Unclaimed Cargo Clog CFS - CAG
CFS (Container Freight Station) is a customs area located in the jurisdiction of a Commissioner of Customs exercising control over a specified Customs Port, Airport LCS/ICD and it is an extension of a customs station set up with the main objective of decongesting the ports. In CFS, only a part of the Customs processes mainly the examination of goods is normally carried out by Customs besides stuffing/de-stuffing of containers and aggregation/segregation of cargo. CFS is custodian of import/export cargo as per section 45 of the Customs Act. Containers other than those belonging to SEZ and ACP client are transferred within 72 hours from Chennai Port to the CFSs located around the radius of 50 Kms from the port and from there, the goods are cleared for home consumption after assessment and payment of duty. Export cargos after registration in CFS, get examined and stuffed in the containers and transferred to Port for being loaded in the ships.
As per rule 6 of Handling of Cargo in Customs Areas Regulation (HCCAR), custodian is responsible for the safety and security of the goods under their custody. They are also responsible for the disposal of uncleared, unclaimed or abandoned goods within the prescribed time limit.
CAG has found that the storage capacities of CFSs were occupied by unclaimed/uncleared cargos. Though circulars were regularly being issued by the Board (Circular dated 1 December 2005, 9 December 2005, 20 February 2006, and instruction dated 22 July 2010) for expediting the clearance of unclaimed/uncleared cargo to decongest CFS/Ports, it was observed that more than five years old cargos are still lying uncleared causing storage problems and affecting the revenue of the CFSs. Some of the cargos were detained by DRI, SIIB, CIU wing of customs as they had filed cases against the importers.
Audit has further observed that there was no provision in the IGM module to identify cargo pending beyond the admissible period of 30 days for the suo-moto action by customs and the department was dependent on the CFSs for knowing the status of uncleared/unclaimed cargo. The lack of provision severely hampered the department in ensuring the expeditious disposal of un-cleared cargo resulting in valuable space of CFS remaining occupied and causing revenue loss to the department.
Audit has noticed that container laden truck from Chennai port takes 24 hours to reach a CFS just 10 kms away because of poor road connectivity.
Samples of the entire JN Port are stored/dumped in one CFS causing health hazards and storage problems.
Shortage of Customs Officers: Audit found that in 29 CFSs operational in Chennai Customs, only 24 examiners/preventive officers were posted for import and export examination. Posting of a single Assistant Commissioner for several CFSs and testing of imported goods caused delay in clearances.
Source: CAG's Report No. 13/2015
Please also see - DDT 2215, Demurrage charges & detention certificate - waiver & payment & Customs, Draft Disposal Manual 2013.