Procedure for transshipment of Import and Export of containerized cargo from Kattupalli Minor Port, Kattupalli Village, Ponneri Taluk, Tiruvallur District 601-120 - Customs - PUBLIC NOTICE NO. 161/2012

OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI PORT CUSTOM HOUSE, NO.60 RAJAJI SALAI, CHENNAI - 600 001 F.No.8/2010-Enquiry (Pt) Dated: 13/07/2012. PUBLIC NOTICE NO. 161/2012 Sub : Procedure for transshipment of Import and Export of containerized cargo from Kattupalli Minor Port, Kattupalli Village, Ponneri Taluk, Tiruvallur District 601-120 - Reg Attention of all Importers, Custom House Agents, Steamer Agents/ Steamer Lines, Container Freight Stations and Members of the Trade is invited to the Notification No.41/2012-Customs (NT) dated 11.05.2012 issued under Section 7 of the Customs Act, 1962, notifying Kattupalli Port for unloading of imported goods in containers for transshipment and loading of goods transshipped in Containers for export. Consequently Public Notice No. 124/2012 dated 06.06.2012 was issued declaring M/S L T Shipbuilding Limited (L T Kattupalli Port) as Custodian of Kattupalli Minor Port under Section 45 (1) of Customs Act, 1962. The related procedures to be followed by the Custodian/Trade / CHA's and other associates agencies for such transshipments from and to the Kattupalli Port are specified below: 2. Filing of IGM: Those of the Steamer Agents who intend moving of their vessel to Kattupalli Port (Port Code INKATI) for discharge of cargo have to file a separate IGM online through ICEGATE for Kattupalli Port by mentioning the port code as INKATI and terminal operator code as INKATILSL1 for Kattupalli Port. The procedures are same as filing of IGM in Chennai Seaport. The Shipping Lines/ Steamer Agents/ Consol Agents should file IGM/EGM/Consol IGMs only through ICEGATE. The acknowledgement for filing IGM/EGM/Consol IGMs would reach the registered e-mail address of the Shipping Lines/ Steamer Agents/ Consol Agents. The message exchange formats for filing IGM/EGM/Console IGMs are available at ICEGATE Website http://wxvvw.icegate.gov.in at http://www.icegate.gov.in/ ICES 1.5.htm. The Shipping Lines/ Steamer Agents/ Consol Agents may prepare/ use their own software for filing IGM/EGM/Consol IGMs in prescribed message exchange formats. 3. Amendment of IGM after Entry Inwards: 3.1 In ICES System, the IGM is amended in 2 situations: a. When there is any change in the cargo or container parameters (like amendment, deletion, supplement). b. When Consol manifest is filed In both the cases, the IGM line information is substantially altered. Further, there are cases of amendment to consol manifest too. 3.2 For amendment of IGM and Consol manifest at the Gateway Port, System level approval by Customs Officer is required. Hence the following procedures are followed for IGM/ Consol amendment. (i) IGM/Consol amendments applied before grant of Entry Inwards in System do not require Assistant Commissioner (Import)'s approval and the same can be carried out. (ii) All such amendments made after grant of Entry Inwards will require Assistant Commissioner (Import)'s approval. (iii) IGM messages to custodians would be sent at the time of grant of entry inwards instead at the time of online submission, so that substantially complete IGM is sent to custodian. (iv) Since the IGM messages based on the TP approval messages are sent from Gateway Port to ICDs, the filing of Consol Manifest and IGM amendment for the Transhipment cargo to ICDs should be carried out at Kattupalli Port. Separate filing of consol manifest and amendment of IGM at ICD Port is not required. 4. Container Bond: 4.1 To process the container movement in ICES 1.5, all the Shipping Agents/ Shipping Line/ Main Line Operators are required to register a Bond (Container Bond) of sufficient value for multiple debits in ICES V 1.5 for vessel application. a. Rate of bond value for containers is specified on the basis of type of container like 20', 40', Reefer etc. and would be debited as prescribed. System would maintain a directory of bond rates based on ISO code of the container. The Bond rates are as follows: Type of Container Bond Rate (in Rupees) 20 Feet Plain 30,000/- 40 Feet Plain 60,000/- 20 Feet Reefer 3,50,000 20 Feet Tanker 3,00,000/- 40 Feet Tanker 40=,00,000/- 4.2 For loaded containers, this bond will be in addition to the TP (for Transshipment) bonds. 