Customs Manual 2023 explains procedures and formalities about Consolidation of Cargo in India
How to consolidate import Cargo? What is the process of consolidation of export cargo?
How to handle international shipments of LCL cargo in India ports? How to handle consolidated LCL containers in India?
The following information enlighten about the Procedure for consolidation of import cargo, Procedure for consolidation of export cargo and International transshipment of LCL containers at Indian ports.
Procedure for consolidation of import cargo
Procedure for consolidation of export cargo
International transshipment of LCL containers at Indian ports
Please read below the extract from India Customs Manual 2023 updated till 31st December, 2023
Chapter 11: Consolidation of Cargo
1. Introduction:
1.1 With the development of a number of ICDs/CFSs in the hinterland, importers and exporters have
the option to either get their import/export consignments cleared at the gateway ports or any
nearby ICD/CFS. The export goods cleared by Customs at an ICD/CFS are sent in sealed
containers to gateway port where these containers are normally allowed to be exported without
further examination of the goods. Similarly, imported cargo meant for any ICD/CFS is allowed to
be transshipped in sealed containers from the gateway ports to such ICDs/CFSs and all Customs
formalities in relation to clearance of cargo are completed by the importers at ICD/CFS.
1.2 Export containers sealed at the ICD/CFS were earlier not allowed to be re-opened for
consolidation at the gateway port, which led to shifting this activity to international hub ports e.g.
Dubai, Singapore and Colombo. Similarly, import containers with LCL cargoes used to be brought
to hub ports, where shipping lines used to consolidate the cargo and stuff in containers destination
wise. There was thus a demand from exporters, importers, shipping lines, agents and
consolidators to allow the re-working of containers at the gateway ports to avoid the extra
expenditure incurred for undertaking the same job at the foreign hub ports.
1.3 The facility of re-working containers is now allowed at the gateway ports. Shipping lines can take
containers stuffed with LCL export cargo, irrespective of destination, from ICD/CFS to a gateway
port, where these can be opened and re-worked with cargo received from different ICDs/CFSs
and stuffed in containers, destination-wise. Similarly, LCL import cargo brought at any gateway
port can be re-worked and consolidated in containers ICD-wise. With this facility, the exporters get
benefited by saving in freight charges, reduction in transit time, better handling and safer delivery
of cargo as the activity takes place under the supervision of Indian agencies. The facility also
reduces freight charges for imported LCL cargo as it helps in optimum utilization of container
capacity. It also helps in attracting business for Indian ports and developing them as transshipment
hubs.
2. Procedure for consolidation of import cargo:
2.1 Broadly, the procedure for consolidation of import cargo at the gateway ports is as follows:
(i) On arrival of the LCL cargo meant for ICDs/CFSs, at the gateway port the concerned
shipping line files the IGM with the Customs;
(ii) The de-stuffing and consolidation of the LCL cargo ICD/CFS-wise is to be done at the
earmarked space under Customs supervision and surveyors of the custodians;
(iii) After consolidation of LCL cargo (ICD/CFS-wise), the custodian at the gateway port shall
prepare a tally list showing details of the import consignments, the previous container
number, IGM No. and the details of the new container. The shipping line has to then file subIGMs for all LCL (Import) cargo IGM-wise;
(iv) After acceptance of sub-IGM by Customs, the LCL cargo ICD/CFS-wise is allowed to be restuffed in empty containers. The containers so re-stuffed are sealed by the custodian as per
the procedure. The details of the new bottle seal should be indicated in the sub-IGM;
(v) For transshipment of re-stuffed LCL cargo in new containers to different ICDs/ CFSs, the
concerned shipping line is to follow the procedure laid down in the Goods Imported
(Conditions of Transshipment) Regulations, 1995; and
(vi) After completion of Customs formalities and clearance of LCL cargo at the respective
ICDs/CFSs, a copy of the sub-IGM is to be sent back to Customs authorities at the gateway
port for confirmation/closure of IGM.
3. Procedure for consolidation of export cargo:
3.1 Broadly, the procedure for consolidation of export cargo at the gateway ports is as follows:
(i) LCL cargo brought to an ICD/CFS is subject to routine documentation, assessment and
examination by Customs. After examination and clearance of LCL cargo at the ICD/CFS,
the packages opened for Customs examination are sealed by Customs. The shipping line
is required to use identification mark on each package, clearly indicating serial number of
package, description of goods, total number of packages covered under that particular
shipping bill, exporter’s identity and their own codified identity;
(ii) After completion of Customs formalities, the packages are handed over to the custodians
along with two transference copies of Shipping Bill, certified copies of invoice, packing list,
Bill of Lading and other documents;
(iii) The custodian consolidates the cargo irrespective of shipping line and destination and stuffs
these in containers. After sealing of such containers in presence of Customs, containers are
carried to the gateway port or a CFS near gateway port by the custodian;
(iv) At the gateway port, the documents are handed over to Customs and the containers are
opened in presence of Customs. The cargo is handed over to shipping lines/ their
agents/MTOs/consolidators, etc., who re-work the cargoes received from different ICDs as
well as cargo cleared for export at the gateway port or CFSs near the gateway port and restuff the cargo in containers destination-wise in presence of Customs;
(v) The custodians of the gateway port or CFS near gateway port have to maintain a tally sheet
container-wise indicating details of the export consignments, the previous container number,
Shipping Bill number, AR-4 number and the details of new containers in which goods are
re-stuffed;
(vi) The container number in which such cargoes are stuffed is to be indicated by the Customs
Officer on both the transference copies of Shipping Bill and AR-4. One copy of Shipping Bill
is retained by the Customs at the gateway port and other copy of Shipping Bill is returned
to the originating ICD/CFS;
(vii) The LCL cargo cleared by Customs at the ICD/CFS is normally not to be examined again
by Customs at the gateway port or at the CFS where LCL cargo is being consolidated; and
(viii) The Drawback is to be paid at the inland ICDs/CFSs immediately after the clearance of LCL
cargo by Customs without waiting for actual shipment of cargo from the gateway port.
