Manual Recording of In and Out Movement of Containers
Discontinued, DG System to Monitor Online Entry and Exit to Enforce Six Month
Re-Export Condition under 104/94 Notification
Ø It has been decided to revise the framework of monitoring the duty free imports of containers in terms of Notification No. 104/94-Customs dated 16.03.1994. DG Systems will generate reports of containers along with necessary details which have not been re-exported within the stipulated period of 6 months.
·
Circular Issued: CBIC has issued Circular No. 32/2026-Customs dated 11
July 2026 to simplify the monitoring of duty-free imported
containers covered under Notification
No. 104/94-Customs.
·
Existing Framework: The notification grants exemption from
customs duty on durable containers imported by shipping lines, subject to:
o execution of a customs
bond,
o re-export of containers
within six months,
or
o payment of applicable
customs duty in case of non-compliance.
·
Manual Process Discontinued: Shipping lines will no longer be required to submit manual
documents or statements giving the number and identification
details of containers moving outside the customs area.
·
Current Electronic Monitoring: Customs already
records manual bonds electronically and adjusts bond balances based on
electronic manifest filings such as:
o IGM/SAM (Import General
Manifest/Sub Manifest), and
o EGM/SDM (Export General
Manifest/Sub Manifest).
·
Automated Monitoring: DG Systems will
automatically generate reports of containers that are not re-exported within the stipulated
six-month period.
·
ICEGATE Publication: These reports will be
made available on the ICEGATE
portal for use by shipping lines and Customs officers for
initiating action under the Customs Act, 1962.
·
Bond Requirement Continues: Shipping lines, Non-Vessel Owning Common Carriers
(NVOCCs), steamer agents and their authorised agents must
continue to execute the prescribed bond
without surety.
·
Ease of Doing Business: The new system eliminates
manual debit and credit of bonds for every transaction, thereby reducing
paperwork, saving time, and lowering compliance costs for stakeholders.
·
Supports 'One Nation One Port Process': The circular aligns
with the Ministry of Ports, Shipping and Waterways' initiative to upgrade
terminal and port operating systems, eliminating manual approvals and physical
verification during gate-in and gate-out operations.
·
Electronic Gate Systems: Customs field formations
have been directed to coordinate with DG Systems and port/terminal operators to
implement electronic gate
systems that digitally capture container movement from customs
areas.
·
Electronic Records: Port and terminal operators are required
to maintain electronic
records of all containers entering or leaving notified customs
areas.
·
Implementation: Customs field formations should implement
these facilitation measures in a trade-friendly
manner and issue suitable Public Notices.
·
Feedback: Any implementation difficulties may be
brought to the notice of CBIC.
Attention is invited to Notification No. 104/94-Customs dated 16.03.1994 read with Circular No 31/2005-Cus dated 25th
July, 2005 and Circular 51/2020-Customs dated 20th
November, 2020, which exempts containers of a durable nature from the whole of customs duty and whole of additional duty, subject
to execution of a bond and fulfilment of the prescribed conditions, including re-export of such containers within the stipulated period or payment of the applicable
customs duty in case of non-compliance.
2.
References have been received from the shipping lines highlighting that, under the existing procedure, they are required to intimate the customs the number and identification particulars of the containers manually to be moved outside the customs area. Currently carriers execute manual bond with customs, which are recorded in the system and subsequently debited or credited based on the filing of manifest information with Customs viz. IGM/SAM and EGM/SDM electronic messages.
3.
The matter has been
examined. In order to promote the Ease of Doing Business, it has been decided to revise the framework
of monitoring the duty free imports of containers in terms of Notification No. 104/94-Customs dated 16.03.1994.
DG Systems
will generate reports of containers along with necessary details which have not been re-exported within the stipulated period of 6 months. These reports will then be published on ICEGATE portal (https://www.icegate.gov.in) for use by various shipping lines or the Customs officers for appropriate action under the Customs Act, 1962. The shipping lines, Non Vessel Owning Common Carrier (NVOCC),
steamer agents or their authorized agents shall continue to execute the bond without
any surety. This process will ease the process of manual debit/credit of bond for every transaction and save time & cost for stakeholders.
4.
"One Nation One Port Process" report by the Ministry of Port, Shipping and Waterways has also highlighted the aspect of upgradation of Terminal/Port Operating Systems which will eliminate the practice of approvals/manual verification during gate-in/ gate-out. This will ensure safety and security of supply chain involved in exim cargo and also obviates the need of verifying the movement physically at port/terminal gate.
5.
In view of process automation requirement of ports/terminals, there is need for development of electronic Gate System equipped to capture movement of container from Customs area. Accordingly, field formations shall coordinate with DG Systems
and Port/ Terminal operators for expedited
integration to have efficient process automation and doing away with manual intervention in relation to such container movement. Port/ terminal operators should maintain above record electronically, for containers which enter or exit through their notified Customs area.
6.
Field formations shall ensure that the above facilitation measures are implemented in a trade-friendly manner. Suitable Public Notices may be issued in this connection.
7.
Difficulties, if any, in implementation of this Circular may be brought to the notice of the Board.
F. No. 450/41/2005-Cus-IV