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Standoff Between Customs, SEZ at ICTT.


Date: 07-11-2011
Subject: Standoff Between Customs, SEZ at ICTT
KOCHI: The conflict between the Special Economic Zone (SEZ) authorities and Customs officials took a new turn with the Customs sending a letter to the Cochin Port Trust (CPT) and the SEZ Development Commissioner stating that they would withdraw their official from the Vallarpadam International Transshipment Terminal (ICTT).

The standoff between the Customs and the SEZ began with the commissioning of the ICTT in February. This often led to clashes between the agencies. The entry to an area governed by the SEZ Act is restricted by the SEZ Development Commissioner. A few months ago, the denial of entry to a Customs official at the terminal had created problems.

The Customs officials last week had boycotted a meeting convened by the SEZ Development Commissioner. The Customs authorities are of the stand that they need not deploy their personnel if they had no role in the functioning of the ICTT.

“Why should we deploy our officials where we do not have a role? asked S A S Navas, Deputy Commissioner, Customs.

As per Section 53 (1) of the Special Economic Zone Act-2005, an SEZ does not come under the Customs territory of India for the purpose of undertaking authorised operations. The Customs is of the stand that it should be permitted to check the consignments at the terminal too. “Unfortunately the SEZ authorities and the DP World are against it,” Navas said.

“Though section 53(1) of the SEZ Act stipulates that Customs inspection is not needed in an SEZ area, the terminal is not immune to on-port Customs inspections as per Section 47 of the Act,” Navas said. According to Customs authorities, the restrictions imposed on them for checking consignments at the ICTT may be advantageous to smugglers and could also be a threat to national security. “There is no wonder if the ICTT, the pride of Kerala which is hyped to be the maritime gateway of India, becomes a safe transit point of banned goods, arms and even explosives.

In a recent incident of red sandalwood seizure at the ICTT, the container was stuffed with rubber mats at the CFS and was cleared by the Customs. But by the time the container reached the ICTT, the rubber mats were replaced with red sandalwood by removing the door of the container without breaking the Customs seal. In such a situation, the Customs should be allowed to check the containers,” Navas said.

Presently, Customs officials deployed at the ICTT do nothing but just verify the Customs seal on the container after stuffing it with the consignment at the container freight station (CFS). All the containers coming to the ICTT will be ready for shipping as they reach the terminal after getting Customs clearance from the CFS. But the Customs is not permitted to check the containers inside the SEZ,” Navas said.

However, the SEZ authorities denied the allegations of the Customs. “The ICTT is an international transshipment terminal. An elaborate internal checking by the Customs cannot be entertained there. If they find a container to be suspicious, they can detain it and prevent it from being shipped,” said a top official of the SEZ.

Random checking of cargo is the practice being followed at international transshipment terminals across the world. As far as the DRI officials are concerned, they could have informed the matter to the top officials of the SEZ or commandant of the CISF,” he said.

Source : ibnlive.in.com

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