PROCEDURE FOR SEA TO SEA TRANSHIPMENT CLEARNCES - Customs - FACILITY CIRCULAR No:28/2016

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE F. No. S.Misc.108/2016-CMFC Dated 30/11/2016 FACILITY CIRCULAR No:28/2016 The procedure for Sea-to-Sea Transhipment clearances has been issued by way of various Public Notices, Standing Orders and Facilitation Circulars over the period of time. It is felt that a consolidated procedure should be made available in one place aided by illustrations, for simple understanding and smooth implementation of various kinds of Sea to Sea Transhipment Permissions. 1. Definition: Gateway Port: The first Port in which the vessel arrives from/goes to other countries Destination Port: The Port in which the containers are transhipped from other Sea Port Destination CFS: The CFS attached to destination Port Coastal Vessel: The Indian Flag Vessel carrying Coastal containerised cargo within Indian Port (i.e. Chennai-Vizag-Cochin-Krishnapatnam-Calcutta-Navasheva) Foreign going Vessel: Indian Flag Foreign going vessel operating routes covering more than one Indian Port to a Port outside India eg. Ships operating containers from Mundra - Chennai to Yangon. 2. Procedure for Sea-to-Sea Transhipment for Import clearances: For the sake of illustrations the Port of Yangon is, hereby, taken as the Port of Loading, the Chennai Port as the Gateway Port and the Krishnapatnam Port as the Port of Destination. Vessel A (Foreign going vessel) brings 100 numbers of containers from Yangon Port to Chennai Port and Krishnapatnam Port. Out of 100 numbers of containers 75 containers are to be cleared at Chennai Port and the remaining 25 containers are to be cleared at Krishnapatnam Port and the same has to be transhipped to Krishnapatnam Port through Coastal Vessel B . The procedure for Transhipment to the port of destination is explained below:- Documents to be filed Responsibility and mode of filing the documents Authority Remarks IGM Steamer Agent of Vessel A Online filing PN 04/2014 IGM should be filed at Chennai Port for 100 number of containers mentioning LC Local Cargo for 75 containers are to be cleared at Chennai Port and TI Transshipment for 25 containers are to be cleared at Krishnapatnam Port Transshipment Application Carrier of Vessel B at Service Centre PN 04/2014 Transshipment Permit will be given in ICES after verification of all the documents by Superintendent (CMFC) For Transhipment of cargo it is required to register Transhipment Bond/Bank Guarantee by the Main Line Operators/Carriers at Container Movement Facilitation Cell (CMFC). As per Public Notice 255/2002, transhippers dealing with the transhipment of cargo from Chennai Port to other Port shall execute a running bond with bank guarantee (15% of bond value) covering the value of the cargo likely to be handled at any given point of time and this will be executed for a period of 12 months with the Deputy Commissioner/Assistant Commissioner (CMFC). If it is not possible to furnish a running bond the transhippers may execute individual bond with bank guarantee. The carriers in public sector i.e. CONCOR and CWC are exempted from the requirement of bank guarantee for transhipment of goods. The Bond number generated in ICES should be furnished in corresponding lines of the Transhipment cargo. At the time of approval the mentioned bond against the lines will be debited. The terms of the bond is that if the carrier produces a certificate from customs of the destination port for safe arrival of goods there, the bonds stands discharged. In case such certificate is not produced within 30 days or within such extended period as the proper officer of customs may allow, an amount equal to the value, or as the case may be, the market price of the imported goods is forfeited. 