TMI BlogTransshipment of CargoX X X X Extracts X X X X X X X X Extracts X X X X ..... o another port/airport/ICD/CFS either by vessel, air, rail or road or by combination of more than one such mode of transport. 1.3 The procedure for transshipment provided in Section 54 of the Customs Act, 1962 is applicable for imported cargo only. The imported cargo unloaded at a port is allowed to be transshipped to another port/ICD/CFS or a port abroad, if the cargo is mentioned in the import manifest for such transshipment. In regard to export cargo cleared from a port/ACC or ICD/CFS and exported through some gateway port/airport, a similar procedure is being followed to allow carriage of Customs cleared export cargo from port/airport/ICD/CFSs to another port/airport. 2. Transshipment of imported containerized cargo from gateway port to another port/ICD/CFS in India: 2.1 The transshipment procedure of imported cargo is governed by Section 54 of the Customs Act, 1962 read with Goods Imported (Conditions of Transshipment) Regulations, 1995 as well as relevant Board's circulars and instructions. 2.2 Transshipment Permit is the permission granted by the Customs, at the port/airport of unloading of imported goods, to shipping agents for carriage of goods to another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se may be, the market price of the imported goods is forfeited. 2.5 The bond value should be equal to the value of the goods. However, considering the difficulties of shipping agents in producing documents for determination of value of the goods sought to be transshipped, the bond value is determined on the basis of notional value of the goods, which is an average value of cargo per container transshipped in the past. 2.6 To avoid multiplicity of bonds, the carriers are allowed to execute a running mother bond instead of individual bonds. The value of mother bond can be arrived on the basis of the average number of containers carried per trip, the average time taken for submission of proof of safe landing of containers at the destination ICDs/CFSs, frequency of such transshipment as well as notional value of cargo per container. As mother bond is a running bond, its amount may be high. If a running bank guarantee @ 15% of total bond amount is taken, it may block huge sum of money. To avoid blockage of money of carriers, an option has been given to furnish either a running bank guarantee or individual bank guarantee for each transshipment, the latter being released as soon as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stic containerised cargo, some safeguards have been prescribed. All the transshipment containers as well as domestic containers are required to be sealed by 'one time bottle seal' at the port of loading. The domestic containers are required to be suitably painted with bold letters 'For Coastal Carriage only' for their identification. Carriers are also required to file a manifest for domestic containers. 2.12 At the destination, carrier is required to present the sealed cover containing a copy of transshipment permit to Customs. The Customs checks the particular of containers, seals etc. with reference to transshipment permit. The carrier is required to obtain a certificate regarding landing of container from the Customs. 2.13 In case, the seals are found to be broken at the time of examination of containers by the Customs, a survey of contents of the containers is conducted in presence of Customs officer, carrier, importer or his representative and representative of insurance company. Shortage if any, noticed is recorded and is signed by all those present. The carriers are required to pay the duty for pilferage in terms of the condition of bond executed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom gateway port to a foreign port: 4.1 For transshipment of containers from a port in India to a foreign port abroad, shipping agents have to file transshipment application along with relevant documents to Customs for grant of permission to transship the cargo, which is the transshipment permit. In such cases, execution of bond or bank guarantee is not required. After issuance of transshipment permit, goods are allowed to be loaded on to the ship under the Customs supervision. The Preventive Officer supervising the loading is to acknowledge loading of such cargo. The record is reconciled on the basis of endorsement of the Preventive Officer and copy of EGM showing details of such transshipment. Transshipment facility for imported goods in Less than Full Container Load (LCL) is allowed at identified Custom Houses. 4.2 The procedure for international transshipment of LCL containers is as under: (i) The application for international transshipment of FCL cargo can be made by master of the vessel or his authorized agent, Non-Vessel Operating Common Carrier (NVOCC) or any person duly authorized by the foreign supplier. (ii) No goods for international transshipment shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... home consumption or transshipment to ICDs. This would necessitate segregation of the two types of cargo at the time of de-stuffing and moving them to respective storage areas under Customs escort. Till such time, sufficient precaution should be taken to avoid duplication / mixing up or manipulation of cargo meant for transshipment / home consumption. (vii) Whenever the LCL cargo are required to be exported to foreign destination, The re-stuffing of such LCL cargo meant for the foreign port along with the export cargo and its sealing would be done under the supervision of a Customs officer. (viii) The details of LCL cargo would be entered in Export General Manifest (EGM). (ix) Custodian would maintain the record of ITP LCL cargo, both loaded and unloaded, and submit a monthly summary to Customs. He shall execute a general bond for an amount equal to the approximate value of goods expected to be imported in 30 days for the purpose of international transshipment. In such bond, custodian should undertake to export transshipment cargo within 30 days or within extended period as Commissioner may allow and follow all the relevant Acts, Rules and Regulations in force. