TaxTMI 
TaxTMI 
Policy of Guidelines for setting up of Inland Container Depots(ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the ICDs and CFSs. The subsequent guidelines issued by Department of Commerce (DoC) and Central Board of Indirect Taxes and Customs (CBIC) set the rules for establishment & functioning of these facilities. The matters relating to setting up of ICDs/CFSs/AFSs were brought under CBIC in 2018. Accordingly, the Board had reconstituted the Inter-Ministerial Committee vide order issued under F.No.434/4/2018-Cus.IV dated 20.06.2018. 1.2 In the last two decades, both the cargo volumes and capacities of ICDs/CFSs have increased manifold. A few key initiatives transforming the manner of trade in recent years, such as implementation of the Authorized Economic Operator(AEO) programme, rising penetration of the Direct Port Delivery(DPD) and Direct Port Entry(DPE) initiatives, Self Sealing (RFID seals), Self-Assessment, Electronic Cargo Tracking System(ECTS) and RMS based facilitation have completely changed the operation of Export-Import logistics. The CBIC is also targeting higher DPD, DPE numbers with minimum but more effective Customs interventions aided by technological measures. 1.3. Similarly, physical infrastructure has undergone exponential improvements with the deve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ms station" like a port or air cargo unit where filing of Customs manifests, Bills of Entries, Shipping Bills and other declarations, assessment and all the activities related to clearance of goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export, transshipment, etc., take place. An ICD would have its own automated system with a separate station code (such as INTKD 6, INSNF 6 etc.) being allotted by Ministry of Commerce and with in-built capacity to enter examination reports and enable assessment of documents, processing of manifest, amendments, etc. 2.2. Container Freight Station 2.2.1. An off seaport (or port) facility having such fixed installations or otherwise, equipment, machinery etc., providing services for handling/ clearance of laden import, export containers for home use, warehousing, temporary admissions, re-export etc under customs control and with storage facility for customs bonded or non-bonded cargo. 2.2.2. Though by definition, both ICD and CFS are similar, a CFS is only a Customs area notified under section 8 of the Customs Act, 1962, located in the jurisdiction of a Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed, hazardous, overweight/over-length etc. 2.4.3. Warehouse: Public warehouse appointed under section 57 or Private warehouse appointed under section 58 is a covered space/shed where export cargo is received and import cargo is stored/ delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds. 2.4.4. Gate Complex: The Gate complex regulates the entry and exits of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken. 3. Functions and benefits of ICDs/CFSs/AFSs: 3.1. primary functions of ICD/CFS/AFS include receipt of dispatch/ delivery of cargo, stuffing and stripping of containers, transit operations by rail/road to and from serving ports; customs clearance, consolidation and desegregation of loose Container Load (LCL) cargo, temporary storage of cargo and containers, reworking of containers, and maintenance and re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ance up to 1,500 kms in north India. The development of ICDs within 200 kms of a connecting/nearest serving seaport shall be discouraged. The measureis expected to further encourage DPD & DPE movement between hinterland & ports. For calculation of distance, the chargeable route by rail and shortest road (National Highway State Highway) from serving port shall be considered. 4.1.4. Distance between ICDs - No Greenfield ICD shall be permitted to be established within 100 km distance from existing ICD. Distance will be referred as chargeable railways route (both directions) between ICDs and shortest road distance (National Highway / State Highway, both directions) in case of road linked ICD. This rule shall be applicable across all Geographical Zones.. 4.1.5 Development in States with low Logistics Infrastructure To support infrastructure development in states with limited logistics infrastructure, priority should be given to identifying and promoting ICD/CFS/AFS facilities where presence of such facilities is limited. These are clustered in Green Zone as proposed above. IMC can give relaxation on Distance rules in Green Zone. 4.1.6 National Logistics Action....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eneration of demand in actual terms. This is particularly important as such facilities have a long gestation period for being fully operationalized. Accordingly, the minimum threshold performance shall be 7200 TEUs/consignments(Shipping Bill/Bill of Entry) per year(two way) for an lCD and 1200 TEUs/consignments(Shipping Bill/Bill of Entry) per year(two way) for a CFS. However, no such threshold performance is prescribed for an AFS. 4.3. Land 4.3.1. The minimum area requirement is seven hectare for ICD having minimum area of four hectares as Customs Notified Area and minimum one hectare nominated for DPD& DPE nominated space. For states in Green Zone, ICD with three hectares for customs notified area and one hectare for DPD & DPE may be considered. The minimum area requirement shall be two hectare for a CFS. For AFS 100 Sq. meters of covered area each for imports and exports respectively shall be made available. 4.3.2. Ownership of Land- The applicant must have the legal rights over the land which is proposed for ICD/CFS construction. If the land not owned and the land is leased, the lease agreement with lessor must be for period of 30 years. Change of Lan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ections, reduction in logistics cost and the impact on local trade stakeholders of the new proposed facility in line with policy. The Jurisdictional Commissioner shal do his own analysis based on historical data and existing facilities his recommendation shall make a categorical statement whether an application merits consideration or rejection. 