Circular No. 90dated 11^th August 1995

I am directed to invite your attention to this Department's letter of even number dated the 16th March, 1994(copy enclosed) conveying Board's decision that consolidation facility by Freight For warders/ Steamer Agents may be allowed by the Customs, if it is carried out at common user area. These common user facilities could be provided by agencies such as Central Warehousing Corporation, Public Sector Undertakings, Airlines or even the Private Operations having impeccable record.

2.      Now the Board has decided to withdraw the instructions contained in letter-dated 16.3.94 (referred in para 1 above) with effect from 15th August 1995. All concerned therefore, may be appraised of this decision and public in general may also please be informed by way of issue of a Public Notice.

I am directed to say that this department has been in receipt of reaper- sensations from the trade requesting for facility of consolidation of export cargo to be allowed at the premises of the Freight Forwarders.

2.      The proposal has been examined in detail and it has not been found possible to extend the facility by way of general permission for carrying out the consolidation activity at the premises of individual Freight Forwarders/ Container Agents, Steamer Agents or a consortium of such agents. However, the proposal has some merits in reducing the freight costs and assist in speedier movement of export cargo. A policy decision has, therefore, been taken that consolidation facility by Freight Forwarders/ Steamer Agents may be allowed by the customs if it is carried out at common user areas. These common user facilities could be provided by agencies such as Central Warehousing Corporation, Public Sector Undertakings, Airlines or even the private operations having impeccable record. As grant of this facility will be in the extension arm of the Docks/ Cargo Complex/ ICD or that it would function like CFS for export promotion, such requests may be considered by the Collector on case-to-case basis, i.e., such permission may be granted for one year and reviewed. Such facilities can be extended based on the viability of the proposal, the requirement of such trade facilitation, the availability of staff, their agree ability to bear the cost of Customs staff required to man such places for the purpose of customs examination and stuffing of cargo. Collectors should also ensure before extending the facility that the infrastructural requirements for handling such work, is adequately provided, e.g., ventilation, storage, lighting, handling equipment's, space for other public utility requirements, sufficient area for truck movement, equipments for transfer of packages/ containers for the godown to the trucks and vice versa, etc. Further, the credibility of the operator and his background should be taken into account before extending the facility. While extending the facility, Collectors should ensure that necessary safeguards required for preventing any loss of revenue on account of smuggling activities including the commissioner of commercial frauds are taken.

3.      A quarterly report on the facilities extended may be sent giving the particulars of the individuals/ companies, which have been permitted along with their performance. Collectors should also note that this facility is available only in respect of export cargo and is not available for other purposes.