Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes & Customs

DIRECTORATE OF LOGISTICS

Indirect Taxes & Customs

4th Floor, 'A' Wing, Lok Nayak Bhawan, Khan Market, New Delhi - 110003

Special Equipment Fund

Special Equipment Fund (SEF) was created in 1985 to acquire specialized anti-smuggling equipment in the shortest possible time. Every year, 5% of the sale proceeds of confiscated goods credited to the Government and Customs/Excise duties, fines & penalties in offence cases are credited to SEF. The SEF is administered by a Governing Body under Chairman, CBIC and members include Member (Customs & Investigation), Member (Legal, CX & ST), Member (GST, IT & Tax Policy), Member (Admin & Vigilance) and AS & FA (Finance). Principal Commissioner, Directorate of Logistics, is the Member Secretary. This fund has been used to procure specialised anti-smuggling equipment. Proposals received from the Commissionerates/Directorates are processed and submitted to the Governing Body for sanction after which Principal Commissioner, DoL issues cheques. Since SEF is a public account, it does not lapse every financial year.

  1. Special Equipment Fund was set up vide F. No. 13011/3/85-Ad. V dated 30.03.1985 as intimated by the Ministry vide letter F. No. 711/8/86-Cus (AS) dated 20.01.1987 and it also informs about approval of constituting of a Governing Body for centrally administering the Fund.
  2. Accounting instructions/procedure in respect of maintenance of SEF intimated by Ministry vide letter F. No. 712/21/88-Cus (AS) dated 22.04.1988.
  3. Reconstitution of the Governing Body for centrally administering the Fund intimated by Ministry vide letter F. No. 711/8/86-Cus (AS) dated 18.01.1994, wherein, Directorate of Prevention Operations, New Delhi was entrusted with the work relating to administration of Customs and Central Excise Special Fund and subsequent sanction under the signature of DPO, New Delhi (Now Directorate of Logistics).
  4. Rules governing the administration of the Special Fund for acquisition of anti-smuggling equipment were amended as intimated by Ministry vide letter F. No. D-26015/32/97-Cus (AS) dated 22.12.1999 i.e. “Procurement of anti-smuggling equipment of a specialised nature, and vehicles for anti-smuggling/anti-evasion purposes, within the shortest possible time.
  5. Budget – In recent years CBIC received Rs. 30.45 Cr in the year 2018-19; and Rs 5 Cr. received in the year2020-21, under the SEF.CBIC had a total amount of Rs. 59.75/- Cr till the end of financial year 2020-21. In recent years, CBIC has utilised Rs 4.84 Cr. in the year 2017-18; Rs. 3.60 cr. in the year 2018-19; Rs. 74.55 lakhs in the year 2019-20 , Rs. 21.24 lakhs in the year 2020-21 and Rs. 21.24 lakhs in the year 2021-22
  6. Some of the substantial proposals recommended and sanctioned under the SEF since 2017-18 are mentioned below –

    (Amount in Crores)

    S.No. Year Proposal Amount Involved
    1 2017-18 DG, DRI for incurring expenditure of non-recurring nature for procurement and upgradation of special equipment 4.75
    Payment towards installation of CCTV surveillance system at 7 LCSs/ ICPs under Shillong Customs (P) Commissionerate 0.09
    2 2018-19 Purchase of 5 nos. of Artificial Scent kits for 04 nos. of Commissionerates (90% payment) 0.096
    Purchase of 24 Carat Meters (Cost of equipment + TDS) 2.96
    3 2019-20 Purchase of 5 nos. of Artificial Scent kits for 04 nos. of Commissionerates (10% payment) 0.01
    4 2020-21 Payment towards 2nd year CCAMC charges in respect of 18 Carat Meters 0.21
    5 2021-22 Payment towards 2nd year CCAMC charges in respect of 18 Carat Meters 0.21
    Balance fund under SEF 0.54
  7. Action Plan for FY 2021-2022

    DoL would put in all efforts for utilisation of funds during FY 2021-22 for acquiring specialized anti-smuggling equipment in the shortest possible time. In addition to the proposals received from CBIC field formations and Directorates, the DoL would also take up following proposal under the scheme -

    1. K9 Vehicle procurement- Procurement of Fourteen (14) nos. of Customized ‘K9 Vehicles’ for transporting of Customs Dogs at an estimated expenditure of Rs. 2,26,80,000/- was approved under SEF.
    2. Solar Panels and Inverters for providing electricity to the LCSs of Shillong Customs Zone estimated expenditure of Rs. 25 lakh.