SPECIAL INTELLIGENCE AND INVESTIGATION BRANCH (SIIB)

• What is Special Intelligence and Investigation Branch?
  

• Organizational Structure
  

• Functions of SIIB
  

• Statutory Provisions Relating to Search, Seizure and Arrest
  

• Provisional Assessment/Release of Goods
  

• Obtaining copies of the Seized Documents
  

• Issue of Show Cause Notice and Adjudication Proceedings
  

• Rewards to Informers
  

• Details of Major Cases Detected by SIIB

1. WHAT IS SPECIAL INTELLIGENCE AND INVESTIGATION BRANCH?

            The Special Intelligence and Investigation Branch is a Branch in the Custom House dealing with the gathering of intelligence and investigation of cases detected.  The cases of under valuation of imports and over invoicing of exports and imports and exports in violation of the EXIM Policy are investigated by the Special Intelligence and Investigation Branch.

2. ORGANIZATIONAL STRUCTURE:

            Special Intelligence and Investigation Branch is headed by a Dy. Commissioner with a strength of 3 Appraisers, 3 Examiners and necessary ministerial staff.   In functions under the overall supervision of Additional Commissioner of Customs.  The telephone numbers of the Additional Commissioner (SIIB), Dy. Commissioner (SIIB) and SIIB Branch are as follows:-

3. FUNCTIONS OF SIIB:

            Special Intelligence and Investigation Branch deals with gathering of intelligence and investigation of cases.  For this purpose, informers are cultivated to gather intelligence.  Any information given by an informer will be kept confidential and necessary action will be initiated based on the information.  However, the information has to be specific and accurate to take immediate action.  In case of general and vague information, the cases will not be taken up unless a primary verification of the information received is carried out.  As part of the investigation, SIIB carries out search and seizure operations and arrest of persons involved in serious offences.  Search of commercial / residential premises are carried out by the officers of SIIB under an authorisation of search issued by the Dy. Commissioner of Customs (SIIB).  In case of prima facie evidence of offence, the goods involved are seized.  In case of serious offences, the persons who are directly connected with the offence will be arrested after obtaining the permission from superior officers.  SIIB also takes up value verifications in respect of suspected under invoicing of imports and follow up actions in respect of cases detected at other Custom Houses.  After the completion of investigation, a Show Cause Notice is issued to the importer.

4. STATUTORY PROVISIONS RELATING TO SEARCH, SEIZURE AND ARREST:

            Statutory provisions relating to Search, Seizure and Arrest are contained in Chapter XIII of the Customs Act, 1962 from Sec.100 to Sec.110.  Importers, Exporters, CHAs and persons desirous of knowing these provisions may go through the relevant sections given in the Customs Act.

Search Operations:

            During the course of Search, the importer / exporter or any other persons whose premises is to be searched has a right to demand production of Search Warrant issued by the Dy. Commissioner / Asst. Commissioner of Customs (SIIB).  This Search Warrant however, will not be given to the importer / exporter, but only shown to him and his signature is obtained thereon.  The importer / exporter can also demand production of identity cards of the officers who are going to search his premises.  The search will be carried out in the presence of two independent witnesses and a mahazar will be drawn indicating the proceedings conducted there, such as recovery of documents and goods if any, listing out the full details.  The copy of the mahazar drawn at the time of search will also be given to the occupant of the premises.  If any person refuses to show the search warrant or the identity card and still insists on the search of the premises, the matter may be brought to the notice of Dy. Commissioner (SIIB) and higher authorities on the telephone numbers given above.

Summons:

            Wherever it is necessary to conduct an enquiry in respect of the investigation in a particular case, the persons connected with the case will be summoned to give statement / produce documents and records relating to the transactions. Summons will be issued by an Appraiser in the SIIB.  Sufficient time will be given for appearing before the Appraiser (SIIB).  The proceedings / enquiry under summons shall be deemed to be a judicial proceedings within the meaning of Sec.193 and Sec.228 of Indian Penal Code 1860.  Willful disobedience and non-attendance for the summons will attract penal provisions as per IPC.

5. PROVISIONAL ASSESSMENT / RELEASE OF GOODS:

            In all cases where goods have been seized by the officers of SIIB, the importer / exporter may take release of the goods provisionally, pending further investigation and issue of SCN.  Except in the case of prohibited goods, the adjudicating authority will order for provisional release of the goods with sufficient surety and security in the form of duty deposit / bank guarantee and bond.  To avoid demurrage charges all importers and exporters are advised to take provisional release of the goods by making a pre-deposit of the differential duty  amount and by furnishing security for probable fine and penalty to be decided by the adjudicating authority.  The duty deposit / bank guarantee will be adjusted in accordance with the final adjudication order passed by the adjudicating authority.

6. OBTAINING COPIES OF THE SEIZED DOCUMENTS:

            In all cases, where documents/records have been seized from the premises of importer / exporter / CHA, they can take photo copies of the seized documents in the presence of an officer of SIIB in the Custom House.  Original documents required for investigation will not be returned to the importer / exporter / CHA until the adjudication proceedings are completed.

