Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise
the 30TH June, 2000
Subjct - Cargo - Consolidation of cargo
at gateway port - Procedure
A number of representatives
has been received from trade and industry for allowing consolidation / reworking
of LCL cargo at gateway ports or at CFSs near gateway ports, for further
despatch to the destination ports. The proposal is to create IIUBs near gateway
ports where the LCL cargo brought from various ICDs/CFSs will be reworked and
thereafter sent to various destinations directly. It has been stated that at
present, the LCL cargoes accepted by the shipping lines at hinterland ICDs/CFSs
are reworked at transshipment hubs etc. Singapore, Dubai etc., which adds to the
overall costs, thus making Indian exports uncompetitive in international market.
Creation of similar facilities in India would therefore help promote our
exports. Major advantages to the country are stated to be savings a foreign
exchange due to substantial reduction in freight charges incurred by shipper,
better handling and safer delivery of cargo as the activity takes place under
the supervision of Indian agencies, additional traffic generated at gateway
ports in terms of TEUs and reduction of transit time.
- Presently, as per Circular No. 57/98-Cus.,
dated 4-8-1998 [refer 1998 (102) E.L.T.T40] movement of LCL export cargo
from inland ICDs/CFSs to gateway port is permitted by bonded trucks. Such
LCL cargoes are permitted to be further consolidated at gateway ports. But
there is no system whereby LCL cargo can be congregated / consolidated at
inland ICDs/CFSs and carried to the HUB point for re-packing (carrier-wise)
into separate containers as cargo. At present, containers once cleared and
sealed at inland ICDs/CFSs are not allowed to be reopened and reworked at
gateway ports. Due to non-availability of this facility, exporters incur
extra expenditure in exporting their LCL cargo. Ministry of Commerce has
strongly recommended the proposal of trade and has stated that consolidation
of LCL cargo at ICDs/CFSs/Ports would help promote the growth of containerization
from the hinterland and would also make the transportation cost effective to
smaller players engaged in foreign trade. Further, it will be an important
step in upgrading our infrastructure abilities.
- The matter has been examined by the Board and
it has been decided to allow the facility of congregation / assimilation of
LCL cargo at the inland ICDs/CFSs, movement of this cargo from ICDs/CFSs to
Hub points for further reworking and exports to destination ports. The
procedure to be followed in this regard shall be as follows :
- The custodians of ICDs/CFSs would permit
shipping lines to accept LCL cargo from the exporters and allot nominated
space at their ICDs/CFSs for storage, examination and consolidation of
- The exporter shall be given a choice of
indicating the shipping line to be used for shipment of his consignment or
leave it to the custodian. The custodian shall nominate the shipping line
destination-wise where such choice has been left to the custodian.
- The consignment of one shipping bill should
not be allowed to be moved in part.
- After examination and clearance of LCL
cargo, the packages opened for customs examination shall be sealed by
Customs. the shipping line will use identification mark in each
package clearly indicating serial number of package, description of the
goods and the total number of packages covered under that particular
shipping bill, exporters identity and their own codified identity. As far
as possible all the shipping lines will use such identification marks in
different colours, so that these can be easily identified.
- After completion of Customs formalities, the
packages would be handed over by the Customs to the custodian along with
two transference copies of Shipping Bill, certified copy of invoice,
packing list and other documents in sealed cover. The concerned shipping
line will issue the Bill of Lading, a copy of which will be handed over to
- The custodian would consolidate the cargo
irrespective of the shipping lines and transport the same in their
containers, which will be stuffed and sealed in the presence of Customs.
The container movement will be organised by the custodians either by rail
and / or road depending on the availability of services.
- At the gateway port, or some CFS near
gateway port, both the transference copies of shipping Bill would be
presented by the Custodian"s representative to the proper officer of
Customs who would verify the genuineness of documents and check the marks
and numbers of individual packages. The customs officer would inspect the
packages and endorse the transference copies of Shipping Bill and AR4 in
the following manner, "inspected and found in order". The
custodian would hand over the cargo to respective shipping lines/steamer
agents. Such packages received from inland ICDs/CFSs would be stuffed in
containers by shipping lines in the presence of Customs.
- The custodian of the gateway port of CFS
near gateway port would maintain a tally sheet containerwise, giving
details of the export consignments, the previous Container No. Shipping
Bill No. AR-4 No. and the details of new container in which goods have
been restuffed. After the reworking/restuffing of the containers, tally
sheet should be signed by the representatives of the custodian of the CFS
and shipping line as well as by the supervising Customs Officers.
- After signing the tally sheet the Customs
officer would indicate the container number in which such cargoes are
stuffed on both the transference copies of shipping bill and AR-4, and
retain one copy of such shipping bill. The other transference copy would
be returned to ICDs/CFSs from which the container originated.
- Custodians would, thereafter, use the same
containers to bring back LCL imports to various ICDs and make arrangements
to deliver these consignments to the consignees.
- As earlier, the drawback would be paid at
the inland ICDs/CFSs immediately after the clearance of LCL cargo by
Customs at inland ICDs/CFSs without waiting for actual shipment of cargo
from the gateway port.
- The LCL cargoes cleared by Customs at inland
ICDs/CFSs under the scheme would not be subject to examination by Customs
at the gateway port or at the CFS where LCL cargoes are allowed to be
consolidated, unless the seals are found tampered with or there is
specific intelligence, the orders from Assistant Commissioner / Deputy
Commissioner giving the reason may be obtained before examining the said