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Government of India
Ministry of Finance
Department of Revenue
Central
Board of Indirect Taxes & Customs
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Circular No.
14/2020-Customs
Room No. 49, North Block, New Delhi
Dated 21st February 2020
To,
All Principal Chief Commissioners/Chief Commissioners of Customs
Principal Directors General/Directors General of Customs
Principal
Commissioners/Commissioner of Customs
Subject: Transportation of goods to
and from India through a foreign Territory-reg.
Madam/ Sir,
The
transportation of goods from one part of India to another through a foreign
territory was hitherto covered by the Transportation of Goods (Through Foreign
Territory) Regulations, 1965. Such movements were however uncommon and the
regulations were not effectively used due to absence of bilateral arrangements
with neighbouring countries.
2. In the recent past, India and Bangladesh
have signed the Agreement for use of Chattogram and Mongla ports for movement of
goods to and from India (hereinafter referred to as the ACMP) on 25.10.2018 and
a Standard Operating Procedure (SoP) inter alia prescribing the documentation,
procedure and time limits and extension thereof, for movement of goods under the
ACMP has also been signed on 05.10.2019. Further, as per the Article VIII of the
Trade Agreement between India and Bangladesh signed on 06.06.2015, the two
countries have also agreed on a Protocol on Inland Water Transit and Trade
between the People’s Republic of Bangladesh and the Republic of India on
06.06.2015 (herein after referred to as PIWTT). The ACMP covers movement of
goods from one part of India to another through Bangladesh and the PIWTT covers
bilateral trade between India and Bangladesh, movement of goods from one part of
India to another through Bangladesh and also export to third countries using
each other’s territories.
3. In view of the above developments, the
Transportation of Goods (Through Foreign Territory) Regulations, 1965 have been
superseded by the Transportation of Goods (Through Foreign Territory)
Regulations, 2020 dated 21st February 2020. The new regulations provide for:
(i) movement of goods from one part of India to another through Bangladesh
under the ACMP,
(ii) movement of goods from one part of India to another
through Bangladesh under the PI WTT;
(iii) movement of goods from one
part of India to another through land route which lies partly over the territory
of a foreign country.
3.1 It is clarified here that for the movements
under PIWTT, only transit movements are covered by the new regulations i.e.
movement of goods from one part of India to another through Bangladesh. For
bilateral trade and export to third countries, the extant provisions shall
prevail.
3.2 For any movement under the regulations, the consignor of the
goods, the carrier or their authorised agent shall file a Customs Transit
Declaration (CTD) and a bond. The format of the CTD and the bond is already
prescribed in the regulations.
4. For the purpose of clarity, the
procedure for each movement is detailed below:
4.1 India to India
movements under the ACMP: The movement of goods using the Chattogram and Mongla
ports of Bangladesh is expected to effectively reduce the transportation
distance, time as well as the cost of such movement to and from the North
Eastern Region of India (NER). It is clarified that any goods produced or
manufactured in India or goods which have been imported and cleared for home
consumption may be transported/ moved under the Agreement.
4.1.1 It may
be noticed that the approved routes as per Article 6 of the ACMP mentions only
the Land Customs Stations of entry/ exit in India and Bangladesh, and the
Chattogram or Mongla ports in Bangladesh. This effectively means that, –
(i) goods destined to the NER can be sent through any customs station in India
via the Chattogram or Mongla ports in Bangladesh and shall have to exit
Bangladesh and re-enter India through Agartala Land Customs Station, Dawki Land
Customs Station, Sutarkandi Land Customs Stations or Srimantpur Land Customs
Stations.
(ii) goods departing from the NER to other parts of India, will
have to enter Bangladesh through Agartala Land Customs Station, Dawki Land
Customs Station, Sutarkandi Land Customs Stations or Srimantpur Land Customs
Stations. The goods will then move to the Chattogram port or Mongla port in
Bangladesh and will land in India at any customs station.
4.1.2 For any
movement under the ACMP, the consignor of the goods, the carrier or their
authorised agent shall file a CTD and a bond. It may be mentioned here that the
format of the CTD has been mutually agreed with Bangladesh. The CTD will serve
as a single document where the customs officials of both India as well as
Bangladesh can record the controls exercised at each entry/ exit point. Thus in
the CTD format, the port in India is to be taken as any Customs Station notified
under the Customs Act. The procedures to be followed in Bangladesh also forms
part of the SoP on PIWTT.
