Indian Customs Manual 2023 explains on transhipment of Cargo

Posted on 11 March 2023 Category : Indian Customs Manual 2023

transshipment of cargo, the carrier/ console agent is required to file an application for

transshipment of cargo, consigned to another airport as indicated in HAWB. Cargo Transfer

Manifest (CTM) prepared by the carrier/consol agent, as the case may be, shall itself be

treated as application for transshipment. Separate CTMs may be prepared destination-wise.

Such transshipment should be approved by the Proper Officer.

(iii) The cargo mentioned in the CTM needs to be escorted by the Preventive Officer from the

warehouse of the custodian to the warehouse of receiving airlines which acknowledges the

same. The concerned airlines/custodian warehouse should have double locking

arrangement, one key of which will be with the airlines/ custodian and the other with

Customs, for storage of transshipment cargo. No physical examination needs to be

conducted, except on specific intelligence, for allowing transshipment and only marks and

numbers of cargo need to be verified.

(iv) The receiving airlines should prepare its cargo manifest and transshipment be allowed under

Customs supervision. The value of transshipped cargo should be debited from the

Transshipment Bond.

(v) Customs at destination airport will acknowledge the receipt of the cargo and send back the

acknowledgement manifest through the carrier. The carrier should produce such

acknowledgement at the originating airport within 10 days of transshipment. On the basis of

such acknowledgement the Transshipment Bond would be re-credited.

(vi) The usual procedure for Customs clearance of cargo shall be adopted at the destination

airport.

12.3 International transshipped cargo (Foreign to Foreign):

(i) On the arrival of flight, the transshipment cargo meant for destination abroad should be

segregated in the Custodian's premises.

(ii) The carrier is required to file application for transshipment of cargo and CTM prepared by

the airlines shall be treated as application for transshipment. Such transshipment should be

approved by the Proper Officer.

(iii) Cargo mentioned in CTM need to be escorted by the Preventive Officer from the warehouse

of custodian to the export terminal. No physical examination needs to be conducted, except

on specific intelligence, and only marks and numbers of cargo need to be verified. Such

cargo may be exported with other export cargo.

12.4 Export of cargo tendered at one Customs airport for export from another Customs airport:

(i) Shipping Bill shall be filed at the originating Customs station and "Let Export Order" should

be given by the Customs at the same station. Transshipment Permit (TP) should be

prepared by the airlines/ carrier and approved by the proper officer. TP should be sent

alongwith the cargo and Transshipment Bond shall be debited for the value of cargo.

(ii) On arrival at the gateway airport, the cargo should be taken to the warehouse of the

domestic airlines/custodian in a clearly identified area. The warehouse should have double

locking arrangement, one key of which will be with the airlines/ custodian and the other with

Customs. The Customs officers in charge of warehouse should verify the details of the

packages with the TP, Airway Bill, etc. The domestic airlines may prepare the CTM airlineswise which shall be certified by the Export Freight Officer (EFO).

(iii) Cargo should be shifted to the transshipment warehouse in the export terminal of custodian

and acknowledgement obtained. No examination of such cargo should normally be done at

gateway airport, except on credible intelligence or information.

(iv) When the aircraft is ready for loading, the airlines should seek permission from the EFO for

loading. The load plan prepared by the airlines should be signed by the Airlines, EFO and

the custodian.

(v) Cargo should be loaded in the aircraft under Customs supervision.

(vi) Copy of manifest signed by the EFO and Airway Bill alongwith copy of Shipping Bill should

be sent by the airlines to the originating station within 30 days of transshipment.

Transshipment Bond shall be re-credited at originating airport.

(vii) In case the transshipment is by bonded truck, the marks and numbers of the packages shall

be verified with the details in the transshipment permission, and the bonded truck sealed

with bottle seal in the presence of the Preventive Officer.

(viii) If transshipment of cargo is also desired at some intermediate Customs airport, carrier/

airlines should give advance intimation to intermediary airport. Customs at intermediary

airport would supervise the movement of cargo and endorse the same on Transshipment

Permit. The concerned airlines/custodian warehouse should have double locking

arrangement, one key of which will be with the Airlines / custodian and the other with

Customs, for storage of transhipment cargo. The loading of such cargo again would be

under the supervision of Customs Officer.

12.5 If the cargo transhipped under the provisions of the Customs Act, 1962 is not unloaded at the

place of destination in India, or if the quantity unloaded is short of the quantity to be unloaded at

that destination, and if the failure to unload or the deficiency is not accounted for, then the personin-charge of the conveyance shall be liable for penal action as per the provisions of Customs Act,

1962.

[Refer Circular No.6/2007-Cus, dated 27-1-2007]

12.6 In order to ensure an efficient Cargo Transfer Facility and to reduce dwell, Board has decided that

in case of international transhipped cargo (Foreign to Foreign), for the presorted containers

wherein cargo does not require segregation, ramp to ramp or tail to tail transfer of cargo can be

effected under preventive supervision on payment of MOT and observance of Cargo Transfer

Manifest (CTM) procedure. In these cases, transhipment cargo meant for destination abroad need

not be sent to cargo warehouses. In the case of containers other than pre-sorted containers, the

existing procedure for transhipment of Cargo (Foreign to Foreign) would continue to apply.

[Refer Circular No.8/2011-Cus, dated 28-1-2011]

12.7 Airlines/ other carriers having annual transshipment volume above 2500 MT to/from any airport

would be exempt from Bank Guarantee for carriage of goods on transshipment. [Refer Circular

No.24/2006-Cus, dated 25-8-2006]

13. Bonded trucking facility:

13.1 With a view to supplement the existing facility and provide adequate flexibility to the trade in the

choice of modes of transport, movement of imported cargo in containers / trucks has been allowed

between airports/ACCs and airports/ACCs/CFSs/ICDs as per the following procedure:

(i) On the basis of the request made by the trade and in terms of Section 45(1) of the Customs

Act, 1962 the Commissioner of Customs will appoint the airlines or their duly approved

agents or the custodians of gateway airport/ACCs or the custodians of destination

/CDs/CFSs/airports/ACCs as the custodian of all cargoes to be transshipped under bonded

cargo trucking facility from airport/ ACCs to ICDs/CFSs/airports/ACCs in hinterland by road.

The permit will be valid for one year from the date of issue initially and shall be renewed

every three years subsequently.

(ii) Transshipment of imported cargo is governed by the provisions of Chapter VIII of the

Customs Act, 1962 and the Goods Imported (Conditions of Transshipment) Regulations,

1995.

(iii) The imported cargo should be manifested for transshipment. In respect of consol cargo

where the Master Airway Bill does not show the final destination, the airlines filing

transshipment application should keep a copy of both Master Airway Bill and House Airway

Bill to indicate that the particular consignment sought for transshipment is for an inland

Customs airport/ICD/CFS/ACC.

(iv) For proper accountal of cargo the custodian should execute a suitable running bond with a

bank guarantee for an amount approved by Commissioner of Customs concerned. The

amount will be debited from this bond when the transshipment cargo is taken by the

custodian and it will be credited when the proof of handing over of the cargo to Customs at

final destination is produced. The custodian will be responsible for any shortage or pilferage

of the cargo.

