Cargo handling in Customs – Handling of Cargo in Customs Areas Regulations 2009 - CBEC clarifies
IN dated-March-18,2009 we reported that CBEC had notified Handling of Cargo in Customs Areas Regulations 2009 vide Notification No.26 /2009-Customs (N.T.) dated 17.3.2009. These Regulations are issued in supersession of instructions issued vide Board's Circular No.128 /95-Customs dated 14.12.1995 and Circular No.34 /2002-Customs dated 26.6.2002 as amended. Now the Board has issued a Circular explaining in detail the scope and extent of these Regulations.
The regulations provide for the manner in which the imported goods/ export goods shall be received, stored, delivered or otherwise handled in a customs area. The regulations also prescribe the responsibilities of persons engaged in the aforesaid activities. It may be recalled that the Public Accounts Committee (2005-06) in its twenty-seventh report had recommended for formulating appropriate legal provisions and guidelines to control the activities of custodians. In pursuance of the recommendations made by the Public Accounts Committee (PAC), the Government had inserted a new sub - section (2) to section 141 of the Customs Act, 1962. These Regulations have been framed by the Department in pursuance of the recommendations of the PAC and consequent to the amendment of the Customs Act, 1962 as aforesaid. The salient features of this Circular are as follows:
(i) The regulations shall be applicable to all persons operating in a customs area and engaged in handling of import/export goods who are referred to as ‘Customs cargo service providers' (CCSPs).
(ii) These regulations shall apply to handling of import/export goods in customs area. This would cover all customs facilities such as ports, airports, Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Land Customs Stations (LCSs).
(iii) The existing appointments of custodians under s. 45 of the Customs Act, 1962 shall continue and there would be no disruption in their operations.
(iv) Only such CCSPs who wish to be appointed as custodian of imported/ export goods need to take approval as specified in Regulation 10.
(v) Major ports and airports will continue to be authorized to function as custodians under their respective Acts and these regulations shall not impact their approval as a custodian.
(vi) The normal time within which the existing custodians are required to comply with the conditions of these regulations is stipulated as three months from the date of coming into force of these regulations.
(vii) Exemption from applicability of any conditions required to be fulfilled by CCSP is required to be exercised by the Commissioner of Customs carefully.
(viii) The Commissioner of Customs has sufficient discretion to decide on the nature of infrastructure and equipments required to be installed at the premises of CCSP.
(ix) As regards the requirement of the Customs EDI Systems the infrastructure required to be provided by the custodian shall include the Civil and electrical infrastructure including properly air-conditioned office space, cabins with proper furniture, power backup facilities, hardware, networking and secure connectivity to customs data centres for customs officers and service centres specified by Customs.
(x) The charges in respect of the Customs officers deployed at the customs clearance facility (ICD/CFS/port/airport etc.) are required to be paid by the Custodian, unless these have been exempted for an individual custodian by an order issued by the Ministry of Finance or by a circular or instructions issued by the Ministry of Finance.
(xi) As regards ICDs/CFSs, the Government had taken a decision to waive the requirement of cost recovery charges to be paid by ICD/CFS, if they fulfill the laid down norms and are in existence for a consecutive period of two financial years.
(xii) The procedure for approval of appointment, renewal, suspension or revocation of CCSP has been given in detail under Regulations 10 to 13, so as to provide for transparent and objective procedure in the appointment and cancellation.
Board wants Commissioners to issue Public Notice and also write individual letters to the Custodians.
CBEC Circular No. 13/2009-Customs Dated: March 23, 2009