TIOL-DDT 576 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
576</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
20.03.2007<br>
Tuesday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">International
transshipment of containers at Indian Ports – Board’s initiative </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">At last
Board has realized the international economic reality and possibilities. Board
had received references from the trade and industry on the issue of introducing
a procedure for transshipment of goods meant for ports outside India. The benefits
are</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. earnings
in foreign exchange, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. attraction
to foreign investment, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. employment
opportunities, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. freight
benefits to Exim Trade, </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. low transshipment
cost, etc</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board has
examined the issue. And observed that at present international transshipment
of imported goods in Full Container Load (FCL) is being permitted by the field
formations. Board has decided to introduce transshipment facility for imported
goods in Less than full Container Load (LCL) also at approved places under the
jurisdiction of identified Custom Houses. To begin with, such facility would
be provided at <st1:State>Cochin</st1:State>, Chennai, Tuticorin and NhavaSheva.
This additional facility would also be a measure of trade facilitation and is
expected to provide transshipment facility to international shipping lines and
enable ports to act as Transshipment Hub in the Indian Ocean region. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>The Procedure:</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The
application for international transshipment of FCL cargo can be made by master
of the vessel or his authorized agent, Non-Vessel Operating Common Carrier (NVOCC)
or any other person duly authorized in this behalf by the foreign supplier.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) No
goods for international transshipment should be unloaded from the vessel until
the permission for the same has been given by the AC/DC authorized in this behalf
by the Commissioner of Customs, on the basis of manifested details in IGM.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) The
ITP container details such as Container Number, broad description of goods etc.
shall be mentioned in the Import General Manifest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the electronic
manifest, there are fields for specifying </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Port
of destination, and </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) ‘cargo
movement’ code. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">For cargo
movement, there are three codes which need to be filled correctly with proper
port of destination:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) ‘LC’
– Local Cargo: This refers to the port code where cargo is delivered. It is
the same as the port of arrival. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) TC’
– Transshipment Cargo: It refers to international cargo and the port of destination
shall be the port code where transshipment cargo is destined to or delivered.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) TI’
– Transshipment to ICD: This is the local cargo where the cargo meant for transshipment
to hinterland port i.e. ICD. The port of destination is the port code of the
ICD.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) The
unloading of such ITP containers at gateway port would be in presence of Customs
Officers. The containers would be taken to approved place / premises under Customs
escort. Custodian of such premises would provide a segregated secure space for
ITP containers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Customs
Officers would examine the Seal of the ITP Containers. In case of tampering
of the Seal, such Container should be immediately resealed with the Customs
Seal in the presence of the Custodian / Shipping agent and same should be recorded.
Such containers will be examined 100% by the Customs Officers and findings recorded
thereof. Such cases will be put up to the AC / DC in charge for further action.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) LCL
Cargo meant for a foreign port (any port outside India) would be de-stuffed
in the presence of Customs Officer and stored in a secured area as provided
by Custodian. LCL Cargo may contain consignments meant for transshipment to
any port outside India (<st1:PlaceName>Foreign</st1:PlaceName> <st1:PlaceType>Port</st1:PlaceType>)
as well as consignments for home consumption or transshipment to Inland Container
Depot (ICD). This would necessitate segregation of the two types of cargo at
the time of de-stuffing and moving them to respective storage areas under customs
escort. Till such time, sufficient precaution should be taken to avoid duplication
/ mixing up or manipulation of cargo meant for Transshipment / Home-consumption.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Whenever
the LCL cargo are required to be exported to foreign destination, The re-stuffing
of such LCL Cargo meant for the foreign port along with the export cargo would
be done under the supervision of a Customs officer. Further Container would
be sealed in presence of a Customs Officer. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) The
details of LCL cargo would be entered in Export General Manifest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ix) Custodian
would maintain the record of ITPLCL cargo, both loaded and unloaded, and submit
a monthly summary to Customs. He shall execute a general bond for an amount
equal to the approximate value of goods expected to be imported in 30 days for
the purpose of international transshipment. In such bond, custodian should undertake
to export transshipment cargo within 30 days or within extended period as Commissioner
may allow and follow all the relevant Acts, Rules & Regulations in force.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(x) Custodian