(v) The custodian will submit a list of trucks together will registration numbers to be used for

movement of each transshipment cargo. The trucks so deployed for transport should be

specially secured to avoid pilferage of cargo and have provision of affixing of Customs

“Bottle Seals”.

(vi) The airlines/custodian should have a transshipment warehouse within the Airport Apron

area so that the goods on unloading can be shifted to the transshipment warehouse without

having to be moved outside the Airport area. The concerned airlines/custodian warehouse

should have double locking arrangement, one key of which will be with the airlines/custodian

and the other with Customs, for storage of transhipment cargo. Preventive Officers will be

posted at the airlines/custodian warehouse on cost recovery basis.

(vii) If the airlines/custodian does not have a transshipment warehouse, the import cargo for

transshipment duly passed with transshipment application will be received by them from the

Airport Authority of India's (AAI) custody to their make-up area specially earmarked for the

purpose of palletisation/containerisation on the same day under Customs supervision and if

for any reason the goods cannot be transshipped immediately, the same should be handed

over to AAI.

(viii) The custodian appointed and deciding to transship the cargo will present transshipment

application (5 copies) alongwith the copy of Airway Bill (both Master Airway Bill and House

Airway Bill, wherever applicable) to the Customs Officer in charge of transshipment

clearance. The original transshipment copy must be affixed with Rs.20 stamp as T.P fees.

The transshipment application should contain details such as (a) name and address of the

importer; (b) name and address of the exporter; (c) country of origin; (d) airport of

destination; (e) flight no. and date; (f) IGM no. and date; (g) description of goods; (h) value

of the goods; (i) No. of packages; (j) weight gross/net; and (k) details of container/palletised

vehicle on which the cargo consignment is to be carried.

(ix) After scrutiny of T.P. application the T.P. Officer will issue Customs Bottle Seal and hand it

over to the Customs Officer supervising the loading of the cargo in container/truck. The T.P.

Officer will mention S.No. of Customs Bottle Seal on all copies of transshipment application.

(x) On getting the transshipment permission the custodian/airlines will shift the goods from AAI

warehouse to the make-up area earmarked for the purpose of palletisation/containerisation

or shift the goods from their warehouse into the container/truck within the premises of the

warehouse under the supervision of the Customs Officer posted for the purpose. After

loading of the goods, the Customs Officer will seal the container/truck with Customs Bottle

Seal and under his name and signature endorse all T.P. as: "Supervised the loading

of.................No. of packages on container / truck No destined to....................................

airport/ACC/CFS/ICD and sealed with Customs Bottle Seal No .......................on

............................ (date) covered by Transshipment Permit No……………….”

(xi) Original copy of T.P. application will be forwarded to the Import Freight Officer (IFO) of

Customs at the airport/ACC/CFS of destination. Duplicate copy will be retained by T.P.

Officer. Triplicate copy of T.P. application will be handed over to the airlines/custodian. The

Quadruplicate copy will remain with the Customs Officer posted in the airlines/custodian

warehouse and supervising the loading of cargo. The Quintuplicate copy will be sent in

sealed cover alongwith the truck/container to IFO of Customs at the airport/ACC/CFS/ICD

of destination who will retain it after verification of cargo.

(xii) The IFO of Customs at the airport/ACC/CFS/ICD of destination will check the Customs

Bottle Seal and description of packages as per T.P. copy and tally the packages with the

copies of the manifest received to ensure that the packages are in good condition. The

safety and security of the packages is the responsibility of the custodian and in case of any

damage at the time of in transit, it should be clearly indicated in all copies of manifest and

attested by custodian. The IFO at the airport/ACC/CFS/ICD of destination after receiving the

cargo shall under his name and signature give a suitable endorsement on the original T.P.

copy, as given below, and retain the T.P. copy sent with the truck for record. 'Checked

Customs Bottle Seal and packages as per T.P. application No.........dated............arrived on

Container/Truck No................ on .........................(date).’

(xiii) The endorsed original T.P. copy will be presented by the airlines/custodian as evidence of

handling over of the cargo to the transshipment officer at the ACC/ airport from where the

transshipment permission was granted. On receiving such endorsed T. P. copy the

transshipment officer will close the entry in the register.

(xiv) The airlines/custodian shall make necessary arrangements at the airport/ACC/ ICD/CFS of

destination to remove the cargo and deposit the same with custodians appointed under

Section 45 of the Customs Act, 1962, under Customs supervision.

(xv) The airlines/custodian shall produce the evidence of handling over of the cargo at the inland

airport/ACC/CFS/ICD of destination within 30 days from the dispatch of goods / failing which

suitable action will be taken.

(xvi) The airlines/custodian will be required to bear the expenditure on cost recovery basis over

the preventive staff to be provided exclusively for this purpose.

13.2 The movement of unaccompanied baggage from airports/ACCs to ICDs/CFSs/ Airports/ACCs

shall be allowed by the bonded trucks.

13.3 The procedure of bonded trucking facility is available for movement of imported cargo both by

containers and trucks.

[Refer Circulars No. 69/1999-Cus, dated 6-10-1999 and No.6/2007-Cus, dated 22-12007]

14. Carriage of domestic cargo on international flights:

14.1 Air India, Indian Airlines and private domestic private airlines are permitted to carry domestic cargo

between domestic airports on their international flights subject to the fulfillment of the following

conditions:

(i) Separate space shall be assigned by the airlines or custodian in the cargo complex/ area of

the airport for receipt and storage of domestic cargo till these are delivered or dispatched.

(ii) Domestic cargo will be received by the airlines in the designated area during the normal

working hours of Customs at the respective airport.

(iii) The containers/Unit Load Devices (ULDs) used to carry the domestic or international cargo

shall be clearly marked or coloured or strapped, for identification, distinction at the time of

loading/ unloading, transportation.

(iv) Domestic tags shall be prepared for identification of the domestic cargo with separate colour

coding.

(v) Loading or unloading of domestic cargo in any international flight/ aircraft shall be carried

under the supervision of Customs officers.

(vi) Domestic and international cargo will be loaded separately, and shall be carried in hold area

onboard the aircraft distinctly identifying these cargoes.

(vii) On arrival of the domestic cargo, at the destination airport, the airlines shall make necessary

arrangements to deliver the domestic cargo.

(viii) In respect of transhipment of international cargo, airlines shall be required to execute

necessary bond and bank guarantee unless exempted on account of fulfilling the specified

threshold limit of annual transshipment volume. In addition, prescribed transshipment

procedure shall be strictly adhered to. Accordingly, no separate bond or bank guarantee

shall be required in respect of domestic cargo.

(ix) In case of any violation of the prescribed conditions or any other regulations providing for

the manner in which the imported goods/ export goods shall be received, stored, delivered

or otherwise handled in a Customs area, necessary action may be taken against the person

including withdrawal of the facility and imposition of penalty under the Handling of Cargo in

Customs Areas Regulations, 2009.

[Refer Circulars No. 78/2001-Cus, dated 7-12-2001, No.45/2005-Cus, dated 24-11-2005,

No.6/2007-Cus, dated 22.01.2007 and No.4/2010-Cus, dated 15-2-2010]

15. Movement of domestic courier bags on domestic segments of international flights:

15.1 The movement of domestic courier bags on domestic sector of international flights of all the airlines

is permitted subject to following conditions:

(i) The courier company must be registered with Customs.

