Government of Pakistan
Collectorate of Customs (Appraisement)
Customs House, Karachi
NO. ACA/AUCTION/7/1991 Dated: 13.1.1992
STANDING ORDERNO.2 /1992 (APPRAISEMENT)
SUB: CONDUCT RULES FOR BIDDERS
It has been felt that for speedy disposal of goods through auction and to protect the interest of genuine bidders, the procedure regarding auction is to be further streamlined. The following Conduct Rules for bidders are accordingly, laid down:-
1. The bidders participating in auctions at bonds and wharves shall be required to furnish a pay order or defense savings certificate of Rs.10,000/- (Rupees ten thousand only), as cash guarantee to pay earnest money, in favour of collector of customs, Appraisement, Custom House, Karachi, before start of Public Auction, The pay order/certificate shall be retained by the Custom officer supervising the auction and shall be returned to the bidder on the next working day. In case the bidder fails to deposit the earnest money at the fall of hammer, his cash guarantee of Rs.10,000 shall be forfeited on the spot by the Customs officer supervising the auction. The bidder may also be debarred from participating in public Auctions in future, In such a case, the second highest bidder may deposit the earnest money equal to 25% of his offer for approval of bid by the competent authority.
2. The bidder participating in public auctions shall be required to maintain and avoid irrelevant comments at the time of auction, failing which they shall be debarred from participating in public auction. The bidders shall start the bid with a realistic and reasonable offer instead of making start with partly bids. The first bid shall be not less than 25% of the reserve price notified before or at the time of auction.
3. In case of auction of goods announced on “as it is, where is” basis no refund or abatement on account of shortage shall be allowed, However, in cases where weight or quantity is announced and the bidder apprehends shortage, he may apply for delivery of auctioned goods under control of warehouses Keeper / Customs supervision and the bidder application for refund may be entertained. In case of shortage of goods auctioned in the warehouse, the warehouse keeper/licensee shall be responsible to pay the difference of value and custom duty taxes involved thereon.
4. The bidders shall be allowed to open account current in National Banks Custom House, Branch with initial deposit of Rs. 2,00,000.00 ( Rupees Two Hundred thousand only ). The amount deposited can be adjusted for the earnest money as well as the balance deposit for the auctioned goods. Two copies of current account ledger shall be maintained by the Auction Section. One copy shall be kept in safe custody; whereas the other copy of the ledger shall be taken to the place of auction for adjustment of earnest money on the spot.
5. The bidder shall be allowed to offer 10% or higher of the bid received in public auction by depositing the full offered amount by pay order or through adjustment in the current account. However Assistant Collector (Auction) may accept higher offer without deposit on case to case basis, provided that the successful bidder/buyer shall deposit the full amount within three day of the acceptance of such higher offer/bid.
Signed by
(JEHANGIR KHAN)
COLLECTOR
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