SEA CARGO MANIFEST AND TRANSSHIPMENT REGULATIONS, 2018

[Mr. M. GOVINDARAJAN]

The Board of Indirect Taxes and Customs made the ‘Sea Cargo Manifest and Transshipment Regulations, 2018’ in supersession of-

• Import Manifest (Vessels) Regulations, 1971;
• Export Manifest (Vessels) Regulations, 1976; and
• Transportation of Goods (Through Foreign Territory) Regulations, 1965.

These regulations will come into effect from 01.08.2018.

These regulations contain 19 regulations and 15 forms.  These regulations prescribe the procedure for registration with the Commissioner of Customs, delivery of an arrival manifest, delivery of a departure manifest, declaration in respect of specific cargo, transshipment, conditions governing for such transshipment, responsibilities of authorized carrier, suspension of registration and procedure for revocation of registration.

Registration

Regulation 3 provides that any person who is required to deliver arrival manifest or departure manifest shall apply to the jurisdictional Commissioner of Customs for registration in Form No.  I.  Along with the form the copy of the contract or memorandum of understanding or agreement entered into the foreign authorizing agent should be enclosed.

If the jurisdictional Commissioner of Customs is satisfied with the information provided in the application by the applicant, he shall register such applicant for transaction business under these regulations.  The certificate is valid for three years from the date of issue of such registration.

An authorized carrier registered at any customs station shall be deemed to be registered for other customs stations also, for the purpose of transaction business under these regulations.

The registration may be extended to a further period of five years at a time.  In case of an authorized economic operator the extension is for a period of ten years.

Delivery of an arrival manifest

Regulation 4 deals with the delivery of an arrival manifest.  The expression ‘arrival manifest’ means an integrated declaration required to be delivered by an authorized carrier on arrival of the vessel or train or truck carrying imported goods, export goods and coastal goods.   An authorized sea carrier carrying-

• imported goods;
• export goods; or
• coastal goods,

shall deliver the arrival manifest to the proper officer electronically.  If it is not possible to deliver the same electronically then the manifest shall be submitted in duplicate with the approval of Commissioner of Customs.

Contents of arrival manifest

The arrival manifest shall consist of-

• an application for entry inwards in Form II, except in case of vessel carrying exclusively coastal goods;
• a general declaration in Form III;
• a vessel’s stores list in Form IV;
• list of private property in possession of the Master and Crew in Form V;
• cargo declaration-

• for vessel arriving at Indian port from a foreign port in Form VIA; or
• for vessel arriving at Indian port from another Indian port directly or through designated foreign route in Form VI B;

• any other declaration which, under Customs Act or any other Act for the time being in force is required to be delivered to the proper officer on arrival of the vessel.

The general declaration and cargo declaration shall be delivered before the departure of the vessel from the last port of call and the rest of the arrival manifest shall be delivered before arrival of the vessel.

Amendment of arrival manifest

Where the proper officer nominated by the Commissioner of customs is satisfied that the arrival manifest is in any way incorrect or incomplete, and that there was no fraudulent intention towards incorrect or incomplete submission as regards the contents thereof, he may permit it to be amended or supplemented.

Delivery of a departure manifest

Regulation 5 deals with delivery of a departure manifest.  The expression ‘departure manifest’ means an integrated declaration required to be delivered by an authorized carrier before departure of a vessel or train or truck for imported goods, export goods and coastal goods.

An authorized sea carrier carrying imported goods, exported goods, coastal goods or goods meant for foreign transit or foreign shipment , shall before the departure of the vessel from the port deliver the departure manifest to the proper officer electronically.   If it is not possible to deliver the same electronically, then the same may be filed manually in duplicate with the approval of the Commissioner of Customs before the departure of the vessel.

Contents of a departure manifest

The departure manifest shall consist of-

• a general declaration in Form-III;
• a vessel’s stores list in Form-IV;
• a list of private property in the possession of the Master and crew, in Form-V;
• a cargo declaration-

• for vessel departing from an Indian port to a Foreign port in Form-VIIA; or
• for vessel departing from an Indian Port to another Indian port directly or through designated foreign route in Form-VIIB;

• any other declaration which, under the provisions of the Customs Act or any other Act for the time being in force is required to be delivered to the proper officer on arrival of the vessel.

Amendment of departure manifest

Where the proper officer nominated by the Commissioner of customs is satisfied that the departure manifest is in any way incorrect or incomplete, and that there was no fraudulent intention towards incorrect or incomplete submission as regards the contents thereof, he may permit it to be amended or supplemented.

Declaration in respect of specific cargo

Regulation 6 provides the procedure for filing declaration in respect of specific cargo.  The following are treated as specific cargo-

• arms;
• ammunition;
• explosives;
• narcotics and psychotropic substances;
• dangerous drugs;
• gold;
• silver;
• radio-active material.

the cargo declaration in respect of specific cargo for import, export, transshipment, or for being carried as same bottom cargo shall be delivered in separate sheets and shall be set out in the order of the ports of loading.  If a vessel does not carry any of the cargoes referred above, a nil declaration shall be delivered.

Transshipment of goods

The transshipment of imported goods or export goods may be done between a port/IC and Inland container depot/container freight station.  An authorized carrier shall file a departure manifest before the departure of a train or a truck and arrival manifest upon arrival of the train or truck, as the case may be, in Form-VIII.