(ii) The packages/bags of domestic courier should be clearly and identifiably differentiated from

the International Courier bags/packets by printing in bold “DOMESTIC COURIER”.

(iii) The domestic courier bags should be kept in separate pallets and should be stored in the

separately marked domestic bins/containers on the aircraft.

(iv) At the place of embarkation, the domestic courier company will submit "goods declaration",

indicating the number of bags, number of packages in bags, content of packages, to the onboard courier or person in-charge of the aircraft with a copy to the Escort Officer of Customs.

(v) At the place of disembarkation/ arrival, the cargo manifest will be filed by person incharge

of the aircraft or on-board courier, as the case may be, with the proper officer of Customs.

In case, on board courier is not accompanying the courier consignment, the responsibility

to file the cargo manifest with the proper officer of Customs will vest with the person in

charge of the aircraft.

(vi) The copy of the declaration submitted to escort officer of Customs will be handed over by

the Escort Officer to the Customs Officer at the disembarking airport, for carrying out the

checks and verifications, if so required.

(vii) If the courier consignment is accompanied by "on road courier"; they will not be allowed to

carry any courier bags on board the aircraft as hand baggage.

16. Movement of imported goods from a port direct to CFS of another Customs station:

16.1 In the interest of reducing transaction cost and dwell time Board has decided that suitable changes

in ICES may be carried out to allow direct movement of imported goods from a gateway port to a

CFS of another Customs station directly. This was necessitated since the ICES module at present

does not allow generation of Sub Manifest Transhipment Permit (SMTP) to allow such movement

of imported goods. Till such time the electronic system is made operational the following procedure

has been prescribed for direct movement of imported goods from gateway port to a CFS:

(i) At the Gateway Port, Customs shall prepare a consolidated list of all SMTP generated CFSwise for consignments bound for another Customs station/ ICD. This list should be

transmitted electronically by the gateway port to the receiving Customs station /ICD.

(ii) The goods will move from the gateway port direct to the CFS under cover of a bond accepted

by the Customs at the gateway port. The carrier will also carry the relevant SMTP in

duplicate and hand over the same to the custodian at the CFS.

(iii) On arrival of the goods at the CFS attached to ICD, the custodian of the CFS shall prepare:

I. A list of goods/container arrival, on daily basis. This list shall inter alia cover the detail

of SMTP generated at the gateway port, a hard copy whereof is received along with

the goods/containers. This list shall be signed by the custodians and shall be

endorsed by Customs Officer in the CFS. The custodian of the CFS shall forward the

list of goods/container arrival, to ICD on daily basis.

II. A Landing Certificate on the lines of a Container Arrival list shall be signed by

custodian.

(iv) The Custodian of CFS shall forward a copy of Landing Certificate duly endorsed by Customs

at receiving end to the Customs at the gateway port for recrediting the bond executed with

Customs.

(v) On arrival of the goods/container inside the CFS, the custodian along with the surveyor, if

any, in presence of the Customs Officer shall verify the correctness of details of

consignments and will make an endorsement in the SMTP. The endorsed SMTP shall be

forwarded to concerned ICD. With receipt of endorsed SMTP and approval of Customs

officer at the ICD, local IGM shall be permitted to be filed at Service Center in case of LCL

cargo

(vi) The Bill of Entry will be filed at the ICD as usual and the goods will be examined and cleared

at the CFS.

16.2 This facility shall be extended to CFSs that are at a considerable distance from the ICD, or enroute to an ICD (from the gateway port). Movement of consignments from the gateway ports to

CFS adjacent to ICD shall continue to be permitted, as earlier. The furnishing of suitable bond by

the custodian of the ICD/CFS with the Customs at the gateway port shall also continue as at

present.

[Refer Circulars No.47/96-Cus, dated 16-9-1996, No.57/98-Cus, dated 4-8-1998, No.

31/99-Cus, dated 27-5-1999, No.69/99-Cus, dated 6-10-1999,No.34/2000-Cus, dated 35- 2000,

No.56/2000-Cus, dated 5-7-2000,No.61/2000-Cus, dated 13-7-2000, No.75/2001-Cus, dated 5-

12-2001, No.78/2001-Cus, dated 7-12-2001, No.15/2002-Cus, dated 25-2-2002, No.18/2002-

Cus, dated 13-3-2002, No.46/2002-Cus, dated 29-7-2002, No.90/2002-Cus, dated 19-12-2002,

No. 61/2003-Cus, dated 18-7-2003, No.87/2003Cus, dated 6-10-2003, No.52/2004-Cus, dated

7-10-2004, No.45/2005-Cus, dated 24-112005, No.46/2005-Cus, dated 24-11-2005,

No.47/2005-Cus, dated 24-11-2005, No.24/2006-Cus, dated 25-8-2006, No.6/2007-Cus, dated

22-1-2007, No.14/2007-Cus, dated 16-3-2007,No.31/2005-Cus, dated 25-7-2005, No.18/2009-

Cus., dated 8-6-2009, No.4/2010-Cus, dated 15-2-2010 and No.22/2013 Cus., dated 24-5-2013]

16.3 Sea Cargo Manifest and Transhipment Regulations, (SCMTR) 2018:

I. Central Board of Indirect Taxes and Custom (CBIC) vide notification No. 38/2018Cus

(NT) dated 11.05.2018 read with notification No. 65/2018-Cus (NT) dated 30.07.2018

and 88/2018-Cus (NT) dated 30.10.2018 have notified Sea Cargo Manifest and

Transhipment Regulations 2018.

II. This regulation supersedes the earlier regulations of Import Manifest (Vessels)

Regulations, 1971, Export Manifest (Vessels) Regulation, 1976 and Transportation of

Goods (Through Foreign Territory) Regulations of 1965. The regulation stipulates

changes in timelines and requirements for advance notice by shipping lines (vessels)

arriving in India and Exports through shipping lines (vessels) out of India. The Indian

Entity representing the Master of the vessel shall have to be registered with the Indian

Customs to transact business under the new regulations and shall be called

Authorised Sea Carriers (ASC). The agents acting on behalf of the Authorised Sea

Carrier (ASC) shall be called as Authorised Sea Agents. As per the new regulations,

the Authorised Sea Carrier (ASC)/Authorised Sea Agent (ASA) shall submit an Arrival

Manifest electronically, prior to departure from the last port of call to the Indian Port of

call. And submit a Departure Manifest electronically before departure from the Indian

Port of call. The submission of Arrival and Departure Manifest shall have to be

complied with by the ASC/ASA before departure from the last port/customs station of

call to every Indian customs station and Departure then on respectively.

III. The Sea Cargo Manifest and Transhipment Regulations (SCMTR), 2018, seek to

bring about transparency, predictability of movement, advance collection of

information for expeditious clearance. It brings various improvements in the current

Customs procedures with the objective of reducing errors and facilitating the importers

and stakeholders by reducing the processing time and cost. The benefits of the

SCMTR, 2018 include inter-alia:

(a) Doing away with application for rotation number by Shipping Lines.

(b) Availability of complete error-free import manifest for pre-arrival processing.

