International transshipment of LCL containers at Indian ports - CBEC's Customs Manual 2023 - Customs

4. International transshipment of LCL containers at Indian ports: 4.1 As per Section 54(2) of the Customs Act, 1962 transshipment of imported goods to any place outside India, referred as 'International transshipment', is allowed except in respect of goods prohibited under Section 11 of the said Act. Accordingly, international transshipment of imported goods in Full Container Load (FCL) is permitted. Further, as a measure of trade facilitation and to enable Indian ports to act as Transshipment Hubs, transshipment facility for imported goods in Less than Full Container Load (LCL) is permitted at approved places under the jurisdiction of identified Custom Houses. Currently, this facility is provided at Chennai, Cochin, Nhava Sheva, and Tuticorin. 4.2 The following procedure is prescribed on arrival of the international transshipment (ITP) containers: (i) The application for international transshipment of FCL cargo can be made by master of the vessel or his authorized agent, Non-Vessel Operating Common Carrier (NVOCC) or any other person duly authorized in this behalf by the foreign supplier; (ii) No goods for international transshipment should be unloaded from the vessel until the permission for the same has been given by the Assistant/Deputy Commissioner of Customs authorized in this behalf by the Commissioner of Customs, on the basis of manifested details in IGM; (iii) The ITP container details such as container number, broad description of goods etc. shall be mentioned in the IGM. In the electronic manifest, there are fields for specifying (a) Port of destination, and (b) cargo movement code. For cargo movement, there are three codes, which need to be filled correctly with proper port of destination, as follows: (a) LC Local Cargo: This refers to the port code where cargo is delivered. It is the same as the port of arrival. (b) TC Transshipment Cargo : It refers to international cargo and the port of destination shall be the port code where transshipment cargo is destined to or delivered. (c) Transshipment to ICD : This is the local cargo meant for transshipment to hinterland port i.e. ICD. The port of destination is the port code of the ICD. (d) There is a field Container Status to specify whether the cargo is FCL or LCL or Empty . The line and sub-line numbers provide the inter-linkage between the cargo details and the container details. (iv) The unloading of such ITP containers at gateway port would be in presence of Customs Officers. The containers would be taken to approved place / premises under Customs escort. Custodian of such premises would provide a segregated secure space for ITP containers. (v) Customs Officers would examine the seal of the ITP Containers and in case of it tampering, such container should be immediately resealed with the Customs seal in the presence of the custodian/shipping agent and same should be recorded. Such containers will be examined 100% by the Customs Officers and findings recorded thereof and put up to the Assistant/Deputy Commissioner in charge for further action. (vi) LCL cargo meant for a foreign port outside India would be de-stuffed in the presence of Customs Officer and stored in a secured area as provided by custodian. LCL cargo may contain consignments meant for transshipment to any port outside India as well as consignments for home consumption or transshipment to ICDs. This would necessitate segregation of the two types of cargo at the time of de-stuffing and moving them to respective storage areas under Customs escort. Till such time, sufficient precaution should be taken to avoid duplication/mixing up or manipulation of cargo meant for transshipment/home-consumption. (vii) Whenever the LCL cargo are required to be exported to foreign destination, The restuffing of such LCL cargo meant for the foreign port along with the export cargo would be done under the supervision of a Customs officer. Further, container would be sealed in presence of a Customs Officer and the details of LCL cargo would be entered in EGM. (viii) Custodian would maintain the record of ITP LCL cargo, both loaded and unloaded, and submit a monthly summary to Customs. He shall execute a general bond for an amount equal to the approximate value of goods expected to be imported in 30 days for purpose of international transshipment and undertake to export transshipment cargo within 30 days or within extended period as Commissioner may allow and follow all the relevant Acts, Rules and Regulations in force. (ix) Custodian would be responsible for safe handling of the LCL cargo and ensure that there is no intermixing of ITP LCL cargo with other cargo. (x) International transshipment of cargo needs to be effected within 30 days of 'Entry Inward' of the importing ship. The permission for transshipment would not be given to cargo having arms, ammunition, explosives and other cargo considered as constituting a threat to the security/safety and integrity of the country and other goods attracting prohibition under Section 11 of the Customs Act, 1962. However goods which are restricted as per the FTP may be permitted for transshipment to destination abroad. (xi) Further, transshipment shall not be allowed to any port / destination, in respect of which any order or prohibition is in force for the time being. Commissioners may also prescribe any additional safeguard for securing safe transshipment. The provisions of Section 48 relating to the procedure in case of goods not transshipped within 30 days after unloading shall apply to the good meant for transshipment as these are also imported goods . (xii) For international transshipment of LCL containers, the Commissioners should adopt consultative approach with the stakeholders/operators to identify suitable premises. Following factors may be considered by the Commissioner in this regard: (a) Location of the premises. (b) Availability of adequate infrastructure - modern handling equipment for loading / unloading of containers from rail flats, chassis, stacking, movement, cargo handling, stuffing/de-stuffing, refrigerated storage facility for perishables etc. (c) Availability of sufficient secured area for segregation/ consolidation of cargo and its safe handling. (d) The premises need to be connected with Custom House on EDI to handle the transshipment in ICES. (e) Experience of custodian in handling import export matters and working knowledge of Customs Act, rules and regulations. (f) Logistics arrangements including constraints, if any, in movement of containers between approved place/premises and port. (xiii) In line with Boards instructions, Commissioners may also indicate detailed operational procedure, taking into account the requirements, physical movement in carrying goods to the approved place / premises etc. at individual Customs stations. [Refer Circulars No.55/2000-Cus, dated 30-6-2000 , No.61/2000-Cus dated 13-7-2000 , No.67/2000-Cus, dated 17-8-2000, No.22/2001-Cus, dated 17-4-2001 and No.14/2007-Cus, dated 16-3-2007 and Instruction F.No.450/66/2005-Cus.IV, dated 24-11-2005 ]