Regulation 5 - Conditions to be fulfilled by Customs Cargo Service provider - Handling of Cargo in Customs Areas Regulations, 2009

1 [ 5. Conditions to be fulfilled by Customs Cargo Service provider The Customs Cargo Service provider for custody of imported goods or export goods and for handling of such goods in a customs area shall fulfill the following conditions, namely:- (1) Provide the following to the satisfaction of the 3 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be], namely: (i) Infrastructure, equipment and adequate manpower for loading, unloading, stacking, handling, stuffing and de-stuffing of containers, storage, dispatch and delivery of containers and cargo etc., including:- (a) standard pavement for heavy duty equipment for use in the operational and stacking area; (b) free of cost or rent fully furnished office accommodation for Customs, Customs Electronic Data Interchange (EDI) Service Centre, with required amenities and facilities and residential accommodation and transportation facilities for customs staff; (c) premises for user agencies with basic amenities and facilities; (d) storage facility, separately for imported, export and transshipment goods; (e) gate complex with separate entry and exit; (f) adequate parking space for vehicles; (g) boundary wall; (h) internal service roads; (i) electronic weigh-bridge and other weighing and measuring devices; (j) computerized system for location and accountal of goods, and processing of documents; (k) adequate air-conditioned space and power back up, hardware, networking and other equipment for secure connectivity with the Customs Automated system; and for exchange of information between Customs Community partners; (l) facilities for auction, including by e-auction, for disposal of uncleared, unclaimed or abandoned cargo; (m) facilities for installation of scanning equipment; (n) security and access control to prohibit unauthorized access into the premises, and 6 [ (o) such other equipment or facilities as the Board or Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may specify having regard to the screening, examination, custody and handling of imported or export goods in a customs area. ] (ii) safe, secure and spacious premises for loading, unloading, handling and storing of the cargo for the projected capacity and for the examination and other operations as may be required in compliance with any law for the time being in force; (iii) insurance for an amount equal to the average value of goods likely to be stored in the customs area based on the projected capacity, and for an amount as the 3 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be] may specify having regard to the goods which have already been insured by the importers or exporters. (2) Undertake to bear the cost of the Customs officers posted, at such customs area, on cost recovery basis, by the 3 [Principal Commissioner or Commissioner, as the case may be] and shall make payments at such rates and in the manner prescribed, unless specifically exempted by an order of the Government of India in the Ministry of Finance; (3) Execute a bond equal to the average amount of duty involved on the imported goods and ten per cent of value of export goods likely to be stored in the customs area during a period of 7 [ five ] days and furnish a bank guarantee or cash deposit equivalent to ten per cent of such duty: 2 [Provided that the condition of furnishing of bank guarantee or cash deposit shall not be applicable to ports notified under the Major Ports Act, 1962 (38 of 1963) or to the Central Government or State Governments or their undertakings or to the Customs Cargo Service provider authorised under Authorised Economic Operator Programme. ] (4) Execute a separate bond for an amount equal to ten percent of value of export goods with a bank guarantee for an amount equal to ten percent of the value of the bond, towards the export goods transported from the customs area to any other customs area for export or transshipment, as the case may be; 5 [Provided that the condition of furnishing of bank guarantee shall not be applicable to ports notified under the Major Ports Act, 1962 (38 of 1963) or to the Central Government or State Governments or their undertakings or to the customs cargo service provider authorised under Authorised Economic Operator Programme. ] (5) Undertake to comply with the provisions and abide by all the provisions of the Act and the rules, regulations, notifications and orders issued thereunder (6) Undertake to indemnify the 3 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be] from any liability arising on account of damages caused or loss suffered on imported or export goods, due to accident, damage, deterioration, destruction or any other unnatural cause during their receipt, storage, delivery, dispatch or otherwise handling. ] ****************** NOTES:- 1 . Substituted Vide Notification No. 96/2010-Cus.