TaxTMI 
TaxTMI 
TaxTMI 
Issues related to carriage of coastal cargo from one Indian port to another port in foreign going vessels/coastal vessels through foreign territory
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....ign territory, use of EXIM containers for carrying coastal goods, use of local or domesticated containers for transportation of EXIM cargo. 2. The issues have been examined by the Board and after careful consideration, Board has decided as follows: 2.1 Movement of Coastal Goods through foreign territory of Sri Lanka & Bangladesh: a) Kind attention is invited to Sea Cargo Manifest and Transhipment Regulations, 2018. The said regulations, inter-alia, provide for the procedures for transit of coastal goods through the foreign territory of Sri Lanka and Bangladesh. These regulations envisage a completely automated platform for the movement of coastal goods through the designated foreign territory or otherwise. Ministry of Shipping (MoS)....
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.... conditions: Procedure: (i) The consignor of the coastal goods intended for movement from one port in India to another Indian port through the foreign territories of Sri Lanka or Bangladesh, as well as person-in-charge of the vessel shall follow the procedure stipulated in Transportation of Goods (Through Foreign Territory) Regulations, 1965. The consignor of the said goods shall not be required to file the Bill of Coastal Goods (Refer Notification. No. 424/76- Cus., dated 2310-1976 as amended) for the said goods. Bill of Coastal Goods shall, however continue to be filed where the vessel is carrying both coastal goods and EXIM cargo from one port in India to another Indian port without transiting through any foreign territory. (ii)....
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....it easily identifiable. (vi) The Master of the vessel shall not permit the loading of such coastal cargo unless the Bill [in the form specified in Appendix A to Transportation of Goods (Through Foreign Territory) Regulations, 1965] duly passed along with the permission of the proper officer to load the coastal goods is received by him. On receipt of the documents, the master shall prepare the manifest in triplicate. (vii) The master of vessel shall also furnish e-Way Bill details (if applicable), Container no. & Seal No. (for containerised cargo) in the Transit Manifest (Appendix B). (viii) The Transit manifest shall be prepared for the goods loading port and discharge port combination wise. The proper officer may, after making nec....
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....tice. The procedures as applicable for non coastal cargo will apply mutatis mutandis to deal with such situation. (xiii) Notwithstanding anything mentioned above, no goods, export of which is prohibited under the Customs Act, 1962 or any other law in force, shall be allowed to be transited through foreign territory under this procedure. (xiv) The vessels carrying coastal goods may also carry EXIM/empty containers subject to the observance of the procedure as applicable; (xv) This procedure is applicable to only those vessels which are authorised to carry coastal goods under Merchant Shipping Act, 1958. (d) The movement of coastal cargo which is not transiting through foreign territory would be governed by the procedure referred ....
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....rther, as a consequence to the permission given in foregoing para, there should not be such condition in the bond submitted for availing the benefit under notification No. 104/94 dated 16.03.1994, which restricts the use of the containers for carrying domestic cargo after importation. 2.3 Use of local or domesticated containers for transportation of EXIM cargo 2.3.1 Board has received representation from INSA pointing out absence of level playing field between the tax treatment on EXIM containers owned by foreign shipping lines etc. and domesticated containers. INSA have stated that Government has allowed customs duty exemption vide notification No. 104/94-customs to imported containers on the condition that the same would be re-expor....