Modification in IGM filing with regard to IGM filing and Partial modification of the procedure for movement of Containerised Import Cargo from the Port/ Terminal to CFS - Customs - PUBLIC NOTICE NO. 48/2008

GOVERNMENT OF INDIA MINISTRY OF FINANCE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, 60, RAJAJI SALAI, CHENNAI.600001. S.Misc.49/2001 - sys Unit (Pt 1) Date: 22.04.2008 PUBLIC NOTICE NO. 48/2008 Sub: Modification in IGM filing with regard to IGM filing and Partial modification of the procedure for movement of Containerised Import Cargo from the Port/ Terminal to CFS- reg. Attention of all Steamer Agents/ Shipping Lines, Importers, Custom House Agents, CFS Operators/ Custodians, Chennai Container Corporation Limited (CCTL) / Port Trust, Main Line Operators (MLO) is drawn to computerized filing and processing of the IGMs under ICES and movement of containerized Import Cargo from the Sea Port to CFSs. 2. In order to streamline the management and monitoring of various aspects of containerized cargo movement, a number of enhancements and modifications in the ICES application have been envisaged. These encompass ICES modules of IGM, CFS Movement, Empty Container Movement, Bond Debit/ Re-credit and Empty container Bond. The requirement and proposed modifications are detailed below for the smooth functioning of container movement in ICES. 3. IGM Message Transmission: At present, the IGM Messages are being sent by Customs to the Custodians, i.e Chennai Port Trust and CCTL as soon as the IGM is submitted by the Steamer Agents/ Shipping lines in the ICES System. It is observed that IGM, although incomplete, is filed and a IGM No. is obtained by the Steamer Agents/ Shipping lines well in advance and amendments are being filed regularly even after the arrival of the vessel. Whenever there is an amendment, the ICES System sends the amendment IGM messages to the Custodians. Thus the IGM messages sent to custodian are substantially incomplete. Henceforth, the IGM messages shall be transmitted to the Custodians only after the entry inwards is granted for the Vessel. 4. Amendment of IGM after Entry Inwards: Currently 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. For amendment of IGM and Consol manifest at the Gateway Port Custom House, System level approval by Customs Officer is required. Hence the following changes are made in the existing procedures. (i) IGM/ Consol amendments applied before grant of Entry Inwards in System do not require approval of Asst Commissioner (Imports). (ii) All such amendments made after grant of Entry Inwards will require the approval of Assistant Commissioner (Imports) (iii)IGM messages to custodians would be sent at the time of grant of entry inwards so that substantially complete IGM is sent to custodian. 5. Movement of Containerised Import Cargo from the Port to CFS: The auto approval facility to move containers from Port/ Terminal to CFS is being implemented similar to the auto approval for transhipment of cargo from Port to ICDs. CFS operators/ Custodians are not required to file a separate TSA/PNR application in the Container Movement Facilitation Cell (CMFC) Section, for transhipment of containers from the Port/ Terminal to the associated CFSs. The movement request will be part of IGM filing process, The Importers/ CHAs/Steamer Agents/ Shipping Lines are advised to ensure that the code of the destination CFS (as per the Annexure 1 to this PN) at Sl. No. 26 in Message No. 1B - SACH102, should be clearly mentioned in the IGM, so that the auto approval for movement of Import Containers from the Port/ Terminal to the CFSs is granted by ICES itself at the time of grant of Entry Inward in the ICES System. Further, the CFS Operators/ Custodians, MLOs, Steamer Agents/ Shipping lines are advised to ensure the following parameters are specified while submitting the IGM in ICES for auto approval to take place for container movement to CFSs. In Message 1B - SACH102 (a) at Sl.No.23 Nature of Cargo should be 'C' or 'CP' (b) at Sl.No.25 Cargo Movement should be specified as 'LC' (c) at Sl.No.37 Bond Registration No. should be specified (d) at Sl.No.40 MLO code must be specified with the owner shipping agent code. The Auto approval would be applicable for the 'C' (Containerised) or 'CP' (Pad of the consignment is Containerised and remaining is Packaged but not containerised) nature of cargo only. Once auto approval is granted, the Terminal Operator M/s. CCTL will receive the messages in Message No.CHSA126 regarding grant of permission for movement of containers to each CFS. 6. Amendment of CFS Movement Approval: The proposed CFS Movement Approval Module has provision to amend any Movement Request parameter before approval is granted. After the auto approval is given by the System, amendments, if any, are permitted by the Superintendent (CMFC) only in the following cases: En Block Movement to a different CFS: For instance, there is a time limit of 72 hours for cargo-clearance at the CCTL Terminal. Containers