4.3 Transhipment Bond: The Carrier Agents/ Main Line Operators (MLOs) are required to register a Bond for transshipment movement of containers to ICDs and also open fresh PLA account for debiting the transshipment fees in ICES V 1.5. Bond Type is 'TP' (Transshipment Bond - which is a continuity Bond) for movement of container with cargo from Port to ICDs. In transshipment movement also there are 2 kinds of Bonds for container movement to ICDs. (a) 1 st Party Bond: Given by the applicant (MLO) (b) 3 rd Party Bond: Given by destination Carrier Agents In case of 3rd Party Bond, necessary one-time authority has to be given by the Carrier Agents to the applicant (MLO). 5. Movement of Import Containers to ICDs : 5.1 The request for permission of transshipment of cargo from Kattupalli Port to ICD's will be processed and issued by one common cell called the Container Movement Facilitation Cell (CMFC) which will be operational from Kattupalli Port. 5.2 All Steamer Agents /MLOs / CHAs / Importers (transhippers) dealing with the transshipment of cargo from L T Kattupalli Port to other ICDs 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 executed for a period of 12 months with the Dy. / Asst. Commissioners (CMFC) at L T Kattupalli Port, if it not possible to furnish a running bond the transhippers may execute individual bond with bank guarantee. The formats of running bond and bank guarantee are appended as Annexure A B to this P.N. 5.3 Bond and Bank Guarantee to be executed would be as per para 2.3 in chapter 10 of the CBEC Customs Manual 2012 which is reproduced below for ready reference. 2.3 To ensure that imported cargo, on which duty has not been paid, are not pilfered en-route to another port/ airport/ICD/CFS and reach safely, a bond with bank guarantee is executed by the carrier engaged for the transshipment of the goods. The quantum of bank guarantee for transshipment to be furnished by different categories of carriers is as below: (a) The carriers in public sector (Central/ State Government Undertakings) are exempt. (b) All carriers (shipping lines/ICDs/CFSs/other carriers) of containerized cargo handling more than 1000 TEUs as import containers in a financial year, are exempt, irrespective of the fact whether movement is by road or coastal shipping or rail. Further, request of carriers having annual transshipment volume below the limit of 1000 TEUs, but having good track record may be considered for exemption from BG on merit by the jurisdictional Commissioners of Customs. (c) The custodians of ICDs/CFSs operating as carriers of transshipment cargo between gateway ports and their ICDs/CFSs shall in their terns and conditions of their bank guarantees executed with Customs for custodianship of ICDs/CFSs cover safety and security of cargo being transshipped by them. The details of such bank guarantee shall be informed to the Commissioner of Customs having jurisdiction over the gateway port. The custodians of ICDs/CFSs shall be allowed to transship the cargo against the said bank guarantee and they will not be required to execute a separate bank guarantee for transshipment. (d) The remaining carriers are required to furnish bank guarantee @ 15% of the bond amount. 5.4 With reference to execution of Bond / Bank Guarantee, the transhippers (parties) may execute bond and Bank Guarantee taking the following factors into consideration: i) the average value of cargo per container transshipped by them in past. ii) The time taken for producing the landing certificate. iii) The volume of the cargo handled by them. iv) Average number of containers likely to be in transit at any given point of time. 5.5 Based on the above, the concerned transhipper can execute Bank Guarantee. However, as a measure of simplification the Custom House indicates the average value per container as ₹ 3,00,000/- per 20 feet container and per 40 feet container as guideline value. Such guideline value may be adopted by the transhippers for arriving at the notional value of transshipment cargo. 5.6 When the container is allowed for transshipment, the bond value will be deducted to the extent of notional value of the cargo and 15% of such notional value will be deducted Bank Guarantee from their Bank Guarantee account. As and when the landing certificate is produced the amount debited from the bond and Bank Guarantee limits would be credited back into respective accounts. This arrangement is made to reduce the Bank Guarantee amount required to be executed by the transhippers and at the same time to safeguard the revenue interest. 5.7 The transshipment movement of the container will take place automatically at the time of inward entry for the vessel carried out in the systems after debiting necessary bond. As soon as the container reaches the destination ICD, the concerned transhippers should submit landing certificate to CMFC for getting the bond value/ Bank Guarantee amount credited to their respective account. 