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TMI BlogPolicy and Guidelines for setting up of Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Commerce (DOC) and Central Board of Indirect Taxes and Customs (CBIC) set the rules for establishment & functioning of these facilities. The matters relating to setting up of ICDs/CFSs/AFSs were brought under CBIC in 2018. Accordingly, the Board had reconstituted the InterMinisterial Committee vide order issued under F.No. 434/04/2018-Cus.IV dated 20.06.2018. 1.2. In the last two decades, both the cargo volumes and capacities of ICDs/CFSs have increased manifold. A few key initiatives transforming the manner of trade in recent years, such as implementation of the Authorized Economic operator (ADO) programme, rising penetration of the Direct Port Delivery(DPD) and Direct Port Entry(DPE) initiatives, Self-Sealing (RFID seals), Self-Assessment, Electronic Cargo Tracking System (ECTS) and RMS based facilitation have completely changed the operation of Export-Import logistics. The CBIC is also targeting higher DPD, DPE numbers with minimum but more effective Customs interventions aided by technological measures. 1.3. Similarly, physical infrastructure has undergone exponential improvements with the development of expressways, national highways connecting ports to hinterland. Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he activities related to clearance of goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export, transshipment, etc., take place. An ICD would have its own automated system with a separate station code (such as INTKD 6, INSNF6 etc.) being allotted by Ministry of Commerce and in-built capacity to enter examination reports and enable assessment of documents, processing of manifest, amendments, etc. 2.2. Container Freight Station 2.2.1. An off seaport (or port) facility having such fixed installations or otherwise, equipment, machinery etc. Providing services for handling / clearance of laden import, export containers for home use, warehousing, temporary admissions, re-export etc under customs control and with storage facility for customs bonded or non-bonded cargo. 2.2.2. Though by definition, both ICD and CFS are similar, a CFS is only a Customs area notified under section 8 of the Customs Act, 1962, located in the jurisdiction of a Commissioner of Customs exercising control over a specified Customs port, airport, LCS/ICD while an ICD is notified under section 7 of the Customs Act, 1962. A CFS cannot have an indepen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stored/ delivered; containers are stuffed/ stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/ sheds. 2.4.4 Gate Complex: The gate complex regulates the entry and exits of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken. 3. Functions and benefits of ICDs/CFSs/AFSs 3.1. The primary functions of ICD/CFS/AFS include receipt and dispatch/ delivery of cargo, stuffing and stripping of containers, transit operations by rail/ road to and from serving ports; customs clearance, consolidation and desegregation of loose Container Load (LCL) cargo, temporary storage of cargo and containers, reworking of containers; and maintenance and repair of container units. 3.2. ICD/CFS/AFS, inter alia, offer the following benefits to the trade, namely, serving as concentration points for long distance cargo movement and transit facility, making available customs clearance facility available n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st road (National Highway / State Highway) from serving port shall be considered. This rule shall be applicable across all geographical zones. 4.1.4. Distance between ICDs - No Greenfield ICD shall be permitted to be established within 100kmsdistance from existing ICD. Distance will be referred as chargeable railways route (both directions) between ICDs and shortest road distance(National Highway / State Highway, both directions) in case of road linked ICD. This rule shall be applicable across all Geographical zones. 4.1.5. Development in States with low Logistics Infrastructure - To support infrastructure development in states with limited logistics infrastructure, priority should be given to Identifying and promoting ICD/CFS/AFS facilities where presence of such facilities is limited. These are clustered in Green Zone as proposed above. IMC can give relaxation on Distance rules in Green Zone. 4.1.6. National Logistics Action Plan/Policy - The approval and notification of all new ICD/CFS, including existing and new MMLPs will be processed in consonance with the national logistics action plan/ policy. 4.1.7. Inland National Waterways - Development of ICDs based on Inland Nation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ICD and 1200 TEUs/ consignments per year (two way) for a CFS. However, no such threshold performance is prescribed for an AFS. 4.3. Land 4.3.1. The minimum area requirement is seven hectare for ICD having minimum area of four hectares as Customs Notified Area and minimum one hectare nominated for DPD & DPE nominated space. For states in Green Zone, ICD with three hectares for customs notified area and one hectare for DPD & DPE may be considered. The minimum area requirement shall be two hectare for a CFS. For AFS 1000 Sq. meters of covered area each for imports and exports respectively shall be made available. 4.3.2. Ownership of Land - The applicant must have the legal rights over the land which is proposed for ICD/CFS construction. If the land is not owned and the land is leased, the lease agreement with lessor must be for period of 30 years. Change of Land Use certificate, wherever required shall accompany the application and land should be free from acquisition proceeding at date of application. The land parcels should be contiguous with only exception for setting up non-bonded storage facility. 4.4. Other Criteria 4.4.1. Legal entity - The applicant must be a legal enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration or rejection. 5. 