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Treaty of Transit between Government of India and Government of Nepal – Procedure for movement of goods in transit through India between Visakhapatnam Port and Nepal - Regarding.

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..... r referred to as Protocol to the Treaty of Transit ), with reference to Article VI of the Treaty of Transit, specifies mutually agreed entry-exit points and specifies the routes of transit and procedure to be followed for transit goods to Nepal by Road/Rail. A Detailed procedure for Import/Export clearance for Road and Rail bound Cargo to/from Nepal is specified in the Memorandum to the Protocol of the Transit Treaty between India and Nepal (hereinafter referred to as Memorandum to the Protocol ). 3. Further, Government of India has agreed to provide additional transit facilities through the port of Visakhapatnam for movement of containerized cargo, based on the understanding reached between the Hon ble Prime Ministers of India and Nepal during the visit of Prime Minister of Nepal to India on 18-22 August 2009 and subsequent meeting of Inter Governmental Committee in Kathmandu on January 27, 2010. 4. In pursuance of the above, the Letter of Exchange was signed on 19.02.2016 between Ministry of Commerce, Government of India and Ministry of Commerce, Government of Nepal for operationalisation of Traffic-in Transit between Visakhapatnam Port and Nepal. Consequent upon this und .....

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..... -MuzaffarpurMotihari-Sugauli-Raxaul-Birgunj. (c) Bhairahawa : Road connecting Visakhapatnam-BhimunipatnamSrikakulam-Chatrapur-Cuttack-Deogarh-Gumla-Ranchi-HazaribaghBarhi-Aurangabad-Sasaram-Varanasi-Ghazipur-GorakhpurNautanwa(Sonauli)-Bhairahawa. (d) Nepalgunj : Road connecting Visakhapatnam-BhimunipatnamSrikakulam-Chatrapur-Cuttack-Deogarh-Gumla-Ranchi-HazaribaghBarhi-Aurangabad-Sasaram-Varanasi-Paunpur-Sultanpur-LucknowBaharaich-Nepalgunj Road-Nepalgunj. vi. Rail Route:- The operation of rail services between Visakhapatnam and Birgunj would be governed by the India- Nepal Rail Services Agreement, while transit of goods will be governed by the Treaty of Transit. The Letter of Exchange between India and Nepal shall constitute as addendum to the Clause II of the Protocol to the Treaty of Transit with reference to Article VI of Treaty of Transit between India and Nepal. A. IMPORT PROCEDURE When goods are Imported from third countries for Nepal in transit through India, the following procedure shall be observed:- 1. (a) Transit of Nepalese Imports, shall be allowed against Import Licences issued by the Government of Nepal, wherever such Licences are iss .....

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..... such Licence is issued, and a copy of the letter of credit, authenticated by the Jurisdictional Nepalese Consulate in India or the issuing Bank, shall be presented to the Custom House. The copy of the Import Licence and the Letter of Credit so presented shall be examined by the Custom House, Visakhapatnam against the copy of the Import Licence and/or the statement of particulars of the Letter of Credit received directly from the Government of Nepal. No other additional document may be asked for, except where considered necessary for clearance of specific goods. 4. In respect of containerized cargo, the following examination procedure shall be followed: (i) On arrival of the Nepalese containerized cargo, the Indian Customs officer posted at the seaport, shall check the One Time Seal (OTL) of the container put on by the shipping agent or the carrier authorised by the shipping company. If found intact, the Customs officer at the VCTPL/CFS shall affix an additional One Time Seal (OTL) in all Nepalese Traffic-in-Transit and the seal serial number will be endorsed in the Customs Transit declaration and the same will be verified at the Land Customs Station or at the Border railway .....

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..... nd the amount shall become payable to the Principal Commissioner in the event of the goods not reaching Nepal. (b) Goods moving by road in trucks belonging to Nepal Transit and Warehousing Company Ltd. or Nepal Transport Corporation shall be covered by an insurance policy or a bank guarantee, at the option of the Importer, for an amount equal to the Indian Customs duties (including anti dumping duty and safeguard duty wherever applicable) on such goods. This insurance policy or bank guarantee shall be assigned to the Principal Commissioner of Customs, Visakhapatnam, and the amount shall become payable to Principal Commissioner in the event of the goods not reaching Nepal. In addition, Nepal Transit and Warehousing Company Ltd. or Nepal Transport Corporation, as the case may be, shall give an undertaking to the Principal Commissioner of Customs, Visakhapatnam, to pay the difference between the market value of goods in India and the declared C.I.F. value plus Indian Customs duties (including anti dumping duty and safeguard duty wherever applicable) in the event of the goods not reaching Nepal. (c) Goods moving by road in trucks other than those mentioned at sub-paragraph (b) ab .....

