Sea Cargo Manifest and Transhipment Regulations, 2018

 

1. Short title and commencement.

(1) These regulations may be called the Sea Cargo Manifest and Transhipment Regulations, 2018.

 (2) These regulations shall come into force on 1st August, 2018.

 2. Definitions. –

(1) In these regulations, unless the context otherwise requires,              

     (a)   "Act" means the Customs Act, 1962 (52 of 1962);

(b)   "arrival manifest" means an integrated declaration required to be delivered by an authorised carrier on arrival of the vessel or train or truck carrying imported goods, export goods and coastal goods;

(c)   "authorised carrier" means an authorised sea carrier, authorised train operator, shipping line or a custodian registered under regulation 3;

(d)   "authorised sea carrier" means the master of the vessel carrying imported goods, export goods and coastal goods or his agent;

 

(e)   "authorised train operator" means the train operator carrying imported goods, export goods and coastal goods;

(f) "Coastal goods transited through a designated foreign route" means:

(i) coastal goods transported between an Indian port on east coast and another Indian port on west coast or vice versa, by a vessel through the territorial waters of Sri Lanka, whether or not calling any port in Sri Lanka in between and without change of vessel;

(ii) coastal goods transported between an Indian port on east coast and a river port in India or vice versa, by a vessel through a route passing through the Bangladeshi waters and without change of vessel;

     (g)   "custodian" means a person approved by the Principal Commissioner or the Commissioner of customs, for the purposes of section 45 of the Act; 

(h)   "departure manifest" means integrated declaration required to be delivered by an authorised carrier before departure of a vessel or train or truck for imported goods, export goods and coastal goods;

(i) "Form" means a Form appended to these regulations;

(j) "Jurisdictional Commissioner of Customs" means the Commissioner of Customs who has granted registration under regulation 3.

(k) "Special Economic Zone (SEZ)" means special economic zone as per the Special Economic Zones Act, 2005 (28 of 2005);

(l) any reference to a Commissioner of customs shall also include a reference to Principal Commissioner of customs for purposes of these regulations.

 (2) The words and expressions used herein and not defined but defined in the Act shall have the same meaning respectively assigned to them in the Act.

 3. Registration. –

(1) Any person who is required to deliver arrival manifest or departure manifest shall apply to the jurisdictional Commissioner of Customs for registration in the Form- I.

(2)   Where the jurisdictional Commissioner of customs is satisfied with the information provided by the applicant in the Form-I, he shall register such applicant for transacting business under these regulations for a period of three years from the date of issue of such registration.

 (3)   An authorised carrier registered under these regulations at any customs station, shall be deemed to be registered for other customs stations also, for the purpose of transacting business under these regulations.

 (4)   The jurisdictional Commissioner of Customs shall review the registration before the expiry of the initial period of registration of three years and may extend such registration to a further period of five years at a time and in case of an authorised economic operator for a period of ten years.

 4.  Delivery of an Arrival Manifest. –

 (1) An authorised sea carrier carrying imported goods, export goods or coastal goods, shall deliver the arrival manifest to the proper officer electronically:

     Provided that where it is not possible to deliver the arrival manifest electronically then the manifest shall be submitted manually in duplicate with the approval of the Commissioner of Customs.

 (2) The arrival manifest shall consist of, -

     (a)   an application for entry inwards in Form-II (except in case of vessel carrying exclusive coastal goods);

    (b) a general declaration in Form-III;

    (c)   vessel's stores list in Form- IV;

(d) list of private property in the possession of the Master and crew, in Form- V

(e)   cargo declaration: -

         (i) for vessel arriving at an Indian port from a Foreign port in Form-VIA; or

(ii) for vessel arriving at an Indian Port from another Indian Port directly or through designated foreign route in Form-VIB;

    (f) any other declaration which, under the provisions of the Customs Act or any other Act for the time being in force is required to be delivered to the proper officer on arrival of vessel.

(3) The general declaration and cargo declaration shall be delivered before the departure of the vessel from last port of call and the rest of the arrival manifest shall be delivered before arrival of the vessel.

 5.  Delivery of a Departure Manifest. –

(1) An authorised sea carrier carrying imported goods, export goods, coastal goods or goods meant for foreign transit or foreign transhipment, shall before the departure of the vessel from the port, deliver the departure manifest to the proper officer electronically:

     Provided that where it is not possible to deliver the departure manifest electronically, then the manifest shall be delivered manually in duplicate with the approval of Commissioner of Customs before the departure of the vessel.

