References have been received from various Associations of Trade and also
from Ministry of Commerce to allow movement of export goods through containers
/ trucks from hinterlands to gateway Airports for the purpose of exports
by air and also to allow movement of imported cargo in containers / trucks
from the airports /ACCs to ICDs/CFSs/Airports etc., In this regard, it
has been decided by the Government of India to permit the transhipment
of export cargo/import cargo from inland Airport to Gateway Airports or
otherwise by Air Taxi Operators in addition to the Airlines either on
their own account or on behalf of other International carriers. For
this purpose, the procedure laid down as under shall be followed at Hyderabad
THE COMMISSIONER OF CUSTOMS AND CENTRAL EXISE
No. 150/99 Date: 19.11.99
Customs -Transhipment of Cargo by Private Air Taxi Operations
from Inland Airports to Gateway Airports -Permission
& Procedure - Regarding
It is hereby
informed that it is has been decided by the Government of India to permit
the transhipment of export cargo from inland Airport to Gateway Airports
by Air Taxi Operators in addition to Indian Airlines either on their own
account or on behalf of other International carriers. For this purpose,
the procedure laid down as under shall be followed at Hyderabad Air port.
movement of the Import cargo shall be governed by the
of Chapter VIII of the Customs Act, 1962 and the Goods Imported (Conditions
of Transhipment) Regulations, 1995.
at Hyderabad Airport from foreign countries for transhipment to inland
airports shall be transferred immediately after the break-up operations
to special enclosures in the concerned airlines warehouse having double
locking arrangement. The concerned airlines bringing the cargo shall provide
special enclosures having double locking arrangement i.e., one key with
the airline and one key with the Customs, for storage of import cargo
meant for transhipment.
airlines bringing the import cargo or their agents shall file transhipment
application(CTM) as provided-under section 54 of the Customs Act, 1962.
The application shall be prepared I.G.M. wise and destination wise. As
provided under the Goods Imported (Conditions of Transhipment) Regulations
1995, a fee of Rs.20/- shall be paid in respect of each application.
5. The application
will be presented to the Transhipment Officer who will verify the particulars
with the relevant I.G.M., Airway Bill etc. and if he is satisfied with
the correctness of the particulars, shall register the same in the CTM
Register, and the running serial number of the Register will be allotted
to the application and this shall be indicated on all the copies of the
6. The application
will thereafter be presented to the Superintendent i.e., CTM, who shall
ensure, interalia , that the application is duly registered and the T.
P. fees have been paid before granting the permission .
7 . The
T. P. Officer shall indicate the reference number of the CTM against the
relevant entry in the Transhipment Register and date of forwarding the
goods , to the Transhipment warehouse of the domestic air carrier. He
shall physically verify the goods before they are forwarded. Any damage
or tampering of the package shall be reported for further action. He shall
retain one copy of the CTM duly acknowledged by the escort officer and
the airlines representative and the same shall be filed CTM number-wise
in a box file.
8. The packages
shall be removed in closed trucks under
escort during day time between 10 A.M. and 6 P.M. The
fees at the prescribed rate shall be paid by the applicants for the services
of the escort officer.
9. On receipt
of the packages in the transhipment warehouse of the domestic air carrier,
the officer posted in the warehouse shall ensure that the packages' are
stored in the transhipment warehouse destination-wise. He shall make necessary
entries in the T.P. Register maintained by him. He shall acknowledge on
the duplicate copy of the CTM copy. The representative of the domestic
air carrier shall also acknowledge the receipt of the goods in the warehouse.
The CTM copy duly acknowledged shall be handed over to the Escort Officer
who in turn will hand over the same to the transhipment officer of the
airlines warehouse from where the packages were removed. The transhipment
officer will close the entry in the CTM Register after giving cross reference
number of the Register entry of the domestic carriers' transhipment warehouse.
10. The domestic
carrier shall prepare sufficient number of copies of the E.G.M. and present
to the officer posted in the transhipment warehouse. The officer will
assign the E.G.M. number which will be running serial number in the E.G.M.
