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Standard Set of Guidelines for Appointment of Custodian of Sea Ports and
Air Cargo Complexes
Customs
Circular No. 34 dated 26th June 2002
In
the recent past, a number of new ports and Air cargo Complexes have been
developed by public sector as well as private sector agencies and many more such
facilities are in pipeline. In this connection, a point that has been made that
the Board vide Circular No.128/95-Cus., dated 14.12.1995, had prescribed a set
of guidelines for appointment of custodians of EPZs/ ICDs/ CFSs, but no
guidelines have been prescribed for appointment of custodians of ports and Air
cargo Complexes. Absence of guidelines for appointment of custodians of ports
and Air cargo Complexes results in disparity in practice at field level.
2.
To ensure smooth working of ports and Air cargo Complexes, a need was
felt to draw up a standard set of undertakings to be given by the custodians
before they are so appointed under section 45 of the Customs Act, 1962. In this
connection, it may be noted that ports or Air cargo Complexes are functionally
similar to ICDs/CFSs and therefore, the guidelines prescribed vide the said
Circular for appointment of custodians of EPZs/ ICDs/ CFSs with minor
modification can be made applicable for appointment of custodians of ports or
Air cargo Complexes.
3.
In view of above, a set of guidelines for appointment of custodians of
ports/ Air cargo Complexes is enclosed as Annexure to this Circular, which needs
to be applied while appointing a custodian of port or Air cargo Complexes.
4.
These instructions may be brought to the notice of all concerned by
issuing suitable Public Notice or Standing Order.
5.
Difficulties, if any, in implementation of the Circular, may be brought
to the notice of the Board. Kindly acknowledge receipt of the Circular.
ANNEXURE
GUIDELINES
ON UNDERTAKING TO BE GIVEN BY THE CUSTODIANS BEFORE APPOINTED AS CUSTODIANS OF
SEA PORTS AND AIR CARGO COMPLEXES
(1)
The custodian should provide safe, secure and spacious premises for
loading/ unloading/ storing of the cargo. The infrastructure for loading/
unloading and storage operations should be designed to handle the projected
traffic of the port or Air cargo Complex. The premises should be so designed
that there should be provision for expansion of storage space, office
accommodation, handling space, etc. for a period of 10 years;
(2)
The custodian shall provide sufficient modern handling equipment in
operational condition for handling the containers and cargo in the area;
(3)
No alteration of the plan in the accommodation, boundary wall and
building, etc. shall be made without the concurrence of the jurisdictional
Commissioner of Customs;
(4)
Insurance of all goods stored in the Sea Port and Air Cargo Complexes
shall be made by the custodian;
(5)
The custodian shall abide by all the rules and regulations under the
Customs Act;
(6)
For the proper discharge of duties the custodian shall execute a bond
equal to the value of the goods likely to be stored in the premises for a period
of 30 days, supported by a bank guarantee or a Government bond or cash deposit
equivalent to 10% of the value of goods. However, all Central Government and
State Government Undertakings shall be exempt from the requirement of furnishing
bank guarantee or cash deposit;
(7)
The custodian shall bear the duty on the goods lost or pilfered from the
Sea Ports and Air Cargo Complexes;
(8)
The custodian shall give separate bond with bank guarantee as prescribed
by the Board from time to time towards the duty incentive involved in the export
goods transported from the customs area to the gateway port / any other customs
area for export / transhipment. The custodian would also be held responsible for
the duty and for other penalties leviable for the goods lost during the
transhipment from the said customs area to the gateway port / other customs
area;
(9)
Security of the premises shall be the responsibility of the custodian
subject tot he prior approval of the Commissioner of Customs of the
arrangements. The cost for the security has to be borne by the custodian;
(10)
The custodian shall bear the cost of the Customs staff posted at the Sea
Ports and Air Cargo Complexes. The Commissioner of Customs shall decide the
number of staff, which is required top be posted in the facility considering the
workload in the station;
(11)
The custodian shall provide free furnished office space for the Customs
Department;
(12)
Residential accommodation for the Customs staff posted in the area shall
also be provided for by the custodian, wherever requisitioned by the
Commissioner of Customs;
(13)
Free suitable transport from the nearest railway head or suitable point
shall be provided for the customs staff by the custodian;
(14)
In the Sea Ports and Air Cargo Complexes, the custodian shall make
adequate arrangements for sanitary facilities, water supply and other allied
facilities, including canteen facility, for the officers working in the area;
(15)
The custodian shall not charge any rent / demurrage on the goods detained
by Customs Department under the Customs Act or any other Act for the time being
in force;
(16)
In case the custodian wants to sublet any of the functions inside the
customs area or connected with the customs area, the same should be done with
the prior approval of the Commissioner of Customs and the custodian shall remain
responsible for the omissions and commissions of the said agency;
(17)
Duration of the appointment shall initially remain for 5 years and
subject to the satisfaction of the Commissioner of Customs. The Commissioner of
Customs shall have the right to terminate the appointment at any time after
assigning specific reasons and giving an opportunity for the custodian to
explain his case. The appointment shall be reviewed after every 5 years
thereafter.
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