Simplified bond module covering both custodianship and transhipment –multiplicity
and multi-utilisation of bond- Reg.
I am directed to invite your
attention to above subject and to say that an Inter Ministerial Group (IMG) headed
by Secretary (Revenue) examined various issues relating to simplification of customs
procedures. IMG felt that the issues relating to multiplicity of bond and multi-utilization
of bond need to be addressed. The Group felt that if the same person is required
to file two different bonds to a single Customs authority under different provisions
of customs procedures, then one single bond can incorporate all such requirements
and the existing Bond module of the EDI should be utilized for all requirements
of bond. The Group felt that it would ensure better monitoring and simplification
of procedure.
2. In this connection reference is invited to Board’s Circular No. 78/2001-Cus
dated 7th December, 2001 wherein it is prescribed that the custodians of ICDs/CFSs
operating as carriers of transhipment cargo between gateway ports and their ICDs/CFSs
shall amend the terms and conditions of their bank guarantees executed with Customs
for custodianship of ICDs/CFSs to cover safety and security of cargo being transhipped
by them. The details of such bank guarantee shall be informed to the Commissioner
of Customs having jurisdiction over the gateway port. The custodians of ICDs/CFSs
shall be allowed to tranship the cargo against the said bank guarantee and they
will not be required to execute a separate bank guarantee for transhipment.
3. Further Board’s Circular No. 34/2000-Cus. dated 3rd May, 2000 provide for ‘mother
bond’ in order to avoid multiplicity of bond for same purpose i.e. transshipment.
As per the provisions, the carriers may execute Mother Bonds instead of individual
bonds. Such bonds will be accepted and maintained by the Commissioners of Customs
at the port of origin and these will be like running bonds. These will be credited
on receipt of proof of safe landing of containers at the port of destination.
The value of Mother Bond can be arrived on the basis of the average number of
containers carried in the vessels, time taken for submission of proof of safe
landing of containers at the destination ports, frequency of such transhipment
as well as the average value for containers.
4. In view of existing circulars efforts should be made to reduce multiplicity
of bond. Further EDI system of Customs has a ‘bond module’ which will be fully
utilized once ‘message exchange facility’ is operationalised between two ports.
The implementation of bond module for re-crediting is in conformity with the Regulation
4 of the Goods Imported (Condition of Transhipment) Regulation, 1995 which provides
for discharge of the bond on production of certificate of transfer of goods at
the destination. After such discharge of the bond amount covering a particular
transaction; the value of mother bond will be credited to that extent. In an online
environment, such re-credit to the extent of the bond amount which gets discharged
as stated above, would be done automatically in the system on receipt of electronic
message between Gateway port and destination port or between two customs stations.
Directorate of Systems and Data Management would make efforts to implement the
same in electronic environment in time bound manner.
5. The above instructions may be brought to the notice of all concerned for effective
implementation.
6. Hindi version follows.
Yours faithfully
(Anupam Prakash)
Under Secretary to the Government of India
Phone No.23094182
