Government auctions

A government auction is an auction of goods which have been confiscated by various Government bodies and agencies.

Government auctions may be found in most countries but can often differ in their format. In certain places, United States for instance, they are held by local departments, and proceeds are retained by the authorities. Generally, these types of auction are open to the public such as the United Kingdom.

When the term "Government Auction" is used it often means that a general auctioneer has been contracted to deal with stock that needs to be liquidated by various government bodies:

HM Customs & Excise often enter items for auction seized from smugglers, fraudsters and racketeers. Executors may enter the assets of individuals dying in testate (i.e. without leaving a will) or in debt. The official receiver handles the liquidations of companies that have failed. Bailiffs will enter goods into auctions which have been seized for various reasons such as non-payment of bills or failure to keep up payments to finance companies.

Some auctioneers act as bonded agents handling goods from liquidators and HM Collectors of Taxes and official receivers. Often goods sold at government auctions will be unreserved meaning that they will be sold to the highest bidder at the auction.

Auctioneers are normally contracted by the different organisations within their local area. An auction at the centre of London for example, will deal with the assets of companies whose bankruptcy proceedings are being dealt with by courts in Greater London. An auction in Leeds will handle the assets of companies in Yorkshire that are being dealt with by Leeds City Court.

However, this is not always the case as smugglers whose assets were confiscated were found to be bidding on them at the local auction. To prevent this goods may now be sold at an undisclosed auction in a distant district.

Each year, millions of pounds worth of items are either seized or confiscated by or on behalf of various Government organisations. To expedite liquidation orders are made to sell them at specialist auctions.

The Proceeds of Crime Act allows for a court to confiscate items that a criminal can't legally account for.

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Wikipedia