PUBLIC NOTICE No.-27/2006 Date : 25.05.2006

Implementation of Software Module for Transshipment of Cargo from Port to another Port / ICD / CDS – reg.
Attention of all importers, Custom House Agents (CHA), Steamer / Shipping Agents (SA) / Shipping Lines (SL), Custodians of imported goods, officers of Customs and all others concerned is drawn to P. N. No.85/99 dated 29.07.99 regarding computerized processing of B/E and IGM and P.N. No. 42/99 dated 22.03.99 regarding S/B under ICES s had been introduced.

2. It has been decided to automate the Transshipment of containerized cargo from one Port to another Port or ICD/CFS. The effective date of this public notice is -01/06/2006.

3. Normally there will not be any need to file a separate application for transshipment and the SMTP portion of the IGM itself would be treated as an application for transshipment provided the following conditions are satisfied:-

(i) MLO’s obtain a one time registration with Custom House by filing an application in the format prescribed in Annexure ‘I’ to this pubic notice.

(ii) The field relating to the “Port of destination” is duly filled in and its value is different than the “Port of discharge” and its value is port code of any valid Indian ICD/CFS.

(iii) Shipping agents / MLOs register their bonds (either TP or GB), if they want to use their own bond for transhipment purposes. If they want to use carrier bond (i.e. 3rd party) then they must register the authorization from the agency whose bond is to be used for this purpose (In the format prescribed in Annexure VI). This bond registration no. would be used for auto debiting purposes.

(iv) The Bond value is calculated on the basis of the size of the container and not on the basis of Invoice value of the cargo contained in such containers. (In this case the bond amount would be calculated by the system on the default value linked to the size of containers which is picked up with reference to the ISO codes declared in the IGM. The option to calculate the bond amount on the basis of invoice value of cargo will not be available under this procedure as the invoice value is not available in the IGM)

(v) Transhipment fee is paid through a PLA being maintained by the shipping agent / MLO with the Customs House.

(vi) The agency transporting the containers to the destination ICDs is duly registered with the Customs House and a carrier code is allotted to it.

4. As mentioned above , normally there will not be any need to file any separate application for transshipment. However the request for transshipment will be required in the following circumstances:-

(i) the applicant, is other than Shipping Agent and MLO namely, CHA and importer.

(ii) the bond value is desired to be calculated on the basis of invoice value, instead of the default method based on number of containers and container size.

(iii) the TP fee is to be paid through Revenue Stamps or Challan.

(iv) the transshipment is not requested at the time of filing of IGM.

5. For treating the SMTP portion of IGM as request for transshipment , four new fields namely Bond Registration number, Carrier agency code , mode of transport and MLO Code are being introduced in cargo Line information ( Message 1B – SACHI 02 and Message 24 – CMCHI21) as this information is not available in IGMs but is required for transshipment. The field relating to “ Bond Registration No.” has been introduced so that the system can search for the bond which is required to be debited. The field relating to “ Carrier Agency Code” is being added so as to capture the actual carrier of the transshipped containers to the destination ICDs because in most of the cases the carrier is a person other than the shipping agent / MLO and their bond is also required to be debited. Similarly the field relating to “ Mode of Transport” is being added so as to capture the mode by which the transshipped containers would be transported to the destination ICDs. The revised formats of these messages are enclosed as Annexure- I and II to this Public Notice.

6. Formats of the following messages which are required to be exchanged for Transshipment of Cargo electronically among Customs, Port ,ICDs and SAs are specified in Annexure – V ,VII, VIII and IX respectively to this PN.

Message Name	Message No.	From	To
Request for Transshipment req _trans( Format in Annexure-V)	11SACHI 16	Applicant Agency(Shipping Agent/ MLO/ CHA/ Importer)	Customs
Acknowledgement for TP Requestack_trans( Format in Annexure-VII)	11ACHSAI22	Customs	Applicant Agency(Shipping Agent/ MLO/ CHA/ Importer)
Transshipment Permit Trans( Format in Annexure-VIII)	12CHPOI 17	Customs	Custodian (Port of Origin/ Terminal Operator/ Current CFS)
		Customs	Carrier Agency
		Customs	Applicant Agency(Shipping Agent/ MLO/ CHA/ Importer)
Transshipment Permit ( Printable version) trans_prn( Format in Annexure-IX)	CHSAI21		(Shipping Agent/ MLO/ CHA/ Importer)