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2007-Cus, dated 16-3-2007] 5. Transshipment from gateway port to SEZ: 5.1 The procedure for transhipment of cargo from gateway port to SEZs is laid down under Special Economic Zones Rules, 2006. Broadly, the procedure is the fifth copy of the registered or assessed Bill of Entry filed by an importer in SEZ will be submitted to Customs officer at the port of import, and is itself treated as permission for transfer of goods to SEZ. No separate documents or transshipment bond is required to be filed, and the transshipment permission is stamped on the fifth copy of the Bill of Entry. The SEZ importer shall submit fifth copy of Bill of Entry bearing endorsement of the authorized officer that the goods have been received in SEZ to the Customs Officer in charge of the airport or port or inland container depot or land Customs station or post office or public or private bonded warehouse, as the case may be, failing which the officer in charge of such airport or port or inland container depot or land Customs station or post office or public or private bonded warehouse, as the case may be, shall write to the Specified Officer for raising demand of applicable duty from the SEZ import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he carrier in his office or in the custom house. 7.4 The transshipment permit transmitted to the recipient port/ ICD/ CFS is automatically converted into an IGM and the Shipping Lines is not be required to file any fresh IGM in respect of such containers. 7.5 The transporter performing the transshipment activity will be required to electronically submit a container arrival report to the ICES system at the destination ICD/ CFS in a specified format. The container arrival report will be matched with transshipment message received from the Gateway Port and a 'landing certificate' message will be generated by the inland port/ICD/CFS which will be transmitted to the Gateway port for closure of IGM Lines. [Refer Circular No.46/2005-Cus, dated 24-11-2005] 8. Movement of export cargo from port/ICD/CFS to gateway port: 8.1 The export cargo, after its clearance at a port/ICD/CFS, may be carried in sealed containers to the gateway port for export. Broadly, the procedure in this regard is as follows: (a) The exporters are required to bring their goods meant for exports to the Port/ICD/ CFS and file six copies of Shipping Bill with all necessary documents like GR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the export of container, endorses the fact of shipment in both the transference copies of the Shipping Bill. Steamer agent has to file EGM in duplicate. (g) One copy of transference Shipping Bill along with a copy of EGM is sent back to the originating port/ICD/CFS. (h) At the originating port/ICD/CFS, export manifest and transference copy of Shipping Bill, received from the gateway port, are co-related with the duplicate copy of the Shipping Bill and other relevant documents for closure of export manifest and cancellation of bond. 9. Movement of export cargo from one port to another by rail: 9.1 Movement of export cargo after its clearance at the originating port is allowed by rail to another port for export therefrom. The procedure for such movement and the documentation will be similar to that being followed for movement of export cargo from the ICDs/CFSs to gateway ports. Thus, all the documentation relating to Customs clearance of export goods and examination etc. will take place at the originating port. After clearance, cargo will be stuffed and sealed in containers in the presence of Customs. The drawback and other import incentives are to be paid/cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the movement of the containers into Nepal/Bangladesh, as the case may be. Inspected and seals found intact, Seal Nos. found to tally with the Shipping Bill and ARE- 1 form . (d) In case the Customs seal on the container is found broken or tampered with or some discrepancy found in the seal nos, the matter shall be brought to the notice of the Deputy/Assistant Commissioner of Customs and such container shall be subjected to 100% examination. If any deviation from the Shipping Bill or invoice is detected during examination, adjudication proceedings may be initiated. (e) In case the Customs seal on the container is found intact as per documents and the documents are in order, the Proper Officer at the LCS shall endorse the transference copies of Shipping Bill with Export Allowed . He may also make an endorsement to the effect that the container has been duly identified by him and has crossed the border into Nepal/Bangladesh on both the copies of Shipping Bill and AR form at the time of actual export. One copy of the Shipping Bill may be retained at the LCS and the other transference copy shall be returned to ICD/ CFS from which the container had originated. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CTMs may be prepared destination-wise. Such transshipment should be approved by the Proper Officer. (iii) The cargo mentioned in the CTM needs to be escorted by the Preventive Officer from the warehouse of the custodian to the warehouse of receiving airlines which acknowledges the same. The concerned airlines/custodian warehouse should have double locking arrangement, one key of which will be with the airlines/ custodian and the other with Customs, for storage of transshipment cargo. No physical examination needs to be conducted, except on specific intelligence, for allowing transshipment and only marks and numbers of cargo need to be verified. (iv) The receiving airlines should prepare its cargo manifest and transshipment be allowed under Customs supervision. The value of transshipped cargo should be debited from the Transshipment Bond. (v) Customs at destination airport will acknowledge the receipt of the cargo and send back the acknowledgement manifest through the carrier. The carrier should produce such acknowledgement at the originating airport within 10 days of transshipment. On the basis of such acknowledgement the Transshipment Bond would be re-credited. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t signed by the EFO and Airway Bill alongwith copy of Shipping Bill should be sent by the airlines to the originating station within 30 days of transshipment. Transshipment Bond shall be re-credited at originating airport. (vii) In case the transshipment is by bonded truck, the marks and numbers of the packages shall be verified with the details in the transshipment permission and the bonded truck sealed with bottle seal in the presence of the Preventive Officer. (viii) If transshipment of cargo is also desired at some intermediate Customs airport, carrier/ airlines should give advance intimation to intermediary airport. Customs at intermediary airport would supervise the movement of cargo and endorse the same on Transshipment Permit. The concerned airlines/custodian warehouse should have double locking arrangement, one key of which will be with the Airlines / custodian and the other with Customs, for storage of transhipment cargo. The loading of such cargo again would be under the supervision of Customs Officer. 11.5 If the cargo transhipped under the provisions of the Customs Act, 1962 is not unloaded at the place of destination in India, or if the quantity unloaded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransshipment. In respect of consol cargo where the Master Airway Bill does not show the final destination, the airlines filing transshipment application should keep a copy of both Master Airway Bill and House Airway Bill to indicate that the particular consignment sought for transshipment is for an inland Customs airport/ICD/CFS/ACC. (iv) For proper accountal of cargo the custodian should execute a suitable running bond with a bank guarantee for an amount approved by Commissioner of Customs concerned. The amount will be debited from this bond when the transshipment cargo is taken by the custodian and it will be credited when the proof of handing over of the cargo to Customs at final destination is produced. The custodian will be responsible for any shortage or pilferage of the cargo. (v) The custodian will submit a list of trucks together will registration numbers to be used for movement of each transshipment cargo. The trucks so deployed for transport should be specially secured to avoid pilferage of cargo and have provision of affixing of Customs Bottle Seals . (vi) The airlines/custodian should have a transshipment warehouse within the Airport Apron area so that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the container/truck with Customs Bottle Seal and under his name and signature endorse all T.P. copies as : Supervised the loading of .....................No. of packages on container / truck No destined to.................................... airport/ACC/CFS/ICD and sealed with Customs Bottle Seal No ....................... on ............................ (date) covered by Transshipment Permit No ...................... (xi) Original copy of T.P. application will be forwarded to the Import Freight Officer (IFO) of Customs at the airport/ACC/CFS of destination. Duplicate copy will be retained by T.P. Officer. Triplicate copy of T.P. application will be handed over to the airlines/custodian. The Quadruplicate copy will remain with the Customs Officer posted in the airlines/custodian warehouse and supervising the loading of cargo. The Quintuplicate copy will be sent in sealed cover alongwith the truck/container to IFO of Customs at the airport/ACC/CFS/ICD of destination who will retain it after verification of cargo. (xii) The IFO of Customs at the airport/ACC/CFS/ICD of destination will check the Customs Bottle Seal and description of packages as per T.P. copy and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eparate space shall be assigned by the airlines or custodian in the cargo complex/ area of the airport for receipt and storage of domestic cargo till these are delivered or dispatched. (ii) Domestic cargo will be received by the airlines in the designated area during the normal working hours of Customs at the respective airport. (iii) The containers/Unit Load Devices (ULDs) used to carry the domestic or international cargo shall be clearly marked or coloured or strapped, for identification, distinction at the time of loading/ unloading, transportation. (iv) Domestic tags shall be prepared for identification of the domestic cargo with separate colour coding. (v) Loading or unloading of domestic cargo in any international flight/ aircraft shall be carried under the supervision of Customs officers. (vi) Domestic and international cargo will be loaded separately, and shall be carried in hold area onboard the aircraft distinctly identifying these cargoes. (vii) On arrival of the domestic cargo, at the destination airport, the airlines shall make necessary arrangements to deliver the domestic cargo. (viii) In respect of transhipment of international car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the disembarking airport, for carrying out the checks and verifications, if so required. (vii) If the courier consignment is accompanied by on board courier , they will not be allowed to carry any courier bags on board the aircraft as hand baggage. 15. Movement of imported goods from a port direct to CFS of another Customs station: 15.1 In the interest of reducing transaction cost and dwell time Board has decided that suitable changes in ICES may be carried out to allow direct movement of imported goods from a gateway port to a CFS of another Customs station directly. This was necessitated since the ICES module at present does not allow generation of Sub Manifest Transhipment Permit (SMTP) to allow such movement of imported goods. Till such time the electronic system is made operational the following procedure has been prescribed for direct movement of imported goods from gateway port to a CFS: (i) At the Gateway Port, Customs shall prepare a consolidated list of all SMTP generated CFS-wise for consignments bound for another Customs station/ ICD. This list should be transmitted electronically by the gateway port to the receiving Customs station /ICD. (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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