(2) The departure manifest shall consist of, -

     (a)   a general declaration in Form-III;

(b)   a vessel's stores list in Form-IV;

(c)   a list of private property in the possession of the Master and crew, in Form-V;

(d)   a cargo declaration:

(i) for vessel departing from an Indian port to a Foreign port in Form-VIIA; or

(ii) for vessel departing from an Indian Port to another Indian port directly or through designated foreign route in Form-VIIB;

 (e) any other declaration which, under the provisions of the Customs Act or any other Act for the time being in force is required to be delivered to the proper officer on arrival of the vessel.

 6. Declaration in respect of specific cargo.

 (1) the cargo declaration in respect of —

a)      arms;

b)     ammunition;

c)      explosives;

d)     narcotics and psychotropic substances;

e)      dangerous drugs;

f)       gold;

g)      silver;

h)     radio-active material

for import, export, transhipment, or for being carried as same bottom cargo shall be delivered in separate sheets and shall be set out in the order of the ports of loading.

 (2) Where a vessel does not carry any of the cargoes referred above, a nil declaration shall be delivered.

 7.   Transhipment of imported goods or export goods between a port/ICD and Inland Container Depot (ICD)/Container Freight Station (CFS) /Special Economic Zone (SEZ). - An authorised carrier shall file a departure manifest before the departure of a train or a truck and arrival manifest upon arrival of the train or truck, as the case may be, in Form-VIII.

 8.   Amendments of arrival or departure Manifest - Where the proper officer nominated by the Commissioner of customs is satisfied that the arrival manifest or departure manifest is in any way incorrect or incomplete, and that there was no fraudulent intention towards incorrect or incomplete submission as regards the contents thereof, he may permit it to be amended or supplemented.

 9. Conditions governing transhipment or transit through a designated foreign route. –

(1) The transhipment shall be allowed under the following conditions-

a)      the goods are mentioned in the arrival manifest or departure manifest, as the case may be, for transhipment to any customs station;

b)     such transhipment is by, a vessel, train or a truck or by a combination of two or more of these modes of transport;

c)      the authorised carrier executes a bond in Form-IX A or Form-IX B or Form-IX C or Form-IX D as applicable ,with or without bank guarantee or surety

d)     Provided that where the transhipment of goods is directly between two sea ports, no bond and bank Guarantee shall be furnished 

e)        in the case of imported goods meant for transhipment by land route, the proper officer nominated by the Commissioner of customs shall seal the containers before permitting such transhipment.

(2) In case of coastal goods manifested for transit through a designated foreign territory, the authorised carrier shall execute a bond in Form-X A or Form-X B or Form-X C or Form-X D as applicable with or without bank guarantee or surety.

10. Responsibilities of the authorised carrier under these regulations. –

 (1) An authorised carrier shall -

 a)      transact business in the customs station either personally or through an employee duly approved by the Deputy Commissioner or Assistant Commissioner of Customs, as the case may be;

b)     keep a record of imported goods, export goods, coastal goods or goods brought for transhipment as the case may be, and produce such records to the proper officer as and when required;

c)      keep a record of movement or handling of imported goods, export goods, coastal goods or goods brought for transhipment;

d)     make available track and trace facility for locating imported or export goods, coastal goods or goods brought for transhipment;

e)      be responsible for the safety, security and delivery of imported, export goods or coastal goods under its custody;

f)       be liable to pay duty on goods pilfered, lost during the transit or transhipment thereof in the customs area or en-route;

g)      be responsible for re-export of hazardous goods where such goods are ordered to be exported back to the exporting country;

h)     advise his client to comply with the provisions of the Act and in case of non- compliance, shall bring the matter to the notice of the deputy commissioner or assistant commissioner of customs as the case may be;

i)       not procure or attempt to procure directly or indirectly, information from the government records or other government sources of any kind to which access is not granted by the proper officer;

j)       ensure electronic transmission of delivery orders to the importer or the consignee and intimation of the same to the custodian and the proper officer

k)     publish and display at prominent places including website or webpage of the authorised carrier the schedule of charges for the various services provided by him in relation to the imported goods or export goods or coastal goods in the customs area; not charge any rent or demurrage on the goods seized or detained or confiscated by the Customs Authorites;

l)       abide by all the provisions of the Act and the rules, regulations, notifications and orders issued there under;

(2) The authorised carrier shall not sublet or sub-contract or outsource functions permitted or required to be carried out by him to any other person.