7. ISSUE OF SHOW CAUSE NOTICE AND ADJUDICATION PROCEEDINGS:

            On completion of the investigation, Show Cause Notice will be issued to the parties concerned asking them to furnish replies to the charges made therein.  After issue of Show Cause Notice the file will be transferred from SIIB to Commissioner’s Adjudication Unit, in respect of cases to be adjudicated by Commissioner.  After the submission of replies by the party,  the case will be adjudicated by the adjudicating authority and an order in original will be issued.

8. REWARDS TO INFORMERS:

            Rewards of up to 20% of the duty evaded, redemption fine and penalty recovered are given to informer who give specific information to the department leading to seizure of goods, currency, bullion and incriminating documents to establish duty evasion in cases of misdeclaration of quantity, value and description of the goods.  If the information is specific and contains all details, the same will be recorded by an officer of SIIB and will be kept in a sealed cover after obtaining the thumb impression of the informer.  This will be kept confidential and opened only at the time of grant of reward by the proper authority, only to establish the identity of the informer.  Information which is general in nature and vague without specific details will not be acted upon unless an independent verification is carried out by the department.  Any person who wishes to give specific information relating to under invoicing of imports and over invoicing of exports and any other offences in violation of Customs Act and EXIM policy may contact the officers of SIIB in person or at the telephone numbers mentioned in para 2 above.

9. DETAILS OF MAJOR CASES DETECTED BY SIIB:

            Over the years SIIB has had an excellent track record of intelligence gathering and investigation which resulted in detection of several cases and recovery of duty evasion, fines and penalties of several crores of rupees. 

            During the past year, the total value of seized goods was Rs.13.24 crores and duty evasion detected was to the tune of Rs.9.94 crores.  Further Rs.1.53 crores Redemption Fine and Rs.31 Lakhs of Penalty were realised.

            Details of the modus operandi/cases detected by the SIIB in the recent past are given below:

SILVER:

            SIIB had detected about 40 cases where some persons were sending silver from abroad in the names of passengers returning from abroad, locally arrange foreign currency for payment of duty through their contact persons, and clear them under  Customs Notification No.172/94 dated 30.09.94.

GINGER:

            6 cases of import of Ginger of Chinese origin by misdeclaring the description and value without  producing a licence was detected by SIIB. Goods worth Rs.99 lakhs were seized.  Duty evasion/RF/PP to the tune of Rs.38 were detected/imposed and were collected.

CELLPHONES:

            SIIB detected two cases of import of GSM Cellular Equipment under a number of Bills of Entry by rearranging/misdeclaring the prices of Hardware and Software leading to duty evasion of about Rs.8 crores.  Revenue to the tune of Rs.6.8 crores had been recovered.

MINERAL OIL:

            Illegal diversion of non-duty paid bonded stocks of base mineral oil worth Rs.50 lakhs was detected.  Duty involved is Rs.30 lakhs.

SECOND HAND MACHINERY:

           SIIB detected 32 cases of illegal import of second hand machinery which were imported by fraudulent predating of Bills of Lading to circumvent Import Licensing restrictions imposed after March 1999.  About Rs. 50 lakhs was imposed towards Redemption Fine and Personal Penalty.  Total value of the goods seized was Rs.3.5 crores.

CARS:

            9 illegal imports of cars by categories of persons ineligible to import the same and who did so on the basis of false documents/declaration was detected.   Foreign vehicles worth Rs.1.2 crores were seized.

SCRAP: 

            Import of Rs.69 lakhs worth steel/aluminium scrap in violation of licensing/value limit restrictions was detected.  These cases were adjudicated by the adjudicating authorities and Rs36 lakhs was collected towards Redemption Fine & Personal Penalty imposed.

WOOL:

            Rs.75 lakhs worth of raw wool imported by misdeclaring the size/thickness and forgery of documents so as to pay a lower rate of duty was detected.  Past imports reopened and investigation is on.

VIDEO CASSETTES:

            Import of Rs.1.2 crores worth of Video Cassettes imported without valid licence was detected and adjudicated.  RF and PP of Rs.40 lakhs was imposed by the adjudicating authority.

CARPETS:

            Two imports of machine-made woollen carpets misclassifying them as hand-made carpets to evade licensing restrictions were detected.  Goods worth Rs.2.5 crores seized.  RF & PP of Rs.29 lakhs was imposed and collected.

AERATED DRINKS:

            Two imports of aerated drinks by misclassifying/undervaluation were detected and adjudicated.  Value of offending goods – Rs.20 lakhs.  Duty evasion/RF/PP imposed – Rs.10 lakhs.

GLASSWARE:

            A case of import of glassware valued at Rs.30 lakhs by misdeclaring quantity/value was detected.  Case was adjudicated and duty evasion/RF/PP imposed is Rs.8.5 lakhs.

DRAWBACK CASES:

            A case of 100% EOU claiming ineligible drawback of Rs.1.2 crores is under investigation.  Rs.20 lakhs collected as a deposit towards return of drawback availed illegally.  Various other cases of excess drawback claimed by overvaluing goods were detected and are investigation/adjudication.