7. Functions

This Module will facilitate the following user functions: -
1. Treating the SMTP portion of IGM as transshipment application.
2. Filling of Transshipment Request
(a) Through Service Center
(i) Through Data Entry
(ii) Through Floppy submission

(b) Through Network Submission ( ICEGATE)

3. Appraisal and total or partial approval of Transshipment Requests
4. Closing of Lines after Cargo reaches its destination Port
5. Registration of Authorized Agencies
6. Registration and Management of PLA Accounts

8. Procedure of Transshipment of Cargo From one Port to another Port or ICD/CFS

8.1 Submission of Transshipment Request ( In case of applicants other than shipping agents and MLOs namely CHA and importer or when transshipment is requested subsequent to filing of IGM)

(a) The Transshipment request for the movement of containerized cargo may be filed

i) in a paper form , or
ii) in electronic form

(b) The request can be filed by one of the following Agencies :

i) Shipping Agent (S)
ii) Customs House Agent (CHA)-on behalf of importers of Self Owned Containers (SOC ) only
iii) Importer – Only for self owned containers (SOC)
iv) Main Line Operator (M)

(c) The transshipment request can be filed after regular or prior IGM is filed. Transshipment approval would , however, be granted only after actual arrival of the cargo.

(d) The Shipping Agent, MLO , CHA and Importer and Carrier Agency (Transporter) are required to obtain one time registration by filing a registration request in a format given in the Annexure- III in the Service Centre. If they are already registered in a port then no separate registration is required. At the time of filing of IGM or filing of Transshipment request, the Agency type is validated by the system.

8.2 Filing of Transshipment Request in Paper Form

The Applicant Agency may file Transshipment Request in Paper form in the format as specified at Annexure-IV to this PN ,in the Service Centre. A data entry staff at the Service Centre will enter the information into the computer and generate a check list. A unique job no. will also be generated. The Applicant will verify and certify the correctness of the entered data. In case of any mistake in the data entry, the modification option of the system will be used to correct the data and again checklist will be generated for verification. This process will continue till data is certified as fully correct by the Applicant Agent. Only after that , the request will be submitted and the job will go to the queue of the proper officer in charge of TP Approval .

8.3 Filing of TP Request through EDI Message Format

(a) In case of filing of TP request in electronic form, the applicant shall use the specified message format as given in Annexure-V to this PN for filing Transshipment request. This can be submitted in two ways :

a- Through Floppy –Physically submitted at the Service Centre

b- Through Network-Submitted over Network ( ICEGATE) as EDI document

(b) The message file submitted either through floppy in the Service Centre, or through network ( ICEGATE) , undergoes a Validation check in the system, where all Syntax error and Data Error are checked. Only if the whole message is error free, than it is loaded into the system and a Job No. and Date is generated by the system. The message immediately appears on the screen of the approving officer for the TP. In case of error in the file, a file containing the nature of error is generated by the system.

(c ) The applicant agency would receive an acknowledgement ( positive or negative or partial ) as per the format as given in Annexure-VII to this PN.

9. Filing of TP request after filing the IGM

In case of filing of TP request after filing of IGM the system will automatically go for the full validation checks and in case of invalid data, error message will be generated In case of any error detected at the subsequent validation the invalid lines will go to the error queue.

9.1 Selection of Line for Transshipment

The applicant may specify lines in 2 modes :-

a). All Lines destined for a particular Port / ICD ( Here individual lines/sub-lines need not be specified and all lines for a given IGM and given Port of Destination are automatically selected by the system )

b). Selected set of lines for a particular Port / ICD ( Here lines/ containers are required to be specified explicitly )

9.2 Specification of Lines / Containers for Transshipment

For the Service Centre Data Entry mode, Lines pertaining to FCL containers are to be specified by their Line/Sub-line numbers, whereas lines belonging to LCL containers are to be specified by the container number only. All lines belonging to one LCL container have to be considered in one go. No individual line may be specified because LCL cargo will be transshipped as a whole and part transshipment is not allowed. For submission through EDI message format, however, only line-wise specification is allowed and in case of LCL cargo, the applicant shall ensure that all lines belonging to LCL cargo are specified.

