Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No.4 / 2011-Customs
159A, North Block,
New Delhi-110001
10th January, 2011.
To
All Chief Commissioners of Customs / Customs (Prev.).
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs / Customs (Prev.).
All Commissioners of Customs & Central Excise.
All Director Generals under CBEC.
Subject: Handling of Cargo in Customs Areas Regulations, 2009 –
regarding.
Sir / Madam,
Attention is invited to the Handling of Cargo in Customs Areas Regulations,
2009 which provide comprehensive guidelines for receipt, storage, delivery or
otherwise handling of goods in the Customs area. These regulations also
prescribe the responsibilities of persons engaged in the aforesaid activities.
Further reference is also made to Board
Circular No.13/2009-Customs dated
23.3.2009 issued on the subject matter bringing out the salient features of
these regulations.
- Regulation 5 of the Handling of Cargo in Customs Areas Regulations,
2009, as amended vide
Notification No.96/2010-Customs (N.T.) dated
12.11.2010, provides the obligation of a Customs Cargo Service Provider
(CCSP) approved as a Custodian of imported and export goods in respect of
safety and security of the premises for loading, unloading, receipt and
disposal of imported and export goods in the following manner:
“Customs Cargo Service provider for custody of imported goods or export goods
and for handling of such goods, in a customs area, shall fulfill the following
conditions, namely:-
………
5(1)(i)(n): security and access control to prohibit unauthorized access to the
premises, and
………
5(1)(ii): safe, secure and spacious premises for loading, unloading, handling
and storing of the cargo for the projected capacity and for the examination and
other operations as may be required in compliance with any law for the time
being in force;”
- Similarly, Regulation 7 of the Handling of Cargo in Customs Areas
Regulations, 2009 gives powers to Commissioner of Customs to exempt CCSP from
any of the conditions of Regulation 5 for the reasons to be recorded in writing
and subject to the satisfaction that in relation to custody and handling of
imported or export goods in a Customs area, the CCSP, for the reasons beyond his
control, is unable to comply with such conditions.
- These regulations were examined by the Parliamentary Committee on Subordinate
Legislation and it was recommended by the Committee that conditions under
Regulation 5 which concerns overall safety and security of the premises may not
be subjected to exemption by any authority. The Committee also suggested that
CCSP should publish the Schedule of Charges of various services rendered in
relation to imported / export goods and display at prominent places including
website / web pages of the CCSP.
- These suggestions of the Parliamentary Committee on Subordinate Legislation
have been accepted. Accordingly, it has been decided that no relaxation or
exemption from requirements on safety and security of premises shall be allowed
by Commissioners of Customs to the Custodians or Cargo Service Providers in
terms of provisions of Regulation 7 of the Handling of Cargo in Customs Areas
Regulations, 2009. Also, keeping in view the paramount importance of overall
safety and security of imported / export goods, detailed guidelines are being
prescribed in order to ensure that all concerned persons ensure that suitable
arrangements are put in place for safety and security of premises relating to
imported or export goods. These guidelines are annexed as per annexure A to this
Circular. Commissioners of Customs are required to ensure that provisions
pertaining to safety and security of premises are complied with strictly at the
time of appointment of CCSP and monitored thereafter. Commissioners of Customs
should undertake review of such obligations of CCSP who have been appointed
earlier in terms of proviso to sub regulation (2) to regulation 10.
- The requirement of publishing a Schedule of Charges associated with various
services in relation to imported or export goods in the Customs area and its
display at prominent places including web page or website of the CCSP has also
been made mandatory by making suitable amendments in Regulation 6(3) of the
Handling of Cargo in Customs Areas Regulations, 2009 vide Notification
No.96/2010-Customs dated 12.11.2010. Commissioners of Customs should, therefore,
ensure that all CCSPs discharge this responsibility, as cast upon them vide the
said Regulation 6(3).
- Vide Notification No.96/2010-Customs dated 12.11.2010, Regulation 5 has been
amended to the effect that in addition to other obligations, all CCSPs for
custody of imported or export goods and for handling of such goods in the
Customs area shall provide free of cost or rent, fully furnished office
accommodation, EDI service center along with basic amenities and facilities.
Further, amendments have also been made to make it mandatory to all such CCSP to
provide residential accommodation and transport facilities to the Customs staff.
- In this regard, it is clarified that no exemption is available to existing
Custodians / CCSP in so far as provision of facilities and fulfillment of the
prescribed conditions in Regulation 5 and 6, as applicable, within the specified
limit are concerned. Further, custodians under the Major Port Trusts Act, 1963
and Airports Authority of India Act, 1994 shall not be required to make an
application under Regulation 4 or 9 for approval or renewal under these
regulations, but they would be required to necessarily discharge the
responsibilities cast upon them in terms of Regulations 5 and 6 of the
regulations without any exception.
- The Board has also considered the issue of possible liabilities arising on
account of damages caused or loss suffered on imported or export goods, due to
accident, damage, deterioration, destruction or any other unnatural cause during
their receipt, storage, delivery, dispatch or otherwise handling. In this
regard, it has been provided by the Notification No.96/2010-Customs dated
12.11.2010 that the CCSP will undertake to indemnify the Commissioner of Customs
from any such liability by furnishing an indemnity bond. Commissioners of
Customs are, therefore, required to ensure fulfillment of this requirement by
CCSP without fail. Commissioners may also undertake review of such obligations
of existing CCSP in terms of proviso to sub regulation (2) to Regulation 10 of
the Handling of Cargo in Customs Areas Regulations, 2009.
- Circular No.13/2009-Customs dated 23.03.2009 issued on the subject matter
stands modified to the above extent.