1.4. On receipt of the proposal, the members of the IMC will furnish their comments within 30 days. 5.1.5. Proposals for setting up ICD/CFS/AFS will be considered on merits by the IMC. Normally, the IMC meetings will be held twice in a year. The committee may approve or refuse to grant approval for setting up of ICD/CFS/AFS. The recommendations of the jurisdictional Commissioner will be a relevant factor but not necessarily binding on the IMC. The IMC can independently decide about approval/ rejection of any project based on the valid considerations. The applicant shall not make any investment before obtaining the approval from IMC. The "in-principle" approval from the jurisdictional Customs Commissioner regarding the feasibility of the proposed facility shall not be considered as final. Any investment made by the prospective developer before the approval of IMC shall be at the risk of developer and as a result would not constitute a relevant factor for approval of the facility. 5.1.6. On approval of a proposal, a Letter of Intent (LOI) will be issued to the applicant with conditions as may be considered necessary, which will enable appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olves substantial geographical change (outside existing District. or involves change of port to which the CFS serves), it should be treated as closure of the existing facility and setting up of a new facility. 6. Post Approval Obligations 6.1. Operationalising the facility 6.1.1. The applicant shall take all necessary actions to operationalise the facility within the validity period of the LOI. The applicant must put up the required infrastructure and meet the regulatory requirements in compliance with applicable law to become functional. The Check list for various requirements is given at the Annexure-III. 6.1.2. The applicant, after receipt of LOI, shall send monthly progress report to jurisdictional Commissioner of Customs in the proforma as may be prescribed by him. Failure to submit progress report would have an adverse effect in cases where extension is to be sought. Non-compliance to send reports shall be a valid ground for rejection of request for extension. 6.1.3. After development of infrastructure as per requirements, applicant shall apply to CBIC for notification of facility as ICD or AFS under Section 7(aa) of Customs Act, 1962 through the jurisdictional Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from such payment shall be governed by the extant rules, policy and circulars in this regard. 6.2.4. No alteration of the plan of the ICD / CFS shall be made without the concurrence of the jurisdictional Commissioner of Customs. Further, no reduction in minimum prescribed physical area shall be allowed. 6.2.5. For Rail linked ICDs, investors will be required to provide at their own cost all infrastructure facilities including land, track, and maintenance of assets including track, rolling stock, etc. as per extant railway rules applicable to such sidings. The cost of the railway staff would be governed as per the prevailing Indian Railways policy. 6.2.6. The custodians should strictly follow any guidelines/ directions issued on account of force-majeure of Government of India from time to time. 6.3. Record keeping handling, receipt and storage 6.3.1. For the proper discharge of duties, the custodian shall execute a Bond covering the value of the goods stored in the ICD/CFS with the Assistant/ Deputy Commissioner of Customs. The custodian shall ensure that all goods held in the ICD/CFS are adequately covered as per extant circulars issued by the Board. 6.3.2. The custodian sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-functional and approved count of ICDs on their websites, latest figures of volume handled, Infrastructure profiles, compliance with HCCAR 2009 rules to be maintained on month on month basis on the Commissionerate's web-portal. 7. Term, renewal and de-notification of the facility 7.1. The duration of the award for the operation of the facility shall be governed by HCCAR 2009 unless otherwise mentioned in any other guidelines. The applicant shall get the award renewed by the jurisdictional Commissioner of Customs. 7.2. At the time of renewal, the jurisdictional Commissioner of Customs shall satisfy himself about the functioning of the facility including the minimum volume projected at the time of initial proposal. 7.3. The ICDs not meeting the minimum prescribed threshold performance for four consecutive financial years will be considered for de-notification by the Board based on the recommendation of the jurisdictional Commissioner of Customs. As regards CFSs, jurisdictional Commissioner can de-notify the facility if it failed to meet the prescribed minimum threshold performance for four consecutive financial years. In the case of AFSs, the Board may analyze the performa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocation of an existing ICD/CFS/AFS Geographical Zone of Facility [Refer para 4.1.2 of the circular] (Mark whichever applicable) __Green __Blue __Red State of facility proposed District of facility proposed Nearest ICD/CFS/AFS with distance from proposed facility. Concerned Customs Zone Has proposal been rejected earlier Yes/No If yes, when DD/MM/YYYY If the proposal has been rejected earlier, whether the instant proposal brings out any fresh facts for consideration of IMC? (Details to be furnished separately) Yes/No Date of submission of Advance Copy of application to jurisdictional Commissioner of Customs Whether detailed Project Report enclosed with the application Yes/No Details of other documents submitted (if any) 1. 2. 3. Contact details of Authorized Signatory Name: E-Mail: Contact No: Declaration (strike out whatever not applicable): 1. I...................., S/o...................the authorised signatory of...............hereby certify that the content of this application is true and correct. 