Register. The transhipment cargo will be distinctly manifested as international
cargo. The cargo from the transhipment warehouse of the domestic air carrier
will be removed and loaded to the aircraft of the domestic air carrier
under preventive supervision. The officer will endorse the E.G.M. for
having shipped the cargo under his supervision and obtain the acknow1edgment
of the domestic carrier' s representative for having received the cargo
on board by this aircraft. One copy of the E.G.M. will be retained by
the officer and filed E.G.M. number-wise. Two copies of the E.G.M. will
be forwarded to the port of destination in a sealed cover addressed to
the Assistant Commissioner of Customs at the port of destination through
the carrier. The officer shall enter the particulars like the date of
shipment, flight number and E.G.M. number against the relevant entry in
the transhipment register. At the receiving port, the receipt of the cargo
will be acknowledged by the proper officer of Customs by endorsing on
the E.G.M. copy and the same will be returned to the port of origin through
the same carrier. It would be the responsibility of the domestic carrier
to produce the copy of the E.G.M. duly acknowledged by the proper officer
at the port of destination within 48 days.
11. The office
of the transhipment warehouse of the domestic carrier will closely monitor
the receipts of the acknowledged E.G.Ms from the port of destination.
If there is delay in the receipt of E.G.Ms, the same shall be brought
to the notice of the Superintendent in charge of transhipment warehouse
who shall issue necessary demand notice to the domestic carriers within
12. The domestic
air carrier will execute a bond in terms of the "Goods imported (Conditions
of Transhipment) Regulations 1995". It shall be ensured that the value
of the transhipped goods in respect of which proof of receipt at the destination
is awaited at anytime does not exceed the amount for which bond has been
executed by the airlines. For this purpose, the value of the transhipped
goods would be the value declared in the airway bill or other documents
If no value is declared and the the same cannot be ascribed otherwise,
it shall be estimated at the rate of Rs.400/- per Kilogram.
13. On receipt
of the E.G.M. copy duly acknowledged by the proper officer at the port
of destination, the officer posted in the transhipment warehouse shall
close the entry in the E.G.M. register indicating the particulars of the
receipt of the E.G.M. copy and the date. The E.G.M. copies received from
the other ports shall be filed receiving date-wise. The carrier shall
undertake to submit the acknowledged E.G.M. copy within 45 days of transhipment.
If the copies are not received or some consignments of an E.G.M. is not
accounted for, duty must be demanded from the carrier within 7 days for
payment within next 10 days. If the amount is not paid, the bond should
be enforced and no transhipment may be allowed by that officer. The proper
officer while demanding the duty should bring the consequences of non-payment
to their notice.
after completion of sorting of cargo received on any particular flight,
import cargo manifested for transhipment to any foreign destination shall
be transferred by the concerned airlines under supervision of the Custom
Officer posted in its warehouse to the special enclosure meant for storage
of transhipment cargo under double locking arrangements and the particulars
of the cargo shall be entered in the prescribed register after its receipt
in the storage godown. Before transhipment of any goods Cargo Transfer
Manifest shall be presented in Triplicate. One copy of the same will be
kept by the I.F.O. of the concerned airlines. In case the cargo is to
be transhipped on an aircraft of another carrier which is also handled
by a different agent, the other two copies will be sent with the cargo
to the carriers, who will carry the goods to foreign destination, where
the customs officer will acknowledge the receipt of the cargo his T.P
register number and return one copy back to the transferring carrier,
on production of .which the officer posted there will close the entry
in his T .P. register after giving cross-reference. During the period
the cargo is retained in the warehouse of the carrier who has to finally
carry the goods to foreign destination it shall be.kept in a separate
enclosure having double lock.ing . .arrangement.. The officer incharge
of the warehouse of the concerned airline will escort such transhipment
cargo and shall ensure that it is loaded on board, the aircraft by which
it is to be shipped. He shall make suitable endorsement on the relevant
copy of the Bill of transhipment certifying the shipment of the cargo.
The entry in the register shall be closed after proof in regard to the
export of cargo is furnished by the E.F.D.
to foreign for transhipment through another airport:
( a ) The shipping
Bill received shall be processed and all the particulars . including name
of Domestic Carrier, flight number, name of the transhipment airport etc,
shall be endorsed in it. The transhipment cargo shall also be entered
in a separate export. Transhipment Register, The .carrier shall intimate
within 24 hours the details of E.G.M., short shipment or short out, cargo
clearly shown in the E.G.M.