- Suitable Public Notices or standing orders may be issued to guide the trade
/ Industry and officers.
- Any difficulties in implementation of these regulations may be brought to
the notice of the Board immediately.
Yours faithfully,
Encl: Annexure A.
( R. P. Singh)
Director (Customs)
F.No.450/55/2008-Cus.IV (Pt.II)
Internal circulation: As usual.
ANNEXURE - A
Guidelines on safety and security of premises
where imported or export goods are loaded, unloaded, handled or stored.
- The imported goods or export goods which are hazardous in nature, shall
be stored at the approved premises of the CCSP in isolated place duly
separated from other general cargo, depending upon classification of its
hazardous nature such as Explosives (as defined under Rule 3 of Explosives
Rules, 1983), Gases (Inflammable / Flammable Gases, Toxic/ non Toxic gases
etc.), Flammable Liquids, Flammable Solids (Raw and wet Cotton, spontaneous
combustible substances, substance emitting flammable gases in contact with
water etc.), Oxidizing Substance & Organic Peroxide (Sodium peroxide, Barium
Bromate, Peroxy acetic acid etc.), Poisonous & Infectious Substances (Tear
Gas, Biological substances, Formic Acid, Arsenic Acid etc.), Radio Active
Materials, Corrosives (Acetic Acid, Sulphuric Acid, Caustic soda etc.) or
any hazardous chemicals defined under Chemical Accidents (Emergency
Planning, Preparedness, and Response) Rules, 1996.
- Safety plans, procedures, instructions for Safe handling and storage of
hazardous goods including the procedure for reporting accidents to proper
officer of Customs and appropriate State Authorities shall be available.
- Safety sign boards, signals should be displayed conspicuously; safety
instructions and procedures shall be made available at the premises and the
staff handling the goods should be familiar with all the pictorial
indications or stickers used in international trade such as International
Maritime Dangerous Goods code, other domestic legislations to identify
hazardous goods.
- The premises should be equipped with adequate fire fighting apparatus,
such as Fire extinguishers, Fire Hydrants, Fire Pumps, Fire hoses, Fireman
outfits, Co2 fix systems. Further, in order to protect the premises against
fire hazard, it would be necessary that fire preventive equipments such as
automatic Fire detection and alarm system, Fire control plan, Nozzles, Smoke
detectors, Temperature detectors, automatic sprinkler systems, sand boxes,
emergency lighting system, water supply outlet, fire exit etc are also
provided. General facilities such as ventilation, electricity system,
emergency exit etc. shall also be provided. In addition to these, the
premises and surrounding area shall be well illuminated, duly protected with
spark arresters. ‘No smoking’ signals should be properly displayed in the
premises and the provisions banning smoking in public places as per Section
4 of Cigarettes and Other Tobacco Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production, Supply and Distribution) Act,
2003, shall be enforced.
- The space allocated for storage of hazardous cargo within the premises
should be of proper construction including appropriate heat or fire
resistant wall, RCC roofing, flooring. Such area shall be situated at a
minimum distance of 200 meters away from main office, administrative,
customs office building so that the storage of hazardous cargo is in such a
manner that it does not endanger the people working in the premises.
Further, the open space, provided for movement, total covered area for
storage of containers shall be in such manner that they do not hinder
movement of persons, evacuation of goods in case of emergency. The premises
used by CCSP for storage of hazardous cargo shall also fulfill the standards
or norms prescribed, in National Building Code of India (Part 4 - Fire and
Life safety specify the requirements for fire prevention, life safety in
relation to
fire and fire protection of buildings necessary to minimize danger to life
and property from fire) or by the concerned State/ Central Governments for
fire safety.
- The material handling equipments including cranes, lifts, hoists, reach
stackers, tractors, trucks and other vehicles for movement or transport of
goods and other machines used in the premises for handling of cargo shall be
in conformity with the safety standards prescribed for such equipments.
- The Custodian shall provide appropriate Contingency plan to handle
emergency situation when there is an immediate danger to personnel, cargo or
other infrastructure in the premises; Further the custodian shall provide
acquaintance or training of their staff for proper implementation and to
comply with these contingency plans, maintenance & readiness of all the
equipments.
- The Custodian shall provide Medical First Aid Kits within the premises;
he shall provide appropriate emergency medical services in case any person
comes into contact with hazardous/ dangerous goods.
- The security and safety of the premises shall be assigned to specified
persons working therein so that necessary services in case of emergency such
as fire fighting, fire brigade, fire tenders shall be obtained in time to
prevent, control and extinguish fire.
- Handling of hazardous cargo within the premises, transportation of
hazardous cargo between the premises and port terminals or other authorized
places is secured through authorized vehicles with proper safety
indications.
- The provisions of the Hazardous Waste (Management, Handling,
Transboundary) Rules, 2009 and the Manufacture, Storage and import of
Hazardous Chemical Rules, 1989 and other relevant rules and regulations
prescribed by the Government shall be adhered to in respect of storage and
handling of such goods.
- The Custodian shall provide appropriate procedure for receipt, handling,
delivery of hazardous cargo in such a manner that the same does not hinder
the movement of general cargo or endanger the safety and security of the
premises.
- The aforesaid guidelines have been provided in order to ensure that the
CCSP receiving, storing, dispatching or otherwise handling of imported goods
and export goods of hazardous nature at the approved premises is handled in
safe and secure manner. The CCSP who intend to store hazardous cargo or
hazardous cargo along with other general cargo at their premises, may apply
to the jurisdictional Commissioner of Customs with the requisite particulars
so that the same may be verified for compliance in terms of Regulation 10
(2).
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