(d) Single registration and a National Bond for transshipment of containers with

facility of automated re-crediting (of bonds).

(e) Electronic submission of same bottom cargo information (paper-based

submission is dispensed with).

(f) Electronic one-step processing of transhipment of LCL cargo and sea-sea

transhipment.

(g) Catering to multi-leg transhipments without any additional steps.

(h) Electronic tracking of change in containers in place of paper-based

verification/tracking.

(i) Eliminating the requirement of repeat submission of details at subsequent ports

in case of transhipments.

(j) Streamlining filing of stuffing reports thereby reducing time and errors involved.

(k) Clear demarcation of logistics and document-based workflow, thereby enabling

deployment of IoT in the future such as Smart Gates, Track and Trace, e-seal

etc.

(l) Alignment of the Customs procedures in line with the logistics movement.

IV. Registration: Under the SCMTR regulations, the Person acting as Authorised

Carriers (Authorized Sea Carrier, Authorised Transhipper), Authorised Sea Agent,

Custodian, Terminal Operator shall have to be approved afresh by the proper officer.

The Approval is completely online and faceless. In order to ease of doing business

and reduce compliances for EXIM Community, the Board has decided to

abolish renewals of Registration in Sea Cargo Manifest and Transhipment

Regulations incorporating the following changes:

(a) To provide lifetime validity of the licenses/registrations;

(b) To enable provision for making the licenses/registrations invalid in case the

licensee/registration holder is inactive for the period exceeding 1 year at a time;

license/registration which has been invalidated due to inactivity; and

(d) To provide for voluntary surrender of license/registration.

[Refer Circular No.17/2021-Customs dated 23.07.2021]

V. Transition provision: The Declarations under SCMTR are to be provided in the new

message format. The DG Systems has developed the new formats for submission by

different stakeholders. Since there is a change in the manner of reporting, the

regulation has provided the transitional provisions for submission under old and new

formats simultaneously, so as to cause less disruption to the trade and provide time

for adoption of new processes. Currently the transitional provisions have been

extended till 31.12.2022

[Refer Notification No. 56/2022-Customs (N.T.) dated 30.06.2022]

VI. To Reduce the compliance burden for citizens and business activities, The Board

has decided to abolish renewals of Licence/Registration in Sea Cargo

Manifest and Transhipment Regulations, 2018

[Refer Circular no. 17/2021 dated 23.07.2021]

16.4 Customs procedure for export of cargo in closed containers from ICDs to Bangladesh

using inland waterways

With a view to facilitate the trade and leveraging the potential of Inland Waterways for enhancing

trade and transit, transhipment of containerized export goods of Bangladesh through India using

riverine and rail routes has been allowed. This facility involves entry of containerized cargo into

India through LCS Hemnagar from where the goods shall be transported to the sea port of Kolkata

or Haldia on a barge/vessel using the riverine route agreed under the Protocol on Inland Water

Transit and Trade between India and Bangladesh (IBP route) and from where unloading of

containers from the barge/vessel and further loading on a railway train at the sea port of Kolkata

or Haldia, from where the goods will travel by rail to the sea port of Nhava Sheva or Mundra for

export to third countries. This arrangement can help bring in cargoes bound for Chattogram port

and dispatch them at a faster rate. Such an arrangement will also cut down the shipping time to

Chattogram port, which is three to four days in the case of Colombo and Singapore ports and just

two days in the case of ports on India’s east coast. LCS, Kulkuli (Indo-Bhutan Border) Further,

export of Bangladesh Goods to India by rail in closed containers was permitted. It was decided

that empty containers returning from Bangladesh to India on a train may be utilized to carry export

goods of Bangladesh to India. This is applicable to closed containers moved by CONCOR carried

on trains operated by Indian Railways.Refer Circular No. 08/2022-Customs dated 17.05.2022.

Transshipment of Cargo explained, Indian Customs Manual 2023

A complete Customs Guide on process of moving cargo by transshipment in India. (Updated till 31^st December, 2022)

CUSTOMS MANUAL 2023, INDIA

Indian Customs Manual 2023 explains about the procedures and formalities on Transshipment of cargo in detail. The said Manual of Customs updated all the process to be followed is updated till 31^st December, 2023.

The process on transshipment of cargo under Indian Customs Manual 2023 includes the method of transshipment of imported containerized cargo from gateway port to another port/ICD/CFS, in India, Transshipment of Duty free import of container, Transshipment of imported containerized cargo from gateway port to a foreign port, Transshipment from gateway port to SEZ, Timely issuance of transshipment permits, the process on Automated movement of containerized cargo from gateway ports to hinterland – SMTP, Movement of export cargo from port/ICD/CFS to gateway port, Movement of export cargo from one port to another by rail, Export of cargo in containers & closed bodied trucks from ICDs/CFSs through LCSs, Procedure for movement of goods under TIR Carnets, Transshipment of cargo by air, Bonded trucking facility, Carriage of domestic cargo on international flights, Movement of domestic courier bags on domestic segments of international flights, Transshipment of imported containerized cargo from gateway port to another port/ICD/CFS in India, Duty free import of container, Transshipment of imported containerized cargo from gateway port to a foreign port, Transshipment from gateway port to SEZ, Timely issuance of transshipment permits, Automated movement of containerized cargo from gateway ports to hinterland – SMTP, Movement of export cargo from port/ICD/CFS to gateway port, Movement of export cargo from one port to another by rail, Export of cargo in containers & closed bodied trucks from ICDs/CFSs through LCSs, Procedure for movement of goods under TIR Carnets, Transshipment of cargo by air Bonded trucking facility, Carriage of domestic cargo on international flights and Movement of domestic courier bags on domestic segments of international flights.

The extract of Indian Customs Manual 2023 on Transshipment of Cargo is given under:

Transshipment of imported containerized cargo from gateway port to another port/ICD/CFS

in India

Duty free import of container

Transshipment of imported containerized cargo from gateway port to a foreign port

Transshipment from gateway port to SEZ

Timely issuance of transshipment permits

Automated movement of containerized cargo from gateway ports to hinterland - SMTP

Movement of export cargo from port/ICD/CFS to gateway port

Movement of export cargo from one port to another by rail

Export of cargo in containers & closed bodied trucks from ICDs/CFSs through LCSs

Procedure for movement of goods under TIR Carnets

Transshipment of cargo by air

Bonded trucking facility

Carriage of domestic cargo on international flights

Movement of domestic courier bags on domestic segments of international flights

Chapter 10: Transhipment of Cargo

1. Introduction:

1.1 A number of ports, airports, Inland Container Depots (ICD), Container Freight Stations (CFS)

having Customs clearance facilities have been developed in the country to reduce congestion at

the gateway ports/airports and to allow importers and exporters to take Customs clearance of

imported and export goods at their doorsteps. The objectives of bringing the Customs facility to

doorstep of importing community and decongesting the gateway ports/ airports requires the

movement of imported cargo or export cargo between a port/airport and other ports/airports,

/CDs/CFSs in India or a port/airport abroad.

1.2 As per the Customs Act, 1962 duty becomes payable immediately after imported goods are landed

at a port or airport. To avoid payment of duty at the port of landing in cases where goods are to

be carried to another port/airport or ICD/CFS or to a port/ airport abroad, the Customs Act, 1962

provides a facility of transshipment of cargo without payment of duty. The goods can be

transshipped from one port/airport to another port/airport/ICD/CFS either by vessel, air, rail or road

or by combination of more than one such mode of transport.

