S. Misc.

129/2010 – Courier Cell

I. TRANSHIPMENT OF IMPORT CARGO:

To avoid payment of duty at the airport/port of landing in cases where goods are to be carried to
another port/airport or any other Customs station, the Chapter VIII of the Customs Act, 1962 provides a
facility of transhipment of cargo without payment of duty. The goods can be transhipped either by
vessel, air, rail or road or by combination of more than one such mode of transport. Section 54 of the
Act stipulates 'Transhipment of certain goods without payment of duty'. Section 54 (3) states
“Where any goods imported into a customs station are mentioned in the import manifest or the
import report, as the case may be, as for transhipment -
(a) to any major port as defined in the Indian Ports Act, 1908 (15 of 1908), or the customs airport at
Mumbai, Calcutta, Delhi or Chennai or any other customs port or customs airport which the Board
may, by notification in the Official Gazette, specify in this behalf, or
(b) to any other customs station and the proper officer is satisfied that the goods are bona fide
intended for transhipment to such customs station,
the proper officer may allow the goods to be transhipped, without payment of duty, subject to such
conditions as may be prescribed for the due arrival of such goods at the customs station to which
transhipment is allowed.”
So three important parameters for transhipment of import cargo are
i. The goods are mentioned in the import manifest as for transhipment
ii. The goods are bona fide intended for transhipment to that customs station
iii. The transhipment is allowed subjected to certain prescribed conditions.
II. PROCEDURE FOR TRANSHIPMENT
Sec 54 (1) of the Act provides for the procedure for transhipment of import cargo. The provisions of
this section are as follows:
“Where any goods imported into a customs station are intended for transhipment, a bill of transhipment
shall be presented to the proper officer in the prescribed form.”
A Bill of Transhipment or Transhipment Permit, as known popularly, is the permission granted by the
Customs, at the port/airport of unloading of imported goods, to the carrier/the declarant for carriage of
goods to another port/airport/customs station in India. The Goods Imported (Conditions of Transhipment)
Regulations, 1995 actually stipulate the transhipment procedure for import cargo. As per these Regulations,
the conditions governing transhipment are
(a) the declarant makes an application to the proper officer of customs seeking permission for
transhipment of the goods imported;
(b) the goods imported are mentioned in the import manifest as for transhipment to any
customs station;

(c) such transhipment is by rail, a vessel, an aircraft or a motor vehicle or by a combination

of two or more of these modes of transport:

(d) the declarant, the transporter or, as the case may be, the custodian executes a bond in
such form with or without surety or security or with both as the Commissioner of Customs
may specify for
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III. TRANSHIPMENT BY ROAD

If the goods imported are sought to be transhipped by a motor vehicle, then written
permission from the Commissioner of Customs is mandatory. The Commissioner while
permitting such transhipment shall take the following factors into consideration:-

(i) the nature of the goods imported to be transhipped,

(ii) the amount of revenue involved, and

(iii) any other factor which the Commissioner of Customs may deem relevant

IV. BOND AND BANK GUARANTEE

To ensure that imported cargo, on which duty has not been paid, are not pilfered en-route
to another port/airport or any other customs station and reach there safely, a bond with bank
guarantee (@ 15% of bond value) is executed by the carrier engaged for the transhipment of the
goods. The terms of the bond is that if the carrier produces a certificate from Customs of the
destination port/airport or any other customs station for safe arrival of goods there, the bond
stands discharged. In case such certificate is not produced within 30 days 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. The bond value should be equal to
the value of the goods. The bond and bank guarantee are debited at the time of transhipment of
import cargo at the airport/port of origin, and the same is credited on receipt of proof of safe
landing of cargo at the airport/port/customs station of destination.

