PUBLIC NOTICE NO. 85/2000, Dt. 16/08/2000

Sub.:- Procedure of transshipment of import and export cargo from/through Gateway Ports-reg.

Ref.:- Board’s Circular No. 34/200-Cus. Issued from F.No. 450/54/99-Cus.IV dated 3rd May r/w Circular No. 47/200 Cus dtd. 19-05-2000 issued by the same file of C.B.E.C.

Attention of the importers, exporters, Custom House Agents and the trade is invited to this Custom House Public Notice No. 86/99 dtd. 03-08-99 under which procedure for transshipment of containerised imported gods from J.N. Port/NSICT to another port and foreign port, etc. was prescribed. Now it has been brought to the notice that 90% of Indian cargoes are being transshipped over foreign ports, i.e. Dubai, Singapore and Colombo as transshipment through these ports is cheaper than Indian ports. Such transshipment through foreign ports result in outgo of foreign exchange. To promote transshipment of cargoes through India ports through coastal vessels, following procedure shall be followed.

i. Carriage of domestic containers alongwith transshipment containers for import/export on containers shall be allowed on coastal vessels. However, to check the possibility/replacement of transshipment goods, all the transshipment containers as well as domestic containers should be sealed by on tome bottle seal at the port o loading. To distinguish the domestic containers from transshipment containers, carriers should be asked to suitably paint the domestic containers with bold letter "FOR COASTAL CARRIAGE ONLY". Further, carriers shall file two manifests, one the import/export general manifest for the transshipment containers and other for domestic containers.

ii. Considering that in case of exports, drawback is paid at the port of origin without waiting for proof of exports from the gateway port, the requirement of Bond with sufficient security can not be dispensed with. The Bond alongwith security is therefore, required to be taken from he carriers. However, to avoid multiplicity of bonds, carriers may execute Mother Bonds instead of individual bonds. Such bonds will be accepted and maintained by the Commr. Of Customs at the port of origin and these will be like running transshipment of import/export containers at the port of origin and these will be credited on receipt of proof of safe landing of the containers at the port of destination. The value of Mother Bond can be arrived on the basis of the average number of containers carried in the vessels, time taken for submission of proof of safe landing of containers at the destination ports, frequency of such transshipment of as well as the average value for containers.

iii. The difficulties as expressed by Trade regarding blockage of huge sum of money towards security furnished to Customs have been considered and it has been decided that the bank guarantee furnished as security would be released as soon as proof of safe landing of containers at destination port is submitted by the carriers. Although, the bond taken from the carriers will be of the nature of running bond, the bank guarantee furnished towards security will be taken for each trip of vessels and released after receipt of safe landing of containers carried in that trip as destination port. Therefore, it can be said that the bond will be of the nature of running bond, but security can be furnished for each trip of vessel separately. The amount of the security would be 25 percent of the bond value. As the carriers have been given option to furnish security for each trip of vessel separately, the amount of security would be 25 percent of average value of cargo being carried in that particular trip of the vessel (inserted by Circular No. 47/2000 Cus. Dated 19-05-2000 of CENTRAL BOARD OF EXCISE & CUSTOMS, F.No. 450/54/99 Cus.IV).

This will reduce the burden on carriers and at the same time revenue will be safeguarded.

iv. The facility of Mother Bond as mentioned in para (ii) above shall be optioned the carriers shall be free to executive bonds and security for each trip as per existing practice or executive Mother Bond as mentioned above.

v. Difficulties, if any, in implementation of the abovesaid procedures may be brought to the notice of undersigned.

SD/-(16-08-2000)
(DR. G.K. PILLAI)
COMMISSIONER OF CUTOMS(G)
MUMBAI

ISSUED FROM FRILE NO.
S/43-144/2000 P.
DATED 16TH AUGUST, 2000.

ATTESTED
SD/-
(V.K. VERMA)
DY. COMMISSIONER OF CUSTOMS PREVENTIVE(G)

Copy to:-

1. The Chief Commissioner of Customs, Mmabi.
2. All Commissioners of Customs, Mumbai/JNPT/ACC/Airport.
3. All Addl. Commissioner of Customs, Mumbai.
4. All Joint Commissioners of Customs, Mumbai.
5. All Dy./Asstt. Commissioners of Customs, Mumbai.

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