earmarked for a CFS but not cleared within this time are moved en block to a different CFS at the discretion of the Terminal operator. Change of Destination CFS: Similar to the En block movement as described above, here the Shipping Agent/ MLO/ Importer/ CHA is requesting the amendment. Cancellation of CFS Movement Request: This requirement arises in case the party wants Direct Delivery from the Port/ TO itself and wants to cancel the approval already granted for movement to a CFS. Any change in the cargo/ container parameters: Changes in Container No., Type, Line Particulars etc. may be requested. To facilitate the above amendments, the following procedures is required to be followed: a. The request for post-approval changes should be filed with the Superintendent (CMFC). Applicant shall mention the CFS Movement No. and Date while requesting any amendment. b. System will show the list of containers (along with other relevant particulars) on the screen. The Staff at Service centre will enter the appropriate changes. System will generate a checklist, Only after the applicant certifies the checklist as correct, the request will be submitted in the System. c. Such submitted amendment request will move to the Superintendent (CMFC)'s screen. On verification of all relevant details/ records, the Superintendent (CMFC) may approve the amendment. System will also internally run its own validation checks and will reject any invalid/ inconsistent request. d. After amendment request is approved, System carries out the following tasks:- i. Cancels the previous approval order. Issues the cancellation message in format CHSA126. ii. Re-credits the bond already debited for original approval. iii. Debits new bond if applicable. iv. Generates new approval order. v. Amends the CFS code mentioned in the IGM. e. For minor amendments like changing cargo/ container particulars, dropping a container from an approved list etc. which do not require alteration of the bond value or any other major change, System will not cancel the existing approval order, but will make necessary changes and send amendment message CHSA126. This facility does not include cases like change of destination CFS, including additional containers etc. These amendments would be permitted only if the containers have not moved out of the Port/ CFS area. The container exit information would be available from the gate module. 7. Bond in respect of container movement from Port to CFSs: Existing Bond Module and authorisation forms in ICES (Imports) will be used. Bond Type is TR' (Transit Bond - which is a continuity Bond) for movement of container with cargo from Port to CFSs. Bond Type 'General Bond (QB)' is also allowed. BG rate, if applicable, is governed. As in TP movement, there are 2 kinds of Bonds for container movement to CFSsa (1) 1 st Party Bond: Given by the applicant (MLO) (2) 3rd Party Bond: Given by destination CFS/ Custodians. In case of 3rd Party Bond, necessary one-time authority has to be given by the CFS to the applicant (MLO) . 8. The Bond value is calculated on the basis of the size of the container. The Bond amount of for 20 feet container and of for 40 feet container would be calculated by the System, which is picked up with reference to the ISO codes declared in the IGM. The option to calculate the Bond amount on the basis of invoice value of cargo will not be available under this procedure as the invoice value is not available in the IGM. The bond amount will be debited in ICES System for movement of containers to CFSs. In order to avail this facility, MLOs and Custodians are required to register their Bonds in ICES Bond Module at CMFC and obtain the TR/GB Bond No. Auto approval will not take place, if the Bond registration No. is not mentioned in the IGM. 9. Re-crediting of Bonds: The re-credit facility (wherever transit Bond is applicable) is integrated in the Gate Module. After movement approval is given in the System and when the containers pass through the Custodian (Port/ Terminal) gate, the Preventive Officer, Container Movement Control Cell (CMCC) shall verify/ enter the container particulars in the ICES System. When the container physically arrives at the CFS gate, the Preventive Officer (CFS Gate) will enter the details in the ICES System. Thereafter, the System automatically re-credits the transit bond (TR Bond), which had earlier been debited. 