Central Government vide Notification No. 56/2016 – Customs (N.T.), Dated: April 27, 2016 has granted exemption to vessels carrying exclusively coastal goods from the following provisions of the Customs Act, 1962:
a. Section 92: Entry of coastal goods
b. Section 93: Coastal goods not to be loaded until bill relating thereto is passed, etc.
c. Section 94: Clearance of coastal goods at destination
d. Section 95: Master of a coasting vessel to carry an advice book
e. Section 97: No coasting vessel to leave without written order
f. Section 98(1): Sections 33, 34 and 36 to apply to coastal goods as they apply to imported goods or export goods.
Further, Central Government vide Notification No. 57/2016-Customs (N. T.), Dated: April 27, 2016 has provided that for the vessels carrying exclusively coastal goods the following sections of the Customs Act, 1962 would apply:
a. Section 30: Delivery of import manifest or import report
b. Section 41: Delivery of export manifest or export report
However, it is important that the vessels carrying exclusively coastal goods must be operating from berths used by vessels carrying imported goods or export goods and a coastal manifest is delivered to the proper officer by the person-in-charge of such vessel or his agent prior to the arrival! departure of the vessel in the specified format.
Since the present procedure governing the movement of coastal goods were restrictive there was a need to relax the procedure further so as to facilitate faster movement of the coastal goods, bringing down the transaction cost and also give fillip to the developmental activities in the coastal cities. Further, the cabotage restrictions have been relaxed to encourage movement of coastal goods. Vessels like RoRo (Roll on Roll off), PCC (Pure Car Carriers), Pure Car and Truck Carriers (PCTC), LNG vessels, Over-Dimensional Cargo or Project Cargo carriers etc are covered under the new relaxed policy guidelines for a period of five years i.e. up to 1st September 2020.
In this regard, Circular No. 14/2016-Cus, Dated: April 27, 2016 has been issued to provide the relaxed procedure and the necessary legislative relaxation effected by the issuance of Notification Nos. 56/2016 – Customs (N.T.), & 57/2016-Customs (N.T.) Dated: April 27, 2016.
Salient features of this circular are:
a. The arrival and departure coastal manifests needs to be prepared in duplicate. The original will 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.
b. Vessels like RoRo (Roll on Roll off), PCC (Pure Car Carriers), Pure Car and Truck Carriers (PCTC), LNG vessels, Over-Dimensional Cargo or Project Cargo carriers are covered under the new relaxed policy guidelines for a period of five years i.e. up to 1st September 2020.
c. The revised procedure will apply to Indian vessels, Indian flag foreign vessels or foreign vessels eligible for cabotage relaxation vide SR 14020/5/2009-MG/CS/- Vol. VII dated 2.9.15 issued by the Ministry of Shipping. In the case of cabotage covered foreign vessels, the relaxation will be co-terminous with the said order of the Ministry of Shipping.
d. The container carrying coastal goods will be clearly marked with the words “For coastal Carriage Only” on all sides. There will be no examination of the coastal goods, the container will be sealed with tamper proof one time bottle seal and then the same can be loaded on to the vessel.
e. Non-containerised cargo will 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.
f. Random checks may be carried out by Preventive Officers (with prior approval of AC/ JC of preventive wing) to ensure that no export goods or imported goods are inadvertently or by intention loaded onto such coastal vessels.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 56/2016 – Customs (N. T.)
New Delhi, the 27th April, 2016
G.S.R. (E).- In exercise of the powers conferred by section 98A of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 43/97- CUSTOMS (N.T.), dated the 11th September, 1997, published vide number G.S.R. 535(E), dated the 11th September, 1997 and notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 15/98- CUSTOMS (N.T.), dated the 27th February, 1998, published vide number G.S.R. 92(E), dated the 27th February, 1998, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts vessels carrying exclusively coastal goods from the provisions of section 92, section 93, section 94, section 95, section 97 and sub-section (1) of the section 98 of the said Act.
[F. No. 450/183/2014/-Cus IV]
(Zubair Riaz)
Director (Customs)
