Brihanmumbai Custom

Brokers Association

PRESENTS
NAVAL MEHTA MEMORIAL
REFRESHER COURSE FOR
< RULE 6 >
CUSTOMS EXAMINATION
UNDER GUIDANCE FROM
 MULTIMODAL TRANSPORTATION

The emergence of the container technology has

immensely facilitated the multimodal transport of goods
in the course of International Trade.
Transformation of trade and transport are inextricably
linked to efficient transport services as it covers the door-
to-door movement of goods under the responsibility of a
single transport operator which is a prerequisite to
successful trading.
Thus we see import/export cargo movement by sea, river,
air, road and rail.
 MULTIMODAL TRANSPORTATION
i) From one customs port/airport to another customs port/
airport.
ii) From one customs station to another customs station.
iii)From one custom bonded warehouse to another custom
bonded warehouse.
iv)From one coastal station to another coastal station through a
Foreign Territory.
v) From an Indian port/airport to a Foreign Territory and vice-
versa.
vi) From an International Airport to an Airfreight Station (Dry
Port/ CFS/ICD.
 MOVEMENT OF GOODS
1.Coastal goods
 Movement of goods from one Indian port to another .
 Movement of Goods through a designated foreign
route i.e. goods transported between an Indian port on east
coast and an 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.
 Movement of Goods 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.
 MOVEMENT OF GOODS
2.Transit goods
 Movement of foreign goods from one International
Port/Airport in India to another International Port/ Airport
in India or another Foreign country in the same Vessel.
3. Transshipment of goods
 Movement of foreign goods from a Gateway Port/
Airport in India to any other Port/ Airport/Dry Port/ CFS
/ICD or Vice-Versa using 2 or more modes of
Transportation.
 Movement of goods under an international treaty or
bilateral agreement between the Government of India and
Government of a foreign country,
 CHAPTER VIII - GOODS IN TRANSIT

Sec.52 - Chapter not to apply to baggage, postal articles and

stores
By virtue of this section, these provisions do not apply to
baggage, postal articles and stores.

Sec.53 - Transit of certain goods without payment of duty

By virtue of this section, any goods imported in a conveyance and
mentioned in the Import Manifest/Report, for transit in the same
conveyance to any place outside India or any customs station may
be alowed to transit without payment of customs duty, but subject
to sec. 11 – prohibitions.
 CHAPTER VIII - GOODS IN TRANSIT

Sec.54 - Transshipment of certain goods without payment of duty

By virtue of this section, any goods imported in a conveyance and
mentioned in the Import Manifest/Report, for transshipment to any
place outside India or to any other Port / Airport / ICD / CFS / EOU /
EPZ / SEZ in India, may be allowed to be so transshipped without
payment of customs duty, but subject to sec. 11 – prohibitions and any
other prescribed conditions.
Sec.55 - Liability of duty on goods transited under sec. 53 or
transshipped under sec. 54
By virtue of this section, any goods which are allowed to be transitted /
transshipped under sec.53 or sec.54 shall be liable to duty on their
arrival at such customs station as on the first importation.
 CHAPTER VIII - GOODS IN TRANSIT

Sec.56 - Transport of certain classes of goods subject

to prescribed conditions
By virtue of this section, imported goods may be
transported from one customs station to another in
India, or pass through any foreign territory subject to
such conditions prescribed for the due arrival of the
goods at the place of destination.
 THE SEA CARGO MANIFEST AND
TRANSHIPMENT REGULATIONS, 2018
The various provisions of The Sea Cargo Manifest and
Transhipment Regulations, 2018 have now made it mandatory for
all carriers of import/export /coastal/transshipment cargo to be
registered as an authorised carrier.

Transportation of all import/export/coastal cargo should be only

by containers, vessels, trains or closed trucks.