5.1.4. On receipt of the proposal, the members of the IMC will furnish their comments within 30 days. 5.1.5. Proposals for setting up ICD/CFS/AFS will be considered on merits by the IMC. Normally, the IMC meetings will be held twice in a year. The committee may approve or refuse to grant approval for setting up of ICD/CFS/AFS. The recommendations of the jurisdictional Commissioner will be a relevant factor but not necessarily binding on the IMC. The IMC can independently decide about approval/rejection of any project based on the valid considerations. The applicant shall not make any investment before obtaining the approval from IMC. The "in-principle" approval from the jurisdictional Customs Commissioner regarding the feasibility of the proposed facility shall not be considered as final. Any investment made by the prospec....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5.2.3. Change in Location - For change of location of an existing facility, the operator of the facility shall approach IMC. If the new location is in the same locality of the existing cluster of CFSs/AFSs, and serves to the same gateway port, the IMC after consulting the jurisdictional Commissioner of Customs, may approve such request. However, in case such change of location involves substantial geographical change (outside existing District or involves change of port to which the CFS serves), it should be treated as closure of the existing facility and setting up of a new facility. 6. Post approval Obligations 6.1. Operationalising the facility 6.1.1. The applicant shall talke all necessary actions to operationalise the facility within the validity period of the LOl. The applicant must put up the required infrastructure and meet the regulatory requirements in compliance with applicable law to become functional. The Check list for various requirements is given at the Annexure-ll. 6.1.2. The applicant, after receipt of LOI, shall send monthly progress report to jurisdictional Commissioner of Customs in the proforma as may be prescribed by him. Fai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ironment (including the laws relating to the storage of hazardous goods, legal metrology (certification for installed weighing instruments including weight bridges etc.) food safety (certification of facility by FSSAI for storage) etc. 6.2.3. The operator shall also comply with the circulars/instructions issued by the Board on cost recovery charges from time to time for the officers deployed. The payment of cost recovery charges for the officers and staff deployed and exemption from such payment shall be governed by the extant rules, policy and circulars in this regard. 6.2.4. No alteration of the plan of the ICD/CFS shall be made without the concurrence of the jurisdictional Commissioner of Customs. Further, no reduction in minimum prescribed physical area shall be allowed. 6.2.5. For Rail linked ICDs, investors will be required to provide at their own cost all infrastructure facilities including land, track, and maintenance of assets including track, rolling stock, etc. as per extant railway rules applicable to such sidings. The cost of the railway staff would be governed as per the prevailing Indian Railway policy. 6.2.6. The custodians should....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oner of Customs shall ensure that annual audit/inspection of the notified facilities are conducted in terms of the circulars/instructions issued in this regard. 6.5.2. The jurisdictional Commissioner of Customs shall, based on the findings of the annual inspection report or otherwise, take necessary remedial action including penal action, for any contravention, under the Customs Act, 1962 read with HCCAR, 2009. It may be noted that each violation shall be treated as separate for the purpose of initiating penal actions. 6.5.3. The jurisdictional Commissionerates must list out functional, non-functional and approved count of ICDs on their websites, latest figures of volume handled, Infrastructure profiles, compliance with HCCAR 2009 rules to be maintained on month to month basis on the Commissionerate's web-portal. 7. Term, renewal and de-notification of the facility 7.1. The duration of the award for the operation of the facility shall be governed by HCCAR, 2009 unless otherwise mentioned in any other guidelines. The applicant shall get the award renewed by the jurisdictional Commissioner of Customs. 7.2. At the time of renewal, the jurisdi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Note: Five Copies shall be submitted to the Member (Customs), CBIC, Office of the Commissioner (RI&I), 5th floor, Hudco Vishala Building, Bhikaji Cama Place, New Delhi 110066, email: [email protected]%; one advance copy shall be submitted to the jurisdictional Commissioner of Customs. Name of the Entity: Entity Type: Registered Office Address: Authorized Public Ltd./Pvt. Ltd./Individual Economic Yes/No Operator-Logistics Operator (If yes, please provide details) Status Holder Application for (Mark ☠ICD whichever applicable) ☠CFS □ AFS ☠CFS to ICD ☠Change of location of an existing ICD/CFS/AFS Geographical Zone of Facility2 (Mark whichever applicable) State of facility proposed District of facility proposed Nearest ICD/CFS/AFS with distance from facility. proposed Concerned Customs Zone ☠Green ☠Blue ☠Red Has proposal been rejected Yes/No earlier If yes, when DD/MM/YYYY If the proposal has been Yes/No rejected earlier, whether the instant proposal brings out any fresh facts for 2 Refer para 4.1.2 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... appended to the document. For data points generated by primary research, copies of survey forms should be appended to the document. All assumptions used in the document should be supported by detailed justification and source for data as applicable. 