1.3 The procedure for transshipment provided in Section 54 of the Customs Act, 1962 is applicable

for imported cargo only. The imported cargo unloaded at a port is allowed to be transshipped to

another port/ICD/CFS or a port abroad, if the cargo is mentioned in the import manifest for such

transshipment. In regard to export cargo cleared from a port/ACC or ICD/CFS and exported

through some gateway port/airport, a similar procedure is being followed to allow carriage of

Customs cleared export cargo from port/airport/ICD/CFSs to another port/airport.

2. Transshipment of imported containerized cargo from gateway port to another port/ICD/CFS

in India:

2.1 The transshipment procedure of imported cargo is governed by Section 54 of the Customs Act,

1962 read with Goods Imported (Conditions of Transshipment) Regulations, 1995 as well as

relevant Board's circulars and instructions.

2.2 Transshipment Permit is the permission granted by the Customs, at the port/airport of unloading

of imported goods, to shipping agents for carriage of goods to another port/airport/ICD/CFS in

India. The shipping agent submits an application along-with transshipment forms (5 copies), submanifest and a copy of IGM to the Customs. The Customs scrutinizes the details furnished by the

shipping agents in the application for transshipment. In case, the documents are in order and there

is no alert notice against the shipping agent, permission for transshipment is granted.

2.3 To ensure that imported cargo, on which duty has not been paid, are not pilfered en-route to

another port/airport/ICD/CFS and reach safely, a bond with bank guarantee is executed by the

carrier engaged for the transshipment of the goods. The quantum of bank guarantee for

transshipment to be furnished by different categories of carriers is as below:

(i) The carriers in public sector (Central/State Government Undertakings) are exempt.

(ii) All carriers (shipping lines/ICDs/CFSs/other carriers) of containerized cargo handling more

than 1000 TEUs as import containers in a financial year, are exempt, irrespective of the fact

whether movement is by road or coastal shipping or rail. Further, request of carriers having

annual transshipment volume below the limit of 1000 TEUs but having good track record

may be considered for exemption from BG on merit by the jurisdictional Commissioners of

Customs.

(iii) The custodians of ICDs/CFSs operating as carriers of transshipment cargo between

gateway ports and their ICDs/CFSs shall in their terms and conditions of their bank

guarantees executed with Customs for custodianship of ICDs/CFSs cover safety and

security of cargo being transshipped by them. The details of such bank guarantee shall be

informed to the Commissioner of Customs having jurisdiction over the gateway port. The

custodians of ICDs/CFSs shall be allowed to transship the cargo against the said bank

guarantee and they will not be required to execute a separate bank guarantee for

transshipment.

(iv) The remaining carriers are required to furnish bank guarantee @ 15% of the bond amount.

2.4 The terms of the bond is that if the carrier produces a certificate from Customs of the destination

port/airport/ICD/CFS for safe arrival of goods there, the bond stands discharged. In case such

certificate is not produced within a month or within such extended period as the proper officer of

Customs may allow, an amount equal to the value, or as the case may be, the market price of the

imported goods is forfeited.

2.5 The bond value should be equal to the value of the goods. However, considering the difficulties of

shipping agents in producing documents for determination of value of the goods sought to be

transshipped, the bond value is determined on the basis of notional value of the goods, which is

an average value of cargo per container transshipped in the past.

2.6 To avoid multiplicity of bonds, the carriers are allowed to execute a running mother bond instead

of individual bonds. The value of mother bond can be arrived on the basis of the average number

of containers carried per trip, the average time taken for submission of proof of safe landing of

containers at the destination ICDs/CFSs, frequency of such transshipment as well as notional

value of cargo per container. As mother bond is a running bond, its amount may be high. If a

running bank guarantee @ 15% of total bond amount is taken, it may block huge sum of money.

To avoid blockage of money of carriers, an option has been given to furnish either a running bank

guarantee or individual bank guarantee for each transshipment, the latter being released as soon

as the landing certificates from destination Customs are produced.

2.7 The bond or mother bond and bank guarantee are debited at the time of transshipment of

import/export containers at the port of origin, and credited on receipt of proof of safe landing of

containers at the port/ICD/CFS of destination. Further, EDI system has a 'bond module' while will

be fully utilized once 'message exchange facility' is operationalised between two ports. In an online

environment, bond re-credit is done automatically in the EDI system on receipt of electronic

message between Gateway port and destination port or between two Customs stations.

2.8 On lines of similar provision for waiver of bank guarantee in case of transhipment of cargo from

the gateway port to feeder ports/ICDs/CFSs and vice versa, bank guarantee is waived for air cargo

transhipment. Accordingly, airlines/other carriers having annual transhipment volume above 2500

MT to/from any airport are exempt from Bank Guarantee for carriage of transshipment goods.

Further, in deserving cases the jurisdictional Commissioners of Customs may consider giving

waiver of bank guarantee. [Refer Circular No. 24/2006-Cus, 25-8-2006]

2.9 After issuance of transshipment permit and execution of bonds, containers are sealed with 'one

time bottle seal' by the Customs. In case, containers are already sealed with 'one time bottle seal'

by the shipping agents, there is no requirement of sealing again by the Customs. In such cases,

shipping agents are required to inform the serial number of seals to Customs, which is just verified

by the Customs.

2.10 After sealing and/or checking of seals by Customs, containers are moved from the gateway port

and carried by the shipping agents to destination port/ICD/CFS by vessels, rail or road.

Transshipment formalities in all these modes are similar.

2.11 To optimize the capacity utilisation of vessels, Indian flag foreign going vessels operating in routes

covering more than one Indian port to a port outside India and vice versa, have been allowed to

carry coastal containers alongwith imported/export cargo between two Indian ports. Further,

coastal vessels have also been allowed to carry coastal containers along-with imported/export

cargo between two Indian ports. However, to guard against the possibility of replacement of

transshipment goods with domestic containerised cargo, some safeguards have been prescribed.

All the transshipment containers as well as domestic containers are required to be sealed by 'one

time bottle seal' at the port of loading. The domestic containers are required to be suitably painted

with bold letters ‘For Coastal Carriage only' for their identification. Carriers are also required to file

a manifest for domestic containers. Provisions of sections 30 & 41 of the Customs Act, 1962 have

been made applicable to Coastal vessels loading or unloading coastal goods at EXIM berths. The

Master of the vessel or his agent shall submit the following:

(a) a coastal arrival manifest for the goods which are unloaded or meant to be carried forward

to other destination ports

(b) coastal departure manifest for the goods loaded including goods on board for other

destinations

The arrival and departure coastal manifests shall be prepared in duplicate. The original shall be

submitted to the proper officer and duplicate would be retained by the Master of the vessel or his

agent. The arrival manifest is to be submitted before the arrival of the vessel and the departure

manifest is to be submitted before the departure of the vessel. There shall be no examination of

the coastal goods, the container shall be sealed with tamper proof one time bottle seal and then

the same can be loaded on to the vessel. Noncontainerized cargo shall also be allowed to be

loaded on to the vessel provided it is clearly marked on the packing 'For Coastal Carriage Only' to

make it easily identifiable. The preventive officers with the prior approval of Additional

Commissioner/ Joint Commissioner (preventive wing) may from time to time carry out random

checks so as to ensure that no export goods or imported goods are inadvertently or by intention

loaded onto such coastal vessels.

