Draft Manifest (Vessels) and Conditions of Transshipment, Transportation of Goods thru Foreign
Territory Regulations 2016 Placed in Public Domain for Comments
Brief Introductory Note
Sea transportation has always been the main mode of
transport in the international trade of merchandise goods but over the years it
also started playing the significant role in coastal trade. For the compliance
of legal requirements under the Customs Act or other Acts, presently different
sets of regulations, circulars, instructions such as Import manifest (vessels)
Regulations, 1971, Export Manifest (Vessels) Regulations, 1976, Transportation
of Goods (through foreign territory) Regulations, 1965, Import goods (Condition
of Transshipment) Regulation, 1995 etc. regulate
different kinds of declaration, bonds, bank guarantees and other legal
requirements. Although these regulations/instructions have been amended from
time to time, a need has been felt to come up with an integrated regulation
which would enable simplification and automation and bring it in line with
international practices.
2. The purpose
of these draft regulations is to provide a comprehensive framework covering all
the aspects of movement of cargo including coastal cargo in line with the best
international practices. It would provide a simplified and system based
platform for all the stakeholders to comply with domestic legal requirements.
Further, it would provide a system of ensuring safe and secure transit of the import
and export goods within the country by way of IT backed tracking mechanism.
Furthermore, it would also provide a procedure for multimodal transshipment completely operational on IT system.
3. For a long
period, there is a growing demand for allowing coastal trade movement from east
coast to west coast transiting through foreign territory or foreign port or
from eastern part of country to north east India. The proposed regulations
would also provide a simplified procedure for such movements.
In the light of above, the Draft
‘Manifest (Vessels) and condition of transshipment,
transportation of goods through foreign territory’ Regulations, 2016 are
placed in public domain so as to invite valuable inputs and comments. The
feedback/inputs/comments may be mailed to dircus@nic.in or
piyush.bhardwaj@gov.in till 09.12.2016.
Draft Manifest (Vessels) and Conditions of Transshipment,
Transportation of Goods through Foreign Territory Regulations, 2016
In exercise of the powers
conferred by section 157, read with section 30, section 41, section 42, section
54, section 56, sub-section (3) of section 98 of the Customs Act, 1962 (52 of
1962), and in supersession of the Transportation of Goods (Through Foreign
Territory) Regulations, 1965, Import Manifest (Vessels ) regulations, 1971,
Export Manifest (Vessels) Regulations, 1976 and Imported Goods (Conditions of Transshipment) Regulations, 1995, the Central Board of
Excise and Customs hereby makes the following regulations, namely :-
1. Short title and
commencement
These regulations may be
called the Manifest (Vessels) and conditions of transshipment,
transportation of goods through foreign territory regulations, 2016.
2. Definition
In these regulations,
unless the context otherwise requires,
a) "Act" means the Customs Act, 1962 (52 of 1962);
b) Arrival manifest or the Departure manifest would be deemed to be
manifest or the bill of transshipment referred to in
the Section 30 or section 41 or section 54 of the Act respectively.
c) coastal goods‖ means the goods as defined in the Customs Act;
d) coastal goods transited through foreign territory‖ means coastal goods loaded on the vessel at any Indian port and
destined for another Indian port by the same vessel through a route partly
through a foreign territory in between;
e) coasting Vessels‖ means a vessel for the time being engaged in the carriage of
goods between Indian ports without touching any foreign port in between;
f) custodian‖ means a person approved by
the Principal Commissioner or the Commissioner, as the case may be, for the
purposes of section 45 of the Act;
g) declarant‖ in the appropriate
circumstances means-
(i) the person in charge
of the vessel in which the goods are imported or transshiped,
or his agent, or
(ii) a person designated under section 30 of
the Act by the Central Government.