would be responsible for safe handling of the LCL cargo and ensure that there
is no intermixing of ITPLCL cargo with other cargo lying with the custodian.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">International
transshipment of cargo needs to be effected within 30 days of Entry Inward of
the importing ship. The permission for transshipment would not be given to cargo
having arms, ammunition, explosives and other cargo considered as constituting
a threat to the security/safety and integrity of the country and other goods
attracting prohibition under section 11 of the Customs Act, 1962. However goods
which are ‘restricted’ as per the Foreign Trade Policy may be permitted for
transshipment to destination abroad. Further, transshipment shall not be allowed
to any port / destination, in respect of which any order or prohibition is in
force for the time being. Commissioners may also prescribe any additional safeguard
for securing safe transshipment. The provisions of Section 48 relating to the
procedure in case of goods not transshipped within 30 days after unloading shall
apply to the goods meant for transshipment as these are covered under the scope
of “imported goods”. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order
to introduce international transshipment of LCL containers, the Custom Houses
need to identify suitable premises within the approved place under their jurisdiction
for the purpose of safe custody of imported goods and for such other authorized
operations. Commissioners should adopt consultative approach with the stakeholders
/ operators to identify particular premises for such international transshipment.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Following
factors may be considered by the Commissioner for identification of the premises,-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Location
of the premises.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Availability
of adequate infrastructure - modern handling equipment for loading, unloading
of containers from rail flats, chassis, their stacking, movement, cargo handling,
stuffing/de-stuffing, refrigerated storage facility for perishable cargo etc.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Availability
of sufficient secured area for segregation/ consolidation of cargo and for its
safe handling.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) The
premises need to be connected with Custom House on EDI to handle the transshipment
in ICES.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Experience
of Custodian in handling import export matters and working knowledge of Customs
Act, rules and regulations.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Logistics
arrangements including constraints, if any, in movement of containers between
approved place / premises and port.<br>
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please see
our story<b> </b><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=newsch/guest/sthirumalai/sthirumalai000.htm" target="_blank">CUSTOMS
CLEARANCE BY LOGISTICS SERVICE PROVIDERS CHINA TAKES A FEW STRIDES!</a><b></span>
</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2007/cuscir07_14.htm" target="_blank">CIRCULAR
No. 14/2007-Cus., Dated: March 16, 2007</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">ICD</font></b><font color="#006600"><b>Loni
– Customs Area notified </b></font></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Commissioner
of Customs, <st1:City>GHAZIABAD</st1:City> has notified the Customs Area for
the ICDLonifor loading of export goods and unloading of imported goods.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/pnotice01.htm" target="_blank">PUBLIC
NOTICE No. 01-CUS./2007 Dated 16/03/2007 of the COMMISSIONER, CUSTOMS, CENTRAL
EXCISE & SERVICE TAX, GHAZIABAD</a></u></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Amendment
to Rule 21 of CE Rules - Half done ! Now rectified?</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had in an article <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=5157" target="_blank">Amendment
to Rule 21 of CE Rules - Half done !</a><b> </span> </b>pointed out that the
amendment by Notification 8/2007 CE(NT) Dt 1/3/2007 was not complete. Now the
mistake is sought to be rectified by a corrigendum. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2007/corrigendum.htm" target="_blank">CORRIGENDUM
Dated: March 15, 2007</a></u></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Pending
cases </b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per available
information as on December 31, 2006 there are 39,91,251 cases pending in High
Courts and 2,63,92,004 cases pending in the lower courts. A Scheme for Computerization
of District and Subordinate Courts, prepared in accordance with the National
Policy and Action Plan has been approved by the Government on February 8, 2007.
The salient features of the Action Plan cover application and implementation
of Information and Communication Technology in the Judicial System in a phased
manner involving computerization of all district and subordinate courts in the
country and up gradation of facilities of the superior courts and electronic
networking of the lowest court with the highest court. Government has already
computerized the city courts in the four Metropolitan cities and State capitals
or in cities where the principal seat of the High Court is located.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This
was stated by the Minister of State for Law & Justice, Shri K. Venkatapathy
in a written reply in the Rajya Sabha.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are
about 40 Lakh cases pending in the High Courts. Assuming they are able to clear
4000 cases a day, it will take about 1,000 days that is more than three years
to clear the existing cases and by the time they do so/ fresh cases will accumulate.
</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Is there
any hope?</b></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
Tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a
href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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