(N.T.) dated 12/11/2010, before it was read as:- 5. Conditions to be fulfilled by an applicant for custody and handling of imported or export goods in a customs area. - Any person who intends to be approved as a Customs Cargo Service provider for custody of imported goods or export goods and for handling of such goods, in a customs area, hereinafter referred to as the applicant, shall fulfill the following conditions, namely:- (1) The applicant shall provide the following to the satisfaction of the Commissioner of Customs, namely: (i) Infrastructure, equipment and adequate manpower for loading, unloading, stacking, handling, stuffing and de-stuffing of containers, storage, dispatch and delivery of containers and cargo etc., including: (a) standard pavement for heavy duty equipment for use in the operational and stacking area; (b) building for Customs office, Customs Electronic Data Interchange (EDI) Service Centre and user agencies with basic amenities and facilities; (c) storage facility, separately for imported, export and transshipment goods; (d) gate complex with separate entry and exit; (e) adequate parking space for vehicles; (f) boundary wall; (g) internal service roads; (h) electronic weigh-bridge and other weighing and measuring devices; (i) computerized system for location and accountal of goods, and processing of documents; (j) adequate air-conditioned space and power back up, hardware, networking and other equipment for secure connectivity with the Customs Automated system; and for exchange of information between Customs Community partners; (k) facilities for auction, including by e-auction, for disposal of uncleared, unclaimed or abandoned cargo; (l) facilities for installation of scanning equipment; (m) security and access control to prohibit unauthorized access into the premises, and (n) such other facilities as the Commissioner of Customs may specify having regard to the custody and handling of imported or export goods in a customs area; (ii) safe, secure and spacious premises for loading, unloading, handling and storing of the cargo for the projected capacity and for the examination and other operations as may be required in compliance with any law for the time being in force; (iii) insurance for an amount equal to the average value of goods likely to be stored in the customs area based on the projected capacity, and for an amount as the Commissioner of Customs may specify having regard to the goods which have already been insured by the importers or exporters. (2) The applicant shall undertake to bear the cost of the Customs officers posted, at such customs area, on cost recovery basis, by the Commissioner and shall make payments at such rates and in the manner prescribed, unless specifically exempted by an order of the Government of India in the Ministry of Finance; (3) The applicant shall execute a bond equal to the average amount of duty involved on the imported goods and ten per cent. of value of export goods likely to be stored in the customs area during a period of thirty days and furnish a bank guarantee or cash deposit equivalent to ten per cent. of such duty: Provided that the condition of furnishing of Bank guarantee or cash deposit shall not be applicable to ports notified under the Major Ports Act, 1962 (38 of 1963) or to the Central Government or State Governments or their undertakings; (4) The applicant shall also execute a separate bond for an amount equal to ten percent of value of export goods with a bank guarantee for an amount equal to ten percent of the value of the bond, towards the export goods transported from the customs area to any other customs area for export or transshipment, as the case may be; (5) The applicant shall undertake to comply with the provisions and abide by all the provisions of the Act and the rules, regulations, notifications and orders issued thereunder. 2 . Substituted vide Notification No. 104/2012 - Customs (N.T.), dated 16/11/2012 , before it was read as:- Provided that the condition of furnishing of Bank guarantee or cash deposit shall not be applicable to ports notified under the Major Ports Act, 1962 (38 of 1963) or to the Central Government or State Governments or their undertakings; 3 . Substituted vide Not. 56/2014 - Dated 6-8-2014 4 . Substituted vide Not.115/2016 - Dated 26-8-2016 , before it was read as, thirty 5 . Inserted vide Not.115/2016 - Dated 26-8-2016 6 . Substituted vide Notification No. 29/2019-Customs (N.T.) dated 01-04-2019 before it was read as (o) such other facilities as the 3 [Principal Commissioner of Customs or Commissioner of Customs, as the case may be] may specify having regard to the custody and handling of imported or export goods in a customs area; 7 . Substituted vide Notification No. 75/2024-Customs (N.T.) dated 07-11-2024 before it was read as, 4 [ten]