The Office of the Commissioner of Customs (General), Jawaharlal Nehru Custom House (JNCH), Nhava Sheva, Navi Mumbai, has issued Public Notice No. 65/2026 dated 03-06-2026 introducing a significant reform in maritime customs operations-risk-based selective boarding of vessels. This initiative represents a major step towards modernizing vessel inspection procedures by leveraging data analytics, compliance history, and risk profiling to optimize Customs interventions at India's busiest container port.
The reform is aligned with the broader vision of the Central Board of Indirect Taxes and Customs (CBIC) to improve trade facilitation, reduce operational bottlenecks, and enhance efficiency through technology-driven, intelligence-based enforcement mechanisms.
Legal and Regulatory Framework
The Public Notice is grounded in statutory provisions under:
- Section 37 of the Customs Act, 1962 (Power to board vessels)
- Imported Stores (Retention on Board) Regulations, 1963
- CBIC Circular No. 26/2026-Customs dated 15.05.2026
These provisions collectively govern the authority of Customs officers to board vessels, inspect on-board stores, and ensure compliance with Customs laws during vessel operations within Indian territorial waters. The new directive standardizes and rationalizes the exercise of these powers by introducing a risk-based selection model for vessel boarding.
Need for Reform in Vessel Boarding Practices - CBIC observed that variations in boarding procedures across ports had resulted in:
- Operational delays in cargo handling
- Bottlenecks in granting administrative clearances
- Inefficient allocation of Customs manpower
- Unnecessary physical boarding of low-risk vessels
These inefficiencies impacted overall port productivity and delayed commencement of cargo operations. To address these challenges, JNCH has adopted a selective, risk-based boarding mechanism, reducing physical boarding requirements while maintaining regulatory oversight.
Introduction of Risk-Based Boarding System
Under the new system, physical boarding of vessels will be conducted based on advance risk profiling, utilizing data-driven parameters rather than routine manual inspection of all vessels. This targeted approach is expected to reduce physical boarding of vessels by approximately 50%, thereby significantly improving operational efficiency.
Parameters for Risk Profiling
The risk assessment mechanism considers multiple operational and compliance-related factors, including:
- Historical compliance record of the vessel
- Operational behaviour and past infractions
- Nature and classification of cargo
- Last port of call and voyage itinerary
- Vessel routing patterns and risk indicators
- Declarations submitted by shipping lines or Master of Vessel
Additionally, specific attention is given to declarations related to:
- Crew effects
- Ship stores inventory
- Satellite communication devices on-board
These parameters help identify discrepancies such as unreported equipment, unusual quantities, or potential security risks.
Digital Coordination and Scheduling Mechanism
The Public Notice introduces a structured digital workflow for vessel boarding management:
1. Weekly Vessel Intimation: Terminal operators are required to send a tentative list of berthing vessels every Monday to the Boarding Office.
2. Preliminary Evaluation: The Superintendent (Administration) evaluates vessels based on their compliance history at JNPA and other relevant parameters.
3. Document-Based Clearance: Final approval for physical boarding is granted after review of mandatory documents submitted electronically by shipping lines.
4. Reporting Mechanism - A weekly report detailing:
- Number of vessels boarded
- Risk-based justification for each boarding is submitted to the Deputy/Assistant Commissioner (Preventive General).
This ensures transparency and accountability in the selection process.
Enhanced Responsibility for Non-Boarded Vessels
A key feature of the reform is the increased legal responsibility assigned to vessels that are not physically boarded.
For such vessels:
- The Master of the Vessel and Shipping Agent assume full responsibility for compliance with Section 37 of the Customs Act, 1962
- They must ensure absolute accuracy of all declarations submitted electronically
- They remain liable for onboard stores, crew effects, and satellite equipment declarations
This shift reflects a trust-based governance model, where compliance responsibility is decentralized to vessel operators based on digital declarations.
Safeguarding of Onboard Stores - The Master of the Vessel is specifically held accountable for:
- Safeguarding declared onboard stores
- Preventing unauthorized unloading or consumption of restricted goods
- Ensuring compliance while the vessel remains in Indian territorial waters
This strengthens enforcement against smuggling risks while reducing physical intervention.
Operational Continuity and Trade Facilitation - The Public Notice emphasizes that:
- Cargo discharge will proceed immediately upon grant of Entry Inward
- Sailing operations will follow pre-approved clearance orders
- Vessel operations will not be delayed due to physical boarding, except in selected high-risk cases
This ensures uninterrupted port operations and improved turnaround time for vessels.
Expected Benefits of Risk-Based Boarding - The reform is expected to deliver significant improvements in maritime customs operations:
1. Reduced Vessel Delays - Selective boarding reduces unnecessary physical inspections, enabling faster port operations.
2. Efficient Resource Allocation - Customs officers can focus on high-risk vessels instead of routine inspections.
3. Improved Trade Facilitation - Faster Entry Inward and clearance processes enhance port competitiveness.
4. Data-Driven Enforcement - Risk profiling ensures enforcement actions are based on intelligence and compliance history.
5. Enhanced Security - Despite reduced physical boarding, targeted inspection ensures that high-risk vessels are thoroughly examined.
Governance and Accountability Framework - The system introduces structured accountability at multiple levels:
- Superintendent (Admin): responsible for evaluation and reporting
- Shipping Lines/Agents: responsible for declaration accuracy
- Vessel Master: responsible for on-board compliance
- Customs Officers: responsible for risk-based selection and documentation
This multi-layered responsibility framework ensures balanced governance between facilitation and enforcement.
Conclusion
Public Notice No. 65/2026 issued by the Office of the Commissioner of Customs (General), JNCH, Nhava Sheva marks a transformative shift in maritime customs administration through the introduction of risk-based selective boarding of vessels.
By replacing routine physical inspections with a data-driven risk assessment model, the initiative significantly enhances operational efficiency while maintaining robust regulatory oversight. It reflects CBIC's commitment to modernizing Customs procedures through digital governance, intelligence-based enforcement, and trade facilitation reforms.
The reform strengthens India's port ecosystem by reducing delays, optimizing manpower utilization, and improving transparency in vessel handling processes. At the same time, it places greater responsibility on shipping lines and vessel masters to ensure accurate and truthful declarations, reinforcing a trust-based compliance framework.
In essence, this initiative represents a balanced convergence of facilitation and enforcement; ensuring that India's maritime Customs operations remain efficient, secure, and globally competitive.
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