Introduction of Electronic Messaging System for issuance Of Delivery Order (Online DO) at Air Cargo Complex, Bangalore - Reg. - Customs - 03/2016

Govt. of India Ministry of Finance Department of Revenue OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS AIR CUSTOMS COMMISSIONERATE C.R. BLDG., QUEEN'S ROAD, BENGALURU- 560001 C.NO. V111/09/03/2015 Air Cus Tech PUBLIC NOTICE NO. 03/2016 Date : 14-01-2016 Sub: Introduction of Electronic Messaging System for issuance of Delivery Order (On line DO) at Air Cargo Complex, Bangalore - Reg. Attention of all Importers/Exporters/CHAs and all concerned is invited to Board's Circular No.24/2015-Customs dated 14.10.2015 on the introduction of electronic messaging for issue of Delivery Order, instead of a paper based Delivery Order which will result in considerable simplification in the Customs clearance process and can demonstrably reduce transaction costs and time taken in the clearance of Cargo. 2. With a view to examine the feasibility of implementing 'Electronic Messaging System for issuance of Delivery Order' at Air Cargo Complex, Bengaluru, a Meeting of various stakeholders namely Custodians, Airlines operators and Consolidation Agents was convened and the representatives of the Airlines have informed that at present only 5% of the cargo is directly booked by various suppliers and the remaining 95% is routed through Consolidation Agents and Airlines issue Delivery Order to Consol Agents in the latter case. 3. The Airlines representative also expressed that in the case of direct shipments, the Importers still had to visit their office after receiving the cargo arrival notice to pay airline dues, as many Airlines have centralized accounts and not have the provision to receive online payment. Even in case of online payments, their systems are not automated to release the Delivery Order upon payment of all the charges to Airlines. They assured to take up the matter with their finance team to develop their internal payment system. They further expressed that in case of delivery through Consol Agents, Airlines can issue electronic delivery order to Consol Agents as majority of them are having accounts or are allowed deferred payments. 4. The representatives of Consol Agents stated that they are not having the infrastructure to issue electronic delivery order since they are at retail level. 5. The representative of the Custodian M/S. Menzies Aviation Bobba Terminal have informed that their software infrastructure has provision for Airlines/Consol Agents to deliver message for cargo delivery which can be utilized for communicating elctronic delivery order. The representative of the other Custodians M/s.AI SATs and Emirates Airlines assured that they would start issuing electronic order for direct delivery customers, who are having accounts with them on pilot basis. 6. Since, the Airlines are not having sufficient infrastructure to deliver electronic delivery order immediately, and also in the case of delivery through Consol Agents many of whom are small time operators who do not have the basic infrastructure to move towards the regime of electronic delivery order, all the stake holders may immediately upgrade their electronic infrastructure. In view of inputs provided by all the stake holders it has been decided to implement Electronic Delivery Order in Air Cargo Complex, Bangalore in two phases. In the first phase, Airlines shall issue Electronic Delivery Orders to t heir direct delivery customers with effect from 20-012016 and in the second phase, all Consolidators, who are agents of various Airlines and Freight forwarders, shall issue Electronic Delivery Order to the importers with effect from 01-02-2016. 7. Further in respect of some of the imports mainly in the categories of unaccompanied baggage, direct delivery and one time individual importers, the Shipping Line/Airline may retain manual (i.e., paper copy) of the Delivery Order, if desired. Further, if for technical reason or in case of any failure of the system of electronic transfer of Delivery Order, the concerned Shipping Line/Airline or Console Agent may issue manual Delivery Orders, as a purely temporary measure in order to avoid any difficulty or delay in clearance of imported goods under intimation to Customs. 8. Difficulties if any in implementation may be brought to the notice of the undersigned. 9. Hindi version follows. (R. B. TIWARI) PRINCIPAL COMMISSIONER