlled delivery list along with drugs, antiques and cigarettes, said Central Board of Indirect Taxes and Customs in a notification on Tuesday, July 12, 2022. This means that these precious metals cannot be imported or exported out of India without the knowledge and supervision of a proper officer. The officer concerned can also place tracking device in case of suspected consignments

Here is what Central Board of Indirect Taxes and Customs notification on controlled delivery list entails 

The proper officer having a reasonable belief, that a suspect consignment, is being imported into or exported out of India, in the form of the baggage or otherwise, shall file a report in FORM-I proposing to undertake controlled delivery of such consignment and the report sofiled by the proper officer, shall be put up before the specified authority for approval of undertaking such controlled delivery.    

The specified authority after due consideration may approve the controlled delivery of the suspect consignment and authorise the proper officer to undertake such controlled delivery:  

Upon receiving the approval of the specified authority to undertake controlled delivery, the proper officer may, if required, affix any mark or install any special investigative tools, including devices for track-and-trace monitoring of the suspect consignment, during the course of controlled delivery operation, without impacting or tampering with the nature of the said consignment as far as possible.  

The specified authority, while approving the controlled delivery of the suspect consignment, may also issue a general authorisation in FORM-lI, which may be presented to any other enforcement authority established by law for the time being in force, under the control of the Government of India or any State Government or Union territory or a foreign country, as the case may be, on demand, in case such other enforcement authority intends to take possession of the suspect consignment, due to infringement of any law for the time being in force: 

Provided that the specified officer may issue such authorisation in any other form as may be laid down by the competent authority of a foreign country to which suspect consignment is destined. 

The proper officer may complete the controlled delivery at a time and place, where such officer identifies the person reasonably believed to be involved in the commission of an offence or contravention related to the suspect consignment. 

The proper officer may terminate the controlled delivery at any time, with the approval of the specified authority, in those cases where the proper officer has reasons to believe that there is a likelihood of a grave and imminent threat to the life of the proper officer herself/himself or the panchas or any other person: 

Provided that when controlled delivery to a foreign country is undertaken, the specified authority shall give such approval after due consultation with the competent authority of such foreign country to which suspect consignment is destined: 

Provided further that where such approval cannot be obtained prior to terminating the controlled delivery, the approval may be obtained immediately afterwards, but not later than seventy-two hours of terminating the said controlled delivery. 

In case of the controlled delivery undertaken in respect of a suspect consignment destined to a foreign country, the controlled delivery shall be deemed to be,- 

(a) completed under sub-regulation (5); or 

(b) terminated under sub-regulation (6), 

at the time and the place, wherefrom the suspect consignment moves out of the customs area or the customs port or the customs airport or a land customs station in India, for a foreign destination: 

Provided that where the controlled delivery is terminated before its completion, the proper officer shall take such necessary action in regard to the suspect consignment as would have warranted in normal course had these regulations not been applied to the said suspect Consignment. 

Upon completion or termination of the controlled delivery, as the case may be, the proper officer shall submit a report to the specified authority in that regard. 

Where the suspect consignment is destined to a foreign country, the specified authority shall, upon receipt of the report under sub-regulation (8), inform, the competent authority of such foreign country, of such completion or termination, as the case may be. 

The manner to undertake controlled delivery specified under these regulations shall mutatis mutandis be applicable to any other officer authorised by the proper officer under section 109A of the Act for undertaking such controlled delivery.