Circular No. 44/2020-Customs
F.No.394/86/2020-Cus(AS)
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Indirect Taxes and Customs)
KEK
Room 512, Hudco Vishala Building New Delhi,
dated the 08" October, 2020
To,
All Principal Chief Commissioner/ Chief Commissioner of Customs,
All Principal Chief Commissioner/ Chief Commissioner of Customs (P),
All Principal Chief Commissioner/Chief Commissioner of Customs and CGST,
Webmaster, CBIC.
Madam /Sir,
Subject: Procedure for inspection of ICDs/CFSs/AFSs -reg.
Kind reference is drawn to Audit Report 16 of 2018 on Working of Inland Container
Depots (ICDs) and Container Freight Stations (CFSs) wherein several deficiencies have been
pointed out by the Audit. Major deficiencies pointed out by the Audit are related to land
area
requirement, infrastructure, specified demarcated areas for imported and export goods
and fumigation, adequate space for storing hazardous goods, monitoring of the movement
of export and import cargo, handling of un-cleared cargo, execution of Bond, Bank
Guarantee and Insurance and theft and pilferage of cargo.
2. Further the Audit, among other things, observed that there is lack of internal control
including internal audit and inspection. Audit has also observed that corrective action on
systemic deficiencies should not be restricted to the instances commented in audit report
and all the field formations may be sensitized about the system deficiencics.
a The Board vide Notification No. 26/2009-Customs (N.T.) dated 17.3.2009 notified
Handling of Cargo in Customs Area Regulations 2009 to regulate the functioning of
Customs Cargo Service Providers including custodians of ICDs/CFSs. Further, Circular
13/2009 dated 23.03.2009, Circular No. 04/2011 dated 10.01.2011, Circular No. 40/2016
dated 26.08.2016 and Circular No. 49/2018 dated 03.12.2018 were also issued to
streamline various procedures relating to ICDs/CFSs. Further, D.O letter No.
434/15/2017-Cus.IV dated 16.08.2019 was issued by Member (Customs) wherein, he has
inter alia, stated that it is necessary that each ICD/CFS is closely monitored by way of
some sort of audit /visits to ensure that the performance of ICDs/CFSs is of desired
standards and requested to put a system in place and take necessary action in a time
bound manner. Chicf Commissioners were requested to take stock of the issues for all
ICDs/CFSs under their jurisdiction, draw a plan for time bound actions and submit an
action taken report by 30th November, 2019. However, the compliance reports in response
to the above letter are not complete in many zones. Apparently, many other field formations
are not checking the performance of ICDs and CF$Ss in their jurisdiction in a systemic way
on regular basis.
4. Therefore, Board has decided to put in place a proper system for regular inspection
for ICDs/CFSs. Such a system would ensure better functioning of ICDs/CFSs in future and
would be of great benefit to the importers and exporters using these facilities. Periodical
inspections and remedial actions would also avoid these kinds of audit objections. It will
bring accountability, standardization and better facility for cross-border trading and in turn
improve ease of doing business.
5. Accordingly, the Board directs that
(i) The jurisdictional Commissioner at the beginning of every financial year shall
chalk out an action plan to conduct inspection of ICDs/CFSs in their
jurisdiction, by an officer of the rank of Deputy/ Assistant Commissioner or
above (who is not in-charge of such ICD/CFS) once every financial year
probably in the first quarter of the financial year.
(ii) A report on the inspection conducted shall be submitted to the jurisdictional
Commissioner of Customs with copy to Chicf Commissioner concerned in the
proforma given as per Annexure.
(iii) The first inspection, wherever required, shall be completed by 31.12.2020.
(iv) The jurisdictional Commissioner of Customs upon receipt of the inspection
report shall take remedial action wherever deficiencies are noticed including
penal action on the defaulting ICDs/CFSs.
(v) Normally the operations and records in respect of the previous financial year
shall be covered in the inspection.
(vi) For the ICDs/CFSs, which have not been inspected/audited so far, the initial
inspection shall be for the period of last five years or from the date of
commencement whichever is earlier.
(vii) The Directorate General of Performance Management during the inspections of
ficld commissionerates, done by them shall also examine the records relating
to the inspections of ICDs/CFSs
6. All the field formation and stakcholders may be suitably sensitized about the
circular.
7. Difficulty, if any, faced in the implementation may please be brought to the notice of
the Board.