(iii) Custodian or container liner or rail operator
h) designated foreign territory or port‖ for the purposes of these regulations means crossing over into
territorial waters of Sri Lanka or Bangladesh whether or not calling at any
port in the said two countries.
i) form‖ means a Form appended to these regulations;
j) port of entry‖ in the case of imported goods means the sea port where the said
goods are unloaded for domestic transshipment by road
or rail.
3. Application
These regulations shall
apply to imported goods, export goods, coastal goods transported directly from
one port in India to another or transited through a route which lies partly
over the territory of a foreign country.
4. Filing of Arrival Manifest
The declarant mentioned at
sub-clause (i) or (ii) of sub-regulation (g) of
Regulation 2 shall deliver to proper officer electronically-
(1) before the arrival of the vessel at the port but not later than
departure from last port of call, a General declaration in Form II and an
Arrival Manifest cargo declaration in Form IIIA or IIIB as applicable;
(2) Upon arrival of the vessel-
a. an application for entry
inwards in Form I
b. vessel’s stores list in
Form IV;
c. list of private property
in the possession of the Master, officers and crew, in Form V
d. any other goods which, under the Customs Act or any other Act for
the time being in force is required to be declared to the Customs authorities
on the arrival of vessel.
Provided that where it is
not possible to furnish the Arrival manifest through electronic means, then the
manifest shall be submitted manually in duplicate.
Provided that if Coasting
vessel does not carry Export-Import cargo, application for entry inwards is not
required to be filed.
5. Manner of filing ‘Cargo declaration’
(1) The cargo declaration of Arrival Manifest shall be delivered in the
following parts as applicable, namely:--
Part A: Vessel arriving at
an Indian port from a Foreign port:-
The declaration by a Vessel
arriving at any Indian gateway port from a Foreign port shall be delivered in
respect of each of the following categories of cargo in Form IIIA, namely:--
Goods to be landed
(i) Goods (including unaccompanied baggage) to be
landed meant for home clearance;
(ii) Goods (including unaccompanied baggage) to be landed meant for
clearance at another Indian port (Domestic transshipment)
(iii) Goods to be landed but destined for a foreign
port (Foreign transshipment)
Explanation 1: Goods meant for home clearance means the goods to be cleared for
home consumption or for warehousing at the port of unloading.
Explanation 2: Goods meant for clearance
at another Indian port means the goods to be cleared for home clearance at the port
other than port of unloading or at any Inland Container Depot.
(Goods continue to be
On-board):
(i) Domestic transit goods
(ii) Foreign transit goods
Explanation 1: Domestic transit goods mean the goods destined for Indian port
including ICD/SEZ and to remain on-board at the port where Manifest is to be
filed.
Explanation 2: Foreign transit cargo means the goods destined for foreign port
and to remain on-board at the port where Manifest is to be filed.
Part B: Vessel arriving at
an Indian Port from an Indian Port directly or via a ‘foreign territory or
foreign port’.
The cargo declaration on
this part shall be delivered in respect of each of the following categories of
cargo, namely in Form IIIB:-
Goods to be landed
A. Imported goods
(i) Goods (including unaccompanied baggage) to be
landed meant for home clearance;
(ii) Goods (including unaccompanied baggage) to be landed meant for
clearance at another Indian port (domestic transshipment)
(iii) Goods to be landed but destined for a foreign
port (Foreign transshipment)
B. Export goods
C. Coastal goods (including such goods transiting through foreign
territory)
(Goods continue to be
On-board)
(i) Imported Goods:
a. Domestic transit cargo
b. Foreign transit cargo
(ii) Export goods.
(iii) Coastal goods (including such goods transiting
through foreign territory)
(2) The details of the cargo (including unaccompanied baggage) to be
landed as declared in the respective forms shall be set out in the order of the
ports of loading.
(3) Delivery of vessel’s stores list and list of private property — The
vessel’s stores list and the list of private property in the possession of the
Master, officer and crew at the time of departure from the last port of call
shall be delivered upon arrival of the vessel.