[Refer Circular No. 14/2016- Customs dated 27.04.2016]

2.12 At the destination, carrier is required to present the sealed cover containing a copy of transhipment

permit to Customs. The Customs checks the particular of containers, seals etc. with reference to

transhipment permit. The carrier is required to obtain a certificate regarding landing of container

from the Customs.

2.13 In case, the seals are found to be broken at the time of examination of containers by the Customs,

a survey of contents of the containers is conducted in presence of Customs officer, carrier,

importer or his representative and representative of insurance company.

Shortage if any, noticed is recorded and is signed by all those present. The carriers are required

to pay the duty for pilferage in terms of the condition of bond executed by them with the Customs

at the port of loading. This is apart from other action which can be taken under Section 116 of the

Customs Act, 1962.

2.14 The carriers have to obtain the landing certificates of containers from the Customs at the

destination port/ICD/CFS and submit the same to the Customs at the originating port. The

Customs reconciles its record and closes IGMs on the basis of these certificates.

2.15 After safe landing of containers at the destination port/ICD/CFS, the importers or their authorised

agents are required to follow all Customs formalities such as filing of Bill of Entry, assessment,

examination of goods etc., for clearance of the goods.

3. Duty free import of containers:

3.1 As the containers themselves are liable to duty, Customs duty exemption is provided vide

Notification No.104/94-Cus, dated 16-3-1994 which, inter-alia, facilitates them being taken out of

the port without duty payment subject to execution of bond. The shipping agents are required to

file this bond with the container cell of the Custom House, binding themselves to re-export

containers within six months of their import into India. The period of six months may be extended

by the Deputy/Assistant Commissioner of Customs for a further period of three months and

thereafter by the Commissioner of periods not exceeding six months at one time, in terms of the

said Notification.

3.2 The procedure for clearance of containers imported temporarily is as follows:

(a) The nature of bond should be “continuity bond”

(b) No Bank Guarantee / Security is required is furnished along with the bond.

Steamer agents or their authorised representatives.

(d) The bond amount should cover only the duty element of the imported containers and not the

cargo it is carrying.

(e) The validity period of the bond should be for a year, extendable till further such period as

requested by the person executing the bond.

(f) Till module for automatic matching of imported and export containers within permissible time

is rolled out at all Customs ports, the process of monitoring of period of temporary

importation would be done manually.

[Refer Circulars No.83/1998-Cus, dated 5-11-1998 and

No.31/2005-Cus, date 25-7-2007]

4. Transhipment of imported containerized cargo from gateway port to a foreign port:

4.1 For transshipment of containers from a port in India to a foreign port abroad, shipping agents have

to file transshipment application along with relevant documents to Customs for grant of permission

to transship the cargo, which is the transshipment permit. In such cases, execution of bond or

bank guarantee is not required. After issuance of transshipment permit, goods are allowed to be

loaded on to the ship under the Customs supervision. The Preventive Officer supervising the

loading is to acknowledge loading of such cargo. The record is reconciled on the basis of

endorsement of the Preventive Officer and copy of EGM showing details of such transshipment.

Transshipment facility for imported goods in Less than Full Container Load (LCL) is allowed at

identified Custom Houses.

4.2 The procedure for international transshipment of LCL containers is as under:

(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

person duly authorized by the foreign supplier.

(ii) No goods for international transshipment should be unloaded from the vessel until the

permission for the same is 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 (international transshipment) container details such as Container Number, broad

description of goods etc. shall be mentioned in the IGM. In the electronic IGM, cargo

movement, there are three codes which need to be filled correctly with port of destination.

These are as follows:

? ‘LC’ - Local Cargo: This refers to the port code where cargo is delivered. It is the same

as the port of arrival.

? ‘TC’ - Transshipment Cargo: This refers to international cargo and the port of

destination shall be the port code where transshipment cargo is destined to or

delivered.

? ‘TL’- 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.

? In electronic manifest message, there is a field to specify that whether the cargo is

FCL or LCL or 'EMPTY'. This field is called 'Container Status'. The line and the subline numbers provide the inter-linkage between the cargo details and the container

details.

(iv) The unloading of ITP containers at gateway port would be in presence of Customs Officers

and 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 if found tampered, such

container should be immediately resealed with the Customs seal 77 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 of Customs 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 (foreign port) 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 and its sealing

would be done under the supervision of a Customs officer.

(viii) The details of LCL cargo would be entered in Export General Manifest (EGM).

(ix) 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 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 and Regulations in force.

(x) 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 lying with the custodian.

(xi) International transshipment of cargo needs to be effected within 30 days of Entry Inward of

the importing ship. 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".

(xii) 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 'restricted' as per the FTP 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.

4.3 In order to introduce international transshipment of LCL containers, the Custom Houses need to

identify suitable premises within the approved place for the purpose of safe custody of imported

goods and other authorized operations. Commissioners should adopt consultative approach with

the stakeholders / operators to identify particular premises for such international transshipment

taking into account the following factors:

(a) Location of the premises.

(b) Availability of adequate infrastructure - modern handling equipment for loading, unloading

of containers from rail flats, chassis, their stacking, movement, cargo handling, stuffing/destuffing, refrigerated storage facility for perishable cargo etc.

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.

[Refer Circular No.14/2007-Cus, dated 16-3-2007]

5. Transshipment from gateway port to SEZ:

5.1 The procedure for transhipment of cargo from gateway port to SEZs is laid down under Special

Economic Zones Rules, 2006. Broadly, the procedure is the fifth copy of the registered or

assessed Bill of Entry filed by an importer in SEZ will be submitted to Customs officer at the port

of import, and is itself treated as permission for transfer of goods to SEZ. No separate documents

or transshipment bond is required to be filed, and the transshipment permission is stamped on the

fifth copy of the Bill of Entry. The SEZ importer shall submit fifth copy of Bill of Entry bearing

endorsement of the authorized officer that the goods have been received in SEZ to the Customs

Officer in charge of the airport or port or inland container depot or land Customs station or post

office or public or private bonded warehouse, as the case may be, failing which the officer in

charge of such airport or port or inland container depot or land Customs station or post office or

public or private bonded warehouse, as the case may be, shall write to the Specified Officer for

raising demand of applicable duty from the SEZ importer. Similar procedure for export goods is

prescribed under the SEZ Rules, 2006.

6. Timely issuance of transshipment permits:

6.1 Filing of transshipment applications and issuance of Transshipment Permits on Saturdays is

allowed.

6.2 Transshipment permits would not be denied if the goods imported at a Customs station are

manifested for being transshipped to any port/airport or any ICD/CFS, except in case of a specific

intelligence about mis-declaration of goods in the IGM or presence of contrabands in the container.

Even in such cases, before detaining any such container at the gateway port, permission from

Joint/Additional Commissioner shall be obtained in writing. The Commissioners are required to

look into this aspect personally and ensure that such permits are issued smoothly and in a hasslefree manner.