Encl: As above
OSD (Anti Smuggling)
PROFORMA FOR INSPECTION OF ICD/CFS/AFS
Note: Detailed remark on the lapses during the inspection period along with recommendation to be entered by the inspection team, if
answer is No unless otherwise specified
A. Preliminary
1. Date of Inspection
2. Inspection Team
Team Name / | Designation
“Leader
| Member(s)
Nature of the facility : ICD/CFS/AFS
Name of the facility y
Ownership nature : PSU/Pvt.Ltd/Public Ltd./Proprietorship
Name and Address of Authorised
Persons/Officials for the formation
7. Details of
a. Notification (s)
b. Public Notice (s)
8. Date of Commencement
Nm
es
9. Date of last renewal if applicable :
10. Volume handled in the past three years (TE Us/ACUs)
- - oe
Year Import Vol. | Export Vol. Total Vol. % Capacity Utilisation
(TEU) _
| (TEU) (TEU)
| SS
202.. |
—
202.. | |
| _
11. Date of previous Inspection (if any)
12. Period covered in the present Inspection!
‘If it is the initial inspection the period of last five year or from the date of commencement, which ever is less shall
be taken up for inspection.
Signature Page 10f9
13. Details
a
i.
iii.
of compliance of Previous inspection report:
Number of objections for which the
Action taken is satisfactory
Number of objections for which the
action taken is partly satisfactory
Number of objections for which the
action taken is not satisfactory
Details of such objection where the
action taken is partly satisfactory and
not satisfactory
14. Details of Penal action against Custodian, if any:
B. Staff Position”
1. Details of Cost Recovery Post/Regular posts sanctioned against this facility :
S.No.
AC/DC
Designation Sanctioned
Superintendent
Inspectors
Sepoy/Hawaldar
|
!
|
Working
2. Whether Staff posted in the formation is as per staffing norms and adequate?
3. Whether the cost recovery charges are paid upto date?
(In case exempted from payment of cost recovery charges, the date and authority of such
exemptions shall be provided).
> HCCAR 2009, Circular 04/2011 dated 10.01.2011
Signature
Page 2 of 9
C. Bonds and Bank Guarantees®
1. Whether the indemnity bond undertaking to indemnify the Commissioner of Customs as
per Regulation 5(6) is submitted?
2. Whether a bond equal to the average amount of duty involved on the imported goods and
10% of value of export goods likely to be stored in the said customs area along with
appropriate Bank Guarantee has been executed as per Regulation 5(3) and 5(4) ibid?
Amount and validity
3
furnished)
4. Details of Bonds and Insurance:
Type of
surety/security
Bond
Bank Guarantee
Insurance
l
D. Infrastructure’
. Whether appropriate insurance cover is taken as per Regulation 5(1) (iii)? (Details to be
Remarks if any
1. Whether the facility fulfils the land area requirement? (location map with aerial and floor
plan to be attached )
Covered area
Total Area (in hectares)
Customs Bonded area
Number of sheds
> HCCAR 2009, Circular 04/2011 dated 10.01.2011
*HCCAR 2009, Circular 04/2011 dated 10.01.2011
Signature
Page 3 of 9
2. Whether adequate provision is made for standard pavement for heavy duty equipment for
use in the operational and stacking area?
Whether adequate arrangements are made for fully furnished office accommodation for
Customs officers including provisions made for Customs staff at the Gate?
4. Whether general facilities such as ventilation, electricity system, emergency exit etc. are
(os)
provided?
5. Whether provisions for adequate space with basic amenities and facilities have been
made for PGAs/ other agencies? ;
6. Whether provision is made for storage, separately for
(i) Imported goods,
(ii)Export goods,
(iii) Transhipment goods
7. Whether separate area has been earmarked for the goods detained/ Confiscated by the
Customs? (specifically mark in floor plan at 7 above)
8. Whether separate demarcated area for fumigation has been adequately provided?
9. Whether adequate parking space (taking into consideration average traffic) for vehicle is
provided?
10. Whether provision is made for electronic weigh-bridge and other weighing measuring
devices along with record keeping of weight for future verification?
11. Whether equipment? availability satisfies the requirement of the facility? (Type wise
details to be provided)
12. Whether the equipments installed for different purposes such as handling, weighing etc.
are checked and calibrated from time to time?
13. Whether a proper and reliable system of Equipment Audit put in place by the CCSP?
(specify the details)
14. Whether the material handling equipments are in conformity with the safety standards
prescribed for such equipments?
15. Whether acquaintance or training to staff for proper implementation and to comply with
the maintenance and readiness of all the equipments and to manage contingencies has
been provided? (detail to be attached)
16. Whether the IT infrastructure available is satisfactory?
17, Whether Internet connectivity is satisfactory?
18. Whether the area has good mobile network connectivity?
19. Whether Standard Operating Procedure issued by Directorate of System for handling
interruption is being followed satisfactorily?