10. Filling of TP Request before filing of IGM

(a) Normally a TP request is filed after filing the regular IGM. However, an option is given to the applicant to file the TP Request after filing prior IGM only i.e. even before IGM Line /Container details are filed. The TP request message will be loaded provisionally into the system with very limited validations (like format checking .etc.). Hence all the validations that are carried out at the time of filing TP request ( in case TP request is filed after filing of IGM ) with regards to matching of Line/sub-line, container type, destination port etc, will not be carried out. Request will be submitted as it is with limited validations and all major-cross checking with IGM will take place during approval stage only.

(b) In case of any mistakes, no error massage will be generated during request filing. After full IGM Line details are filed the system will automatically go for the full validation checks, and in case of invalid data, error message will be generated.

(c) In the Service Centre Data entry Mode also, in the absence of full IGM Lines/Containers details, the request can be filed without online validation at the line /container level. In case of any error detected at the subsequent validation ( after IGM details are available), the invalid lines will go to the error queue . The Applicant will have to file an amendment request for such line /container records. If however, the IGM Line /Container details are available at the time of Data entry, then the data entry as per the earlier specification (with full validation) will be done.

(d ) Since validation checks are carried out at the time of approval of transshipment request, only valid lines will be considered by the proper officer for approval. The remaining lines will be kept in the error queue and will have to be amended by the applicant agency.

10.1 Selection of Line for Transshipment

The application may specify lines in 2 modes :-

1. All Lines destined for a particular ICD / CFS ( Here individual lines/sub-lines need not be specified and all lines for a given IGM and given Port of Destination are automatically selected by the system )

2. Selected set of lines for a particular ICD / CFS ( Here lines/ containers are required to be specified explicitly)

10.2 Specification of Lines / Containers for Transshipment

For the Service Centre Data Entry mode, Lines pertaining to FCL containers are to be specified by their Line/Sub-line numbers, whereas lines belonging to LCL containers are to be specified by the container number only. All lines belonging to one LCL container have to be considered in one go. No individual line may be specified because LCL cargo will be transshipped as a whole and part transshipment is not allowed. For submission through EDI message format, however, only line-wise specification is to be made and in case of LCL cargo, the applicant shall ensure that all lines belonging to LCL cargo are specified.

11. Payment of TP Fees

The requisite fee of Rs.20/- is to be paid for processing each Transshipment document. The fee can be paid through the following modes – which is to be specified in the Transshipment request.

P – PLA

R – Revenue Stamps

11.1 PLA Account

For payment through PLA account, the shipping agent / MLO / applicant must register a PLA account and deposit the requisite amount from time to time to keep the sufficient balance in the said PLA. When a transshipment is granted, the System checks for the existence of PLA account in the name of shipping agent / MLO / Applicant Agency and automatically debits TP Fee from this account.

11.2 Revenue Stamp

In this mode, revenue stamps of required value are to be pasted on the physical document in which the request is filed.

12. Furnishing of Bond

For moving goods from the Gateway Port to the destination Port, Transshipment Bond supported by Bank Guarantee are required to be furnished by the shipping agent / MLO / applicant before the transshipment is granted by Customs. The calculation of Bond and BG amount varies according to type of applicant and container specification and / or invoice value of Cargo.

12.1 Bond Specification

The shipping agent / MLO / applicant of a TP request can specify bond no. in the following ways :

(a) Bond No. registered in the name of the shipping agent / MLO / applicant – in this case shipping agent / MLO / applicant will specifically mention the Bond No. registered in his own name and the system will check the existence, validity and credit balance for the bond and use it for debiting purpose.

(b) Bond No. registered in the name of the carrier—in this case shipping agent / MLO / applicant will mention the bond no. of the carrier and the system will check the bond status and also authority granted by the carrier to the shipping agent / MLO / applicant and use the said bond for the debiting purpose.

12.2 Bond Account

All the shipping agent / MLO / applicant seeking Transshipment Request must register either their own TP Bond or ensure the registration of carrier’s bond with concerned Customs office through the use of Bond Module of the ICES Software. In case of carrier’s bond the shipping agent / MLO / applicant shall register the authority given by the carrier agency by submitting the bond authorization application as per the format as at Annexure-VI to this public notice. The shipping agent / MLO / Applicant Agency must ensure that the required TP/GB Bond with adequate balance should exist. Although at the time of filing of request, this requirement is not enforced, however, at the time of granting of TP, the permission will be held up if appropriate bond with required balance is not found.