11. Suspension of operations or revocation of registration of an authorised carrier. -

(1)   The jurisdictional Commissioner of Customs may revoke the registration of the authorised carrier, for failure to comply with any provisions of the regulations.

(2)   The Commissioner of Customs of any customs station on reasonable belief that operations of such authorised carrier is detrimental to the interest of revenue, may suspend their operation in his jurisdiction by an order stating the grounds of suspension.

 (3)   The Commissioner of Customs shall, within fifteen days from the date of such suspension order, shall give an opportunity of hearing to the person and pass such order within fifteen days from the date of the said hearing, as he deems fit, either revoking the suspension or continuing it for a further period not exceeding ninety days from the date of suspension, as the case may be.

     Provided that where the suspension against the authorised carrier has been continued, the Commissioner of Customs concerned shall intimate to the jurisdictional Commissioner of Customs, about the order within fifteen days from the date of issue of such order.

 12. Procedure for revocation of registration.-

 (1) The jurisdictional Commissioner of Customs shall issue a notice in writing to the authorised carrier stating the grounds on which it is proposed to revoke the registration and requiring the said person to submit within such time as may be specified in the notice not being less than thirty days, to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, nominated by him, a written statement of defence and also to specify in the said statement whether he desires to be heard in person by the said Deputy Commissioner of Customs or Assistant Commissioner of Customs.

(2)   On receipt of the written statement from the authorised carrier, or where no such statement has been received within the time-limit specified in the notice, the Deputy Commissioner of Customs or Assistant Commissioner of Customs, may inquire into the grounds of the revocation as stated in the notice.

 (3)   The Deputy Commissioner of Customs or Assistant Commissioner of Customs, shall in the course of inquiry, consider such documentary evidence and take such oral evidence as required for inquiry and he may also put any question to any person tendering evidence, for or against the authorised carrier, for the purpose of ascertaining the correct position.

(4)   The authorised carrier shall be entitled to cross-examine the persons examined in support of the grounds forming the basis of the proceedings and where the Deputy Commissioner of Customs or Assistant Commissioner of Customs, declines to examine any person on the grounds that his evidence is not relevant or material, he shall record his reasons in writing for so doing.

(5)   Deputy Commissioner of Customs or Assistant Commissioner of Customs, shall prepare a report of the inquiry recording his findings after the conclusion of the inquiry.

(6)   The jurisdictional Commissioner of Customs shall provide to the authorised carrier a copy of the report of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, and shall require the authorised carrier to submit within the specified period not being less than thirty days any submission against the findings of the Deputy Commissioner of Customs or Assistant Commissioner of Customs.

 (7)   The jurisdictional Commissioner of Customs shall, after considering the report of the inquiry, and the submission thereon, if any, made by the authorised carrier, pass such orders as he deems fit.

 13. Imposition of Penalty. -An authorised carrier who contravenes any provision of these regulations shall be liable to a penalty which may extend to rupees fifty thousand.

 14. Appeal-Any person aggrieved by any decision or order passed under this regulation, may appeal under section 129A of the Act to the Customs, Excise and Service Tax Appellate Tribunal, established under sub-section (1) of section 129 of the Act.

 [F. No.450/58/2015- Cus IV]

INCOTERMS 2020

The purpose of INCOTERMS

INCOTERMS: a contraction of "INternational COmmercial TERMS", INCOTERMs define the reciprocal obligations of seller and buyer under an international contract of sale and purchase. It specifies the respective responsibilities of the parties, but do not specify the point at which title is transferred. INCOTERMS set out how the associated costs and risks are apportioned.

INCOTERMS 2020: two distinct groups

• The INCOTERMS 2020 are applicable from 1^st January 2020.
• It is an update of the 2010 version and the eleven INCOTERMS have been maintained and are classified into two distinct groups:

Rules associated with all modes of transport: EXW - FCA - CPT - CIP - DAP – DPU - DDP

Rules which apply to maritime transport and inland waterway transport: FAS - FOB - CFR – CIF

