CBIC Allow Transhipment Of Containerized Export Goods Of Bangladesh Through India Using Riverine And Rail Routes

The Board has received representations from trade to provide a similar transhipment facility to Bangladesh's export cargo through India using a combination of waterways and land routes.

It has been suggested to allow export goods from Bangladesh to enter India through the riverine land customs station of Hemnagar and move up to Kolkata or Haldia port using waterways. Then, they cross through the Indian territory by rail up to Nhava Sheva or Mundra port, from where the goods would be exported to third countries by sea route.

The CBIC has decided to allow the transhipment of containerized export goods from Bangladesh through India using riverine and rail routes, entailing two legs of movement.

First, containerized cargo will enter India via LCS Hemnagar, from where it will be transported by barge/vessel to the sea port of Kolkata or Haldia via the riverine route agreed upon under the Protocol on Inland Water Transit and Trade between India and Bangladesh (IBP route).

Secondly, the leg involves 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.

Transhipment is allowed with respect to FCL containers only. It is not allowed for cargo containing arms, ammunition, explosives, or other cargo considered as constituting a threat to the security, safety, and integrity of the country or other goods attracting prohibition under section 11 of the Customs Act, 1962. It is not allowed to go to any port/destination in respect of which any order or prohibition is in force for the time being.

According to the Board, the authorised carrier performing the movements covering the entire transhipment must register with the Commissioner of Customs (Preventive), West Bengal.While laying down the form and manner for registration, the Commissioner shall take into account the credentials of an authorised carrier registered under the Sea Cargo Manifest and Transhipment Regulations, 2018.

The authorised carrier shall be responsible for the safe and secure transportation of the containerized cargo throughout the entire journey, i.e., from entry into LCS Hemnagar till final exit from the sea port of Nhava Sheva or Mundra. The authorised carrier shall also enter into a transhipment bond with the Commissioner of Customs (Prev) of West Bengal in the form and manner prescribed by the said Commissioner. The bond shall be in an amount equivalent to twice the value of the goods to be transported.

The authorised carrier shall give a written advance intimation to the Commissioner of Customs (Prev.) West Bengal at least 3 working days before the arrival of goods from Bangladesh at LCS Hemnagar. The notification must include information about the barge/vessel, the goods, the containers, the One-Time Lock (OTL) installed on the containers, and the expected date and time of arrival at LCS Hemnagar.The Commissioner shall keep a record of the intimation and shall also forward it promptly to LCS Hemnagar for making necessary arrangements.

"Before arrival in India, the goods shall be stuffed into containers, and each container must have been securely sealed with a tamper-proof OTL having a unique serial number. Affixing the OTLs on containers may not be feasible upon arrival of cargo at LCS Hemnagar because some containers may be inaccessible due to their nature of stacking in the hold of the barge/vessel," the CBIC instructed.

The authorised carrier shall prepare a loading/placement plan, clearly describing the details of placement, container-wise and hold-wise, along with a schematic diagram showing the containers that are placed at each level on the barge/vessel. The loading/placement plan should ensure that the OTL side, to the extent possible, is kept accessible for the purpose of checking the OTLs at LCS Hemnagar by Customs.

To ensure secure movement and tracking, the e-seals (RFID and ECTS) used as outlined above shall be procured by the authorised carrier at their own cost from vendors/service providers.

In respect of RFID e-seals, the updated list of vendors (supplying e-seals of requisite specifications) is available with Circular No. 37/2017-Customs dated September 20, 2017 on the CBIC website. In the case of ECTS e-seals, the Director General of Analytics and Risk Management (DGARM) is currently engaged in the exercise of empaneling service providers to supply e-seals of the requisite specifications, which is expected to be completed shortly.

In the meanwhile, and in the absence of any other facility, the authorised carriers have the option to procure ECTS seals from the service provider under the ADB Pilot Program for monitoring traffic-in-transit for Nepal.

Circular No.19/2022-Customs

Dated: 14.09.2022

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