TMI BlogPolicy of Guidelines for setting up of Inland Container Depots(ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)X X X X Extracts X X X X X X X X Extracts X X X X ..... uent guidelines issued by Department of Commerce (DoC) and Central Board of Indirect Taxes and Customs (CBIC) set the rules for establishment functioning of these facilities. The matters relating to setting up of ICDs/CFSs/AFSs were brought under CBIC in 2018. Accordingly, the Board had reconstituted the Inter-Ministerial Committee vide order issued under F.No.434/4/2018-Cus.IV dated 20.06.2018. 1.2 In the last two decades, both the cargo volumes and capacities of ICDs/CFSs have increased manifold. A few key initiatives transforming the manner of trade in recent years, such as implementation of the Authorized Economic Operator(AEO) programme, rising penetration of the Direct Port Delivery(DPD) and Direct Port Entry(DPE) initiatives, Self Sealing (RFID seals), Self-Assessment, Electronic Cargo Tracking System(ECTS) and RMS based facilitation have completely changed the operation of Export-Import logistics. The CBIC is also targeting higher DPD, DPE numbers with minimum but more effective Customs interventions aided by technological measures. 1.3. Similarly, physical infrastructure has undergone exponential improvements with the development of expressways, national highways c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bills and other declarations, assessment and all the activities related to clearance of goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export, transshipment, etc., take place. An ICD would have its own automated system with a separate station code (such as INTKD 6, INSNF 6 etc.) being allotted by Ministry of Commerce and with in-built capacity to enter examination reports and enable assessment of documents, processing of manifest, amendments, etc. 2.2. Container Freight Station 2.2.1. An off seaport (or port) facility having such fixed installations or otherwise, equipment, machinery etc., providing services for handling/ clearance of laden import, export containers for home use, warehousing, temporary admissions, re-export etc under customs control and with storage facility for customs bonded or non-bonded cargo. 2.2.2. Though by definition, both ICD and CFS are similar, a CFS is only a Customs area notified under section 8 of the Customs Act, 1962, located in the jurisdiction of a Commissioner of Customs exercising control over a specified Customs port, airports, LCS/ICD while an ICD is notified under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered space/shed where export cargo is received and import cargo is stored/ delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds. 2.4.4. Gate Complex: The Gate complex regulates the entry and exits of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken. 3. Functions and benefits of ICDs/CFSs/AFSs: 3.1. primary functions of ICD/CFS/AFS include receipt of dispatch/ delivery of cargo, stuffing and stripping of containers, transit operations by rail/road to and from serving ports; customs clearance, consolidation and desegregation of loose Container Load (LCL) cargo, temporary storage of cargo and containers, reworking of containers, and maintenance and repair of container units. 3.2. ICD/CFS/AFS, inter alia, offer the following benefits to the trade, namely, serving as concentration points for long distance cargo movement and tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or calculation of distance, the chargeable route by rail and shortest road (National Highway State Highway) from serving port shall be considered. 4.1.4. Distance between ICDs - No Greenfield ICD shall be permitted to be established within 100 km distance from existing ICD. Distance will be referred as chargeable railways route (both directions) between ICDs and shortest road distance (National Highway / State Highway, both directions) in case of road linked ICD. This rule shall be applicable across all Geographical Zones.. 4.1.5 Development in States with low Logistics Infrastructure To support infrastructure development in states with limited logistics infrastructure, priority should be given to identifying and promoting ICD/CFS/AFS facilities where presence of such facilities is limited. These are clustered in Green Zone as proposed above. IMC can give relaxation on Distance rules in Green Zone. 4.1.6 National Logistics Action Plan/Policy The approval and notification of all new ICD/CFS, including existing and new MMLPS will be processed in consonance with the national logistics action plan/policy. 4.1.7 Inland National Waterways Development of ICDs based on Inland N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EUs/consignments(Shipping Bill/Bill of Entry) per year(two way) for a CFS. However, no such threshold performance is prescribed for an AFS. 4.3. Land 4.3.1. The minimum area requirement is seven hectare for ICD having minimum area of four hectares as Customs Notified Area and minimum one hectare nominated for DPD DPE nominated space. For states in Green Zone, ICD with three hectares for customs notified area and one hectare for DPD DPE may be considered. The minimum area requirement shall be two hectare for a CFS. For AFS 100 Sq. meters of covered area each for imports and exports respectively shall be made available. 