5.8 The request for permission of transshipment shall be scrutinized, processed and issued by an officer in the rank of Superintendent of Customs (CMFC). The Shipping Agents should also submit an authorization from the carriers appointed for transportation of goods from Kattupalli to other ports/ICDs. 5.9 In respect of containers to be transshipped from Kattupalli Port to ICDs, the first copy of the transshipment approval order will be retained in CMFC itself for office record. The transshipper shall produce remaining three copies of transshipment approval order to the Preventive Officer (Container Cell). The Preventive Officer (Container Cell) shall the load port seal, affix a Customs One Time Seal on the container and endorse all the three TSA copies with the details of the number and condition of the load port seal and also enter/ record the serial number of the Chennai Customs One Time Seal. The sealed containers should be moved from the Container Yard to the location decided by the transshipper. 5.10 As soon as the approval takes place in the system the details of the containers will be available at the Gate Module. The Preventive Officer at Gate has to verify the movement in the system by entering the container no and the truck no in the system and save the data for generation of gate pass number in the system. The preventive officer has to note down the gate pass no in all the copies of the transshipment approval order. 5.11 The second copy of the transshipment application along with two copies of the relevant portions of the manifest and the Lorry Receipt or Railway Receipt shall be placed in a sealed cover and handed over to the carriers under acknowledgement. The third copy of the transshipment application would be handed over to the Transshipper and fourth copy is retained for record in Container Cell. The Carriers are responsible for the safe custody of sealed cover and will hand over the same to the Customs authorities at the ICDs for necessary further action. In respect of the containers moved by road by private carriers, the transshippers at the time of sealing of the container shall produce a Lorry Receipt along with the Transshipment Application to the Preventive Officer (Container Cell). 5.12 The details of the transshipped cargo shall be verified by the customs at the destination ICD, with the help of the IGM copy. If any discrepancy is noticed, the same may be recorded in the landing certificate. The transshipper should bring the landing certificate duly certified by destination customs within 30 days from the date of permission of transshipment application and submit the same to the Superintendent (CMFC) for giving credit in the bond/ Bank Guarantee and for reconciliation of record. A copy of closure Report will be sent to Manifest Clearance Department (MCD) for closure of manifest. 5.13 If landing certificates a.re not produced within the stipulated time, the Running Bond/ Bank Guarantee shall be immediately enforced by the Superintendent (CMFC). On the basis of the remarks on the landing certificates from the ICD action should be taken to enforce the bond, as the case may be. 6. Re-sealing of Import Containers with damaged/tampered loadport seal/ discrepancy in seal no. with Customs OTS: 6.1 Whenever the import container is found to have damaged/ tampered load-port seal/ discrepancy in seal nos. at the time of off-loading from the vessel or later but before releasing from the Container Yard, M/S L T Kattupalli Port / Steamer Agent shall bring it to the notice of Superintendent (CMFC) / AC (CMFC) / Preventive Officer of the L T Kattupalli Port gate immediately. The Preventive Officer will fix the Customs OTS on such import containers. In addition, M/S L T Kattupalli Port can also fix their own OTS. Survey, if any, to be conducted at the instance of M/S L T Kattupalli Port / Steamer Agents by opening the import container, the same can be done only in the presence of Superintendent / Preventive Officer in charge of L T Kattupalli Port gate. 7 Export Cargo: 7.1 Movement of export containers from ICD to Kattupalli Port: The procedure for movement of containers from ICD is as per Board's Circular 57/98 - Customs dated 04.08.1998. The relevant portion is reproduced here for ready reference. 