4.1.3 For ease of reference, the
procedure is explained below:
4.1.4 At the port of exit in India:
(i) The CTD shall be filed in quintuplicate by the consignor of the goods, the
carrier or their authorised agent with the Customs at the port of exit in India
along with the invoice and bond.
(ii) The customs officer will approve
the CTD, accept the bond and ensure that the cargo is sealed securely with a
customs one-time-lock.
(iii) The customs officer shall endorse all copies
of the CTD with the one-time-lock number, retain the quintuplicate copy and hand
over the remaining copies to consignor of the goods, the carrier or their
authorised agent.
4.1.5 Procedure within Bangladesh: The movement
of the goods within Bangladesh will be as per the ACMP and the protocol. The
goods in transit upon leaving from the port of entry in Bangladesh shall reach
the port of exit in Bangladesh within 7 days, except in the circumstances as
provided in the Agreement and the protocol.
(i) At the port of entry in
Bangladesh:
(a) The consignor of the goods, the carrier or their
authorised agent shall submit the four copies of the CTD duly authenticated by
the customs at the port of exit in India to the customs at the port of entry in
Bangladesh along with the copy of Bill of lading, Invoice, Packing List and
Customs Bond in non-judicial stamp paper. It may be mentioned here that the
format of the Bond to be submitted to Bangladesh Customs is part of the SoP on
PIWTT. Trade may be advised to submit the Bond to Bangladesh Customs in the
format as per the SoP. Trade may also be advised to file the manifest and the
CTD, as allowed by Bangladesh Customs, before the arrival of the goods so as to
ensure expeditious evacuation of cargo from the port of entry in Bangladesh.
(b) The customs officer at the port of entry in Bangladesh may require the
goods to be scanned and sealed with an electronic lock and seal as per
Bangladesh Customs regulations before allowing onward movement by road within
Bangladesh.
(c) The customs officer at the port of entry in Bangladesh
shall endorse all the copies of the CTD, retain the quadruplicate copy and hand
over the remaining copies to the consignor of the goods, the carrier or their
authorised agent.
(d) The consignor of the goods, the carrier or their
authorised agent shall submit the triplicate copy of the CTD duly endorsed by
Bangladesh Customs to the port authorities for releasing the goods for onward
movement.
(ii) At the port of exit in Bangladesh:
The consignor of
the goods, the carrier or their authorised agent shall submit the remaining two
copies of the CTD with the customs at the port of exit in Bangladesh. The
customs officer at the port of exit in Bangladesh shall satisfy himself that the
seal has not been tampered with and endorse both copies of the CTD, retain the
duplicate copy and hand over the original copy of the CTD to consignor of the
goods, the carrier or their authorised agent.
4.1.6 At the port of
re-entry into India.
(a) The proper officer at the customs station of
re-entry will check the intactness of the customs one-time-lock, affixed at the
customs station of exit and if the seal is found intact, he shall endorse the
CTD and allow clearance of the goods;
(b) In case the customs
one-time-lock affixed at the customs station of exit is not found intact, the
proper officer shall make due verification of the goods to check whether the
goods are in accordance with the CTD and upon being satisfied that there is no
irregularity, he shall endorse the CTD and allow clearance of the goods.
(c) In case the goods are not in accordance with the CTD, the proper officer at
the customs station of re-entry shall inform the customs station of exit in
India about the irregularity for further action.
(d) The consignor of the
goods, the carrier or their authorised agent shall submit copy of the CTD duly
endorsed by the customs officer at the customs station of re-entry in India, to
the customs officer at the customs station of exit in India as a proof of due
arrival of the goods who shall credit or close the bond, as the case may be,
unless the said endorsement indicates that the goods have not arrived into India
as per the CTD.
4.1.7 At present, the CTD will be filed manually both in
India and Bangladesh. However, the necessary processes for electronic filing of
the CTD are being worked upon. Upon development of electronic filing facility,
the manual copies shall be dispensed. It may be noted that the SoP also mentions
that the Bangladesh side would dispense with the requirement of submission of
manual CTD approved by Indian Customs, once the electronic filing of CTD is
developed in the customs computer system of Bangladesh.