6. Filing of Departure Manifest
(1) A declarant at sub-clause (i) or (ii) of
sub-regulation (g) of Regulation 2 shall before the departure of the vessel from
the port deliver to the proper officer electronically a departure manifest
consisting of –
a. a cargo declaration in
Form VIA & VI B as applicable;
b. a vessel’s stores list
in Form IV,
c. a list of private
property in the possession of the Master, officers and crew, in Form V,
d. any other goods which, under the Customs Act or any other Act for
the time being in force is required to be declared to the Customs authorities
on the arrival of vessel.
(2) In case where the departure manifest cannot be delivered
electronically, then the person in charge of the vessel shall deliver to the
proper officer copies of the departure manifest in duplicate.
7. Manner of filing ‘Cargo Declaration’
(1) The cargo declaration of departure manifest shall be delivered in
following parts, namely:--
Part A: Vessel departing
from an Indian port for a foreign port:
The cargo declaration on
this part shall be delivered in respect of each of the following categories of
cargo, in the Form VIA.
Goods loaded at the port
(i) Imported goods destined for a foreign port
(ii) Export Goods
Goods loaded at the
previous ports and remained on-board
(i) Imported goods destined for a foreign port
(ii) Export goods
Part B: Vessel departing
from an Indian Port for an Indian Port directly or via a designated ‘foreign
territory or foreign port’.
(2) The manifest in respect of these goods shall be filed in the Form
VIB as the case may be.
Goods loaded at the port
(i) Imported goods
a. Domestic transshipment goods
b. Foreign transshipment goods
(ii) Export goods
(iii) Coastal Goods (including such goods transiting
through foreign territory)
Explanation I: Domestic transshipment goods means the
imported goods destined for Indian port loaded on the vessel for the purpose of
transshipment.
Explanation II: Foreign transshipment goods means the
imported goods destined for foreign port loaded on the vessel for the purpose
of transshipment.
Goods loaded at previous
ports and remained on-board
(i) Imported goods
a. Domestic transit goods
b. Foreign transit goods
(ii) Export goods
(iii) Coastal Goods (including such goods transiting
through foreign territory)
8. (1) Notwithstanding
anything contained in regulations 5 & 7 respectively, the cargo declaration
in respect of –
(i) arms;
(ii) ammunition;
(iii) explosives;
(iv) narcotics & psychotropic substances;
(v) dangerous drugs;
(vi) gold;
(vii) silver,
Irrespective of whether for
landing, export, transshipment, or for being carried
as same bottom cargo shall be delivered in separate sheets and shall be set out
in the order of the ports of loading.
(2) Further, where a vessel does not carry any of the cargoes referred
to in sub-regulation (1), a nil declaration shall be delivered.
9. Transshipment of Import/Export Goods
between Port and ICD/CFS/SEZ
The declarant mentioned at
sub-clause (iii) of sub-regulation (g) of Regulation 2 shall file a Departure manifest/Arrival
Manifest as the case may be in the form VII.
10. Registration
(1) Any person who delivers the Arrival Manifest/ Departure Manifest
shall apply for registration under these regulations in the Form VIII to the
Jurisdictional Commissioner.
Provided for the purposes
of these regulations, a single registration obtained at any Customs station
would be a sufficient compliance for carrying out the obligations under these
regulations at other customs stations.
Provided further that a
declarant already registered under Import Manifest (Vessels) Regulations, 1971
on or before the date of coming into force of these regulations, shall be
deemed to be registered under these regulations.
Provided further that a
custodian already registered under Handling of Cargo in Customs Area
Regulations, 2009 for purposes of custody of imported goods or export goods
shall be deemed to have obtained registration under these regulations subject
to the condition that he submits the Bond and the Bank Guarantee in the event
of he intending to provide the services of transshipment, as the case may be, in accordance with the
procedure prescribed in these regulations.
(2) Where the Principal Commissioner or Commissioner of Customs, as the
case may be, is satisfied with the information provided by the applicant in
Form VIII mentioned in sub-regulation (1), he may register such applicant for
transacting business under these regulations for a period of two years from the
date of issue of such registration.
