Procedure for disposal of gifts received from foreign dignitaries.
1A) Procedure for disposal of gifts received from foreign dignitaries.
This Ministry has for some time been considering the question of laying down the procedure for disposal of articles of gifts received by Government servant from foreign dignitaries whether in India or while serving abroad or on a tour abroad.
2. Instructions on the subject were issued to the Indian Missions abroad and to the officers in this Ministry in 1956 vide enclosed copies of Memo No. F.21.TK/56, dated 15.05.1956 and its enclosures and OM No. 20-TK (C.89)/56 dated 13.09.1956 (not reproduced). A meeting between the Ministries of External Affairs, Home Affairs and Finance was held on the 13th March, 1959, to discuss the question of payment of custom duty on presents, auction of Toshakhana articles and other allied matters. A copy of the minutes of the meeting is enclosed for information.
3. According to the decision now arrived at, no customs duty is leviable on the presents received by Government officials if they are within the ceiling limit of Rs. 200 and are permitted to be retained by the recipients. In granting such permission the Head of the Department should satisfy himself about the value of the articles. In case of doubt the presents may be got valuated by the Cutoms Appraiser, Foreign Post Office, Hardinge Bridge, New Delhi.
4. Presents of a value of more than Rs. 200 should be surrendered to the Toshakhana in this Ministry unless any of the articles is required by the Ministry/Office concerned for official use in which case, the matter should be referred to the Ministry of External Affairs for giving its approval in consultation with the Ministry of Finance. The articles surrendered to the Toshakhana will be disposed of in accordance with the procedure agreed to by the Central Board of Revenue.
5. The Ministries of Home Affairs etc., are requested to issue suitable instructions to all concerned.
[MEA OM No. 15(101) (GA)/59/EA I/60(I)/183, dated 11.10.60]
* Minutes of Meeting held in the Secretary General’s Room at 11.30 hrs. on 13.03.1959 to discuss the question of payment of customs duty on presents, auction of Toshakhana articles etc.
The following decisions were taken:-
(i) Customs duty on presents received by Government Official from foreign dignitaries – It was decided that no customs duty is leviable on presents received by Government officials from foreign dignitaries, which are within the ceiling limit of Rs. 200 and are permitted to be retained by the recipients, as laid down in para 2 of the Ministry of Home Affairs D.O. No. 25/49/55-Ests; dated the 31st March, 1956 and further clarified in the Ministry of External Affairs Office Memorandum No. F.20TK/(C).89/56 dated the 13th September, 1956.
(ii) Presents surrendered to Toshakhana – It was decided to continue the present practice of transferring temporarily or permanently, from the Toshakhana articles for use in Rashtrapati Bhawan, New Delhi, Rashtrapati Niwas, Simla, Prime Minister’s official residence, New Delhi, museum, Indian embassies abroad and Government Departments, in addition to presents made to charitable institutions.
Gifts remaining in the Toshakhana, which are not covered under the above sub-paragraph should be divided into two categories for the purpose of levying customs duty :-
(a) Those on which customs duties are leviable on advalorem rates; and
(b) Others on which specific rates of duty be leviable. In case of both (a) and (b) customs duties will be charged.
In case of (a) the sale proceeds at the auction will be considered as inclusive of customs duty and the amount of customs duty chargeable will be calculated accordingly. In case of (b) the amount of duty leviable will form the reserve price. In cases where even this reserve price is not realizable at the auction, the case will be referred to the C.B. R. for advice.
(iii) Auction of Toshakhana articles – The consensus of opinion was to permit members of all Ministries and Departments, including those of the Ministry of External Affairs to bid at the Toshakhana auction. It was accordingly, decided to find suitable neutral agency other than the Ministry of External Affairs to conduct auctions in which members of the Ministry of External Affairs could also participate. The Central Board of Revenue was suggested as a possible agency for this purpose. The Chairman, C.B.R., agreed to examine the question and to advise the Ministry of External Affairs accordingly and action will be taken on the receipt of CBR’s advice.
(iv) Reserve prices – It was also decided that the fair prices for articles brought to auction for the first time should be the appraised value plus the customs duty calculated on this appraised value. Articles which were not sold in the first auction and were brought for the second auction, should be sold to the highest bidder, at "free value". (This decision should be referred to the Comptroller and Auditor General for his concurrence before auction in finalized.)
(v) Valuation – For valuation of articles which are to be disposed of through the Toshakhana other than gifts within the ceiling limit of Rs. 200 which are to be retained by recipients a Customs Appraiser will be consulted. The actual mechanics of this consultation will be worked out by the C.B.R. in consultation with the Ministry of External Affairs.
