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Transhipment of containers from gateway ports to ICDs/ CFSs
Circular No.
56 dated 5th July 2000
I am
directed to invite your attention to the "Goods Imported (Condition of
Transhipment) Regulations, 1995". Under the said Regulations, a continuity
bond is to be executed by the transporters/ custodian/ declaring for safe
carriage of the goods from the gateway port to the ICDs/ CFSs. The bond is
discharged when the landing certificate, i.e. receipt of the goods at the
destination is produced by the transporters/ custodian/ declarant. The
Regulation provide that an amount equivalent to the value/ market price of the
imported goods is to be forfeited if the said landing certificate is not
produced within the stipulated period.
2.
In August, 1999, the Mumbai Custom House had issued a Public Notice (No.
93/ 99 dated 17-8-1999) laying down a modified procedure for issuance of
transhipment permit, whereby steamer agents were required to submit one copy of
invoice of each consignment in the Sub-Manifest for the purpose of working out
the value and duty liability of the transhipment cargo. Against the said Public
Notice a number of representations/ references was received from the trade as
well as the Ministry of Commerce. Considering these representations, the
implementation of the said Public Notice was kept in abeyance. To sort out the
issue, a meeting was held on 9-6-2000 under the chairmanship of the Member
(Customs), which was attended by the officers of the Department, Ministry of
Commerce, CONCOR, CWC as well as the representatives of Steamer Agents/ Shipping
lines.
3.
In the meeting it was decided that the Steamer Agents would not be asked
to submit the copies of invoices of the cargoes to be transhipped from gateway
ports to ICDs/ CFSs, and that the Tran shippers would instead execute bonds
based on notional value arrived at on principles as prescribed in Circular No.
34/ 2000-Cus., dated 3-5-2000 for transhipment through coastal vessels.
4.
In view of the above, it has been decided that for the transhipment of
containers from gateway ports to ICDs/ CFSs a bond with security of 25 percent
of bond value shall be taken from the carriers. To avoid multiplicity of bonds,
the carriers may execute mother bonds instead of individual bonds. Such bonds
will be accepted and maintained by the Commissioner of Customs at the port of
origin. The mother bonds will be like funning bonds. The mother bond can be
debited at the time of transhipment of import/ export containers at the port of
origin, and these will be credited on receipt of proof of safe landing of
containers at the port of destination. The value of mother bond can be arrived
on the basis of the average number of containers carried per trip, the time
taken for submission of proof of safe landing of containers at the destination
ICDs/ CFSs, frequency of such transhipment as well as average value of cargo per
containers transhipped in the past.
5.
To avoid blockage of huge sum of carriers money towards security
furnished to Customs, it has been decided that the bank guarantee so furnished
should be released as soon as proof of safe landing of containers at destination
ICDs/ CFSs is submitted by the carriers. Although, the bond taken from the
carriers will be of the nature of running bond, the bank guarantee furnished
towards security may be taken of each trip and released after receipt of proof
of safe landing of containers carried in that trip at destination ICDs/ CFSs.
Therefore, it can be said that the bond will be of the nature of running bond,
but security can be furnished for each trip separately. This will reduce the
burden on carriers and at the same time revenue will be safeguarded.
6.
These instructions may be brought to the notice of all concerned by way
of issuance of suitable Public Notice/ Standing Orders.
7. Difficulties,
if any in implementation of these instructions, may be brought to the notice of
the Board. Kindly acknowledge receipt of this Circular.
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