7. At the Gateway Ports/ Airports, both the copies of Shipping Bill would be presented by the custodian's representative to the proper officer of Customs who would verify the genuineness of documents and check the marks and numbers of the seals on trucks/ containers as recorded on the documents. The customs officer would inspect the seals of trucks/ containers and will endorse the two transference copies of Shipping Bill and AR 4 in the following manner, inspected and the seals found intact bearing the following marks and Nos. 8. In case customs seal on the container / trucks are found broken or tampered with or some discrepancy found in seal nos., the matter would be brought to the notice of Assistant Commissioner of Customs and such container/ trucks would be subjected to 100% examination. In case seals are found intact as per documents and documents in order, the Preventive Officer posted at Airport/ Port will endorse the Transference copies of Shipping Bill with 'shipment allowed' endorsements. The Preventive Officer posted at Port/ Port will endorse, let export on both the copies of Shipping Bill and AR 4 at the time of actual shipment. One copy of Shipping Bill would be retained at the Port / airport of Shipment and another transference copy would be returned to ICD/ CFS from which the container/ trucks originated. 9. On receipt of transference copy of Shipping Bill the ICD/CFS would match it with duplicate copy of Shipping Bill and to ensure that the goods have been exported. If the copy is not received within 90 days, the Assistant Commissioner of customs shall raise a demand on the custodian equal to the duty drawback contained in the export goods in addition to action against the exporter intimate the DGFT RBI. 10. The salient features would be :- (i) The Shipping Bills would be passed at ICD / CFS and same are not required to be passed again at Gateway Ports / Airports. There would be no further examination of the goods if the seals are found intact. (ii) The drawback would continue to be sanctioned after the 'let export' order is given on the Shipping Bill. (iii) Original GR form would be retained at ICD / CFS and would be forwarded to respective branch of RBI there only. (iv) The export for all statistical purpose would be taken from ICD / CFS and it would be included in all statements of exports from that station. (v) The exports under DEC / DEPB etc. under the proposed scheme would be allowed in case the same are allowed from that station. (vi) AR 4 and other Central Excise procedures as provided under Central Excise Rules and instructions issued by Board from time to time would be applicable. 11. On receipt of transference copy of Shipping Bill, the necessary credits would be given in continuity bond executed by the custodians for movement of goods. 7.2 Re-export of Containers: The running bond executed by the Steamer Agents/ MLOs should also cover the value of the no. of containers proposed to be landed on his account for a period of 12 months. The Superintendent (CMFC) will debit the container's value from the respective Steamer Agent / MLO's account, as soon as the inward entry for the vessel is given. Any amendment permitted by the Dy. Commissioner (Import) regarding short landing or excess landing of containers should be forwarded by the ADO (Imports) to the Supdt. (CMFC) for making necessary credit or debit in the respective Steamer Agent's account. 7.3 In case the Empty containers exported through L T Kattupallai minor port the Export TSA (EGM-Wise) duly signed by the Preventive Officer (Container Cell) and the Ship's officer should be produced to the Superintendent (CMFC) for reconciliation. In case, the Empty containers exponed through other ports, the loading / export certificate from the concerned port has to be submitted to the CMFC. For movement of empty containers (including cargo de-stuffed empty containers) from Chennai to other ports for stuffing export cargo / re-export, transfer application has to be filed in CMFC. On production of export/ loading certificate of the destination customs, by the steamer agent / MLO transfer application will be closed. 7.4 In respect of containers sought for domestication, the person / agent duly authorized by the owners of the containers should produce the original survey reports stating the condition of the containers and obtain permission for domestication from the Suptd. / DC (CMFC) and after completion of all the formalities, the domesticated file should be submitted to CMFC for entering the duty paid details in the computer for record. 7.5 The collection of overtime for supervision of transshipment will be governed by the Customs (Fees for Rendering Services by the Customs Officers) regulation, 1998 and instructions issued by the Board from time to time. 8. This Public Notice will come into effect from 16th July, 2012. (JANE K. NATHANIEL) COMMISSIONER OF CUSTOMS (SEAPORT - IMPORT)