Transhipment of international/domestic cargo in containers to Indian ports from foreign ports and vice versa through Chennai - Customs - PUBLIC NOTICE NO. 51/2007

GOVERNMENT OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS (PORT) CUSTOM HOUSE, NO.60 RAJAJI SALAI CHENNAI - 600 001 F. No. S.Misc.192/2007-(Prev.), S31/43/2007-(Prev.) Date: 18.04.2007 PUBLIC NOTICE NO. 51/2007 Sub: Transhipment of international/domestic cargo in containers to Indian ports from foreign ports and vice versa through Chennai Reg. I. M/s. Maersk Line (steamer agent) and M/s. Chennai Container Terminal Pvt. Ltd. (custodian) have informed that a direct main line vessel from the USA will be making a weekly call to the Chennai port. Accordingly, they have requested for the customs procedure to be put in place to handle the two-way transhipment of containers, to Indian ports from foreign ports and vice versa through Chennai. The said request was examined in accordance with the provisions of the Section 54 of the Customs Act, 1962, Goods Imported (Conditions of Transhipment) Regulations, 1995, and the Board's circular 14/2007-Customs, dated 16-03-2007 on LCL international transhipment and the following procedure is prescribed: II. This Public Notice has four parts: (a) Role and responsibilities of the custodian, in the transhipment process; (b) Role and responsibilities of the steamer agent, in the transhipment process; (c) Procedures to be observed in the case of import transhipment containers/cargo, with Chennai as the point of disaggregation; (d) Procedures to be observed in the case of export transhipment containers/cargo with Chennai as the consolidation hub. III. Role and responsibilities of the custodian, in the transhipment process: (a) M/s. Chennai Container Terminal Pvt. Ltd. (CCTL), is already appointed as a custodian under Section 45(1) of the Customs Act, 1962, vide PN No: 318/2001 dated 4.2.2001 issued by the Chennai Custom House. The general bond furnished by M/s. CCTL, as a custodian will be considered as sufficient to cover the transhipment containers/cargo as well. (b) The custodian shall provide a secure and specially demarcated place for storage of the import and export transhipment containers, inside the Customs area, notified vide PN No: 318/2001 dated 4.2.2001. For ease of handling and accounting, Coastal Transhipment containers - Imports (CTI), Coastal Transhipment containers for Exports (CTE), International Transhipment containers - Imports (ITI) and International Transhipment containers for Exports (ITE) may be stacked separately inside the demarcated area. (c) The custodian is responsible for the safety of the transhipment containers and if any pilferage is noticed during their custody, the custodian shall be liable to pay duty on the pilfered goods. (d) The custodian shall maintain a vessel wise record of all the import and export transhipment containers and submit a monthly summary to the Assistant / Deputy Commissioner of Customs (Preventive). IV Role and responsibilities of the steamer agent, in the transhipment process: (a) The steamer agents shall ensure that the containers transhipped both ways, by the mainline/feeder vessels, are sealed with one time bottle seal at the ports of loading/origin. (b) The steamer agent shall file an Import General Manifest (IGM) under Sec.30 of the Customs Act, 1962(in the usual manner), and in addition, shall submit separate annexures to the IGM for each of the coastal ports/foreign ports. Such transhipment annexures shall include the list of transhipment containers with container numbers, details whether they are laden or empty, nature of the cargo, etc. The steamer agent should also file a declaration that the transhipment containers does not contain arms, ammunitions, explosives or other cargo considered as constituting a threat to the security and integrity of the country or attracting any prohibition under Sec.11 of the Customs Act, 1962; permission for transhipment cannot be given to such cargo. However goods which are restricted , as per the Foreign Trade Policy, may be permitted for transhipment to a destination abroad. Further, transhipment shall not be allowed to any port / destination, in respect of which any order or prohibition is in force. If need be, Customs may also prescribe additional safeguards in future, to secure the transhipment. (c) The steamer agent shall execute a one-time transhipment bond with or without surety or security or with both, as required under the Goods Imported (Conditions of Transhipment) Regulations , 1995. (d) The steamer agent shall file an Import Transhipment Application (ITSA) or Export Transhipment Application (ETSA) as the case may be, preceding every transhipment, along with the prescribed transhipment fees. (e) The steamer agent shall be responsible for the re-export of empty containers, within six months from the date of import of such containers, as specified under Notification 104/94 Customs, dated 16-03-1994. (f) The steamer agent shall be responsible for obtaining and producing an acknowledgment from the destination ports, for the receipt of the transhipped containers. V Procedures to be observed in the case of import cargo with Chennai as the point of disaggregation of the imported cargo: (a) On arrival of the direct main line vessel from abroad, the steamer agent shall file an Import General Manifest (IGM) with the prescribed annexures, indicating the final destination of all the transhipment containers, port-wise, to the Customs wing assigned with this task (ITP Cell). Relevant particulars like container numbers, whether empty or laden, nature of cargo, load port one time bottle seal numbers, etc., shall be furnished in the annexure, along with a declaration at the end that the transhipment