TaxTMI 
TaxTMI 
Customs — Revised guidelines for setting up of ICD/CFS/AFS
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....t of' application from the developer, obtaining comments from stakeholder departments and screening by IMC is in place for a longtime now besides being time consuming. Further, a systematic weakness of the present mechanism is that the developer approaches the IMC only after certain investments in land and other assets have been made already. Once having invested in the project, the developer leverages the same argument in his favour to push his project. 4. The present system called for a correction so that the scrutiny by various stakeholder departments doesn't become inconsequential in the face of the argument of already made investment. In view of this, it has been decided that before approaching the IMC, the developer would approach the CBEC for preliminary assessment of project. This assessment would have to be done by the Customs formation in whose administrative control the facility would be coming up. This scrutiny would have to be done within a month of submission of the application and would inter-alia cover issues of availability' of land, title of land, issue of land use and antecedents of promoters and viability of the project. Commissionerate would forward their vi....
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....s, re-export, temporary storage for onward transit and outright export. Transhipment of cargo can also take place from such stations. An Air Freight Station (AFS) is an off-airport Common user facility equipped with fixed installations of minimum requirement and offering services for handling and temporary storage of import and export cargo etc. An AFS is a counterpart of ICD/CFS for maritime cargo. 2. DISTINCTION BETWEEN AN ICD & CFS Functionally there is no distinction between an ICD/CFS as both are transit facilities, which offer services for containerization of break bulk cargo and vice-versa. These could be served by rail and/ or road transport. An ICD is generally located in the interiors (outside the port towns) of the country away from the servicing ports. CFS, on the other hand, is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area CFSs are largely expected to originating/terminating in the immediate hinterland of a port any may also deal with deal with break-bulk cargo rail borne traffic to and from inland locations....
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....nd consumption 4. Reduced level of demurrage and pilferage. 5. No Customs required at gateway ports. 6. Issuance of through bill of lading by shipping lines, hereby resuming full liability of shipments. 7. Reduced overall level of empty container movement. 8. Competitive transport cost. 9. Reduced inventory cost. 10. Increased trade flows. PART B 1. PRIOR SURVEY A MUST For the ICD/CFS/AFS to be successful, reduction in total transport cost is a prime criterion, as there is a possibility of marginal increase in total handling cost per box on origin to destination basis. This underlines the need for sound economic Document 4 justification for setting up ICD/CFS/AFS through a carefully evaluated traffic likely to be handled at the proposed facility. A survey/feasibility study must precede the setting up of all ICDS/CFSs and copy of the report should invariably accompany the application for setting up such a facility. Data for carrying out analysis could be from secondary sources and field observations, structured over time and space. The latter is more realistic and truthful. Prior discussions must be held with ....
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.... Key to a good lay-out is the smooth flow of containers, cargo and vehicles through the ICD/CFS. The design and layout should take into account initial volume of business, estimated volume in 10 years' horizon and the type of facilities exporters would require. The initial lay out should be capable of adaptation to changing circumstances. The design broadly should encompass features like (rail) siding, container yard, gate house and security features, boundary wall (fencing), roads, pavements, office building and public amenities. The track length and number of tracks should be adequate to handle rakes and for stabling trains where relevant. The perimeter fencing and lighting must meet the standards required by Customs authorities. The gate being the focal point of site security should be properly planned. The administration building is the focal point of production and processing of all documentation relating to handling of cargo and containers and its size will be determined by the needs of potential occupants. Fixed provisions should be made for sanitation facilities and possibly a food service facility A good communication system ....
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....of Civil Aviation. 7. RAIL HEAD ICDS The parties will be required to provide at their own cost all infrastructure facilities including land, track, handling equipment for containers, maintenance of assets including track, rolling stock, etc. as per extant railway rules applicable to private sidings. The cost of the railway staff would be borne by the party as per the prevailing Government policy 8. TARIFF Tariff structure and costing should be worked out along with the feasibility study and information provided with the application. 9. GENERAL The main function of an ICD/CFS/AFS being receipt, despatch and clearance of containerised palletized cargo, the need for an up-to-date inventory control and tracking system to locate containers / cargo is paramount. Each functional unit of the facility (e.g. siding, container yard gate, stuffing/destuffing area, etc.) should have up-to-date and where possible on-line, real time information about all the containers, etc., to meet the requirements of customers, administration, railways etc. As far as possible, these operations shall be through electronic mode. Document 7Traceback (most recent....