The Central Board of Excise and Customs (CBEC) has notified Regulations for Handling Cargo in Customs Areas. The Regulations apply to Custodians at ports or airports, like Port Trust, International Authority of India etc. and to Custodians at the Inland Container Depots (ICD) and Container Freight Stations (CFS), like Container Corporation, Central Warehousing Corporation etc., responsible for receipt, storage, delivery, dispatch or otherwise handling of imported goods and export goods.
The CBEC put in place standard guidelines for setting up ICD/CFS in December 1995 and for appointment of Custodians at ports, airports and land customs stations in June 2002. The precise directions to the Custodians were being notified by the jurisdictional Commissioners, while appointing them. The latest Regulations put the instructions on sound legal footing.
The regulations set out responsibilities of caretakers of cargo at customs areas. They specify the infrastructure to be furnished, security to be provided and, terms and conditions to be met. The Regulations deal with grant of approval for five years, the renewal/review of approvals, suspension/cancellation of approvals and right of appeal. The procedures are also spelt out.
The Regulations will help intending Custodians understand the infrastructure to be provided. The existing players will have to meet the conditions in the Regulations within three months. The jurisdictional Commissioners have been given the powers to relax the conditions where circumstances warrant. That will help Custodians at the smaller ICD/CFS get relaxations.
The Regulations require the Custodians pay duty on goods pilfered after entry thereof in the Customs area. The responsibility for secure transit of goods to other Customs area at the same or other Customs Station has been placed on the Custodian.
The Regulations say subject to any other law for the time being in force, the Custodian shall not charge rent or demurrage on goods seized or detained or confiscated. It may be noted that in the case of International Airport Authority of India Vs. Grand Slam International [1995 (77) ELT 753 (SC)], the Supreme Court had held that demurrage/keeping charges are payable by importer to Custodian even if goods are detained for no fault of his and that the Collector of Customs is not empowered to debar the Custodian from collection of keeping charges at rates laid down in Custodian’s statutory Regulations. The Apex Court was categorical that importer was not relieved of his liability to pay keeping charges by reason of detention certificate issued by Customs. In some cases, when the detention orders were found unjustified, the Courts have asked Customs to pay demurrage.
Section 48 of the Customs Act, 1962 allows the Custodian to sell the unclaimed/uncleared/abandoned cargo after 30 days from the date of unloading the cargo. The new Regulations give 90 days limit for sale of the goods. The time l imit can be extended on case to case basis by the Commissioner.
Handling of Cargo in Customs Areas Regulations, 2009 is a distinct improvement over the existing position. It is comprehensive, legally sound and gives enough clarity and flexibility at the operating levels.
Source : Business Standard