containers do not carry arms, ammunitions, explosives or any other prohibited cargo. (b) Upon unloading from the mainline vessel, the custodian shall move the import transhipment containers to the demarcated place situated within the Customs area, for storage and safekeeping. During the course of unloading, if it is found that the load port one-time bottle seal has been broken or tampered with, the custodian shall immediately inform the ITP Cell. (c) Where the load port bottle seal is found broken or tampered with, Customs may carry out 100% examination of the container before it is resealed. (d) The steamer agent and the custodian shall ensure that the imported containers are transhipped expeditiously. If the same are not transhipped within thirty days of unloading, the provisions of Section 48, relating to the procedure in case of goods not transhipped within thirty days after unloading, shall apply to the containers/cargo meant for transhipment. (e) In respect of the import transhipment containers, the steamer agent shall file an Import Transhipment Application (ITSA) in quadruplicate, along with a copy of the annexure to the IGM, filed earlier on arrival of the mainline vessel, in the ITP Cell. (f) If the ITSA is found in order, the proper officer will permit the transhipment. The custodian shall commence the loading of the import transhipment containers on the various vessels an route to the ports of final destination, only after the transhipment permission is granted, by the officer of the ITP Cell. (g) Three copies of the ITSA (two, in sealed cover), bearing the permission, will be returned to the steamer agent. It will be the responsibility of the steamer agent to obtain an acknowledgement of receipt (for the transhipped containers), on the face of the copy of the ITSA, from the customs, at the destination port. All such copies of ITSA, bearing acknowledgement of the customs at the ports of destination, should be submitted to the ITP Cell, at Chennai, on a fortnightly basis. (g) In respect of import transhipment containers destined for foreign ports, the steamer agent shall obtain on the ITSA, an acknowledgment for the receipt of the transhipment containers on board, from the Master of the vessel. VI Procedures to be observed in the case of export cargo with Chennai as the consolidation hub for the transhipped cargo: (a) After the arrival of the vessels carrying export transhipment containers for consolidation at Chennai and prior to the departure of the main line vessel destined abroad, the steamer agent shall submit to the ITP Cell, an Export Transhipment Application (ETSA) in quadruplicate, along with copies of the Export General Manifest (EGM) filed at the ports of origin. A consolidated list containing particulars like container numbers, whether empty or laden, nature of cargo, load port one time bottle seal numbers, corresponding numbers of Shipping Bills (filed at the ports of origin), etc., shall be annexed to the ETSA, along with a declaration at the end that the transhipment containers do not carry arms, ammunitions, explosives or any other prohibited cargo. (b) Upon unloading, the custodian shall move the export transhipment containers to the demarcated place situated within the Customs area, for storage and safekeeping. During the course of unloading, if it is found that the load port one-time bottle seal has been broken or tampered with, the custodian shall immediately inform the ITP Cell. (c) Where the load port bottle seal is found broken or tampered with, Customs may carry out 100% examination of the container before it is resealed. At the time of loading of the export transhipment containers on board the main line vessel destined abroad, the Customs officer of the ITP Cell may examine the load port one-time bottle seal. (d) The steamer agent and the custodian shall ensure that the export transhipment containers are transhipped expeditiously. If the same are not transhipped within thirty days of unloading, the provisions of Section 48, relating to the procedure in case of goods not transhipped within thirty days after unloading shall apply to the containers/cargo meant for transhipment. (e) After the sailing of the main line vessel, the steamer agent shall submit a copy of the EGM of the mainline vessel along with the Mate Receipt, so that the Customs officer can endorse the ETSA. The Customs officer shall compare the EGMs filed at the ports of origin with the EGM of the main line vessel and Mate Receipt, to ensure that all the export transhipment containers consolidated at Chennai, have been exported on board the mainline vessel. The original ETSA will be retained by the ITP Cell, the duplicate and the triplicate of the ETSA will be handed over to the steamer agent, (the triplicate, in a sealed cover for closing the EGM, at the coastal ports/ICDs as well as for processing export incentives, if any). The quadruplicate copy of the ETSA will be handed over to the custodian for record. (f) To obtain a proof of export, if need be, the steamer agent may submit in a sealed cover, hard copies of the Shipping Bills relating to the export transhipment containers from other Indian ports, to the ITP Cell, within fifteen days of the sailing of the main line vessel. After comparison with the EGM of the mainline vessel and the Mate Receipt, the customs officer will endorse the mate receipt number and dates of shipping, on the shipping bills and also affix his signature as proof of export. (g) This Public Notice will be subject to review depending on the feedback received from the users and the stakeholders; Difficulties, views, and suggestions for improvement, if any, may be brought to the notice of the undersigned. Sd/- (MADHU MOHAN DAMODHAR) COMMISSIONER OF CUSTOMS (SEAPORT-IMPORT)