Cargo
Service Providers Insurance Cover Cut to 10 days for Dwell Time in Customs Area
[CBEC
Circular No. 42 dated 31st August 2016]
Subject- Courier bond executed CCSPs.
Kind attention
is drawn to the Board's Circular no.
32/2013-Customs dated 16.08.2013, wherein, with regard to Regulation 5(1)(iii)
of the Handling of Cargo in Customs Area Regulations, 2009 (hereinafter
referred to as HCCAR), it was laid down that the amount of insurance to be
provided by Customs Cargo Service Provider (CCSPs) should be equal to the
average value of goods likely to be stored in the Customs area for a period of
30 days (based on projected capacity) and for an amount as Commissioner of
Customs may specify having regard to the goods that are already insured by the
importers or exporters.
2. It has been represented to the Board that for
calculation of insurance amount and Bond amount under HCCAR, dwell time for
clearance of imported goods and transit time for export goods should be taken
in to account. It has been brought to the notice of the Board that CCSPs are
being asked to give bond and insurance for an amount equal to the average value
of goods likely to be stored, in 30 days, in the Customs area based on the
projected capacity. It is further informed that the dwell time for imported
goods is 10 days and transit time for export container is less than 24 hours.
3. The matter has been examined. Board is of the
view that for calculating average value of goods likely to be stored in Customs
area, under Regulation 5(1)(iii) of HCCAR, average time taken for clearance of
goods should be a relevant factor in deciding amount of insurance. As a measure
of ease of doing business, it has been decided to partially modify the earlier Circular No. 32/2013-Customs dated
16.08.2013 with regard to Regulation 5(1)(iii) of HCCAR, to lay down
that the amount of insurance to be provided by CCSPs should be equal to the
average value of goods likely to be stored in the Customs area for a period of
10 days (based on projected capacity) and for an amount as Commissioner of
Customs may specify having regard to the goods that are already insured by the
importers or exporters. Changes have also been carried out in HCCAR, 2009 vide notification
No.115-Customs (N.T.) dated 26.8.2016 to reduce the value of bond being
furnished in respect of imported/export goods to the extent of 10 days storage
from the current 30 days.
4. Suitable Public Notices may be issued by the
jurisdictional Chief Commissioners.
5. Difficulty faced in this regard, if any, may
be brought to the notice of the Board.
F. No.
450/114/2015-Cus IV