Circular No.55/2000-Cus Dated 30-06-2000

Subject - Cargo - Consolidation of cargo at gateway port - Procedure

A number of representatives has been received from trade and industry for allowing consolidation / reworking of LCL cargo at gateway ports or at CFSs near gateway ports, for further despatch to the destination ports. The proposal is to create HUBs near gateway ports where the LCL cargo brought from various ICDs/CFSs will be reworked and thereafter sent to various destinations directly. It has been stated that at present, the LCL cargoes accepted by the shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators etc.at hinterland ICDs/CFSs are reworked at transshipment hubs etc. Singapore, Dubai etc., which adds to the overall costs, thus making Indian exports uncompetitive in international market. Creation of similar facilities in India would therefore help promote our exports. Major advantages to the country are stated to be savings a foreign exchange due to substantial reduction in freight charges incurred by shipper, better handling and safer delivery of cargo as the activity takes place under the supervision of Indian agencies, additional traffic generated at gateway ports in terms of TEUs and reduction of transit time.

2. Presently, as per Circular No. 57/98-Cus., dated 4-8-1998 [refer 1998 (102) E.L.T.T40] movement of LCL export cargo from inland ICDs/CFSs to gateway port is permitted by bonded trucks. Such LCL cargoes are permitted to be further consolidated at gateway ports. But there is no system whereby LCL cargo can be congregated / consolidated at inland ICDs/CFSs and carried to the HUB point for re-packing (carrier-wise) into separate containers as cargo. At present, containers once cleared and sealed at inland ICDs/CFSs are not allowed to be reopened and reworked at gateway ports. Due to non-availability of this facility, exporters incur extra expenditure in exporting their LCL cargo. Ministry of Commerce has strongly recommended the proposal of trade and has stated that consolidation of LCL cargo at ICDs/CFSs/Ports would help promote the growth of containerization from the hinterland and would also make the transportation cost effective to smaller players engaged in foreign trade. Further, it will be an important step in upgrading our infrastructure abilities.

3. The matter has been examined by the Board and it has been decided to allow the facility of congregation / assimilation of LCL cargo at the inland ICDs/CFSs, movement of this cargo from ICDs/CFSs to Hub points for further reworking and exports to destination ports. The procedure to be followed in this regard shall be as follows :

1. The custodians of ICDs/CFSs would permit shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators to accept LCL cargo from the exporters and allot nominated space at their ICDs/CFSs for storage, examination and consolidation of such cargo.
   
   
2. The exporter shall be given a choice of indicating the shipping line to be used for shipment of his consignment or leave it to the custodian. The custodian shall nominate the shipping line destination-wise where such choice has been left to the custodian.
   
   
3. The consignment of one shipping bill should not be allowed to be moved in part.
   
   
4. After examination and clearance of LCL cargo, the packages opened for customs examination shall be sealed by Customs. the shipping line will use identification mark in each package clearly indicating serial number of package, description of the goods and the total number of packages covered under that particular shipping bill, exporters identity and their own codified identity. As far as possible all the shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators will use such identification marks in different colours, so that these can be easily identified.
   
   
5. After completion of Customs formalities, the packages would be handed over by the Customs to the custodian along with two transference copies of Shipping Bill, certified copy of invoice, packing list and other documents in sealed cover. The concerned shipping line will issue the Bill of Lading, a copy of which will be handed over to the custodian.
   
   
6. The custodian would consolidate the cargo irrespective of the shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators and transport the same in their containers, which will be stuffed and sealed in the presence of Customs. The container movement will be organised by the custodians either by rail and / or road depending on the availability of services. custodian shall be allowed to use containers owned by them as well as containers taken by them on lease basis for carriage of LCL cargo from ICDs to gateway hubs.
   
   
7. At the gateway port, or some CFS near gateway port, both the transference copies of shipping Bill would be presented by the Custodian's representative to the proper officer of Customs who would verify the genuineness of documents and check the marks and numbers of individual packages. The customs officer would inspect the packages and endorse the transference copies of Shipping Bill and AR4 in the following manner, "inspected and found in order". The custodian would hand over the cargo to respective shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators /steamer agents. Such packages received from inland ICDs/CFSs would be stuffed in containers by shipping lines/their Agents/MTOs/NVOCCS/frightforwarders/consolidators in the presence of Customs.
   