(3) The Principal Commissioner or Commissioner of Customs shall review
the registration granted under sub-regulation (2) before the expiry of the
initial period of registration of two years and may extend such registration to
a further period of five years at a time and in the case of an authorised
economic operator for a period of ten years:
11. Conditions governing transshipment and
transit through a foreign territory
(1) Transshipment of cargo under these
regulations shall be subject to the following conditions –
(i) the goods are
mentioned in the arrival manifest/ departure manifest for transshipment
to any customs station or SEZ as the case may be;
(ii) the declarant executes a bond in such form as is prescribed under
these regulations, with or without Bank guarantee as prescribed in the sub
regulation (2) for the completion of the transshipment
of the imported goods or export goods, as the case may be, to the Customs
station of destination.
(2) The general bond referred to in sub-regulation (1) above shall be
equal to the amount of duty involved on the imported goods and ten per cent of
value of export goods likely to be transshipped
during a period of ten days on notional value basis as prescribed in
sub-regulation (3). In addition to the Bond, a bank guarantee equivalent to ten
per cent of such bond value shall also be submitted.
Provided that the condition
of furnishing of bank guarantee or cash deposit shall not be applicable to
ports designated under the Major Ports Act, 1962 (38 of 1963) or to the Central
Government or State Governments or their undertakings or to the Declarant
authorised under Authorised Economic Operator Programme;
Provided further that where
the transshipment is through a vessel, no bank
Guarantee shall be furnished.
(3) The notional duty or the bond value for purposes of sub-regulation
(2) in the case of transshipment of imported goods or
export goods laden container shall be taken notionally as Rs.
500,000/- for a 40 feet container and Rs. 300,000/-
for a 20 feet container respectively.
(4) Where the transshipment from the port to
ICD or vice versa is through a rail route, the responsibility of furnishing the
Bond with the bank guarantee shall be on the rail operator or the custodian or
the Container liner. However, where the transshipment
from the port to ICD or vice versa is fully or partly through a road route, the
responsibility of furnishing the Bond with bank guarantee shall be on the
custodian or the Container liner alone. In the case of movement of goods from
port to CFS or vice versa, the responsibility of furnishing the Bond with bank
guarantee shall be on the Custodian.
(5) In the case of Less than container load (LCL) cargo on the import side,
where the consolidation is done at the port, the responsibility of furnishing
the bond and the bank guarantee in respect of movement of the cargo to ICD
shall be on the destination custodian. However, in the case of LCL cargo on the
export side, where the consolidation is to be done at the port, the
responsibility of furnishing the bond and the bank guarantee in respect of
movement of the cargo to Port shall be on the custodian of the originating ICD.
(6) In the case of the coastal goods manifested for transit through a
foreign territory, the declarant mentioned at sub-clause (i)
or (ii) of sub-regulation (g) of Regulation 2 shall be required to execute a
bond of a value equal to the value of the said goods accompanied by a bank
guarantee equal to the ten percent of the said value of the goods.
12 Responsibilities of the declarant
(1) The declarant shall -
(a) keep a record of imported goods, goods
brought for export or transhipment or coastal goods, as the case may be, and
produce the same to the proper officer as and when required;
(b) keep a record of each activity or action
taken in relation to the movement or handling of imported or export goods or
coastal goods and goods brought for transhipment;
(c) display or make available in any other
manner, information of process or movement or handling of imported or export
goods or coastal goods and goods brought for transhipment;
(d) be responsible for the safety and security
of imported and export goods or coastal goods under its custody;
(e) be liable to pay duty on goods pilfered,
lost during the transit or transhipment thereof in the customs area or enroute;
(f) be responsible for the secure transit or transhipment of the goods
from the said customs area to any other customs area at the same or any other
customs station in accordance with the permission granted by the [Deputy
Commissioner of Assistant Commissioner of Customs];
(g) be responsible for re-export of hazardous
goods where such goods are ordered to be exported back to the exporting
country;
(h) abide by all the provisions of the Act and
the rules, regulations, notifications and orders issued there under;
(i) the person in charge
of the vessel or his agent shall issue e-delivery orders to the importer,
custodian and proper officer of the Customs;
(j) publish
and display at prominent places including website or webpage of the declarant
the schedule of charges for the various services provided by him in relation to
the imported goods or export goods or coastal goods in the customs area.