10. For Direct Delivery containers, for which the CFS code is mentioned during IGM filing, the bond will be automatically debited at the time of auto approval of container movement. Like wise, in case the CFS code is wrongly mentioned i.e., in case CFS code of one CPS is wrongly mentioned instead of CFS code of another CFS, the bond will be debited against the CFS mentioned in the IGM. In these cases, Superintendent (CMFC) should be approached with proof for recrediting the bond amount already debited at the time of auto approval. The procedure mentioned at Para 6 shall be followed in these cases 11. Empty Container Movement: Till now, Empty Containers imported by Shipping Agents are manually cleared. Following procedure is laid down to handle the movement of empty Containers through ICES: a. Empty Containers Movement shall be processed in the same way as the cargo containers moving to CFS/ICDs. These containers are to be compulsorily declared in the IGM. b. All the Empty containers shall be cleared through the Empty Container Yards (ECY). Shipping Agent/ MLO shall apply for such movement in the IGM itself, just like CFS cargo. The only difference is that, instead of CFS Code, the ECY Code (Empty Container Yard Code) shall be specified in the IGM. c. All Empty Container yards will have a common code Port Code AO. In the case of Chennai Seaport the code for Empty container Yard is INMAA1AO. In due course of time, however, separate codes for different ECY (like AO, Al, AZ... Z7, Z8, Z9) may be allotted to identify individual yards. d. The Empty Container Bond shall be debited before the approval of movement order for the empty containers is granted by ICES at the time of grant of entry inwards. Hence, filing of separate Vessel wise Application is dispensed with. e. The approval order shall be similar to the approval of Container Movement to CFS. Same message in message format CHSA126 which is in existence for movement of containers to CFS shall be sent for Empty Containers approval to the terminal operator i.e., CCTL. Further, the CFS Gate Module at the exit gate of the Port/ Terminal shall also track these containers. The Bond value debited for Empty container will be re-credited to the bond once the container is re-exported and the proof for same is submitted by MLO to the CMFC. 12. Empty Container Bond: It has been decided that ICES will incorporate the processing of Empty Container Bond for all imported containers through Chennai Seaport. It may be noted that processing for this Container Bond is a prerequisite for other processing linked to the time of grant of entry inwards i.e., unless this bond is debited, approvals like Transhipment approvals: approvals for movement to CFSs and regularization of prior Bill of Entries will not take places The following are the salient features of this bond: a. Shipping Lines/ Steamer Agents should furnish a bond for all imported containers - which would be in force till they are re- exported. The Containers must be re-exported within a period of 6 months and for further extension permission has to be obtained separately. b. A new type of bond exclusively for this purpose would be introduced. This bond would be called Container Bond type 'CB'. It. will be a Continuous bond - that can be used for multiple debits and re-credit till the value is exhausted. c. Shipping Agents are required to register only one Container Bond of large value so that it can be used for multiple debits. The existing bond module of ICES will be used for registration and management of the bond. There is provision of enhancing the value of an existing bond through additional credit. d. Rate of bond value for containers is specified on the basis of type of container - like 20', 40', Plain, Reefer and tanker etc. and would be debited. System would maintain a directory of bond rates based on ISO code of the container. The Bond rates for various type of containers are given in the following table: Type of Container Bond Rate (in Rupees) 20 Feet Plain 30,000/- 40 Feet Plain 60,000/- 20 Feet Reefer 2,00,000/- 40 Feet Reefer 3,50,000/- 20 Feet Tanker 3,00,000/- 40 Feet Tanker 4,00,000/- e. For loaded containers, this bond will be in addition to the TP (for Transshipment) or TR (for CFS Movement) bonds. f. For empty containers, the information should compulsorily be filed as part of IGM for debiting of bond and approval of movement of empty containers. g. Processing of bond-debit is implicit in the System and no separate request is required. On grant of Entry Inwards, System will automatically carry out the required processing - which involves finding out valid registered bond, calculation of Bond amount and debiting the same. h. The debited value for a container will be re-credited to the bond once the container is re-exported. Shipping Agents will have to apply for re-credit along with proof of export. The information may be furnished in the Service Center entry form. The Superintendent (CMFC) will approve the same on verification of proof of export within approved time limit. 13. But for the modifications in the procedure for container movement to CFS as detailed above, other existing procedures will continue to be followed. 14. Functioning of the automated system for movement of containers from the terminal to CFSs requires cooperation from all the stakeholders concerned. 15. If any, difficulties/ problems faced in the implementation of auto approval of container movement to CFS may be brought to the notice of the Joint Commissioner (Systems) 16. This Public Notice will come into effect from 1st May 2008. (RAJ KUMAR BARTHWAL) COMMISSIONER OF CUSTOMS