OFFICE OF THE COMMISSIONER OF CUSTOMS IMPORT
NEW CUSTOMS HOUSE, BALLARD ESTATE, MUMBAI: 400 038

P.N.NO. 58 /2001

Date: 08.05.2001

IMP SUPPLY NO.10/2001
EXP SUPPLY NO.10/2001
DT.14/5/2001


PUBLIC NOTICE NO 58/2001

Sub: Movement of containerised Cargo to ICDs/CFS from Gateway ports-reg.

Attention of the importers, Steamers Agents, Custom House Agents and all other concerned is invited to the Customs House P.N .No.93/99 dated 17.08.99 laying down a modified procedure for issuance of Transshipment permit, whereby Steamer Agent were required to submit invoice of each consignment in the Sub-manifest for the purpose of working out the value and duty liability of the Transhipment Cargo, Against the said Public Notice a number of references I representations were received from the trade as well as the Ministry of Commerce. Considering these representations, the implementation of the said P.N. was kept in abeyance vide P.N.Nos. 99/99 dated 17.08.99, 100/99 dated 15.05.99, 112/99 dated 20.10.99, 121/99 dated 08.11.99, 130/99 dated 09.12.99 und OS/2000 dated 07.01.2000.

2. To sort out the issue, a meeting was held on 9.6.2000 under the chairmanship of the Member (Customs), which was attended by the officers of the Department, Ministry of Commerce, CONCOR, CWC as well as the representatives of Steamer Agents/ Shipping lines. In the meeting, it was decided that the Steamer Agent would not be asked to submit the copies of Invoice of the cargo which is to be transhipped from Gateway ports to ICDs/CFSs. Transhippers would instead be required to execute Bonds based on National value arrived at on principles as prescribed for Transhipment through Coastal Vessels. The amount of bond required to be given for each container load is Rs.6 lakhs (Rs.Six Lakhs ) in such cases.

3. In view of the above, it has been decided that for the transhipment of containers from gateway ports to ICDs/ CFSs a bond with security of 25 percent of bond value shall be taken from the carries. To avoid multiplicity of bonds, the carriers may execute mother bonds instead of individual bonds. Such bonds will be accepted and maintained by the Commissioner of Customs at the port of origin. The mother bonds will be like running bonds. The mother bonds can be debited at the time of transhipment of import/ export containers at the port-of origin, and these will be credited on receipt of proof of safe landing of containers at the port of destination. The value of mother bond can be arrived on the basis of the average number of containers carried per trip, the time taken for submission of proof of safe landing of containers at the destination ICDs/CFSs, frequency of such transhipment as well as average value of cargo per containers transhipped in the past.

4. To avoid blockage of huge sum of carriers money towards security furnished to Customs, it has been decided that the bank guarantee so furnished shall be released as soon as proof of safe landing of containers at destination ICDs / CFSs is submitted by the carriers, Although, the bond taken from the carriers will be in the nature of running bond, the bank guarantee furnished towards, security may be taken for each trip and released after receipt of proof of safe landing of containers carried in that trip at destination ICDs/ CFSs. The bond, therefore, will be of the nature of a running bond but security can, be furnished for each trip separately. This will reduce the burden on carriers and at the same time revenue will be safeguarded.

5. The facility of mother bond mentioned above shall be optional. The carrier shall be free to execute bonds and security for each trip or execute mother bond as they wish.

6. The import department shall accept the Bond /Bank Guarantee and maintain the account In so far as It relates to the transhipment Cargo and shall also monitor the accountal of the Cargo by the agents/Carriers by producing landing certificate from the Customs I authorities at destination ICDs/CFS. In the event of failure on the part of the agents/carriers/importers to account for the transhipped Cargo within one month of within such extended period not extending 3 months, as may be granted in deserving cases, the import department shall taken appropriate action to enforce the Bond /Bank Guarantee to recover the duty/fine/penalty leviable in respect of the unaccounted goods.

7. The present procedure prescribed for transhipments shall otherwise remain uncharged.

(D.K.ACHARYYA)
CHIEF COMMISSIONER OF CUSTOMS
NEW CUSTOMS HOUSE
MUMBAI

Issued from F.No. S/I-417/2000 Import.