The authorized carriers are now required to deliver an arrival

manifest or departure manifest as prescribed i.e. an integrated
declaration, electronically through ICEGATE, on arrival of the
vessel or train or truck carrying imported goods, export goods,
transshipment goods and coastal goods.
 SCMTR-2018 (Reg.2) - DEFINITIONS

(a) “authorised carrier” means an authorised sea carrier, authorised

train operator, shipping line or a custodian registered under Reg. 3;
(b) “authorised sea carrier” means the master of the vessel carrying
imported goods, export goods and coastal goods or his agent;
(c) “authorised train operator” means the train operator carrying
imported goods, export goods and coastal goods;
(d) “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;
(e) “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;
SCMTR-2018 (Reg.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.
(2) Where the Jurisdictional Commissioner of Customs is satisfied
with the information provided by the applicant, he shall register such
applicant for transacting business under these regulations;
(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 registration shall be valid unless and until revoked.
(5) The registration of the authorised carrier shall be deemed invalid if
the authorised carrier is found to be inactive for a period of one year.
 SCMTR-2018 (Reg.4) - ARRIVAL MANIFEST

(1) An authorised sea carrier carrying imported/export/ coastal

goods, shall deliver the arrival manifest to the proper officer
electronically.
In cases it is not possible to deliver the arrival manifest
electronically then it shall be submitted manually in duplicate
with the approval of the Commissioner.
(2) The arrival manifest shall consist of, -
(a) an application for entry inwards (except in case of vessel
carrying exclusive coastal goods);
(b) a general declaration;
(c) vessel’s stores list;
SCMTR-2018 (Reg.4) - ARRIVAL MANIFEST

(d) list of private property in the possession of the

Master and crew,
(e) cargo declaration;
(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.
SCMTR-2018 (Reg.5)-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.
In cases 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.
SCMTR-2018 (Reg.5) - DEPARTURE MANIFEST

(2) The departure manifest shall consist of, -

(a) a general declaration;
(b) a vessel’s stores list;
(c) a list of private property in the possession of the Master
and crew;
(d) a cargo declaration;
(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.
 SCMTR-2018 (Reg.6) - SPECIFIC CARGO

(1) the cargo declaration for import, export, transshipment, 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.
(a) arms;
(b) ammunition;
(c) explosives;
(d) narcotics and psychotropic substances;
(e) dangerous drugs;
(f) gold;
(g) silver;
(h) radio-active material
(2) Where a vessel does not carry any of the cargoes referred above, a
nil declaration shall be delivered.
 SCMTR-2018 (Reg.9) - CONDITIONS OF TP

(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 with or without bank
guarantee or surety. In cases where the transhipment of goods is
directly between two sea ports, no bond and bank Guarantee shall be
furnished;
(d) in the case of imported goods meant for transhipment by land route,
the proper officer 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 with or
without bank guarantee or surety.
 SCMTR-2018 (Reg.10) - RESPONSIBILITIES
An authorised carrier shall-
(a) transact business in the customs station either personally or
through an employee duly approved by the Assistant/Deputy
Commissioner of Customs;
(b) keep a record of imported goods, export goods, coastal goods or
goods brought for transhipment 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;
 SCMTR-2018 (Reg.10) - RESPONSIBILITIES
(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 enroute;
(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/Assistant commissioner of customs;
(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;
 SCMTR-2018 (Reg.10) - RESPONSIBILITIES

(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;
(l) not charge any rent or demurrage on the goods seized or
detained or confiscated by the Customs Authorites;
(m) abide by all the provisions of the Act and the rules,
regulations, notifications and orders issued there under.
 SCMTR-2018 (Reg.11) -
SUSPENSION/REVOCATION
(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 may, subject to the provisions of
regulation 12, suspend the operations of such authorised carrier in his
jurisdiction by an order, for reason to be recorded in writing, on any of
the following grounds, namely:
(a) failure to comply with any of the provisions of these regulations,
within his jurisdiction or anywhere else;
(b) failure to comply with any of the conditions of the bond executed
by him under these regulations;
(c) any misconduct, within his jurisdiction, which in the opinion of the
Commissioner of Customs renders him unfit to transact any business in
the Customs Station;
 SCMTR-2018 (Reg.11) -
SUSPENSION/REVOCATION
(d) adjudicated as an insolvent;
(e) of unsound mind;
(f) convicted by a competent court for an offence involving moral
turpitude or otherwise”.
(3) The Commissioner of Customs shall grant a personal hearing,
within fifteen days from the date of such suspension order and pass
such order within fifteen days, either revoking the suspension or
continuing it for a further period not exceeding ninety days from the
date of suspension.
If the suspension 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.
 SCMTR-2018 (Reg.12) -
PROCEDURE FOR REVOCATION
(1) The Commissioner of Customs shall issue a notice stating
the grounds on which it is proposed to revoke the registration
and requiring the said person to submit within thirty days, 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/Assistant Commissioner of Customs so nominated.
(2) On receipt of the written statement, or where no such
statement has been received, the Deputy/Assistant
Commissioner of Customs, may inquire into the grounds of the
revocation as stated in the notice.
(3) The Deputy/Assistant Commissioner of Customs, shall in the
course of inquiry, consider documentary & 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.
 SCMTR-2018 (Reg.12) -
PROCEDURE FOR REVOCATION
(4) The authorised carrier shall be entitled to cross-examine the persons
examined and where the Deputy/Ass. Commissioner of Customs,
declines to examine, he shall record his reasons in writing for so doing.
(5) At the conclusion of the inquiry, the Deputy/Ass. Commissioner of
Customs shall prepare the report of inquiry and after recording his
findings thereon, submit the report within a period of ninety days from
the date of issue of the notice.
(6) The Commissioner of Customs shall provide to the authorised
carrier a copy of the report of the Deputy/Ass. Commissioner of
Customs, and shall require the authorised carrier for any further
submission against the findings.
(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.
SCMTR-2018 (Reg.13) - PENALTY