2. Neither me, my entity nor the promoter has been convicted of any offence by any court in India or abroad 3. I undertake to comply with the Customs Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. Background and Broad Project Rationale i. Provide details of the project, including: a. High level capacity creation and capital outlay. b. Technology & Automation proposed for cargo/container handling and IT systems. c. Target hinterland/trade generating location. d. Market segment proposed to be addressed. e. Business Activities & Specific Services Offered. ii. Write up on how the proposed project will enhance the export import logistics Infrastructure in country. iii. Write up on how project aims to lower cost of logistics for target location. iv. Write up on how the proposed project plans reduction of dwell time of containers in its premises. v. Stakeholder analysis (including investors, Export & Import Industries, traders, cross-border trade, logistics ecosystem, and affected population). vi. Plan for traffic management and decongestion of approach roads for ICD/CFS/AFS. 4. Overview of Business Landscape Overview of business environment with analysis (such as PESTLE/ SWOT) . 5. Traffic Assessment i. Location: Proposed location should be defined in detail covering following aspects: a. Location identification details. b. Distance from neares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be done at commodity level to each gateway port connection separately. 6. Project Execution/ Implementation Strategy i. Creation of Infrastructure and strategy for securing/ implementing the same. Plans for Land/ site development, Planned Railway Connectivity, Application under Private Freight terminal, Approach Road etc. ii. Project management framework and philosophy. iii. Cost & Time overrun contingency measures. iv. Planning Considerations of Port Facilities requirements specified by policy. v. Selection of Cargo Handling Equipment. vi. Project Phasing (Quarterly activity plan supported by detailed Gantt Charts) including major milestones. vii. Key Activities by quarter. viii. Organization Structure proposed (with details of management team and role of partners) up to three levels (starting with CEO). Also append the profiles of the personnel proposed as well as the roles and responsibilities of each. ix. Details of permissions, clearances and fulfillment of other statutory requirements for the projects, accompanied by a detailed note on plans for fulfillment of each. 7. Project Financials i. Capital cost estimation. ii. Operating and maintenance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew reforms by CBIC. 3. All designs and construction shall detail and be compliant with rules of HCAAR, 2009 regarding the following but not limited to, wall specifications, transit/ bonded warehouse, entry and exit gates, demarcated area for hazardous goods, lighting through high masts, demarcated areas for export and import, storage for fumigation and post fumigation and storage area for auction cargo. 4. PGA office & Laboratory space: Office and laboratory space for PGAs shall be provided at no cost to reduce the dwell time of export & imports. No charges including office rent, electricity charges should be billed to Public Government Agencies (PGA's) for their deployment. Alternatively, in case of a group of ICDs located in proximity of each other, a common testing facility may be considered for cost rationalization. 5. Rail Linkage: In case of rail linked ICDs, rail infrastructure provided inside a container depot should allow receipt and dispatch of full-length unit container trains running between a single origin and a single destination, without requiring to be broken up or remarshaled outside the ICD/CFS. Container Yard (CY) should be designed around rail access and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t access control. 9. DPD & DPE Area: Separate area for DPD & DPE containers as per land requirements of this policy should be provided in ICD. The nominated DPD & DPE area should have separate entry/ exit gates with clear demarcation from customs notified area. Further, DPD & DPE traffic should not impact the regular ICD operations. 10. Truck Circulation Area: Efficient operation of ICD depends on unimpeded, circulation of trucks throughout the ICD area. An exception to this design requirement is an intersection with rail access line, which needs to be protected by automatic level crossing barriers and warning devices. Internal roads shall be constructed with indicative width of 15 meters, to allow handling equipment and trucks to pass safely. 11. Storage of Hazardous goods in warehouses: Hazardous goods warehouses must be sealed from all directions, i.e. in relation to the soil and groundwater, as well as in relation to the atmosphere. Leakages, for instance, are diverted into sumps from which the fluids can be removed by external pumps; 12. Storage of containers with Hazardous goods in yard: Storage space for minimum 50 TEUs should be marked, this yard location should have un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 lux in the ground up to 50 meters from center of high mast. Beam angle of luminaries/ lamps positioning must be suitable to cover illumination in ground as well as stored containers in the yard up to 16 meters high. 19.4. Yard Paving: Yard paving must utilize Pavement Quality Concrete grade of M40 or dry lean concrete with M30/M50 blocks or higher specification. 19.5. CCTV Coverage: The CCTV network should at minimum cover the ICD entry/ exit gates, warehouse gates, warehouse storage area, admin building entry points, commercial transaction area, container storage yard area and e-sealing work zones. CCTV equipment must have night vision recording capabilities. The system should have minimum capability to record & hold data for three months and 24x7 hours access and remote monitoring facility shall be provided to Customs in addition to access within admin building of the ICD 19.6. Security Deployment: The entry and exit gates, warehouses, admin building, Container yard to be adequately manned 24X7 as per the satisfaction of presiding customs authority. 19.7. IT Infrastructure: All IT infrastructure shall be provided and upgraded by custodians as prescribed by DG Systems. 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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