2.1 As per Board Circular No.45/2005-Cus dated 24.11.2005, the Board has waived the requirement of execution of bank guarantee for the purpose of transhipment for all carriers of containerized cargo, who are handling more than 1000 TEUs as import containers in a financial year. This waiver would apply not only to shipping lines but also to ICDs/CFSs/other carriers and for carriage in all modes of transhipment, irrespective of their movement by road, coastal shipping or rail. 3. Procedure for Sea to Sea Transhipment for Export clearances: For the sake of illustrations the Port of Mundra is hereby taken as the Port of Loading, the Chennai Port as the Gateway Port and the Yangon Port as the Port of Destination. Vessel A (Coastal / Indian Flag 'Vessel) apart from other cargo brings 25 number of containers from Mundra Port to Chennai Port for exportation to Yangon Port and offloads the same at Chennai. These 25 export containers along with the 75 more containers of Chennai Port in vessel B (Foreign going vessel) i.e. the total 100 containers is loaded in Vessel B at Chennai Port to Yangon Port. The procedure for Transhipment / export in this case is explained below:- Documents to be filed Responsibility and mode of filing the documents Authority Remarks Transshipment Application (TSA) Carrier/Custodian of vessel A at Port of Loading (Mundra Port) through Service Centre/CFS PN 158/2016 Transshipment Application to be filed for 25 containers which has to be transshipped to Yangon Port through Chennai Port EGM Steamer Agent of Vessel B' - Online filing at Gateway Port (Chennai Port) PN 158/2016 EGM should be filed at Chennai Port for all the 100 number containers at Chennai Port (Gateway Port). For Transhipment of cargo it is required to register Transhipment Bond and BG by the Custodian/Carriers. As per Public Notice No. 158/2016, Transhippers is required to submit a separate continuous bond and bank guarantee by the carrier/ custodian and get it registered in ICES as Transhipment Bond. As per PN No. 158/2016 -Corrigendum-II, the TP Bond and BG for export are registered at CMFC Section in ICES. If, already, TP bond for import is registered, same may also be utilized. The carrier/custodian providing such Bond and undertakes responsibility of transhipment is referred as Transhipper. The Bond number generated in ICES should be furnished during filing of Export Transhipment Application (ETSA). At the time of approval the mentioned bond against the lines will be debited. 3.1 As per Board Circular No.45/2005-Cus dated 24.11.2005, the Board has waived the requirement of execution of bank guarantee for the purpose of transhipment for all carriers of containerized cargo, who are handling more than 1000 TEUs as import containers in a financial year. This waiver would apply not only to shipping lines but also to ICDs/CFSs/other carriers and for carriage in all modes of transhipment, irrespective of their movement by road, coastal shipping or rail. 4. Procedure for Sea to Sea International Transhipment for import Transhipment (ITSA): For the sake of illustration the Port of Yangon is hereby taken as the Port of Loading, Port of Chennai as the Transhipment Port and Port of Jebel Ali as the Destination Port. Vessel A brings 100 containers from Yangon Port to Chennai Port. Out of 100 containers, 75 containers are to be cleared at Chennai Port and the remaining 25 containers has to be transhipped to any Foreign Port i.e., Jebel Ali Port by the vessel B . The procedure followed for International Transhipment at Port of Chennai is explained below:- Documents to be filed Responsibility and mode of filing the documents Authority Remarks Steamer Agent of Vessel A on line filing at Port of Chennai PN 51/2007 IGM should be filed at Chennai Port for 100 numbers of containers and for International Transshipment of 25 containers the code TI is to be mentioned in the IGM. Transshipment Application (ITSA) Steamer Agent of Vessel B - will file ITSA application only manual with ITP Cell (Preventive General Section) PN 51/2007 ITSA Application for 25 containers which is to be transshipped to Jebel Ali Port 4.1 As per Public Notice No. 51/2007, the general bond furnished by the terminal will be considered as sufficient to cover the transhipment containers/ cargo as well. Further, transhipment procedures shall be guided by Goods Imported (Conditions of Transhipment) Regulations 1995. In case any differences are noticed between this Facilitation Circular and that issued by the original authorities (Public Notices/Standing Orders/Facility Circulars) is noticed, then the circular issued by the original authority shall prevail. (PRANAB KUMAR DAS) PRINCIPAL COMMISSIONER OF CUSTOM CHENNAI-III