* Including cranes, lifts, hoists, reach stackers, tractors, trucks and other vehicles for movement or transport of goods
and other machines used in the premises for handling of cargo
Signature
Page 4of 9
20 . Whether the schedule of charges associated with various services in relation to import or
export of goods in the customs area is displayed at prominent places including web page
or website of the CCSP?
E. Security®:
1.
10.
12.
13.
14.
Whether proper boundary wall is in existence for ensuring safety of the goods and is
adequate?
Is the entire premise is under CCTV surveillance?’
Whether provision is made for security and access control to prohibit unauthorised access
into the premises is adequate?
Whether measures are taken for securing buildings against unlawful entry and whether
external and internal windows, gates and fences are secured with locking devices or
alternative access monitoring or control measures?
Whether proper gate complex with separate entry and exit are provided?
Whether internal and external lighting provided is adequate especially for entrances and
exits, cargo handling and storage areas, fence lines and parking areas?
Whether provision is made for manning/monitoring/controlling the vehicles and/or
personnel enter/exit through gates?
Whether the premises and surrounding area is well illuminated, duly protected with spark
arresters?
Whether provision is made for computerized system for location of goods? (if yes,
whether test check was conducted)
Whether integrity of cargo (i.e. storage of consignment in a single lot) is ensured by
proper monitoring or keeping in a safe, locked area?
. Whether any system of marking the goods detained by Customs and tracking their Bill of
Entry or Shipping Bill and other related documents is available in their computer system,
whether any regular monthly reporting of such cargo is being carried out?
Whether provision is made to restrict access to document or cargo storage areas and
identification is made for the restricted arcas?
Whether internal controls for periodical inspection of the integrity of structure and
system is satisfactory?
Whether provision is made for display of identity cards by the employees with the name
of the organization for easy identification of the employee and organization?
°HCCAR 2009, Circular 04/2011 dated 10.01.2011
’ Circular 03/2013 dated 01.01.2013
Signature Page 5 of 9
15. Whether the schedule of charges associated with various services in relation to import or
export of goods in the customs area is displayed at prominent places including web page
or website of the Customs Cargo Service Provider.
E. Handling of Hazardous goods®
1. Whether proper provision made for storage of the imported goods or export goods
which are hazardous in nature, at the approved premises of the CCSP in isolated place
duly separated from other general cargo, depending upon classification of its hazardous
nature?? (please elaborate such arrangements)
2. Whether separate arrangement have been made for explosives in this respect? (Details
to be furnished)
3. Whether the premises for storage of hazardous cargo is properly constructed and fulfill
the standards or norms prescribed, in National Building Code of India?!°!!
4. Whether such area mentioned at is situated more than 200 meters away from main
office, administrative, customs office?!”
5. Whether Safety plans, procedures, instructions for safe handling and storage of
hazardous goods including the procedure for reporting accidents to proper officer of
Customs and appropriate State Authorities are available?
. Compliance of ICD/CFS policy guidelines, HCCAR 2009 regulations, other Circulars and Public Notices in
respect of Safety including storage of goods of Hazardous Nature
* Such as Explosives (as defined under Rule 3 of Explosives Rules, 1983), Gases (Inflammable Flammable Gases,
Toxic,
Non toxic gases etc.) Flammable liquids, Flammable Solids (Raw and wet cotton, spontaneous combustible
substances, substance emitting flammable gases in contact with water etc.) Oxidizing Substance & Organic Peroxide
(sodium peroxide Barium Bromate Perox/acetic acid etc), Poisonous & infectious Substances (Tear Gas, Biological
substance, Formic Acid, Arsenic Acid etc.). Radio Active Materials, Corrosives (Acetic Acid, Sulphuric Acid,
Caustic Soda ete.) or any hazardous chemicals defined under Chemical Accidents (Emergency Planning,
Preparedness, and Responses) Rules, 1996.
° Fire and Life safety specify the requirements for fire prevention, life safety in relation to fire and fire protection
of buildings necessary to minimize danger to life and property from fire) or by the concerned State/ Central
Governments for fire safety.
n including appropriate heat or fire resistant wall, Reinforced Cement Concrete roofing, flooring
” Circular 40/2016 dated 26.08.2016,
Signature
Page 6 of 9
6.
7.
8.
9.
Whether incident log book regarding such accidents is maintained by the Custodian?
(Detail of previous accidents, if any, to be furnished):
Whether safety sign boards, signals are displayed conspicuously?
Whether safety instructions and procedures are available at the premise?
Whether staff handling the goods is familiar with all the pictorial indications or stickers
used in international trade such as International Maritime Dangerous Goods code, other
domestic legislations to identify hazardous goods?