Conditions

Regulation 9 provides the conditions governing shipment or transit through a designated foreign route which are as follows-

• the goods are mentioned in the arrival manifest or departure manifest, as the case may be, for transshipment to any customs station;
• such transshipment is by, a vessel, train or a truck or by a combination of two or more of these modes of transport;
• the authorized carrier executes a bond in Form-IX A or Form-IX B or Form-IX C or Form-IX D as applicable ,with or without bank guarantee or surety;
• where the transshipment of goods is directly between two sea ports, no bond and bank Guarantee shall be furnished;
• in the case of imported goods meant for transshipment by land route, the proper officer nominated by the Commissioner of customs shall seal the containers before permitting such transshipment.

In case of coastal goods manifested for transit through a designated foreign territory, the authorized carrier shall execute a bond in Form-X A or Form-X B or Form-X C or Form-X D as applicable with or without bank guarantee or surety.

Responsibilities of authorized carrier

Regulation 10 prescribes the responsibilities of authorized carrier. An Authorized carrier shall-

• transact business in the customs station either personally or through an employee duly approved by the Deputy Commissioner or Assistant Commissioner of Customs, as the case may be;
• keep a record of imported goods, export goods, coastal goods or goods brought for transshipment as the case may be, and produce such records to the proper officer as and when required;
• keep a record of movement or handling of imported goods, export goods, coastal goods or goods brought for transshipment;
• make available track and trace facility for locating imported or export goods, coastal goods or goods brought for transshipment;
• be responsible for the safety, security and delivery of imported, export goods or coastal goods under its custody;
• be liable to pay duty on goods pilfered, lost during the transit or transshipment thereof in the customs area or enroute;
• be responsible for re-export of hazardous goods where such goods are ordered to be exported back to the exporting country;
•  advise his client to comply with the provisions of the Act and in case of noncompliance, shall bring the matter to the notice of the deputy commissioner or assistant commissioner of customs as the case may be;
• not procure or attempt to procure directly or indirectly, information from the government records or other government sources of any kind to which access is not granted by the proper officer;
• ensure electronic transmission of delivery orders to the importer or the consignee and intimation of the same to the custodian and the proper officer;
• publish and display at prominent places including website or webpage of the authorized carrier the schedule of charges for the various services provided by him in relation to the imported goods or export goods or coastal goods in the customs area;
• not charge any rent or demurrage on the goods seized or detained or confiscated by the Customs Authorities;
• abide by all the provisions of the Act and the rules, regulations, notifications and orders issued there under.

Subletting

The authorized carrier shall not sublet or sub-contract or outsource functions permitted or required to be carried out by him to any other person.

Suspending the operation

The Commissioner of Customs of any customs station on reasonable belief that operations of such authorized carrier is detrimental to the interest of revenue, may suspend their operation in his jurisdiction by an order stating the grounds of suspension.  The Commissioner of Customs shall, within fifteen days from the date of such suspension order, shall give an opportunity of hearing to the person and pass such order within fifteen days from the date of the said hearing, as he deems fit, either revoking the suspension or continuing it for a further period not exceeding ninety days from the date of suspension, as the case may be.  Where the suspension against the authorized carrier has been continued, the Commissioner of Customs concerned shall intimate to the jurisdictional Commissioner of Customs, about the order within fifteen days from the date of issue of such order.

Revocation of registration

The jurisdictional Commissioner of Customs may revoke the registration of the authorised carrier, for failure to comply with any provisions of the regulations.

 The jurisdictional Commissioner of Customs shall issue a notice in writing to the authorized carrier stating the grounds on which it is proposed to revoke the registration and requiring the said person to submit within such time as may be specified in the notice not being less than thirty days, to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, nominated by him, a written statement of defence and also to specify in the said statement whether he desires to be heard in person by the said Deputy Commissioner of Customs or Assistant Commissioner of Customs.

On receipt of the written statement from the authorized carrier, or where no such statement has been received within the time-limit specified in the notice, the Deputy Commissioner of Customs or Assistant Commissioner of Customs may inquire into the grounds of the revocation as stated in the notice.   The Deputy Commissioner of Customs or Assistant Commissioner of Customs, shall in the course of inquiry, consider such documentary evidence and take such oral evidence as required for inquiry and he may also put any question to any person tendering evidence, for or against the authorized carrier, for the purpose of ascertaining the correct position.

The authorized carrier shall be entitled to cross-examine the persons examined in support of the grounds forming the basis of the proceedings and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs, declines to examine any person on the grounds that his evidence is not relevant or material, he shall record his reasons in writing for so doing.  Deputy Commissioner of Customs or Assistant Commissioner of Customs, shall prepare a report of the inquiry recording his findings after the conclusion of the inquiry.

The jurisdictional Commissioner of Customs shall provide to the authorized carrier a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, and shall require the authorized carrier to submit within the specified period not being less than thirty days any submission against the findings of the Deputy Commissioner of Customs or Assistant Commissioner of Customs.  The jurisdictional Commissioner of Customs shall, after considering the report of the inquiry, and the submission thereon, if any, made by the authorized carrier, pass such orders as he deems fit.

Penalty

Regulation 13 provides that an authorized carrier who contravenes any provision of these regulations shall be liable to a penalty which may extend to rupees fifty thousand. 

Appeal

Regulation 14 provides that any person aggrieved by any decision or order passed under this regulation, may appeal under section 129A of the Act to the Customs, Excise and Service Tax Appellate Tribunal, established under sub-section (1) of section 129 of the Act.