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Regarding simplification of the procedure for setting up ICDs and CFSs
Circular No. 133 dated 22nd
December 1995
I am directed to
refer to the various instructions and circulars issued from time to time
regarding setting up of ICDs/ CFSs by the Public Sector Undertakings as well as
by the Private Sector Undertakings. In view of growing demand for setting ICDs /CFSs
in hinterland and to keep pace with fast growing import/ export, it has been
decided to simplify the procedure for setting up ICDs/ CFSs
2. The
Container Freight Station (CFS) is not a Customs Station but it is to be
declared as a Customs area under Section 8 of the Customs Act by the
Commissioners of Customs concerned. Normally, every CFS is located in a Customs
station or is an adjunct to a Customs station. C.F.S. may handle exclusively
export cargo or import cargo or both. Generally, CFS is taken to be an extended
arm of the Port/ ICD/ ACC. Depending upon its importance and volume of work it
handles, it functions like a full-fledged Customs station wherein the admission,
processing and completion of all customs procedures are done. Alternatively, the
processing of the Customs clearance documents is done in the Customs House and
the CFS functions like 'Dock' where the examination and sealing of export cargo
or examination and customs clearance of import cargo is done. Thus, depending
upon the location, workload and other related factors, Commissioners of Customs
can devise the Customs work in such CFS.
3. Commissioners
of Customs are authorised to notify a CFS as a Customs area under Section 8
of the Customs Act in any place declared by the central Government as a Customs
station under Section 7 of the Customs Act. However, before declaring a
CFS, the Commissioners may assess the requirements of such facility in each
Port/ ICD/ ACC for creation of such additional Customs area (CFS). If need be,
the Commissioners may discuss such feasibility in the Regional Advisory
Committee Meetings or meetings with the Trade. Commissioners are advised,
however before notifying any new C.F.S. as Customs area in a Customs Station,
they should call for the proposals by wide publicity and grant such facility
only after fully satisfying themselves on the need, security, credibility of the
persons concerned, suitability of the condition and other details of the
applicant.
4. Proposals
for CFS are also CFS are also processed in the Ministry of Commerce when
applicants make proposals to the Ministry. As and when such proposals are
cleared and communicated to the Board, Commissioners are required to notify it
under Section 8 of the Customs Act, as early as possible, after ensuring
suitability and other criteria for such declaration.
5. Notifying
a CFS as a Customs Area need not be restricted to Public Sector of Joint Sector
units. Proposals from private sector could also be considered on merits, taking
into account the Government policy of opening of CFS.
6. Before notifying
such Customs area, the following guidelines may kindly be noted:
a. There should be
judicious mix of Public Sector Undertakings and Private Sector Undertakings to provide an element of
healthy competition leading to greater efficiency and cost effectiveness in
management and operation of such ICDs/ CFSs.
b.
If at any station PSU has already been appointed as a custodian to
operate a CFS/ICD, the next f facility may be given to a joint
sector/ Private Sector and vice versa.
c.
The verification of financial standing and antecedents of the
organisation may be done in the same manner as has been
prescribed for private bonded warehouses by the Board vide its circular
No. 68/95-dated 15.6.95 and 19/95 dated 20.9.95.
d.
The selection of custodians to operate CFS/ ICD may be made by the
Commissioner stationed at the city in consultation with
Regional office of DRI, and by constituting a committee of officers
from the Commissionerate and or from the trade and other interests.
e.
The guidelines on the undertaking to be given by the Custodians to set up
and operate ICDs/ CFSs are issued vide Circular No. 128/95
dated 14.12.95 from Board's F.No. 434/ 12/ 92-Cus.IV.
f. To
project an image of fairness, the Commissioner may invite request for opening
CFS/ ICD through a Public Notice.
g.
The Commissioner may dispose of the case of Public Sector Undertakings
themselves and the cases of Private Sector after
confirmation by a Committee to be constituted as indicated above.
7. The application
format and other details in this case will be same as contained in Board's
earlier letter No. 434/ 12/ 92-Cus. IV dated 5.6.1992. However in such cases,
the proposal may be entertained directly by Commissioner of Customs/ Central
Excise instead of making a reference to Inter- ministerial Committee set up in
Ministry of Commerce.
8. These
instructions supersede all instructions issued on the subject earlier, which are
not in conformity with the instructions contained in this Circular.
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