Reference this Ministry’s Office Memorandum No. F15(10)GA/59/EA/1/60/1/83, dated 11th October, 1960 (Decision No. 2 above) on the subject mentioned above. It may be clarified that the decisions arrived at in the inter-Ministerial meeting on March 13, 1959, referred to therein do not apply to present received by Government servants from foreign dignitaries abroad. Those decisions are applicable in the case of present received by Government servants from foreign dignitaries in India only. The following further points are also clarified :-
(1) The amount of custom duty is not to be added for fixing the value of gift received by a Government servant from a foreign dignitary abroad.
(2) There is no need to send the article of gift to the Toshakhana from abroad, unless specifically asked to do so by this Ministry. The article if not purchased by the recipient, can be kept in the residence of the Head of Mission/Post as an exhibit piece or as an object of art. The action taken in this regard should, however, be intimated to this Ministry in each case.
[MEA OM No. F.16(11)/GA/60 (EA. 1)/60/1/239, dated 31.12.1960]
In continuation of decisions No. (2) and (3) above, it has since been decided that the Head of a Mission, on the termination of his assignment in a particular country, will be allowed to retain souvenir presents given to him by the Diplomatic Corps, such as a silver salver or cigarette box bearing the signatures of his colleagues, even though the value of such presents may exceed Rs. 200/-.
It has further been decided that a Government servant who receives a present from a foreign dignitary, whether in India or abroad, the value of which exceeds Rs. 200 will be allowed to retain it by paying the difference of estimated value and Rs. 200/- if he so desires.
[Ministry of E.A. OM No. F. 16(2)GA/61CEAI/61/1/36), dated 16.03.1961]
(1D) Presents received by Government Servants from foreign dignitaries and foreign firms-Instructions regarding.
In suppression all the existing instructions on the above mentioned subject, the following instructions will govern the receipt, retention and disposal of gifts received by Government servants from foreign dignitaries and foreign firms.
2. The presents received from foreign dignitaries will fall into two categories. The first category will include presents which are of symbolic nature, like a ceremonial sword, a ceremonial robe etc. Such gifts of symbolic nature may be retained by the recipients.
3. The second category of gifts would be those which are not of symbolic nature. It has been decided that such gifts may be retained by Government servants, if their value does not exceed Rs. 1,000/-. The following procedure may be followed in regard to such gifts which are marginal or in cases where the value apparently exceeds Rs. 1,000/- or where there is any doubt about their actual value :-
The Government servants shall report the receipt of such gifts to the Ministry/Department administratively concerned, indicating their approximate estimated value. The Ministry/Department concerned shall, in cases of doubt or in marginal cases where the estimated value borders on the prescribed limit Rs. 1,000/- or where the estimated value exceeds Rs. 1,000/- refer the case to the Toshakhana for valuation of gifts and also arrange to get such gifts deposited in the Toshakhana so that it can assess their value. On assessment of the value by Toshakhana, if the value of gift in marginal or doubtful case is found to be within the prescribed limit of Rs. 1,000 the gifts will be returned to the Ministry/Department for being handed over to the recipient. Gifts whose value is found to exceed the prescribed limit of Rs. 1,000 will be retained in the Toshakhana and the recipients of the gifts will have the option to purchase them from the Toshakhana by paying the difference between the value as estimated by the Toshakhana and Rs. 1,000/-.
4. As regards acceptance of gifts by Government servants from foreign firms, no permission is normally granted, save in exceptional circumstances, for acceptance of gifts made by firms, whether foreign or indigenous, with whom the Government servant concerned has had or has or is likely to have official dealings either directly or indirectly by virtue of his official position. Permission is also not normally granted for acceptance of gifts by Government servants from firms which are contracting firms with the Government of India, even if the contract is entered into by a Ministry or Department other than the one in or under which the Government servant concerned is serving. The question of grant of permission for acceptance of gifts from a foreign firm would, therefore, normally arise only in those cases where the foreign firm concerned is neither a firm contracting with the Government of India nor one with which the Government servant concerned has had, or is likely to have official dealings and there is no reason to doubt the bona-fide of the gifts made by the foreign firm. In such cases, where it is proposed to grant permission for acceptance of the gift made by a foreign firm the procedure indicated in the preceding paragraphs regarding retention of the gifts made by foreign dignitaries should be followed.
[MHA DP & AR No. 11013/4/76-Estt.(A), dated 27.08.1976].