Measures to ease road congestion- Movement of all export goods laden containers originating or dispatched from all Container Freight Stations to the Chennai Port- Issuance of the Public Notice -Reg. - Customs - 97/2014

GOVT. OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) CUSTOM HOUSE, CHENNAI-600001 F.No.: S.Misc. 132/2011-Appg.Docks Dated: 17.06.2014 PUBLIC NOTICE 97/2014 Sub: Measures to ease road congestion- Movement of all export goods laden containers originating or dispatched from all Container Freight Stations to the Chennai Port- Issuance of the Public Notice -Reg. There has been a chronic issue of traffic congestion in approach roads from the Container Freight Stations to the Chennai Port. 2. This issue has been raised at various forums including the Honorable High Court of Madras in the Writ Petition 17477 of 2011, where the petitioners sought to take steps to ease congestion of movement of containerized cargo to and from the Chennai Port. The Honorable High Court of Madras ordered the Customs to find amicable solution to solve the problem. Pursuant to the said orders of the Court, the Chief Commissioner of Customs, Chennai conducted a meeting with all the stakeholders on 14.02.2012 and wherein it was concluded by all stakeholders that the blocking of the traffic by the container trailers carrying export cargo, which are not having complete set of documents is the reason for the congestion and steps need to be taken to curb the same. 3. As a follow-up to the said meeting, a Facility Circular 01/2012 dated 24.02.12 was issued by this Custom House asking the Container Freight Stations to ensure that the container trailers laden with export goods shall not leave the Container Freight Stations without the required complete set of documents. The issue of congestion was again deliberated in the meeting conducted by the Chief Secretary, Government of Tamil Nadu on 23.07.2012, wherein it was agreed that Customs will explore possibilities for terminating all factory-stuffed containers in other CFSs in addition to the CWC, Madhavaram. 4. However, the situation did not improve and congestion continued to be a problem with recurring road accidents both fatal and non-fatal, even after the issue of said facility circular as the container trailers were found to be on the approach roads to the Chennai Port, without the complete set of documents, blocking the traffic. In the meeting conducted by the Chairman, Port Trust on the issue of termination of export containers on 19.04,2014, it was discussed and agreed that a mechanism of movement of container trailers carrying export goods from the CFS to the Port to be instituted to reduce the congestion. 5. In this regard, a meeting was conducted with all stakeholders (FICCI, SICCI, NACFS, CCHA, CHENSAA etc.) by the Commissioner of Customs on 01.05.2014 to discuss the movement of export goods laden containers from the CFS to the Port and a draft notice on this subject, was circulated among the stakeholders to elicit their views. As all the stakeholders broadly agreed to the mechanism proposed in the said draft notice in principle, the members were asked to suggest modifications, if required in the next meeting. 6. In the second meeting held on 06.05.14 on the same issue chaired by the Commissioner of Customs, the members suggested some changes in the mechanism. As there was disagreement with this mechanism by MCC after the said meeting, their concerns were heard and addressed in the two meetings chaired by the Chief Commissioner of Customs and the Chairman, Port Trust respectively. 7. Accordingly, the following procedure for movement of export goods laden containers from the Container Freight Stations to the Port and entry of export goods laden containers to the Port, which is a Customs area, is instituted from 01.012014. 8. As per Regulation 6(1)(k) of the Handling of Cargo in Customs Areas Regulations, 2009, the Customs Cargo Service provider or Custodian (CFS) is responsible for secure transit of export goods from the CFS to the Port. Therefore, they shall fulfill the following conditions, in order to ensure the responsibility of moving export goods laden containers to the Port: i) The Customs Cargo Service Provider or the Custodian (CFS) shall execute a separate bond for an amount equal to ten percent of value of export goods handled in the previous month with a bank guarantee for an amount equal to ten percent of the value of such bond executed and submit the same to the Enquiry Section of the Custom House, as per Regulation 5(4) of the Handling of Cargo in Customs Areas Regulations, 2009. ii) The Custodian (CFS) shall execute an indemnity bond undertaking to indemnify the Commissioner of Customs from any liability arising on account of damages caused or loss suffered on export goods, due to accident, damage, deterioration, destruction or any other unnatural cause during their receipt, storage, dispatch, transit from CFS to Port, or otherwise handling of such goods, if not executed already. iii) The Custodian (CFS) shall keep a record (mandatorily in the soft form) of real time data of goods allowed inside the CFS for export. The record shall contain following details i.e. the Shipping Bill number with corresponding container, Vessel Rotation Number, Vessel Name, IMO number, Date of Loading in the Vessel, Date of sailing of the vessel and EGM Number. The data shall be made available to the Customs as and when called for. 9. The Customs Cargo Service provider or the Custodian (CFS) after fulfilling the conditions mentioned in the Para 8(i) and 8(ii), get NOC from the Enquiry Unit, Custom House and submit the same to the Docks-Admin Section within 7 working days from the date of the issue of this Notice and only those Customs Cargo Service providers or the Custodians (CFS), who have obtained such NOC shall be allowed to move the export goods laden containers from the Container Freight Stations to the Port, in terms of Regulation 6(1)(k) of the Handling of Cargo in Customs Areas Regulations, 2009 with effect. from 01.07.2014. 