Circular No. 69dated 6^th October 1999

I am directed to invite your attention to the subject mentioned above and to say that a number of references have been received from the trade and the Ministry of Commerce for allowing movement of imported cargo in containers/ trucks from the airports/ ACCs to ICDs/ CFSs/ Airports/ ACCs to the ICDs/ CFSs/ Airports/ ACCs is required in view in the fact that the number of flights at most of the airports other than the gateway airports are restricted and there is loss of time involved in waiting for the cargo/ passenger flights as per available schedule.

2.      The matter has been examined. With a view to supplementing the existing flights and providing adequate flexibility to the trade in the choice of modes of transport, it has been felt that movement of imported cargo in containers/ trucks should be allowed between airports/ ACCs and airports/ ACCs/ CFSs/ ICDs. Accordingly the following procedure is laid down for transhipment of imported cargo under bonded trucking facility from airports/ ACCs to ICDs/ CFSs/ Airports/ ACCs.

(i)      On the basis of the request made by the Airlines and in pursuance of powers vested under Section 4b(i) of the Customs Act, 1962, the Commissioner of Customs will appoint the Airlines on their duty approved agent ass the custodian of all cargoes to be transhipped under bonded cargo trucking facility from airports/ ACCs to ICDs/ CFSs/ Airports/ ACCs in hinder land by road. The permit will be valid for one year from the date of issue initially and shall be renewed for every three years subsequently.

(ii)     The transhipment of import cargo will be governed by the provisions of Chapter VIII of the Customs Act, 1962 and the Goods Imported (Conditions of Transhipment) Regulations, 1995.

(iii)    The cargo to be transhipped should have been manifested as for transhipment in the incoming international carrier who has landed the cargo. In respect of console cargo where the Master Airway Bill does not show the final destination, the Airlines filing transhipment application should keep a copy of both Master Airway Bill and House Airway Bill to indicate that the particular consignment sought for transhipment is for other inland customs Airport/ ICD/ CFS/ ACC.

(iv)    The custodian should execute a suitable running bond with a bank guarantee for an amount approved by Commissioner of Customs concerned for proper accountal of cargo. The amount will be debited from this bond when the transhipment cargo is taken by the custodian and it will be credited when the proof of handing over of the cargo to customs at final destination is produced. The custodian will be responsible for any shortage or pilferage of the cargo. The custodian will insure such goods for full value ass well as the customs duty involved.

(v)     The Custodian will submit a list of trucks together will registration numbers to be used for movement of each transhipment cargo. The trucks so deployed for transport should be specially secured to avoid pilferage of cargo and there should be a provision of affixing of Customs "Bottle Seals" on these trucks.

(vi)    The airlines/ custodian should have a transhipment warehouse within the Airport Apron area so that the goods on unloading can be shifted to the transhipment warehouse without having to be moved outside the Airport area. The concerned Airlines/ Custodian warehouse should have double locking arrangement, one key of which will be with the Airlines/ custodian and the other with Customs, for storage of transhipment cargo. Preventive Officers will be posted at the Airlines/ custodian warehouse on cost recovery basis.

(vii)    If the Airlines/ custodian does not have a transhipment warehouse, the import cargo for transhipment duly passed with transhipment application will be received by them from the Airport Authority of India's (AAI) custody to their make-up area specially earmarked for the purpose of palletisation/ containerisation on the same day under customs supervision and if for any reason the goods cannot be transhipped immediately, the same should be handed over to AAI.

(viii)   The custodian so appointed and deciding to tranship the cargo will present transhipment application (5 copies) alongwith the copy of Airway Bill (both Master copy and House Airway Bill wherever applicable) to the Customs officer incharge of transhipment clearance. The original transhipment copy must be affixed with Rs. 20 stamp as T.P fees. The transhipment application should contain details such as (a) name and address of the imported (b) name and address of the exporter; (c) country of origin; (d) Airport of destinations; (e) flight No. and date; (f) Import Manifest No. and date; (g) description of goods (h) value of the goods; (i) Nos of packages; (j) weight gross/ net; and (k) details of container/ palletised vehicle on which the cargo consignment is to be carried.

(ix)    After scrutiny of T.P. application the T.P. Officer will issue Customs Bottle Seal and hand it over to the Customs Officer supervising the loading of the cargo in container/ truck T.P. Officer will mention Sl. No. of Customs Bottle Seal on all copies of transhipment applications.

(x)     On getting the transhipment permission the custodian/ airlines will shift the goods from AAI warehouse to the make-up area earmarked for the purpose of palletisation/ containerisation or shift the goods from their warehouse into the container/ truck within the premises of the warehouse under the supervision of the Customs Officer posted for the purpose. After loading of the goods, the Customs Officer will seal the container/ truck with Customs Bottle Seal and endorse all T.P. copies are as:

Supervised the loading of ______________No. of packages on container/ truck No_______________ destined to ______________ airport/ ACC/ CFS/ ICD and sealed with Customs Bottle Seal No. ________________ on ___________________ (date) covered by Transhipment Permit No. ________________

           Name and Signature of Customs Officer

(xi)    Original copy of T.P. application will be forwarded to the Import Freight Officer (IFD) of Customs at the Inland Airport/ ACC/ CFS of destination. Duplicate copy will be retained by T.P. Officer. Triplicate copy of T.P. application will be handed over to the Airlines/ custodian. The 4th copy will remain with the Customs Officer posted in the Airlines/ custodian warehouse and supervising the loading of cargo. The 5th copy will be sent in sealed cover alongwith the truck/ container to IFD of Customs at the Airport/ ACC/ CFS/ ICD of destination who will retain it after verification of cargo.

(xii)   The Import Freight Officer of Customs at the inland airport/ ACC/ CFS/ ICD of destination will check the Customs Bottle Seals and description of packages as per T.P. copy. He will tally the packages with the copies of the manifest received and will ensure that the packages are in good condition. The safety and security of the packages is the responsibility of the custodian. In case of any damage at the time of in transit, it should be clearly indicated in all copies of manifest and attested by custodian. The IFO at the airport/ ACC/ CFS/ ICD of destination after receiving the cargo shall give a suitable endorsement on the original T.P. copy.

Checked Customs Bottle Seal and packages as per T.P. application No. _____________dated _______________arrived on Container/ Truck No_______________ on ______________ (date).

Name and Signature of IFO Customs

The IFO will retain the T.P. copy sent with the truck for record.

(xiii)  The endorsed original T.P. copy will be presented by the Airlines custodian as evidence of handling over of the cargo to the transhipment officer at the Air Cargo Complex/ Airport from where the transhipment permission was granted.

           On receiving such endorsed T.P. copy the transhipment officer will close the entry in the register.

(xiv)   The Airlines/ custodian shall make necessary arrangements at the airport/ ACC/ ICD/ CFS of destination to remove the cargo and deposit the same with custodians appointed under Section 45 of the Customs Act, 1962, under Customs supervision.

(xv)   The Airlines/ custodian shall produce the evidence of handling over of the cargo at the inland airport/ ACC/ CFS/ ICD of destination within 30 days from the dispatch of goods/ failing which suitable action will be taken.

(xvi)   The Airlines/ custodian will be required to bear the expenditure on cost recovery basis over the preventive staff to be provided exclusively for this purpose.

3.      You are requested to issue a suitable Public Notice incorporating the above provisions. Difficulties, if any, in implementing the above procedure may kindly be brought to the notice of the Board at an early date.