10. Whether premises is equipped with adequate fire fighting apparatus, such as Fire
ll.
extinguishers, Fire Hydrants, Fire Pumps, Fire hoses, Fireman outfits, CO fix
systems?
Whether fire preventive equipments such as automatic Fire detection and alarm
system, Fire control plan, Nozzles, Smoke detectors, Temperature detectors, automatic
sprinkler systems, sand boxes, emergency lighting system, water supply outlet, fire
exit etc are provided?
12. Whether approval of Fire safety department of concerned state is available in the
13.
formation?
Whether 'No smoking' signals are properly displayed in the premises?
14. Whether the open space, provided for movement, total covered area for storage of
15.
containers is laid out in such manner that they do not hinder movement of persons,
evacuation of goods in case of emergency?
Whether appropriate Contingency plan to handle emergency situation when there is an
immediate danger to personnel, cargo or other infrastructure in the premises has been
provided by the custodian?
16. Whether facilities for installation of scanned equipment are provided?
17. Whether provisions for medical First Aid Kits in premises and emergency medical
18.
services has been made, in case any person comes into contact with hazardous/
dangerous goods?
Whether the security and safety of the premises has been assigned to specified persons
working therein so that necessary services in case of emergency such as fire fighting,
fire brigade, fire tenders shall be obtained in time to prevent, contro] and extinguish
fire?
19. Whether handling of hazardous cargo within the premises, transportation of hazardous
cargo between the premises and port terminals or other authorized places is secured
through authorized vehicles with proper safety indications?
20. Whether the procedure for receipt, handling, delivery of hazardous cargo exists in such
Signature
a manner that the same does not hinder the movement of general cargo or endanger the
safety and security of the premises?
Page 7 of 9
21. Whether the provisions of the relevant rules and regulations prescribed by the
Government are adhered to in respect of storage and handling of such goods?!*
F. Disposal of Uncleared Cargo"!
1. Whether goods lying unclaimed, uncleared or abandoned are disposed off by the
custodian in the manner specified in circular 49/2018 dated 03.12.2018, within a period
of 90 days? (verify the records and indicate the lapses during the period under
inspection, if any)
2. Whether there are any consignment lying unclaimed, uncleared or abandoned? (age
wise break up should be furnished):
Number of | Period wise break up
consignments
pending
clearance
beyond the | Less than 3 | 3-6 months |6-12..—*| 1-2 years |More than
stipulated time | months months
2 years
of one month
3. Whether any of the above consignments are of Hazardous Nature/ Explosive Material?
(Please provide complete details of such consignments):
S.No. | Container No. | Hazardous/ Explosive | Container | Remarks
Item Description Arrival Date
® Such as Hazardous Waste (Management, Handling, Transboundary) Rules, 2009; Manufacture, Storage and
import of Hazardous Chemical Rules, 1989; mandatory documents (PSIC, sales contract, Certificate from PCB,
clearance from MoEF) as per the Hazardous wastes (Management, Handling and Transboundary Movement) Rules,
2008 ; in case of storage, collection, export and import of hazardous goods, No Objection Certificate (NOC) from
State Pollution Control Board and Central Pollution Control Board as per provisions (Rule 5) of the Hazardous
Waste (Management and Handling Transboundary Movement Rules 2008) and the Water (Prevention and Control
of Pollution) Act 1974: clearance from the State Pollution Control Board within a period of sixty days from the date
of commencement of the ICD as per Ministry of Environment, Forest and Climate Change (MoEF) Notification No.
S.O. 2265 (F) dated 24 September 2008.
“ Compliance of ICD/CFS policy guidelines, HCCAR 2009 regulations, other Circulars and Public Notices
Signature
Page 8 of 9
4. Whether the action taken for disposal of the pending containers is satisfactory? (Any
lapse on the part of the custodian shall be recorded)
5. Whether follow up mechanism exist to verify re export of cargoes ordered to be re-
exported by the Indian agencies because of non-compliance of Indian laws?
6. Whether there are any consignment ordered to be re-exported? (age wise break up
should be furnished)
Number of Period wise break uo |
consignments
pending re-
export after the
re-export order | Less than 3 | 3-6 months | 6-12
months | | months
1-2 years ~| More than
2 years
| |
7. Whether an independent mechanism exists to cross verify the uncleared cargo report
(UCC) report furnished by the custodian? (verification logs may be checked)
8. Whether adequate facilities for auction, including e-auction for disposal of un-cleared,
unclaimed and abandoned cargo are provided ?
G. Any other observation (s)
i. Recommendations of the inspection team
Signature
Name of the Officer
Designation
Signature
Page 9 of 9