[Refer Circulars No. 46/2002-Cus, dated 29-7-2002 and No.90/2002-Cus, dated 19-12-2002]

7. Automated movement of containerized cargo from gateway ports to hinterland - SMTP:

7.1 The transshipment of containerized cargo from one port to an inland port or ICD/CFS is automated

where the EDI system (ICES) is operational. This involves exchange of messages for

Transshipment of Cargo electronically among Customs, Port authorities, ICDs and Shipping

Agents. The implementation of this module is a significant step in the ongoing Business Process

Re-engineering initiatives of the department and will reduce the congestion and dwell-time of cargo

at the ports and contribute to reduction in transaction costs of imports.

7.2 In the automated Transshipment Module, the requirement of an application by the carrier is done

away with and the SMTP (Sub manifest Transshipment Permit) portion of the IGM itself is treated

as a request for transshipment. Carriers are not required to separately file an application for this

purpose. They will however be required to indicate 79 the code of the transporter undertaking the

transshipment (e.g. CONCOR) in a specific field in the IGM. The ICES system allows

transshipment of those containers against whom the port of destination is indicated as ports other

than the port of discharge.

7.3 The transshipment permit information is sent to the carrier, the transporter undertaking the

transshipment, custodian of the gateway port, and the ICES system at the destination ICD.

Transshipment permit can also be printed by the carrier in his office or in the custom house.

7.4 The transshipment permit transmitted to the recipient port/ ICD/ CFS is automatically converted

into an IGM and the Shipping Lines is not required to file any fresh IGM in respect of such

containers.

7.5 The transporter performing the transshipment activity will be required to electronically submit a

container arrival report to the ICES system at the destination ICD/ CFS in a specified format. The

container arrival report will be matched with transshipment message received from the Gateway

Port and a 'landing certificate' message will be generated by the inland port/ICD/CFS which will

be transmitted to the Gateway port for closure of IGM Lines.

[Refer Circular No.46/2005-Cus, dated 24-11-2005]

8. Movement of export cargo from port/ICD/CFS to gateway port:

8.1 The export cargo, after its clearance at a port/ICD/CFS, may be carried in sealed containers to the

gateway port for export. Broadly, the procedure in this regard is as follows:

(a) The exporters are required to bring their goods meant for exports to the Port/ICD/ CFS and

file six copies of Shipping Bill with all necessary documents like GR form/SDF, AR4 Form,

Certificate issued by Export Promotion Councils, etc. In addition to the usual information

given in the Shipping Bill, the exporter is required to mention the gateway port of export

along-with the serial number(s) of the container(s). The Shipping Bill is assessed as usual,

the goods examined, samples drawn, and if required, inspection carried out by other

agencies to check compliance with provisions of various Allied Acts before export is

permitted.

(b) The examination order is given on the duplicate and two transference copies of the Shipping

Bill i.e. on all three copies. After examination of the goods, container is sealed by the

Customs with 'one time bottle seal'. The duplicate copy of Shipping Bill is retained at the

ICD/CFS/port and the transference copies forwarded to the gateway port. The E.P. copy of

Shipping Bill is required to be suitably endorsed/stamped by the Customs officer to the effect

that the goods are to be transshipped at the gateway port mentioned on the Shipping Bill for

their destination outside India.

port subject to the conditions of execution of bond similar to that provided for transshipment

of import goods under relevant Regulations, and if export goods are manifested for the final

destination through the gateway port. The FOB value of goods is to be debited from the

continuity bond executed by the custodians. The carriers/custodians transporting the goods

are to be handed over the transference copies of Shipping Bill in a sealed cover.

(d) The containers are allowed to be carried from a port/ICD/CFS to the gateway port by vessel

or rail or road or by combination of two or more of these modes of transport.

(e) The Drawback, if any, is required to be paid to the exporters as soon as the Shipping Bill is

passed and goods are shipped at the originating port/ICD/CFS subject to the condition that

the necessary bond has been executed by the Steamer 80 Agent/carrier to bring back and

submit the proof of export to the Customs within 90 days.

(f) At the gateway port, the containers are normally allowed to be exported under Customs

supervision after checking the seals. In case seals are intact and documents are in order,

no further examination of goods is undertaken. The Preventive Officer supervising the export

of container, endorses the fact of shipment in both the transference copies of the Shipping

Bill. Steamer agent has to file EGM in duplicate.

(g) One copy of transference Shipping Bill along with a copy of EGM is sent back to the

originating port/ICD/CFS.

(h) At the originating port/ICD/CFS, export manifest and transference copy of Shipping Bill,

received from the gateway port, are co-related with the duplicate copy of the Shipping Bill

and other relevant documents for closure of export manifest and cancellation of bond.

9. Movement of export cargo from one port to another by rail:

9.1 Movement of export cargo after its clearance at the originating port is allowed by rail to another

port for export therefrom. The procedure for such movement and the documentation will be similar

to that being followed for movement of export cargo from the ICDs/CFSs to gateway ports. Thus,

all the documentation relating to Customs clearance of export goods and examination etc. will take

place at the originating port. After clearance, cargo will be stuffed and sealed in containers in the

presence of Customs. The drawback and other import incentives are to be paid/credited at the

originating port.

[Refer Circular No.75/2001-Cus, dated 5-12-2001]

10. Export of cargo in containers & closed bodied trucks from ICDs/CFSs through LCSs:

10.1 Movement of export cargo from ICDs/CFSs to Nepal and Bangladesh through Land Customs

Stations is as per the following procedure:

(i) The exporters are required to bring their goods meant for export to ICD/CFS, and to file a

Shipping Bill on EDI. The Shipping Bill shall be assessed as per EDI/RMS procedures. Three

copies of Shipping Bill shall be printed (including one transference copy) The original of the

Shipping Bill shall be retained by the ICD which one copy (transference copy) shall be

carried with the cargo by the driver in a sealed envelope to the LCS of exit. The triplicate

copy shall be retained by the exporter. The goods to be exported shall be stuffed in a closed

body truck or container, as is convenient to the exporter, and sealed with ECTS seal. The

ECTS seal number shall be recorded in all copies of the Shipping bill. The Custodian shall

be responsible for obtaining the ECTS seals from the Management Service Provider (MSP)

managing the transit project for Nepal cargo for this purpose.

(ii) At the LCS, the transference copy of the Shipping Bill shall be submitted by the driver to the

proper officer of Customs. The Customs officer shall verify the trip report through the ECTS

web application and where no alert of any unauthorized esealing is found, he shall record

the same in the transference copy of the Shipping Bill and put his name, signature, date and

retain the same in the LCS for record. The officer shall remove the ECTS e-seal and allow

the movement of the container/ closed body truck as the case may be, across the border for

export. Simultaneously, the originating ICD/ CFS shall view the same trip report on the ECTS

web application and where no alert of any unauthorized unsealing is found, he shall take a

print of the same and attach it with the original Shipping Bill along with his name, signature

and date.

