Circular No. 40/2016-Customs
F.No.450/55/2008-CusIV (Pt. Ill)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
227B North Block,
New Delhi dated the 26th August, 2016
To,
Principal Director General/ Director General, DRI
All Principal Chief Commissioners/ Chief Commissioners of Customs/Customs
(Preventive)
All Principal Chief Commissioners/Chief Commissioners of Customs & Central Excise
All Principal Commissioners/Commissioners of Customs/Customs (Preventive)
All Principal Commissioners/Commissioners of Customs & Central Excise
Sir/Madam,
Subject: Guidelines on safety and security of premises where imported or export goods
are loaded, unloaded, handled or stored-reg.
Attention is invited to the Board's Circular No.4/2011-Cus dt. 10. 1.2011, wherein, vide
Annexure-A appended to the circular, CBEC has prescribed comprehensive guidelines on safety
and security of premises where imported or export goods are loaded, unloaded, handled or
stored. It has been specifically provided that imported goods or export goods which are
hazardous in nature shall be stored at the approved premises of the customs cargo service
provider (CCSP) in an isolated place duly separated from other general cargo, depending upon
classification of its hazardous nature such as explosives, gases, flammable liquids, flammable
solids, poisonous and infectious substances, radioactive material or any hazardous chemicals
defined under respective rules.
2. It is further provided that the space allocated for storage of hazardous cargo within the
notified premises should be of proper construction including appropriate heat or fire resistant
walls, RCC roofing, flooring. Such area shall be situated at a minimum distance of 200 metres
away from main office, administrative, customs office building so that the storage of hazardous
cargo is in such a manner that it does not endanger the people working in the premises.
3. M/s. CFS Association of India had filed W.P. No.3651/201 1 in the High Court of
Judicature at Bombay inter-alia challenging the CBEC Circular No. 4/2011-Cus, Public Notice
No. 8/201 1 dated 4.2.201 1 issued by the Commissioner of Customs Raigad, Maharashtra. While
disposing off the said WP, the Hon'ble Bombay High Court observed:
In the exercise of its jurisdiction under Article 226 of the Constitution, this Court has to be
mindful of the fact that issues such as the maintenance of a safe distance between general
and hazardous cargo are matters of scientific expertise where the Court would place a
degree of deference on the decision which is taken by the Commissioner of Customs. The
Commissioner of Customs is an authority which is vested with the jurisdiction and
obligation to take such a decision under the Regulations of 2009. Unless there is
something arbitrary, the Court would not be inclined to interfere. The communication
which has been issued by the Central Board of Excise and Customs on 6' April, 2011
clarifies that the matter has now been referred to the Union Ministry of Environment and
Forests and to the Union Ministry of Shipping. Obviously, in such matters a decision
which is once taken is capable of being altered having regard to the requirements of safety
and security and after taking into account practical concerns which are expressed by trade
and industry. The concerns of safety and security need continuous monitoring and
evaluation. A standard once laid down is not immune to change. In our view, it would be
appropriate, since a process of re-examination has been initiated by the Central Board of
Excise and Customs, if the Competent Authority in that regard is left to take a considered
decision after considering all the requisite facets of the case. We accordingly would expect
that the concerned Ministries of the Union Government which are seized of the issue
namely, the Union Ministry of Finance (Department of Revenue), the Union Ministry of
Environment and Forests and the Union Ministry of Shipping will undertake a
collaborative exercise and arrive at a decision, based on the views of experts and the need
to maintain safety and security. Nothing arbitrary in the decisions impugned before the
Court is shown. With these observations, we accordingly dispose of the Petition. No order
as to costs.
4. Pursuant to the decision of the High Court in the Writ Petition No. 3651/2011, a
joint Technical Committee comprising of Members from MoEF, Ministry of Shipping,
CBEC, Port Trust, etc., was constituted to give recommendations on the distance(s) to be
maintained between the hazardous cargo and the general cargo in the customs area on one hand
and between the hazardous cargo and the administrative building on the other.
5. The Committee has submitted its recommendations which have been accepted in
the MoEF & CBEC. Accordingly, the guidelines in so far as prescribing the distance to be
maintained between hazardous cargo including explosives and general cargo or
administrative building in a Customs area would be as follows:
a. Among the various hazardous goods imported or exported, explosives have to
be considered separately in view of the severity of hazard, safety procedure and skill
etc. required in their handling and storage.
b. The safe distances between buildings and hazardous cargoes other than explosives
varies from 3 meters to 30 meters, in various rules and practices, in other ports
outside the country. In order to have uniformity, the distance of 30 meters is
prescribed to be maintained between hazardous cargo (other than explosives) and
administrative buildings. However, the distance of 200 meter as mentioned in
CBEC Circular No.4/2011 would be observed between the hazardous cargo
(explosive in nature) and the administrative buildings. The distance to be maintained
between hazardous cargo and general cargo would be as prescribed in IMDG
(International Maritime Dangerous Goods) Code for storage in port areas.
c. The safe distance for storing hazardous goods including explosives on land i.e
Container Depot, CCSP area, Customs notified area etc. (other than port area) for
which specific rules exists shall be guided by said rules i.e Gas Cylinder Rules,
2004; the Explosive Rules, 2008; Petroleum Rules, 2002; Static and Mobile
Pressure Rules, 1981 etc., as applicable.
d. In case of anomaly, between port rules and respective specific rules governing storage
of a particular hazardous good, the provision of specific rules shall over ride the port
rules.
6. The guidelines contained in Annexure-A of CBEC circular No.4/2011 dated 10.1.2011
shall stand modified to the above extent.
7. Suitable Public Notice be issued by the field formations.
8. Difficulties, if any, in implementation, be brought to notice of the Board.
Yours faithfully,
(Zubair Riaz)
Director (Customs)
