🪵 CBIC Clarifies Disposal of Red Sanders Seized by DRI & Customs – Instruction No. 12/2025-Customs
📅 Published by Aaerm Law Associates | Date: May 24, 2025
Introduction
In a decisive move aimed at resolving procedural ambiguities, the Central Board of Indirect Taxes and Customs (CBIC) issued Instruction No. 12/2025-Customs on May 22, 2025. This directive provides clear, actionable guidance for the disposal of Red Sanders wood seized by both the Directorate of Revenue Intelligence (DRI) and other Customs field formations.
By addressing long-standing delays and enhancing inter-agency coordination, CBIC intends to standardize the process, ensure environmental compliance, and safeguard public assets effectively.
Understanding the Background
Red Sanders (Pterocarpus santalinus) is a highly valuable hardwood, native to parts of India and protected under Schedule IV of the Wildlife Protection Act, 1972. It also appears in Appendix II of CITES, regulating its international trade.
Due to high demand and restrictive trade regulations, Red Sanders frequently becomes a target for smuggling. Both DRI and Customs have increased seizures, but confusion regarding which agency is responsible for disposing of the confiscated goods has led to delays, especially at ports, ICDs (Inland Container Depots), and CFSs (Container Freight Stations).
Such delays have prompted complaints from port authorities and warehouse custodians, highlighting the need for streamlined, transparent procedures.
Key Highlights of Instruction No. 12/2025-Customs
1️⃣ Jurisdiction of Disposal Units Defined
The Instruction confirms that Customs field formations must handle the disposal of Red Sanders, regardless of whether the seizure was made by DRI or Customs. This clarification eliminates prior confusion and brings uniformity in handling all seized goods.
✅ Customs Disposal Units are now officially responsible for Red Sanders disposal—even if seized by DRI.
2️⃣ Mandatory Authorization for Export
Although Customs is tasked with disposal, they must obtain prior authorization from DRI before filing the Shipping Bill for export. The authorization must follow the specific format provided in Annexure-B of the Instruction.
This ensures that both agencies remain aligned in handling the material and avoid duplication of effort or administrative bottlenecks.
🔄 Authorization is required for each export attempt involving Red Sanders seized by DRI.
3️⃣ Strict Compliance with Environmental Norms
Before initiating any export process, Customs must ensure full compliance with the MoEFCC Office Memorandum (OM) F.No 3-1/2019 WL (Part-2) Vol-1, dated 12.09.2022.
These guidelines focus on environmental safety and sustainable trade. Thus, disposal through export should only proceed after confirming adherence to these norms, as explained in Annexure-A of the CBIC instruction.
🌿 No disposal can bypass the ecological safeguards laid down by the Ministry of Environment.
What This Means for Stakeholders
🏛️ For Customs Field Formations
- Enhanced Clarity: The Instruction clearly defines their role, eliminating operational delays.
- Streamlined Process: Customs officers now have a standard procedure to follow.
- Legal Alignment: Following this directive ensures they comply with both DRI and MoEFCC requirements.
🏗️ For Custodians at Ports, ICDs, and CFSs
- Faster Turnaround: Delays in storage and disposal will decrease significantly.
- Improved Coordination: Warehouses can now coordinate directly with Customs for the removal of seized Red Sanders.
- Transparency: Documentation and tracking become more accountable.
📦 For Exporters and Traders
- Clear Requirements: Exporters must wait until Customs secures DRI authorization.
- Sustainable Business Practices: Following MoEFCC norms ensures long-term viability and legal compliance.
- Fewer Delays: A clear roadmap shortens the export process timeline.
Strategic Implications
This new Instruction reinforces the Government’s commitment to:
- Protect endangered species
- Ensure lawful and transparent trade
- Improve efficiency in customs operations
By removing ambiguity and assigning responsibility, the CBIC expects to reduce grievances from custodians and improve compliance metrics across field formations.
Conclusion
CBIC’s Instruction No. 12/2025-Customs marks a crucial development in handling Red Sanders disposal. By assigning clear responsibilities to Customs Disposal Units, mandating DRI’s prior authorization, and insisting on MoEFCC environmental compliance, the directive introduces consistency and efficiency.
This instruction not only aligns operational procedures with environmental and legal mandates but also sets a precedent for how seized wildlife or environmentally sensitive goods should be handled in India.
