Procedure in respect of discharge and clearance of Dry Bulk Cargo (Coal and Coke) after grant of Out-of Charge (OOC) - reg- - Customs - PUBLIC NOTICE NO. 10 / 2023

OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOMS HOUSE, PORT AREA , VISAKHAPATNAM- 35 Tel-0891-2564552 :Fax - 0891-2562613 Email [email protected] F NO. P3/20/2019-AM Dated: 05.04.2023 PUBLIC NOTICE NO. 10 / 2023 Sub : Procedure in respect of discharge and clearance of Dry Bulk Cargo (Coal and Coke) after grant of Out-of Charge (OOC) - reg- Representation has been received from the Visakhapatnam Custom Brokers Association regarding difficulties experienced in discharge and clearance of dry bulk cargo, more specifically coal and coke. Along with the representation, they have also referred to Public Notice No. 17/2020 dated 24.02.2020 issued by Kolkata Custom House, addressing the issue of clearance of dry bulk cargo after granting out of charge in a comprehensive manner. 2. As difficulties are being experienced by the importers as well as Custom Brokers and Shipping Agents, the request of the Visakhapatnam CB Association has been examined and for case of doing business and as a trade facilitation measure, the following guidelines are issued. Dry Bulk Cargo : In respect of dry bulk cargo, an independent survey report should be prepared by the carrier and the consignee and such report should be countersigned by the Customs Officer before discharge of Cargo. Such report should be accepted for the purpose of ascertaining the actual cargo unloaded. 3. Thus, in respect of dry bulk cargo, customs duty is required to be recovered on the quantity ascertained on the basis of draft survey report jointly signed by Consignee / Owner or his agent, receiver or his surveyor and Customs Officers. Further, as per paragraph 7.08( i) of the Appraising Manual in case of coal and coke, shortage of upto 2% of the manifested quantity may be allowed and no further weighment of coal is warranted. Shortage in Manifested Quantities Instructions as per 7.08 (i) The following instructions shall be followed in respect of the shortages observed in the manifested quantities. (i) Coal and Coke: Shortage upto 2% of the manifested quantities may be allowed without penalty under Section 116 of the Customs Act, 1962. If the deficiency exceeds 2%, the agents of the vessel should be required to explain the shortage. If their explanation is not satisfactory, penalty should be imposed under section 116 of the Customs Act for the whole shortage. 4. Since the duty on coal is already paid on the basis of weignment determined in draft survey, there do not appear to be any danger to revenue in case certain shortage /excess are noticed upon physical weighment conducted at the time of delivery of cargo out of the port by the custodian. Once particular quantity of coal is given out of charge by the proper officer of Customs, the custodian can deliver the cargo to the parties concerned on the basis of delivery order issued by the shipping agent. They may use weighbridge inside or outside the port. NOC from Customs will not be required in cases of shortage/excess falling within 2%. 5. Any difficulty faced in implementation of this Public Notice may be brought to the notice of the undersigned. (K. Engineer) Commissioner of Customs