Clarification on Insurance Amount and Bond Value for CCSPs and validity of Bond for AEO-LO - reg. - Customs - Public Notice. 17/2024

Ministry of Finance Department of Revenue Department of Revenue OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO) NEW CUSTOM HOUSE, CHENNAI-VII COMMISSIONERATE, AIR CARGO COMPLEX, MEENAMBAKKAM, CHENNAI 600 02 Telephone: 2561429 Fax : 22561445 Email:pcommr7acc-cuschn @gov.in F.No. ACC/SHED/MISC/1227/2024-TP Dated: 12-12-2024 Public Notice. 17/2024 Sub : Clarification on Insurance Amount and Bond Value for CCSPs and validity of Bond for AEO-LO- reg. 1. Kind attention of Importers, Exporters, Customs Brokers, Authorized Persons and all other Stakeholders is invited to Notification No. 75/2024-Customs (N.T) dated 07.11.2024 which has amended the Regulations 5 and 10 of HCCAR,2009 and a Circular No. 22/2024-Customs dated 08.11.2024 issued by CBIC in this regard to ensure Ease of Doing Business to clarify the amount of Insurance and Bond value for CCSP s and validity of Bond for AEO-LO s wherein the effect of the various changes made to reduce the value of Custodian Bond being furnished in respect of imported/exported goods has been elaborated. 2. Consequent to the above amendments as a measure of Ease of Doing Business, it has been decided to partially modify the earlier Circular No. 42/2016-Customs dated 31.08.2016 with regard to Regulation 5(1)(iii) of HCCAR, to lay down that the amount of insurance to be provided by CCSPs should be equal to the average value of goods likely to be stored in the Customs area for a period of 5 days (based on projected capacity) and for an amount as Commissioner of Customs may specify having regard to the goods that are already insured by the importers or exporters. 3. Corresponding changes have also been carried out in Regulation 5(3) of HCCAR, 2009 vide Notification No. 75/2024-Customs (N.T.) dated 07.11.2024 to reduce the value of custodian bond being furnished in respect of imported/export goods to the extent of 5 days storage from the current 10 days as stipulated in Notification No. 115/2016-Customs (N.T.) dated 26.08.2016. 4. Further, the notification no. 75/2024-Customs (N.T) dated 07.112024 also amends Regulation 10 of HCCAR,2009 proving that the approval for appointment of AEOLO CCSPs as custodian has been made valid till such time their AEO authorization is valid and not suspended or revoked in terms of Regulation 12 of HCCAR,2009. Accordingly, in terms of clarification provided in Circular No. 32/2013-Customs dated 16.08.2013, the Custodian Bond executed by CCSPs, i.e. ICDs/ CFSs etc. who are AEO-LO shall have the validity same as the validity of approval granted under Regulation 10 of HCCAR,2009. 5. Difficulty, if any faced in implementing the Public Notice may be brought to the notice of the Deputy/ Assistant Commissioner of Customs (Import Export Shed) Air Cargo Complex, CH-VII, New Customs House, Chennai-600016 pcommracccuschn@ gov.in. 6. This Public Notice issued with the approval of the Principal Commissioner of Customs , Chennai-VII Commissionerate (Air cargo). GOVINDARAJ A ADDITIONAL COMMISSIONER ADC/JC-II-O/o Pr Commissioner-Customs-ACC-Chennai