An authorised carrier who contravenes any provision of

these regulations shall be liable to a penalty which may
extend to rupees fifty thousand.

SCMTR-2018 (Reg.14) - APPEAL

Any person aggrieved by any decision or order passed

under this regulation, may appeal to the Customs, Excise
and Service Tax Appellate Tribunal - CESTAT
 GOODS IMPORTED (CONDITIONS OF
TRANSSHIPMENT) REGULATIONS, 1995

Conditions governing transshipment.

Transshipment shall be allowed under these regulations
on the conditions that :
(a) the declarant makes an application to the proper
officer of customs seeking permission for
transshipment of the goods imported;
(b) the goods imported are mentioned in the import
manifest or the import report, as the case may be, as for
transshipment to any customs station;
(c) such transshipment is by an Authorised Carrier - rail,
a vessel, an aircraft or a motor vehicle or by a
combination of two or more of these modes of transport:
 GOODS IMPORTED (CONDITIONS OF
TRANSSHIPMENT) REGULATIONS, 1995
 In case of removal of goods from a customs station for
deposit into a warehouse, the regulations require that
transportation of the such goods has to be done only in
containers or closed trucks by authorised carrier as per
SCMTR, 2018.
 The containers or closed trucks by authorised carrier
should be affixed with a one-time lock (serially
numbered RFID seal) by the proper officer at the
customs station.
 The RFID-OTL number along with the date / time of its
affixation should be endorsed on the bill of entry and the
transport document.
 GOODS IMPORTED (CONDITIONS OF
TRANSSHIPMENT) REGULATIONS, 1995
 The warehouse keeper or bond officer is required check that the
goods arriving at the warehouse from a customs station is affixed
with the proper RFID-OTL seal as per the serial number endorsed
upon the bill of entry for warehousing and the transport document.
 The warehouse keeper or bond officer is required to inspect the
seal and when it is found intact, permit the goods to be unloaded
at the warehouse.
 In case the RFID-OTL seal is not intact or there is any mismatch
in the number, the goods are to be examined 100% by the
Customs Bond Officer stationed at the Bonded
Warehouse/Customs station.
 The Re-warehousing certificate is to be issued only if the goods
upon examination are found to tally with the respective
accompanying documents.
 GOODS IMPORTED (CONDITIONS OF
TRANSSHIPMENT) REGULATIONS, 1995

 The importer shall obtain comprehensive transit risk

insurance policy to cover the transit of goods, equal in
sum to the duty involved on the goods, in favour of
the President of India. Transit will refer to movements
from:
 (i) the customs station of import to the warehouse; or
 (ii) a warehouse to another warehouse; or
 (iii) a warehouse to a customs station for export.
 TRANSSHIPMENT PERMIT