(2) The declarant registered under these regulations shall not sublet
or or sub-contract or outsource functions permitted
or required to be carried out by him in terms of these regulations to any other
person.
13. Suspension or revocation of registration for appointment of a
Declarant
(1) The Principal
Commissioner of Customs or Commissioner of Customs may, subject to the
provisions of these regulations, suspend or revoke the registration granted to
the declarant subject to the observance of procedure prescribed under
regulation 12 and also order for forfeiture of security, if any, for failure to
comply with any of the provisions of the Act and the rules, regulations,
notifications and orders made thereunder;
(2) Notwithstanding anything contained in sub-regulation (1), the
Principal Commissioner of Customs or Commissioner of Customs may, in
appropriate cases where immediate action is necessary, suspend the registration
granted to a declarant where an enquiry against such declarant is pending or
contemplated.
14. Procedure for suspension or revocation of registration and
imposition of penalty
(1) The Principal Commissioner or Commissioner of Customs shall issue a
notice in writing to the declarant stating the grounds on which it is proposed
to suspend or revoke the registration and requiring the said declarant to
submit within such time as may be specified in the notice not being less than
thirty days, to the Assistant Commissioner or Deputy Commissioner of Customs
nominated by him, a written statement of defence and also to specify in the said
statement whether the declarant desires to be heard in person by the said
Assistant Commissioner or Deputy Commissioner of Customs.
(2) On receipt of the written statement from the declarant, or where no
such statement has been received within the time-limit specified in the notice
referred to in sub-regulation (1), the Assistant Commissioner or Deputy
Commissioner of Customs may inquire into such of the grounds as are not
admitted by the declarant.
(3) The Assistant Commissioner or Deputy Commissioner of Customs shall,
in the course of inquiry, consider such documentary evidence and take such oral
evidence as may be relevant or material to the inquiry in regard to the grounds
forming the basis of the proceedings and he may also put any question to any person
tendering evidence, for or against the Declarant, for the purpose of
ascertaining the correct position.
(4) The declarant shall be
entitled to cross-examine the persons examined in support of the grounds
forming the basis of the proceedings and where the Assistant Commissioner of
Customs or Deputy Commissioner of Customs declines to examine any person on the
grounds that his evidence is not relevant or material, he shall record his
reasons in writing for so doing.
(5) At the conclusion of the aforesaid inquiry, the Assistant
Commissioner of Customs or Deputy Commissioner of Customs shall prepare a
report of the inquiry recording his findings.
(6) The Commissioner of Customs shall furnish to the declarant a copy
of the report of the Assistant Commissioner or Deputy Commissioner of Customs
and shall require the declarant to submit within the specified period not being
less than thirty days any representation that he may wish to make against the
findings of the Assistant Commissioner of Customs or Deputy Commissioner of
Customs.
(7) The Principal Commissioner or Commissioner of Customs shall, after
considering the report of the inquiry, and the representation thereon, if any,
made by the declarant, pass such orders as he deems fit.
(8) If any declarant contravenes any of the provisions of these
regulations, or abets such contravention or who fails to comply with any
provision of the regulation with which it was his duty to comply, then, he
shall be liable to a penalty which may extend to rupees Two Lacs
(9) Any declarant aggrieved
by any decision or order passed under this regulation, may appeal under section
129A of the Act to the Customs Central Excise and Service Tax Appellate
Tribunal established under sub-section (1) of section 129 of the Act.