   
8. The custodian of the gateway port of CFS near gateway port would maintain a tally sheet container wise, giving details of the export consignments, the previous Container No. Shipping Bill No. AR-4 No. and the details of new container in which goods have been restuffed. After the reworking/restuffing of the containers, tally sheet should be signed by the representatives of the custodian of the CFS and shipping line as well as by the supervising Customs Officers.
   
   
9. After signing the tally sheet the Customs officer would indicate the container number in which such cargoes are stuffed on both the transference copies of shipping bill and AR-4, and retain one copy of such shipping bill. The other transference copy would be returned to ICDs/CFSs from which the container originated.
   
   
10. Custodians may, thereafter, use the same containers to bring back LCL imports to various ICDs/CFSs. As regards consolidation of imported LCL cargo at the gateway port (or a CFS near gateway port) and subsequent transhipment to inland ICDs/CFSs, following procedure shall be followed.
    
    
    1. On arrival of the LCL (Imports) cargo (meant for ICDs/CFSs) at the Gateway Port the concerned shipping line shall file the I.G.M. with the Customs as the vogue;
       
       
    2. The de-stuffing and consolidation of the LCL (Import) cargo ICD/CFS wise will be done at the earmarked space under supervision of the Customs and surveyors of the custodians;
       
       
    3. After consolidation of LCL cargo (ICD/CFS wise), the custodian at the Gateway Port will prepare a tally list showing details of the import consignments, the previous container number, IGM No. and the details of the new container and the shipping line will file sub-IGMs for all LCL (Import) cargo IGM wise. Wherever the packages/goods are found to be damaged during de-stuffing, storing and consolidating a suitable remark to this effect should be recorded on the tally list, which then should be signed by the Customs, Surveyor, Custodian and the shipping line;
       
       
    4. After acceptance of sub-IGM by the Customs, the LCL (Import) cargo ICD/CFS wise will be re-stuffed in empty containers in the presence of custodian at the Gateway Port and the shipping line. The containers so, re-stuffed will be sealed by the custodian as per procedure in vogue. The sub-IGM should mention the details of the new bottle seal and should also be accompanied with the Surveyor’s report;
       
       
    5. For transshipment of re-stuffed LCL (Import) cargo in new containers for different destinations, the concerned shipping line shall follow procedure in vogue in terms of the Goods Imported (Conditions of Transhipment) Regulations, 1995. After completion of Customs formalities and clearance of LCL (Import) cargo at the respective ICDs/CFSs, a copy of the sub-IGM will be sent back to the Customs authorities at the Gateway Port for confirmation/closure of IGM.”
    
    (The above para (x) has been substituted vide Cir No.22/2001 Cus dated 17/04/2001)
    
    [(old)
    (x)Custodians would, thereafter, use the same containers to bring back LCL imports to various ICDs and make arrangements to deliver these consignments to the consignees.]
    
    
11. As earlier, the drawback would be paid at the inland ICDs/CFSs immediately after the clearance of LCL cargo by Customs at inland ICDs/CFSs without waiting for actual shipment of cargo from the gateway port.
    
    
12. The LCL cargoes cleared by Customs at inland ICDs/CFSs under the scheme would not be subject to examination by Customs at the gateway port or at the CFS where LCL cargoes are allowed to be consolidated, unless the seals are found tampered with or there is specific intelligence, the orders from Assistant Commissioner / Deputy Commissioner giving the reason may be obtained before examining the said consignment.

(In this Circular the words "shipping lines has been substituted vide Cir No.67/2000 dated 17/08/2000)

"(xii) The LCL cargo cleared at gateway port or some CFS near gateway port shall be allowed to be stuffed in the containers in which the cargo received from the inland ICDs/CFSs are re-stuffed. The LCL cargo after examination and let export order by customs at gateway port or some CFS near gateway port shall move from the shed to LCL hub area under the cover of shipping bills. The custodian shal;l maintain details of such locally cleared LCLs cargo in the same manner as contained in clause (vii) above for goods received from inland ICDs/CFSs except to the extent that instead of 'ICD of origin' and 'old container number' the' name of local CFS or shed no.' and "Local cargo"respectively shall be indicated '

(The above clause has been inserted vide cir No.67/2000 dated 17/08/2000)

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