 A 'transshipment permit‘ ( T. P. ) is the permission

granted by the Customs, at the port/airport of
unloading of imported goods, to Shipping Agents /
Airlines for carriage of goods to another port/ airport
/ICD/CFS/EOU /EPZ/SEZ in India.
 To ensure that imported cargo, on which duty has
not been paid, are not pilfered en-route to another
port/airport/ ICD/CFS /EOU/ EPZ /SEZ and reach
there safely, a bond with bank guarantee is executed
by the Authorised Carrier engaged for the
transshipment of the goods.
 TRANSSHIPMENT PERMIT

 A Transshipment Permit is filed in ICES thru ICEGATE

& the required Transit/ Security Bond uploaded.
 The ICES module will process the transshipment cargo.
 Assessment is not done for Valuation or Duty.
 Examination of the goods is done due to Prohibitions.
 Transshipment permit is to be printed by the authorised
carrier in his office.
 TRAN S S H I PM E NT
1. The transshipment permit information is sent
electronically to the authorised carrier, the transporter
undertaking the transshipment, custodian of the gateway
port, and the ICES system at the destination Customs
Station.
2. The regulations require that goods arriving at the
destination from a customs station shall be affixed with a
one-time-lock (RFID-OTL) with its serial number
endorsed upon the transport document.
3. The warehouse keeper or bond officer is required to
inspect the seal and when it is found intact, permit the
goods to be unloaded at that customs station.
 ALTERNATIVE PROCEDURE
FOR TRANSSHIPMENT
The Primary condition is that the Goods must be mentioned
in the TP Sheet of the IGM, if not mentioned, the alternative
procedure would be under Warehousing Chapter IX - i.e.
File an Into-Bond B.E.;
Request for waiver of physical bonding of Goods;
File an Ex-Bond S.B.;
Consignor – Bond Officer, Originating Custom Station.
Consignee – Bond Officer, Destination Custom Station.
Complete the balance procedure as for TP.
 TRANSPORTATION OF GOODS (THROUGH
FOREIGN TERRITORY), REGULATIONS, 2020
1. These regulations shall apply to the movement of goods, -
(i) under the Agreement on the use of Chattogram and Mongla
Ports for Movement of Goods to and from India,
Bangladesh and India;
(ii) under the Protocol on Inland Water Transit and Trade
between Bangladesh and India. And
(ii) from one part of India to another through a land route
which lies partly over the territory of a foreign country.
2. These regulations shall not apply to the movement of export-
import cargo between India and Bangladesh or export to third
countries.
 TRANSPORTATION OF GOODS (THROUGH
FOREIGN TERRITORY), REGULATIONS, 2020

3. The consignor of the goods or the carrier of the goods or their

authorised agent shall, at the customs station of exit in India shall file
a Customs Transit Declaration,
4. Execute a bond, for the value of the goods, to ensure safe
transportation of the goods up to the destination declared.
5. Permission for transhipment is granted by the proper officer as per
all the provisions of the SCMTR, 2018 and the goods would be
transported to a Foreign Territory.
6. The customs officer at the customs station of re-entry in India
makes an electronic entry accessible to the customs station of exit
regarding the due arrival of the goods and the Customs Transit
Declaration is endorsed.
 Chapter XII - Provisions relating to coastal goods
and vessels carrying coastal goods
 Coastal goods - Movement of goods from one Indian (domestic)
port to another (domestic) port.

 Provisions of Customs Act, ‘62 – Sec. 91 to 99 would apply as

follows:-
a).The consignor of any coastal goods shall make present a bill of
coastal goods duly passed by the proper officer of customs to the
Master of the vessel (Tandel).
b) The Master of the vessel (Tandel) shall subsequently allow loading
the coastal goods.
c) He shall carry all such bills and deliver the same to the proper office
of customs, before unloading the goods, to permit the clearance of the
goods.
 Chapter XII - Provisions relating to coastal goods
and vessels carrying coastal goods
d) He shall carry on board an advice book, supplied to him
by the customs authorities, and present the same to the
proper officer of customs for inspection or for making
entries therein.
e) Sec.33, 34 & 36 (Manifest) shall apply to coastal goods
and sec. 37 & 38 (Manifest) shall apply to vessels carrying
coastal goods.
f) The coasting vessel may depart only after the Master has
obtained a written order from the proper officer of customs
after complying with all the requirements of the Act as
applicable.
THANK YOU !

OH! OH!
THIS NEEDS A
DEEPER STUDY