4.1.8 Thus the
requirement of manual copies of the CTD is subject to development of electronic
filing on both countries. Once electronic filing of CTD in EDI is developed, no
manual CTD shall be filed. It is also clarified that where the customs officer
at the customs station of re-entry in India makes an electronic entry accessible
to the customs station of exit in India regarding the due arrival of the goods,
the endorsed CTD shall not be required to be submitted for crediting/ closing of
bonds. The officer at the port of exit shall make the necessary crediting/
closing of the Bond, based on the entry in the EDI system.
4.2 India to
India movements under the PIWTT and Movements from one part of India to another
through land route which lies partly over the territory of a foreign country:
The movement of goods using the inland waterways to and from the North East
India is expected to effectively reduce the cost of transportation of cargo to
the NER especially bulk cargo. It is clarified that any goods produced or
manufactured in India or goods which has been cleared for home consumption may
be transported/ moved under the PIWTT. Similarly, the movements of goods from
India to India via a foreign territory exclusively by a land route would include
goods which has been produced or manufactured in India or goods which have been
cleared for home consumption.
4.2.1 The movement of the goods under the
PIWTT shall be through the routes specified under the protocol from time to
time. It may also be noted that Para 23 of the PIWTT allows goods to be
transhipped from river crafts to Bangladeshi truck and/or tractor -trailers at
Sherpur and Ashuganj in Bangladesh and brought to the Indian border by road.
Such re-entry into India is expected through Agartala LCS.
4.2.2 For any
movement of goods under the PIWTT or through land routes which lie partially in
the territory of a foreign country, the consignor of the goods, the carrier or
their authorised agent shall file a CTD and a bond. The format of the CTD and
bond is already prescribed in the regulations for this purpose.
4.2.3 For
ease of reference, the procedure is explained below:
(i) at the port of
exit in India:
(a) The CTD shall be filed in duplicate (two copies) by
the consignor of the goods, the carrier or their authorised agent with the
Customs at the port of exit in India along with the invoice and bond.
(b)
The customs officer will approve the CTD, accept the bond and ensure that the
cargo is sealed securely with a customs one-time-lock and endorse the CTD with
the onetime-lock number.
(c) The customs officer at the port of exit in
India shall endorse both copies of the CTD, retain one copy and hand over the
other copy to the consignor of the goods, the carrier or their authorised agent.
(ii) at the port of re-entry into India:
(a) The proper officer at
the customs station of re-entry will check the intactness of the customs
one-time-lock, affixed at the customs station of exit and if the seal is found
intact, he shall endorse the CTD and allow clearance of the goods;
(b) In
case the customs one-time-lock affixed at the customs station of exit is not
found intact, the proper officer shall make due verification of the goods to
check whether the goods are in accordance with the CTD and upon being satisfied
that there is no irregularity, he shall endorse the CTD and allow clearance of
the goods.
(c) In case the goods are not in accordance with the CTD, the
proper officer at the customs station of re-entry shall inform the customs
station of exit in India about the irregularity for further action.
(d)
The consignor of the goods, the carrier or their authorised agent shall submit
copy of the CTD duly endorsed by the customs officer at the customs station of
re-entry in India, to the customs officer at the customs station of exit in
India as a proof of due arrival of the goods who shall credit or close the bond,
as the case may be, unless the said endorsement indicates that the goods have
not arrived into India as per the CTD.
4.2.4 Once electronic filing of
CTD in EDI is developed, no manual CTD shall be filed. It is also clarified that
where 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, the endorsed CTD shall not be required to be submitted for
crediting/ closing of bonds. The officer at the port of exit shall make the
necessary crediting/ closing of the Bond, based on the entry in the EDI system.
5. At Cross Border Certificate at Hemnagar LCS is required for allowing
onward movement of goods through inland waterways. Since the regulations provide
that the goods are sealed by the customs station of exit and due safeguards are
in place for arrival of the goods at the customs station of re-entry into India,
as a step towards trade facilitation, Board has decided to dispense with the
requirement of Cross Border Certificate for the purposes of the subject
regulations. However, extant provisions regarding Cross Border Certificate shall
prevail for other movements.
6. Clarification required, if any, may be
sought from the Board.
7. Hindi version follows.
F. No: 484/50/2019-LC
(Temsunaro Jamir)
Additional Commissioner (ICD)
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