13th March, 2002.
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs
Subject: Customs procedure for export of container cargo from ICDs/CFSs in India to Bangladesh and Nepal through LCSs– reg.
References have been received from the trade to allow clearance of export goods for Nepal and Bangladesh at an ICD. It has been suggested that all the Customs formalities for clearance of export cargo meant for Nepal and Bangladesh should be completed at an ICD and after stuffing and sealing, containers should be allowed to be taken to Nepal and Bangladesh by rail or/ and road through a Land Customs Station. According to the trade, the proposed facility will allow faster movement of cargo from hinterland ICDs to Nepal and Bangladesh resulting in reduction of transaction cost.
2 The proposal has been examined by the Board and it has been decided to allow movement of export cargo from ICDs/CFSs to Nepal and Bangladesh through Land Customs Stations. The procedure in this regard shall be as follows:
(a) The exporters are required to bring their goods meant for export to ICD/CFS, and to file six copies of Shipping Bills (including two transference copies) along-with all necessary documents like GR Form, AR Form, certificates issued by Export Promotion Councils, documents regarding quotas wherever applicable, etc. The Shipping Bill is to be assessed as usual, the goods are to be examined and samples may be drawn, if required. Inspection can be carried out by other agencies if applicable under other Allied Act(s). After the assessment of Shipping Bill, the original and duplicate copies of Shipping Bill along-with two more copies (transference copies) and original GR Form are to be retained at the ICD. The original GR form is to be forwarded to the concerned branch of Reserve Bank of India.
(b) The examination order is to be given on duplicate and transference copies of the Shipping Bill. The examination report shall be recorded on all these copies. The duplicate copy shall be retained in the ICD/CFS and both transference copies shall be forwarded to the LCS through the carrier in a sealed cover along-with a copy of invoice, packing list and other required documents. After examination, the goods shall be stuffed in a container and the container shall be sealed with tamper proof bottle seal. The Seal No. shall be recorded in the copies of Shipping bill and AR form. The copies of Shipping Bill and the AR form shall be duly endorsed with the examination report and loading report recording the container No. etc. and this shall be jointly signed by the Customs, Carrier and the exporter’s representative.
(c). The carrier shall then transport the containers by road or/and rail upto the LCS. At the LCS, both transference copies of Shipping Bill shall be submitted by the carrier to the proper officer of Customs. The Customs officer shall inspect the seal of the container and if found intact and the seal Nos. tally with the Shipping Bill, he shall record the same in the transference copies of the Shipping Bill and the AR 4 form as follows:”Inspected and seals found intact, Seal Nos. found to tally with the shipping bill and AR 4 form”.Name, signature and dateHe shall then allow the movement of the containers into Nepal/Bangladesh, as the case may be.
(d) In case the Customs seal on the container is found broken or tampered with or some discrepancy found in the seal nos., the matter shall be brought to the notice of the Deputy/Assistant Commissioner of Customs and such container shall be subjected to 100% examination. If any deviation from the Shipping Bill or invoice is detected during examination, adjudication proceedings may be initiated.
(e) In case the seals are found intact as per documents and the documents are in order, the Proper Officer at the LCS shall endorse the transference copies of Shipping Bill with “export allowed” endorsements. He may also make an endorsement to the effect that the container has been duly identified by him and has crossed the border into Nepal/Bangladesh on both the copies of Shipping Bill and AR form at the time of actual export. One copy of the Shipping Bill may be retained at the LCS and the other transference copy shall be returned to ICD/CFS from which the container had originated.
(f) On receipt of transference copy of the Shipping Bill, the Customs at the originating ICD/CFS shall match it with duplicate copy of Shipping Bill so as to ensure that the goods have been exported. If the copy is not received within 90 days, the Deputy/Assistant Commissioner of Customs at the originating ICD/CFS may raise a demand on the custodian equal to the export duty and drawback in respect of the export goods in addition to any other action that may be taken against the exporter. He may also intimate the DGFT and RBI accordingly. The matter shall also be reported to the jurisdictional Commissioner of Central Excise for recovery of excise duty on the goods.
(g) To ensure safety and security of goods during transit to LCS, the custodians of the ICD have to furnish a bond with security as is being done for movement of cargo from ICDs/CFSs to the gateway port. The bond shall be debited with the value of the goods every time a container is given to carrier for transport. The amount can be re-credited once the proof of export is received.
3. The facility for movement of export cargo from ICDs/CFSs to Nepal and Bangladesh mentioned above shall be available only if cargo is moved through LCSs at Petrapole & Gede in Indo-Bangladesh border and Raxual in Indo Nepal border.
4. These instructions may be brought to the notice of all concerned by way of issuance of suitable Public Notice/Standing Orders.
5 Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board. Kindly acknowledge receipt.