Domestic Carrier shall give a bond to the customs for safe and secure
export of the goods from India. The value of the bond shall be approximate
value of the goods to the transhipment within two months from the airport
and the value of the security shall be decided by the Commissioner. But
may not be more than 10% of the Bond amount. The domestic carrier shall
also undertake to produce the proof of export within 30 days or such extended
time which the proper officer may allow on sufficient reason being .shown.
Customs freight officer at the originating airport shall retain all the
duly endorsed copies of the shipping bills and AR4s and will make final
endorsement after proof
d) At the
Gateway Airport, the cargo received from the inland airport for export
to foreign destinations shall be removed from the transhipment warehouse
of the domestic carrier under customs supervisor and stored there separately.
The domestic Carrier will present the E.G.M. copies received from the
Inland airport in the sealed Cover to the officer posted in the transhipment
warehouse who shall register the same in the I.G.M. Register maintained
by him and assign the running serial number. A receipt on the copy of
the I.G.M at the air port shall be given to the career. The domestic career
will prepare the Cargo Transfer manifest which shall be registered in
the CTM Register maintained by the officer at the T.P. warehouse of the
domestic carrier. After obtaining the permission from the superintendent,
the cargo shall be removed from the T.P. warehouse of the domestic carrier
to the warehouse of the foreign airlines in closed trucks under customs
supervision. After shipment of the goods, the foreinn going carrier will
present a copy of the Export Manifest to the officer incharge of the transhipment
warehouse of the domestic carrier, who will close the entry in his records
by indicating the flight number and date of shipment of the cargo.
reference shall be given on the copy of the I.G.M received from the domestic
carrier showing the flight number, export manifest number etc., in which
the particular consignment has left the country. The said copy shall be
handed over back to the domestic carrier within 7 days of the departure
of the cargo. The domestic carrier shall submit this proof of export to
Custom Freight officer of airport of origin. On receipt of this proof,
the customs freight officer at originating airport shall make endorsements
on all copies of shipping bills including EP and AR4s.
the duly endorsed Export Manifest is not received by Custom Export Freight
officer at originating station within 30 days, he shall demand full FOB
value of the goods within 7 days as a penalty for failure to perform the
undertaking to transship within specified time. The action would be in
addition to any other action that may be taken under any other law in
force. The penalty demand shall be payable within 10 days. In the event
of failure, the bond may be enforced and no shipment may be allowed by
that carrier. Assistant Commissioner i/c of all three types of transhipment
shall, at random, send details of consignments transferred to the receiving
airport to verify whether the cargo has been received at the other end.
Such verification shall be too frequent.
- Domestic carriers may undertake
transhipment on behalf of foreign airlines from the domestic airport
to the gateway airport for further transport on the foreign airlines
own aircraft. In such cases, if the foreign airlines are willing, the
undertaking with bond and security may be taken for them for due export
of the cargo from the gateway airport.
- The Superintendent i/c of
the transhipment warehouse of the domestic carrier shall inspect the
records of the officer posted in the transhipment warehouse at least
once a week to ensure that the above instruction are strictly followed
and endorses the records in taken of having inspected them.
( Issued from
file C. No .S/26/MISC/78/99-Cus (T). )
THE COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE
HYDERABAD II COMMISSIONERATE
LAL BAHADUR STADIUM
ROAD : BASHEERBAGH : HYDERABAD-500 004
NO.121/2000-CUS(T) Dated : 13.09.2000.
of Cargo at gateway port - Procedure - Reg.
Copy of Board's
Circular No.67/2000-Cus, dt. 17.8.2000 issued in F.No.450/118/99-Cus.IV
on the above subject is communicated herewith for information / guidance
and necessary action.
of this Public Notice may be brought to the notice of all concerned.
of the Public Notice may be acknowledged by all the Dy./ Asst. Commissioners
in the Commissionerate
Encl: As above
file C.No.S/2Misc/16/2000-Cus (T))
CIRCULAR NO.67/2000-CUS.. DATED 17.8.2000
Sub:- As above.