3.2 Jurisdictional Commissioners shall, by issue of suitable standing order allow the movement of
containers/ trucks loaded with LCL cargo from one CFS to another CFS under their jurisdiction so
as to have optimum utilization of space in a containers/ truck. They should, however, ensure this
facility is not misused and revenue is safeguarded.
[Refer Circulars No.55/2000-Cus, dated 30-6-2000 and No.22/2001-Cus, dated 17-42001 and
Instruction F.No.450/66/2005-Cus.IV, dated 24-11-2005]
4. International transshipment of LCL containers at Indian ports:
4.1 As per Section 54(2) of the Customs Act, 1962 transshipment of imported goods to any place
outside India, referred as 'International transshipment', is allowed except in respect of goods
prohibited under Section 11 of the said Act. Accordingly, international transshipment of imported
goods in Full Container Load (FCL) is permitted. Further, as a measure of trade facilitation and to
enable Indian ports to act as Transshipment Hubs, transshipment facility for imported goods in
Less than Full Container Load (LCL) is permitted at approved places under the jurisdiction of
identified Custom Houses. Currently, this facility is provided at Chennai, Cochin, Nhava Sheva,
and Tuticorin.
4.2 The following procedure is prescribed on arrival of the international transshipment (ITP)
containers:
(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;
(ii) No goods for international transshipment should be unloaded from the vessel until the
permission for the same has been given by the Assistant/Deputy Commissioner of Customs
authorized in this behalf by the Commissioner of Customs, on the basis of manifested
details in IGM;
(iii) The ITP container details such as container number, broad description of goods etc. shall
be mentioned in the IGM. In the electronic manifest, there are fields for specifying (a) Port
of destination, and (b) ‘cargo movement’ code. For cargo movement, there are three codes,
which need to be filled correctly with proper port of destination, as follows:
(a) ‘LC’ – Local Cargo: This refers to the port code where cargo is delivered. It is the
same as the port of arrival.
(b) ‘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.
(c) ‘Transshipment to ICD’: This is the local cargo meant for transshipment to
hinterland port i.e. ICD. The port of destination is the port code of the ICD.
(d) There is a field ‘Container Status’ to specify whether the cargo is FCL or LCL or
‘Empty’. The line and sub-line numbers provide the inter-linkage between the cargo
details and the container details.
(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.
(v) Customs Officers would examine the seal of the ITP Containers and in case of it tampering,
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 and put up to the
Assistant/Deputy Commissioner in charge for further action.
(vi) LCL cargo meant for a foreign 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 as well as
consignments for home consumption or transshipment to ICDs. 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.
(vii) Whenever the LCL cargo are required to be exported to foreign destination, The restuffing
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 and the details of LCL cargo would be entered in EGM.
(viii) Custodian would maintain the record of ITP LCL 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 purpose of
international transshipment and undertake to export transshipment cargo within 30 days or
within extended period as Commissioner may allow and follow all the relevant Acts, Rules
and Regulations in force.
(ix) Custodian would be responsible for safe handling of the LCL cargo and ensure that there is
no intermixing of ITP LCL cargo with other cargo.
(x) 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 FTP
may be permitted for transshipment to destination abroad.
(xi) 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 good meant for transshipment as these are also ‘imported goods’.
(xii) For international transshipment of LCL containers, the Commissioners should adopt
consultative approach with the stakeholders/operators to identify suitable premises.
Following factors may be considered by the Commissioner in this regard:
(a) Location of the premises.
(b) Availability of adequate infrastructure - modern handling equipment for loading /
unloading of containers from rail flats, chassis, stacking, movement, cargo handling,
stuffing/de-stuffing, refrigerated storage facility for perishables etc.
(c) Availability of sufficient secured area for segregation/ consolidation of cargo and its
safe handling.
(d) The premises need to be connected with Custom House on EDI to handle the
transshipment in ICES.
(e) Experience of custodian in handling import export matters and working knowledge of
Customs Act, rules and regulations.
(f) Logistics arrangements including constraints, if any, in movement of containers
between approved place/premises and port.
(xiii) In line with Boards instructions, Commissioners may also indicate detailed operational
procedure, taking into account the requirements, physical movement in carrying goods to
the approved place / premises etc. at individual Customs stations.
Refer Circulars No.55/2000-Cus, dated 30-6-2000, No.61/2000-Cus dated 13-7-2000,
No.67/2000-Cus, dated 17-8-2000, No.22/2001-Cus, dated 17-4-2001 and No.14/2007Cus,
dated 16-3-2007 and Instruction F.No.450/66/2005-Cus.IV, dated 24-11-2005
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