(iii) In case the trip report indicates any unauthorized un-sealing, the matter shall be brought to

the notice of the Deputy/ Assistant Commissioner of Customs and such container/truck shall

be subjected to 100% examination. If any deviation from the Shipping Bill or invoice is

detected during examination, adjudication proceedings may be initiated. The Assistant/

deputy Commissioner of Customs at the originating ICDs/CFSs may take appropriate action

under the Customs Act including raising a demand on the Custodian, equal to the export

duty, Drawback, and/or any other export incentives, in respect of the export goods, in

addition to any other action that is required to be taken against the exporter. The matter

shall also be reported to the jurisdictional Commissioner of GST for recovery of Taxes.

[Refer Circulars no 52/2017-Customs dated 17.09.2018 and

32/2018-Customs dated 17.09.2018]

11. Procedure for movement of goods under TIR Carnets:

11.1 The TIR Carnet opened in the country of departure serves as a Customs control document in the

countries of departure, transit and destination. It also serves as proof of the existence of an

international guarantee for the goods transported under the Carnet. The Federation of Indian

Chambers of Commerce and Industry (FICCI) has been appointed by CBIC as the NGA for

issuance of Carnets under the Convention in India. The NGAs in each Contracting Party to the

Convention constitute a guarantee chain linking all TIR countries with the International Road

Transport Union (IRU), a non-governmental organization in Geneva, Switzerland, at the apex of

the guarantee chain. The presentation of a valid TIR Carnet bearing the names, stamps and

signatures from IRU and those of the issuing association and duly filled-in by the transport operator

is the proof of the existence and validity of the guarantee.

11.2 The National Guaranteeing association shall fix the period of validity of the TIR Carnet by

specifying a final date of validity after which the Carnet may not be presented for acceptance at

the Customs office of departure. However, if the carnet has been accepted by the Customs office

of departure on or before the final date of validity, the Carnet shall remain valid until the termination

of the TIR operation at the Customs office of destination.

11.3 The TIR carnet is available in 4,6,14 and 20 vouchers and each TIR operation (between two

customs station) requires the use of one pair of vouchers (1 white, 1 green). Step by step guidance

on how to fill the TIR carnet is available at the IRU website (www.iru.org). The TIR carnet serves

as a guarantee for the customs duties and taxes in transit and as the Customs transit declaration.

Thus, where India is the country of departure or the country of destination, a shipping bill or bill of

entry, as the case may be, is also required to be filed for import or export of consignments under

the cover of a TIR carnet.

11.4 The procedure at the Customs office of Departure is as follows:

(i) At the Customs office of departure, the Customs authorities shall check the cargo on the

basis of information contained in the TIR Carnet completed by the transport operator. The

Customs authorities shall then seal the load compartment, report it in the TIR Carnet, keep

one sheet (white voucher) and fill-in the corresponding counterfoil. The TIR Carnet will then

be handed back to the transport operator.

(ii) When crossing the outgoing border of the country, Customs authorities shall check the

seals, detach a second sheet (green voucher) from the TIR Carnet and fill-in the

corresponding counterfoil.

(iii) The filled-in counterfoils by Customs provide evidence to the transport operator that the TIR

operation in that country has been terminated.

(iv) The outgoing Customs office (i.e. that at the border) shall send the detached sheet (green

voucher) to the office of departure within 7 days of the departure of the goods. The latter

shall compare the received sheet with the one it initially retained. If there are no objections

and no reservations by the outgoing office, the TIR operation may be discharged by

Customs authorities in that country.

(v) If the sheet, detached by the outgoing office, contains reservations or if it does not reach

the Customs office of departure or if Customs authorities have any other reason to question

the proper application of the TIR operation, an internal inquiry will be started. The transport

operator and the NGA shall be informed that the termination of the TIR operation has been

certified with reservations or has not taken place at all or that other reasons have led to

doubts about the proper application of the TIR operation and that they are requested to

provide explanations. If a satisfactory reply is not received, the Customs authorities shall

apply the provisions of the TIR Convention and national legislation to determine the taxes

and duties due to Customs.

(vi) If after sufficient effort, the Customs authorities are unable to collect the duties payable from

the carnet holder, the Customs authorities shall claim the amount so payable from the NGA

within the timelines stipulated in the Convention.

11.5 The procedure at the Customs office of Transit and country of destination:

(i) The incoming Customs office of transit checks the seals and withdraws one sheet from the

TIR Carnet, and the outgoing office proceeds likewise. Both sheets are compared for a final

control and the TIR operation can be discharged or, in the case of irregularities, submitted

to the procedure outlined above.

(ii) In the country of destination, if the incoming border office also is the office of destination, it

fills-in the TIR Carnet, retains two sheets and becomes responsible for the goods to be

transferred to another Customs procedure (warehousing, import clearance, etc.) in that

country. If the cargo has to be carried to another Customs office in the same country, the

incoming office acts like an incoming border office, and the next office inside the country

becomes that of final destination.

11.6 No TIR Carnet can be issued/ accepted for movement of alcohol and tobacco in India.

11.7 Where a TIR operation has not been discharged, the competent customs authorities shall:

(a) notify the TIR Carnet holder at his address indicated in the TIR Carnet of the non-discharge;

(b) notify the guaranteeing association of the non-discharge. The competent authorities shall

notify the guaranteeing association with a maximum period of one year from the date of

acceptance of the TIR Carnet by those authorities or two years when the certificate of

termination of the TIR operation was falsified or obtained in an improper or fraudulent

manner.

from the date when a claim for payment is made against it.

11.8 TIR is being introduced in a phased manner in India. The Customs Stations in India authorized for

use of TIR shall be:

Table 10.1: Customs Stations in India authorised for use of TIR

Ports Inland Container Deports (ICDs)

1. Nhava Sheva 1. Tughlakabad

2. Mundra 2. Patparganj

3. Kolkata 3. Dadri

4. Chennai 4. Ahmedabad

5. Cochin 5. Hyderabad

6. Visakhapatnam 6. Pune

7. Krishnapatnam 7. Durgapur

11.9 For the above purpose, authorization has to be accorded to-

(i) operators who can apply, obtain and use the TIR for movement of cargo;

(ii) containers that would be deployed in TIR operations, conforming to the standards laid down

in the convention.

11.10 The customs officer at the port of departure shall affix the one-time customs seal and make

necessary endorsements in the TIR carnet and affix the official stamp of the Custom House.

11.11 In cases where an examination is conducted by customs in the course of a journey and it is

required to break seals and/or remove identifying marks, they shall affix and record the new seals

and/or identifying marks on the vouchers of the TIR Carnet used in their country, on the

corresponding counterfoils and on the vouchers remaining in the TIR Carnet.

11.12 Heavy or bulky goods, if the authorities at the Customs office of departure so decide, be carried

by means of non-sealed container.

[Refer Circular no. 48/2018 dated 03.12.2018]

12. Transshipment of cargo by air:

12.1 A detailed procedure has been prescribed for transshipment by air of (i) imported cargo between

two airports in India, (ii) international transshipped cargo (Foreign to Foreign), and (iii) export of

cargo tendered at one Customs airport for export from another Customs airport. The movement

of cargo between the gateway airport and inland airport is allowed in Indian Airlines flights and

also in private sector airlines flights.

12.2 Transshipment of cargo from a gateway airport to an inland airport:

(i) On arrival of flight, the transshipment cargo should be segregated in custodian's premises.

(ii) For

Indian Customs Manual 2023 explains on transhipment of Cargo

Discussion Forum