2020 Main changes:

• The 2020 version offers two forms of presentation: Apart from the classic presentation, the 2020 version proposes a “horizontal” presentation where each of the 10 rules is presented INCOTERM by INCOTERM, making it possible to better appreciate the differences between each rule.
• The advisory notes which already existed in the 2010 version are now included in the 2020 INCOTERM rules.
• New explanations are also included, for example: “How to choose the INCOTERM rule which is the most appropriate for a given transaction.” Or, “How to structure the sales contract with other contracts such as the transport or insurance contract.”
• INCOTERM DAT (Delivered at Terminal) becomes DPU (Delivered at Place Unloaded): it becomes an agreed destination country INCOTERM place. It’s basically the same INCOTERM but the DPU is said to be unloaded unlike the DAP which is not unloaded. The DPU is also the only INCOTERM among the 11 which is unloaded.
• INCOTERM CIP has been modified: INCOTERM CIP 2010 was limited to taking out a minimum insurance policy. From now on, the insurance coverage must be a comprehensive risk policy.
• INCOTERM CIF alone allows for a minimum insurance policy. Attention! Differential treatment of insurance for CIP and CIF.
• INCOTERM FCA: offers an additional option for the bill of lading: the parties may agree that the seller obtains the bill of lading.

APPLICABLE TO ALL TRANSPORT MODES 

1. EXW: The seller has fulfilled his obligation to deliver when the goods are made available on his own premises (workshop, factory, warehouse, etc.). The buyer bears all the costs and risks involved in transporting the goods from the seller’s premises to the desired destination. This term represents the minimum obligation for the seller. To be used essentially in national exchanges
2. FCA: The seller has fulfilled his obligation to deliver when he has delivered the goods, cleared for export, to the carrier nominated by the buyer at the named place. The buyer chooses the transport method and carrier. He pays for the main transport. Costs and risks are transferred at the moment the carrier takes charge of the goods. The Bill of Lading option allows the buyer and the seller to agree that the seller can obtain the Bill of Lading.
3. CPT: The seller chooses the transport method and pays the cost of carriage for the goods to the named destination. He also clears the goods for export. The risks transfer from the seller to the buyer at the point where the goods are delivered to the first carrier.
4. CIP: The seller has the same obligations as under CPT, but in addition must provide a comprehensive insurance policy. The seller clears the goods through customs for exportation.
5. DAP: The seller must deliver the goods by placing them at the disposal of the buyer on the means of transport arriving ready to be unloaded at the agreed place, if specified, at the named place of destination on the agreed date or within the agreed time. The seller takes responsibility for the risks related to the transport of the goods to the place of destination.
6. DPU: The seller has fulfilled its obligations when the goods are placed at the disposal of the buyer, unloaded from the means of transport at the agreed place of destination (this place may be a terminal, a warehouse or the buyer’s premises).
7. DDP: Whilst the EXW term represents the minimum obligation for the seller, DDP represents the maximum. The seller is responsible for everything, including import customs clearance and the payment of all applicable duties and taxes. Costs and risks are transferred at the moment of delivery to the buyer. The costs and risks of unloading are borne by the buyer.

APPLICABLE ONLY TO SEA OR INLAND WATERWAY TRANSPORT:

1. FAS: The seller has fulfilled his obligation to deliver when the goods have been placed alongside the vessel nominated by the buyer at the named port of loading. The buyer must bear all the costs and risks of loss or damage the goods could be victim to. The term FAS requires the seller to clear the goods for export.
2. FOB: The seller has fulfilled his obligation to deliver when the goods are on board the vessel nominated by the buyer at the named port of shipment. The seller clears the goods for export. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer bears all costs from that moment onwards.
3. CFR: The seller must choose the vessel and pay the costs and freight necessary to bring the goods to the named port of destination. The export formalities are the responsibility of the seller. The transfer of risk occurs at the moment when the goods are placed on board the vessel.
4. CIF: The seller is bound by the same obligations as for CFR but must also procure minimum marine insurance. The export formalities are the responsibility of the seller. The sea voyage, on the sea or inland waterways transport, are at the risks and perils of the buyer. The transfer of risk of loss of or damage to the goods occurs when the goods are loaded on board the vessel.

 An essential distinction (departure/arrival)

7 Multimodal INCOTERMs and 4 maritime INCOTERMs

Sales at departure are covered by 8 INCOTERMs: On the main transport, the goods are transported at the risk and peril of the buyer.

• Multimodal INCOTERMs– Sale at departure: EXW / FCA / CPT / CIP
• Maritime INCOTERMs – Sale at departure: FAS / FOB / CFR / CIF

Sales at arrival are covered by 3 INCOTERMs: On the main transport, the goods are transported at the risk and peril of the seller.

• Multimodal INCOTERMs - Sale at arrival: DAP / DPU / DDP