I am directed
to invite your attention to the Board's circular No.55/2000-Cus.,
dated 30TH June, 2000 on above mentioned subject. The
said circular was issued to create HUBs near gateway ports where the LCL
cargo brought from various ICDs/CFSs will be reworked and thereafter sent
to various destinations directly. In regard to the procedure contained
in the said circular following further suggestions have been received
said circular allows only shipping lines for the purpose of LCL consolidation.
It has been suggested that to facilitate trade the words "shipping lines"
should be substituted with the words "shipping lines/their agents/MTOs/NVOCCS/
freight forwarders/ consolidators etc." to allow these agencies to
undertake LCL consolidation.
custodians of lCDs do not own containers and they generally take
containers on lease basis. Therefore, the use of leased containers for
carriage of TCL cargo to gateway hub should be allowed.
circular does not allow stuffing of LCL cargo cleared by Customs in local
port/CFS or other CFSs near gateway port in the containers in which cargo
received from, inland ICDs / CFSs are to be re-stuffed. It has been suggested
to allow stuffing of such locally cleared LCL cargo with the reworked
cargo received from the inland ICDs/CFSs.
2. The above
said suggestions have been examined and it has been decided to make following
amendments in the said circular -
words "shipping lines" in the said circular shall be substituted with
/ their agents / MTOs / NVOCCS / freight forwarders & consolidators."
regard to clause (vi) of the said Circular, custodian shall be allowed
to use containers owned by them as well as containers taken by them on
lease basis for carriage of LCL cargo from ICDs to gateway hum.
clause xii of the para 3 of the said circular, following clause shall
be inserted -
LCL cargo cleared at gateway port or some CFS near gateway port shall
be allowed to be stuffed in the containers in which the cargo received
from inland ICDs/CFSs are re-stuffed. The LCL cargo after examination
and let export order by Customs at gateway port or some CFS near gateway
port shall move from the shed to LCL HUB area under the cover of shipping
bills. The custodian shall maintain details of such locally cleared LCL
cargo in the same manner as contained in clause (viii) above for goods
received from inland ICDs/CFSs except to the extent that instead of ICD
of origin' and 'old container number' the 'name of local CFS or shed number'
and 'Local Cargo' respectively shall be indicated."
TO THE GOVERNMENT OF INDIA
THE COMMISSIONER OK CUSTOMS AND CENTRAL EXCISE
STADIUM ROAD : BASHEERBAGH : HYDERABAD-500004
Sub: Consolidation of
cargo at gateway port - procedure - Regarding.
Copy of Board's
Circular No.55/2000-Customs, dt. 30.6,2000 issued in F.No.450/113/99-
Cus.IV on the above subject is communicated herewith for information guidance
and necessary action.
of this Public Notice may be brought to the notice of all concerned.
of the Public Notice may be acknowledged by all the Asst. Commissioners
Encl: As above.
(Authority : F.No.450/118/99-Cus.IV)
As per Distribution list
OF CIRCULAR NO.55/2000-CUS , DATED 30.06.2000
Sub: As above.
A number of
representations has been received from trade and industry for allowing
consolidation/reworking of LCL cargo at gateway ports or at CFSs near
gateway ports, for further despatch to the destination ports. The proposal
is to create HUBs near gateway ports where the LCL cargo brought from
various ICDs/CFSs will be reworked and thereafter sent to various destinations
directly. It has been stated that at present, the LCL cargos accepted
by the shipping lines at hinterland ICDs/CFSs are reworked at transhipment
hubs i.e Singapore, Dubai etc., which adds to the overall cost thus making
Indian exports uncompetitive in international market. Creation of similar
facilities in India would therefore help promote our exports. Major advantages
to the country are stated to be savings in foreign exchange due to substantial
reduction in freight charges incurred by shippers, better handling and
safer delivery of cargo as the activity takes place under the supervision
of Indian agencies, additional traffic generated at gateway ports in terms
of UEUs and reduction of transit time
as per Circular No.57/98-Cus., dated 4.8.98, movement of LCL export cargo
from inland ICDs/CESs to gateway port is permitted by bonded trucks. Such
LCL cargoes are permitted to be further consolidated at gateway ports.