V. BONDED TRUCKING FACILITY

To give flexibility to trade to choose mode of transport and to facilitate movement of import
cargo, movement of import cargo from the airports/air-cargo complexes to another airport/air-cargo
complex/customs station by containers/trucks has also been allowed vide CBEC Circular No. 69/99-
Cus. dated 6/10/1999.
Broadly, the procedure for Bonded Trucking is as follows:
1. Transhipment Regulations: The transhipment under the scheme is governed by
the provisions of the Goods Imported (Conditions of Transhipment) Regulations,
1995. The cargo to be transhipped needs to be manifested as for transhipment by
the incoming international carrier.
2. Bond & Bank Guarantee: The carrier executes a suitable running bond with a
bank guarantee for an amount approved by the jurisdictional Commissioner of
Customs for proper account of goods. The amount is debited from the bond when
transhipment cargo is taken by the carrier and the bond is credited when the proof
of handing over of the cargo to Customs at final destination is produced.
3. Specified Trucks: The carrier is required to submit the list of trucks together with
registration numbers to be used for movement of each transhipment cargo.
4. Segregation of Transhipment Cargo: The cargo to be transhipped, after its
unloading at the airport, is immediately segregated and shifted to transhipment
warehouse.
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5. Transhipment Application: The carrier has to submit transhipment application
along-with a copy of airway bill to Customs. After scrutiny of the application,
transhipment permit for transhipment of cargo is issued.
6. Customs Supervision of Loading: On getting the permission for transhipment,
goods are shifted from the warehouse into truck under the supervision of Customs.
After loading of goods, truck is sealed with one time bottle seal by the
Customs.The fact of such loading of the import transhipment cargo into the truck
is endorsed by the preventive officer on all copies of transhipment permit and one
copy of the permit is given to the carrier. One copy is retained for record, one copy
accompanies the truck and the fourth copy is handed over in a sealed cover to the
carrier. The carrier has to hand over the sealed cover to the Customs authorities at
the destination.
7. Formalities at the Destination:At the destination, carrier is required to present
the sealed cover containing a copy of transhipment permit to Customs. The
Customs at the destination check the Customs seal and description of packages as
per the transhipment permit. The carrier is responsible for the safety and security
of the cargo. After unloading of the goods at the destination, the Customs makes
suitable endorsement on the copies of transhipment permit, a copy of which is
retained by the Customs at the destination and other copy is returned to the
originating airport. The carrier is required to submit proof of safe arrival of goods
at the destination, to the Customs at the originating airport/ACC within 30 days
from the despatch of goods, failing which suitable action in terms of the condition
of bond may be taken against the carrier.
8. Pilferage/Shortage of Cargo: In case, the seals are found to be broken at the time
of customs check, a survey of contents of the truck 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 airport of loading.
This is apart from other action which can be taken under section 116 of the
Customs Act, 1962.
9. Submission of Landing Certificates to Customs at the Originating Airport:
The carriers have to obtain the landing certificates from the Customs at the destination
and submit the same to the Customs at the originating airport. The Customs reconciles
its record and closes IGMs on the basis of these certificates.

VI. TRANSHIPMENT OF CARGO FROM GATEWAY AIRPORT TO SEZ:

Under Sec 53 of the Special Economic Zones Act, 2005, a Special Economic Zone shall be
deemed to be a port, inland container depot, land station and land customs stations, as the case may be,
under section 7 of the Customs Act, 1962. Further Para 26 of the Special Economic Zones Rules, 2006
allows a Unit or Developer to import goods directly into the Special Economic Zone or through any
other ports or airports, land customs stations,inland container depots,foreign post offices, authorized
couriers etc. It also stipulates that the goods imported by a Developer or Unit shall be transhipped by
the carrier or its agent directly to the Special Economic Zone.
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The procedure for transhipment of cargo from gateway airport to Special Economic
Zones(SEZs) is similar to what has been stated above for transhipment of cargo from airport to another
airport or customs station above. For transhipment to SEZs, a bond with bank guarantee is required to
be furnished. The Customs in SEZ give suitable landing certificate after checking, which is to be
submitted to Customs at the originating airport.

VII. TRANSHIPMENT OF COURIER PARCELS

Facility of transhipment of courier cargo between two customs stations is governed by the
provisions of the Customs Act, 1962, Goods Imported (Conditions of Transhipment) Regulations, 1995
and existing instructions of the Board.