12.3 Bank Guarantee

Apart from the bond amount, a Bank Guarantee equivalent to 15% of bond value is also required to be executed during granting of TP. The procedure of registering and debiting of the BG Value is same as that of TP Bond. However, certain categories of persons are exempt from executing the Bank Guarantee

12.4 Bond Amount calculation

(a) When a IGM having SMTP portion / transshipment request is filed, the system identifies all the containers associated with these lines and checks the ISO code for these containers as specified in the IGM. From the ISO code, container size (either 20’ or 40’) is determind and based on this bond value calculation is made ( For 20’ Container – Rs. 6.00 Lakh and for 40’ Container – Rs. 12.00 Lakh).

(b) Total bond value for all the lines / containers in a IGM having SMTP portion / transshipment Request is determined automatically by the system and is debited from the bond amount of the shipping agent / MLO / Applicant/Carrier Agency, as the case may be , at the time of granting of transshipment.

(C) The Applicant can exercise the choice to override the default calculation of Bond Value described above by specifying the invoice / assessable value of the Cargo Lines, if these are known to him .It is also possible to furnish this value for a few lines and leave others for default calculation method. The Invoice/ Assessable value is required to be furnished in the applicable foreign currency along with the currency code. If these are not valid, then the default calculation method will come into effect. The system will take care to convert the foreign currency value to INR as per the exchange rate in force on the day of submission of the request.

12.5 Re credit in bond account

On submission of landing certificate by the shipping agent / MLO/ applicant agency or on receipt of the same electronically from destination ICD , the bond account pertaining to those lines would be credited.

13. Approval of Transshipment

After filing of IGM having SMTP portion or after a Transshipment request is successfully filed through Service Centre or through Network, it immediately appears on the queue of the Customs Officer authorized to grant transshipment. The said officer can either grant the transshipment or reject the same . In case of Total / Partial rejection of TP request the rejected lines will go to error queue and the shipping agent / MLO / Applicant Agency can re-submit the request for transshipment as per the same procedure by which earlier request was filed.

14. Generation of TP

After a request is granted, the Transshipment Permit is generated, which gives the relevant details of the TP along with a list of containers to be transshipped. This permit is generated both in

(a) Paper form – which is a printed copy of the Transshipment Permit and is handed over to the shipping agent / MLO / Applicant Agency by the Authorized customs Officer.

(b) EDI Message Form – This is transmitted through the network ( ICEGATE) to the following parties in the prescribed format as at Annexure- VIII to this public notice :-

i) Port of origin ( Terminal operator)

ii) Destination Port / ICD

iii) Applicant Agency / shipping agent / MLO

The applicant agency can integrate this message in their database and print the Transshipment Permit in their office.

(c) EDI Message Form ( in printable form ) – This is transmitted through the network ( ICEGATE) to the applicant agency in the prescribed text format as at Annexure-IX to this public notice. In this case the transshipment permit can be printed directly.

15. Closure of Transshipped Lines

(a) Closing of TP lines is the last step in the chain of processing involved in the Transshipment of cargo .The lines for which TP is granted are physically transported to the destination Port/ICD as per the TP permit.

(b) After the containers arrive at the destination ICD the carrier would submit a train arrival summary at the destination ICD and a Landing Certificate is generated at the destination ICD if it is an ICES location. The said landing certificate would be transmitted electronically to this gateway port and the lines pertaining to the containers for which the landing certificate has been received online from the destination ICD would be closed automatically.

(c) In cases where destination ICD is not an ICES location , the landing certificate is to be obtained by the Agency in whose name the TP was granted. This Landing Certificate is to be submitted to the Authorized Officer in charge of Line Closing at the port of origin from where the transshipment request was granted. The proper officer will use the Line Closing form which provides him with a pending queue for all lines already approved but not yet closed. The proper officer will bring out the required set of lines belonging to the relevant TP and then individually close lines as per the landing certificate. It is not necessary that all the lines belonging to a TP set or an IGM should be closed in one go as the closing will take place on submission of landing certificate.

16. Grievance Handling

Any difficulties faced in the implantation of the Public Notice may be brought to the notice of the concerned Joint Commissioner / Additional Commissioner of 0Import Department. For system related problems, the Trade may approach Deputy Commissioner / Joint Commissioner EDI Section.

F.No. S/1-44/2006 EDI

(A.K.PRASAD)
Commissioner of Customs (Import)
Mumbai

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