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..... dorsed and authenticated, both by the border Land Customs Stations in India and Nepal, is received at the corresponding Indian border Land Customs Station within the prescribed period, it will be accepted as an evidence that goods have reached Nepal. 4. The expression Indian Customs duties wherever it appears in the Treaty, Protocol and Memorandum shall mean such duties as are levied on Import of goods into India. 7. For goods other than those specified as sensitive by the Government of India in terms of paragraph 6 above, the Importer shall furnish, to the satisfaction of the Principal Commissioner of Customs, Visakhapatnam, a legally binding undertaking (as prescribed in Annexure B) that the amount equal to the difference between the market value of the goods in India and the declared C.I.F value shall be paid, on demand, to the Principal Commissioner of Customs, Visakhapatnam, in the event of the goods not reaching Nepal. Further they have to submit a letter of authority (as prescribed in Annexure C), Income Tax registration certificate and Registration Certificate issued by the Department of Commerce, Government of Nepal. Market value is being ascertained at a flat rate .....

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..... r authorised by the shipping company and the Customs authorities at the sea port or during the transit and, if found intact, shall approve for onward transmission of the containerised cargo, without examination of the cargo unless there are valid reasons to do otherwise. (ii) In case where the One Time Seals (OTL) of the container is found broken or defective, the Indian Customs authorities posted at the Land Customs Station or the railway station, as the case may be, shall make due verification of the goods to check whether the goods are in accordance with Customs Transit Declaration and conform to the Import Licence, wherever such Licence is issued, and the letter of credit. (iii) If, on verification, the goods are found in accordance with the Customs Transit Declaration and conform to the Import Licence, wherever such Licence is issued, and the letter of credit, the Indian Customs authorities posted at the border land customs station or the railway station shall put fresh One Time Seal (OTL) and approve for onward transmission of the container. The serial number of the new One Time Seal (OTL) shall be endorsed by the Indian customs authorities posted at the border Land Cus .....

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..... office of that the Indian Customs office of exit, the Indian Customs officer will, by telephonic/e-mail or other quick means of communication with the Customs office of entry, seek confirmation to ensure against delay and then on the basis of aforesaid confirmation allow dispatch of goods. c) Procedure at Land Customs Station(Nepal) 15. The Nepalese Customs officer shall: (i) endorse a certificate over his signature and authenticate it under Customs stamps on the original copy of the Nepalese Import Licence, if any, letter of credit and the original and the triplicate copy of the Customs Transit Declaration that the packages correspond in all material respects with the particulars shown in the Declaration and in all material respects with the Nepalese Import Licence and the letter of credit, wherever required or opened, as the case may be, and that the goods have been cleared from the Nepalese Customs custody for entry into Nepal. (ii) hand over, under acknowledgement, duly endorsed and authenticated original copy of the Customs Transit Declaration to the Importer, who will present it to the corresponding Indian border Land Customs Station under acknowledgement within .....

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..... be observed: a) Procedure at Land Customs Station(Nepal) 1. The designated officer in charge of the Nepalese Customs office at the border shall furnish the following certificate on the Customs Transit Declaration; I have verified that the goods specified in this Declaration and of the quantity and value specified herein have been permitted to be exported under Licence number .. dated (wherever issued) and under letter of credit number dated issued by .. (Name and address of the issuing bank) Signature with Seal Note: The requirement of giving particulars of letter of credit in the above certificate will not apply in the case of goods for the export of which from Nepal, no letter of credit is required under the laws of Nepal. b) Procedure at Land Customs Station(India) 2. The exporter or his agent (hereinafter referred to as the exporter) shall present to the Indian Customs officer at the border Land Customs Station (LCS) through which the goods are to enter India, a Customs Transit Declaration containing the following particulars : (a) Name and address of the exporter; (b) Number, description, marks and serial n .....

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..... e goods are in accordance with the Customs Transit Declaration; (ii) the goods are such as have been specified as sensitive by the Government of India from time to time with prior intimation to Government of Nepal; and (iii) they are of origin as declared in the Customs Transit Declaration; 5. The goods, as specified as sensitive (Annexure A) by the Government of India from time to time with prior intimation to Government of Nepal, shall be transported from the Indian Customs border post to Visakhapatnam port in closed containers (to be provided by the exporter) which can be securely locked. The containers shall be locked and duly sealed after the examination by the border Customs officer. 6. After the Indian Customs authorities at the border Land Customs Station are satisfied as regards the checks contemplated in the preceding paragraphs, it shall endorse all the copies of the Customs Transit Declaration. The original copy shall be handed over to the exporter. The duplicate and triplicate will be sent by post to the Principal Commissioner of Customs, Visakhapatnam and the quadruplicate copy shall be retained. In order to avoid delay in postal transmission, duplicate an .....