10. The Facility Circular 17/2005 issued by this Customs House in this subject is rescinded with effect from 01.07.2014 and the following procedure is prescribed in respect of the Central Excise sealed and Self-Sealed containers. 10.1 All the export goods laden Central Excise sealed or self-sealed containers shall go to any of the CFS which has been approved as per Para 9 of this Notice and will be allowed entry with the Check List of the Shipping Bill filed and with Annexure C details filled through ICEGATE as far as possible, as mandated vide the Facility Circular 10/2013 dated 04.10.2013. 10.2. These containers shall be unloaded and kept in a separate area inside the CFS for verification of container Number, Seal Number, condition of the seal and the container by the Preventive Officer at the CFS. After verification, the P.O. shall put the passed-in stamp on the Check List of the Shipping Bill filed. If there is any discrepancy, the Preventive Officer/Supdt. concerned, will refer the matter to AC/DC (Docks). 10.3. After all the containers covered by the Check List of a Shipping Bill have reached the CFS, the Exporter/CHA shall produce the Check List of the Shipping Bill and other required documents namely attested Invoice, Packing List, ARE-1 and Annexure C1 form etc., before the Examining Officer/Appraising Officer in the CFS. The Examining Officer/Appraising Officer will verify the documents produced and if found correct the examination report will be entered in the system and Shipping Bill will be generated in the respective CFS itself after grant of Let Export Order (LEO). If the RMS has selected the Shipping Bill for examination or inspection, the RMS Instructions shall be executed by the Examining Officer/Appraising Officer and report entered accordingly by the Appraiser in the system and the Shipping Bill will be generated in the respective CFS itself after grant of LEO. Those containers which are examined/inspected in the CFS shall be re-sealed after the completion of inspection/examination by the Preventive Officer. 10.4. The Custodians (CFS) or Customs Cargo Service Provider shall schedule and execute the movement of all export goods laden containers lying in their respective Container Freight Stations including those containers for which the procedure outlined in the Para 10.3 has been completed, from the Container Freight Stations to the Port as per Vessel Plan, after ensuring the availability of mandatory documents as provided for, in the Facility Circular 01/2012 dated 24.02.2012 issued by this Custom House. 11. The procedures mentioned in the Para 10 shall initially be in operation for the period of three months from 01.07.2014, for studying the impact of the same in the reduction of the traffic congestion in approach roads towards the Chennai Port and inside the Chennai Port Trust premises. 12. The Customs Cargo Service Providers or Custodians (CFS) as permitted vide Para 9 of this Notice shall compile the data regarding the time taken by trailers to reach Chennai Port from the CFS and submit the same to the Commissioner of Customs (Exports) on monthly basis till the end of the trial period of three months from 01.07.2014. 13. In exercise of powers conferred under the Regulation 7(2) of the Handling of Cargo in Customs Areas; Regulations, 2009, in order to regulate the entry of export goods laden containers to the Chennai Port Trust, for efficient handling of such goods, the Customs Cargo Service providers or the Custodians (CFS) are hereby directed to ensure that the export goods laden containers shall not leave the Container Freight Station to Port without the mandatory documents as provided for, in the Facility Circular 01/2012 dated 24.02.2012 issued by this Custom House. 14. Further in exercise of powers conferred under the Regulation 7 (2) of the Handling of Cargo in Customs Areas Regulations, 2009, in order to regulate the entry of export goods laden containers to the Chennai Port Trust, for efficient handling of such goods, the Chennai .Port Trust and the Terminal Operators, M/S CCTL and M/S CITPL are hereby directed to ensure that the export goods laden containers hauled by road and originating from ICDs and SEZs are not permitted inside the Chennai Port Trust premises, without the mandatory documents as provided for, in the Facility Circular 01/2012 dated 24.02.2012 issued by this Custom House. 15. if any Customs Cargo Service provider or the Custodian (CFS) fails to comply with the Para 8(iii) or Para 9 or Para 13 or Para 14 of this Notice, the action as deem fit as per Handling of Cargo in Customs Areas Regulations, 2009, shall be taken against them. 16. If there is any theft, loss, destruction or decay of export goods in the transit of export goods laden containers from Container Freight Station to the Port, the Customs Cargo Service provider or the Custodian (CFS) shall be liable to pay the duty leviable on such goods. Also if there is any switching or swapping or replacement of export goods in the transit of export goods laden containers from Container Freight Station to the Port or any act in the transit of export goods laden containers from Container Freight Station to the Port, which makes such goods liable for confiscation under Section 113 of the Customs Act 1962, the Customs Cargo Service provider or the Custodian (CFS), from where these goods are despatched to the Port, may be held responsible and Shall be subjected to penal actions as per law, in addition to others who are found to be involved in the said act. 17. This notice is not applicable to the export goods laden containers or goods exported through the Kamarajar Port (Ennore Port) and Kattupalli Minor Port (L T Port). 18. If any difficulty is foreseen or arises out of the implementation of this Notice, the same may be brought to the notice of the Commissioner of Customs (Export). 19. This Notice shall be effective from the date of issue. (MAYANK KUMAR) COMMISSION ROF CUSTOMS (EXPORTS)