4.3.2. Ownership of Land- The applicant must have the legal rights over the land which is proposed for ICD/CFS construction. If the land not owned and the land is leased, the lease agreement with lessor must be for period of 30 years. Change of Land Use certificate, wherever required shall accompany the application and land should be free from acquisition proceeding at date of application. The land parcels should be contiguous with only exception for setting up non-bonded storage facility. 4.4. Other Criteria 4.4.1. Legal entity - The applicant must ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. On receipt of the proposal, the members of the IMC will furnish their comments within 30 days. 5.1.5. Proposals for setting up ICD/CFS/AFS will be considered on merits by the IMC. Normally, the IMC meetings will be held twice in a year. The committee may approve or refuse to grant approval for setting up of ICD/CFS/AFS. The recommendations of the jurisdictional Commissioner will be a relevant factor but not necessarily binding on the IMC. The IMC can independently decide about approval/rejection of any project based on the valid considerations. The applicant shall not make any investment before obtaining the approval from IMC. The in-principle approval from the jurisdictional Customs Commissioner regarding the feasibility of the proposed facility shall not be considered as final. Any investment made by the prospective developer before the approval of IMC shall be at the risk of developer and as a result would not constitute a relevant factor for approval of the facility. 5.1.6. On approval of a proposal, a Letter of Intent (LOI) will be issued to the applicant with conditions as may be considered necessary, which enable applicant to initiate steps to create infrastructur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utside existing District or involves change of port to which the CFS serves), it should be treated as closure of the existing facility and setting up of a new facility. 6. Post approval Obligations 6.1. Operationalising the facility 6.1.1. The applicant shall talke all necessary actions to operationalise the facility within the validity period of the LOl. The applicant must put up the required infrastructure and meet the regulatory requirements in compliance with applicable law to become functional. The Check list for various requirements is given at the Annexure-ll. 6.1.2. The applicant, after receipt of LOI, shall send monthly progress report to jurisdictional Commissioner of Customs in the proforma as may be prescribed by him. Failure to submit progress report would have an adverse effect in cases where extension is to be sought. Non-compliance to send reports shall be a valid ground for rejection of request for extension. 6.1.3. After development of infrastructure as per requirements, applicant shall apply to CBIC for notification of facility as ICD or AFS under Section 7(aa) of Customs Act, 1962 through the Jurisdictional Commissioner of Customs. 6.1.4. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e governed by the extant rules, policy and circulars in this regard. 6.2.4. No alteration of the plan of the ICD/CFS shall be made without the concurrence of the jurisdictional Commissioner of Customs. Further, no reduction in minimum prescribed physical area shall be allowed. 6.2.5. For Rail linked ICDs, investors will be required to provide at their own cost all infrastructure facilities including land, track, and maintenance of assets including track, rolling stock, etc. as per extant railway rules applicable to such sidings. The cost of the railway staff would be governed as per the prevailing Indian Railway policy. 6.2.6. The custodians should strictly follow any guidelines/directions issued in account of force-majeure of Government of India from time to time. 6.3. Record keeping handling, receipt and storage 6.3.1. For the proper discharge of duties, the custodian shall execute a Bond covering the value of the goods stored in the ICD/CFS with the Assistant/Deputy Commissioner of Customs. The custodian shall ensure that all goods held in the lCD/CFS are adequately covered as per extant circulars issued by the Board. 6.3.2. The custodian shall provide safe, se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-functional and approved count of ICDs on their websites, latest figures of volume handled, Infrastructure profiles, compliance with HCCAR 2009 rules to be maintained on month to month basis on the Commissionerate's web-portal. 7. Term, renewal and de-notification of the facility 7.1. The duration of the award for the operation of the facility shall be governed by HCCAR, 2009 unless otherwise mentioned in any other guidelines. The applicant shall get the award renewed by the jurisdictional Commissioner of Customs. 7.2. At the time of renewal, the jurisdictional Commissioner of Customs shall satisfy himself about the functioning of the facility including the minimum volume projected at the time of initial proposal. 7.3. The ICDs not meeting the minimum prescribed threshold performance for four consecutive financial years will be considered for de-notification by the Board based on the recommendation of the jurisdictional Commissioner of Customs. As regards CFSs, jurisdictional Commissioner can de-notify the facility if it failed to meet the prescribed minimum threshold performance for four consecutive financial years. In the case of AFSs, the Board may analyze the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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