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..... stoms Station and the amount shall become payable to the concerned Commissioner in the event of the goods not reaching Visakhapatnam Customs. (d) The insurance policy shall be obtained by the exporter from an insurance company authorised to do business in India on such terms and conditions, to the satisfaction of the concerned Commissioner of Customs, which will guarantee that the insured amount shall become payable forthwith to the concerned Commissioner on receipt of a notice to the insurance company from the concerned Commissioner of Customs, after satisfying himself that the goods have not reached Visakhapatnam Customs. NOTE: 1. In respect of goods belonging to and consigned by Government of Nepal under sub-paragraph (a) and (b) above, no insurance or bank guarantee shall be required, provided an undertaking or a further undertaking, as the case may be, is given by Nepal Transit and Warehousing Company Ltd. or Nepal Transport Corporation in lieu thereof. 2. In the event of goods carried by rail not reaching the booked destination, Indian Railways shall, where liable as carriers under the Indian Railways Act, pay the C.I.F. price to the exporter. 3. When the Cus .....

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..... dia from time to time with prior intimation to the Government of Nepal, ensure that these are duly shipped. After the goods have been shipped, the Customs House shall endorse all the copies of the Customs Transit Declaration, hand over the original to the exporter and send the triplicate copy to the Indian border Land Customs Station and retain the duplicate. d) Flow of Communication 12. The Custom officer at the concerned border Land Customs Station shall send fax/e-mail communication on a daily basis to the Principal Commissioner of Customs, Visakhapatnam, giving details of the export goods dispatched vide Customs Transit Declaration. The fax/e-mail message will be followed by a post copy in confirmation. The Custom House, Visakhapatnam will also forward the list of exported goods received vide CTDs and shipped from Visakhapatnam, through fax/email to the concerned Land Customs Station. The flow of communication (Fax/e-mail) with regard to Exports is as follows: a) Immediately after dispatch of the goods on transshipment to Visakhapatnam Land Customs Station(Nepal) ------Custom House Visakhapatnam b) Immediately after receipt of the goods at LCS (India)for tra .....

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..... o be paid to the President for which payment well and truly to be made. I/We bind myself/ourselves, my/our successors, heirs, executives, administrators and legal representatives firmly by these presents. Sealed with my/our seals this ..day .. of ..20 WHEREAS The Principal Commissioner of Customs, Custom House, Visakhapatnam(hereinafter called the proper officer )has agreed to allow transit of the goods in terms of para 9A of the Import Procedure of the Memorandum to the Protocol to the Treaty of Transit between Nepal and India-1999(hereinafter referred to as Treaty). CTD No. and Date Importers Name and Address. Vessel name/Rot. No./Line No. Description of the goods and quantity, CIF value and M.V.. Amount payable in terms of para 9A of the Treaty as above, (MV-C.I.F.) NOW THE CONDITION of the above written undertaking in such that:- 1). The Importer shall pay the amount equal to the difference between the market value of the goods in India and their CIF value on demand to the Principal Commissioner of Customs, Visakhapatnam in the event of the goods not reaching Nepal, in terms of para 9A and 9B of Import of the said treaty. .....

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..... Custom House, Port Area, Visakhapatnam-530 035. Wheras the President of India acting through the Assistant Commissioner of Customs for Custom House, Port Area,Visakhapatnam-530 035, Ministry of Finance, Department of Revenue, Government of India(hereinafter referred to as the Govt.) has agreed to allow transit of goods described in the schedule below Imported by M/s .(Full expended name of the Importer with complete address) hereinafter referred to as Importer in terms of para 9 of the Import Procedure under the Memorandum to the Protocol to the Treaty between Nepal and India dated 06.01.1999. SCHEDULE 1. C.T.D. Sl. No. Date 2. Name of the vessel 3. (a) Rot. No. (b) Line No. 4. Description of the goods. 5. Quantity. 6. C.I.F. value of the goods/market value of the goods. 7. Amount payable, (MV-C.I.F.) 1. We (indicate the name and full address of the bank) (hereinafter referred to as the Bank) at the request of the Importer do hereby unconditionally and irrevocably undertake to pay Government an amount not exceeding Rs ..(in figures)(Rupees ..0nly) in the event of the goods not reaching Nepal in .....

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