But there is no system whereby LCL cargo can be congregated/consolidated
at inland ICDs/CFSs and carried to the HUB point for re-packing (carrier-wise)
into separate containers as cargo. At present, containers once cleared
and sealed at inland ICDs/CFSs are not allowed to be reopened and networked
at gateway ports. Due to non-availability of this facility exporters incur
extra expenditure in exporting their LCL cargo. Ministry of Commerce has
recommended the proposal of trade and has stated that consolidation of
LCL cargo at IDSs/CFSs Ports would help promote the growth of containerization
from the hinterland and would also make the transportation cost effective
to smaller players engaged in foreign trade. Further, it will be an important
step in upgrading our infrastructure abilities.
matter has been examined by the Board and it has been decided to allowed
the facility of congregation assimilation of LCL cargo at the inland ICDs/CFSs
movement of this cargo from ICDs / CFSs to HUB points for further reworking
and exports to destination ports. The procedure to be followed in this
regard shall be as follows:
custodians of ICDs&CFSs would permit shipping lines to accept
LCL cargo from the exporters and allot nominated space at their ICDs/CFSs
for storage, examination and consolidation of such cargo.
exporter shall be given a choice of indicating the shipping line to
be used for shipment of his consignment or leave it to the custodian.
The Custodian shall nominate the shipping line destination wise where
such choice has been left to the custodian.
consignment of one shipping bill should not be allowed to be moved in
examination and clearance of LCL cargo, the packages opened for customs
examination shall be sealed by Customs. The shipping lines will use
identification mark in each package clearly indicating serial number
of packages, description of the goods and the total number of packages
covered under that particular shipping bill, exporters identify and
their own codified identity. As far as possible, all the shipping
lines will use such identification marks in different colours, so
that these can be easily identified.
completion of the Customs formalities, the packages would be handed
over by the Customs to the custodian along with two transference copies
of Shipping Bill, certified copy of invoice, packing list and other
documents in sealed cover. The concerned shipping line will issue
the Bill of Lading, a copy of which will be handed over to the custodian.
custodian would consolidate the cargo irrespective of the shipping
lines and transport the same in their containers, which will be stuffed
and sealed in the presence of Customs. The container movement will
be organised by the custodians either by rail and/or road depending
on the availability of services.
the gateway port, or some CFS near gateway port, both the transference
copies of shipping bill would be presented by the custodian's representative
to the proper officer of Customs who would verify the genuineness
of documents and check the marks and numbers of individual packages.
The customs officer would inspect the packages and endorse the transference
copies of shipping bill and AR-4 in the following manner, "inspected
and found in order". The custodian would hand over the cargo to
respective shipping lines / steamer agents. Such packages received
from inland ICDs / CFSs would be stuffed in containers by shipping
lines in the presence of Customs.
custodian of the gateway port or CFS near gateway port would maintain
a tally sheet container-wise, giving details of the export consignments,
the previous container no., Shipping Bill No, AR-4 No. and the details
of new container, in which goods have been restuffed. After the reworking/restuffing
of the containers, tally sheet should be signed by the representatives
of the custodians of the CFS and shipping line as well as by the supervising
signing the tally sheet the Customs officer would indicate the container
number in which such cargoes are stuffed on both the transference
copies of shipping bill and AR-4, and retain one copy of such shipping
bill. The other transference copy would be returned to ICD/CFS from
which the container originated.
would, thereafter use the same containers to bring back LCL imports
to various ICDs and make arrangements to deliver these consignments
to the consignees.
earlier, the drawback would be paid at the inland ICDs/CFSs immediately
after the clearance of LCL cargo by Customs at inland ICDs/CFSs without
waiting for actual shipment of cargo from the gateway port.
LCL cargoes cleared by Customs at inland ICDs/CFSs under the scheme would
not be subject to examination by Customs at the gateway port or at the
CFS where LCL cargoes are allowed to be consolidated, unless the seals
are found tampered with or there is specific intelligence, the orders
from Assistant Commissioner /Deputy Commissioner giving the reason may
be obtained before examining the said consignment.
UNDER SECRETARY TO THE
GOVERNMENT OF INDIA