2. Details of Applicant Entity i. Registration details with RoC, details of registered office and corporate office etc. ii. Registration with various tax authorities (GST, PAN etc.). iii. iv. V. vi. vii. viii. ix. Memorandum of Association. Articles of Association. Constitution of the Board of Directors (including brief bios of each director, the roles envisaged for each of them). Capability statement of the Applicant. Details of Similar projects executed in last 3Financialyears. Copy of Balance sheets for last 3 financial years. Undertaking on Rs. 100/- Non-Judicial Stamp in terms of HCCAR, 2009. 3. Background and Broad Project Rationale i. Provide details of the project, including: a. High level capacity creation and capital outlay. b. Technology& Automation proposed for cargo/container handling and IT systems. Document 4 ii. c. Target hinte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stoms Brokers, District Industrial Centers of State government, local transporters. Survey should be combination of structured and unstructured questionnaires to obtain better understanding of cargo flow patterns (inflow & outflow) of various commodities from targeted Document 5 V. vi. vii. hinterland. Open Market potential and target market potential: Post survey, indicative figures for open market potential, volume distributions across other competitors and target market potential should be clearly depicted and should be realistic based on facts/historical data. Traffic Forecast: Capture growth drivers for traffic, forecast traffic based on commodity profiles and growth potential for EXIM trade that reflects ground realities. Forecast should be provided for 10 years or expected pay back period whichever is less. Alternate traffic forecasts should also be worked out based on different scenarios. Logistics Cost Analysis: Traffic study should provide cost savings in per metric ton comparison which will be derived after setting up of facility. This study should be done at commodity level to each gateway port connection separa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on measures for wastewater generated from container repair and washing activities especially of tank containers/ containers carrying hazardous commodities activities should be provided. Document 7 Annexure-III (to CBIC Circular No. 50/2020-Customs) Checklist for the infrastructural requirements and regulations compliance 1. Design and lay-out: The design and layout should be the most modern state-of- art equipped with mechanical/electrical facilities of international standards. Key to a good lay-out is the smooth flow of containers, cargo and vehicles through the ICD/CFS. The design and layout should consider initial volume of business, estimated volume in 10 years' horizon and the type of facilities traders would require. ICD/CFS facility shall have covered and open storage areas separated for import, export and transshipment, and for perishable goods, high-value cargoes and dangerous cargoes, including hazardous substances. 2, Port's layout defines the physical location of main facilities required to efficiently handle the incoming and outgoing traffic. Flexibility should be built in layout so that it can accommodate future change....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r, then additional space to enable smooth flow of traffic will be factored into the design. Road connections to ICD/CFS will be via slip roads off local or national highway system. Road connections should be suitable for container and break-bulk trucks conveying containers or break-bulk cargo between cargo sources and the ICD/CFS port. 7. Design of access junctions: Access junctions are locations at which ICD site access roads meets the main roads. The design should cater for unhindered traffic flow even at peak capacity of the ICD. 8. CFS & Customs Examination Area: A critical function of CFS is to pack and unpack cargo into and from containers which are moved to and from the a. Keeping this in mind CFS facilities should be designed with container bays facing a raised loading/ unloading platform on one side and truck loading/ unloading bays on the other. Containers can be packed and unpacked by forklift trucks while still on their trailers. Similarly, break-bulk trucks can be loaded and unloaded from raised platform by smaller forklifts (having two-three-ton capacity). Area required for CFS may be calculated on basis of some proporti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....custodian shall provide adequate and suitable land for installation of the scanner if necessary in future. 16. Parking Space: Ample parking space for trailers shall be provided in facility so that no road congestion is reported even at peak designed capacity of the ICD. 17. Authorized Economic Operators (AEO) facilities: Designated lanes /Priority at Entry/Exit gates, prioritized Cargo handling &Warehousing operations should be provided to AEO's. Special counter should be created in EXIM transactions cell for AEOS by Custodians. Further, AEO customer care representative should be appointed and displayed by Custodians. 18. Gender Specific Facilities: Custodians should create gender mainstreaming infrastructure including special Exim counters for female customs brokers/traders, separate workplace, customer care cells, essential utilities, restrooms etc. 19. Other essential infrastructure requirements 19.1. Weighbridges: Static weighbridges above 60 MT capacity should be installed in all facilities. These should always be remain calibrated & certified by respective states Weight & Measurement department. 19.2. Fire Fighting Equipme....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... location tracking system and accurate information availability to all stakeholders through electronic or smart phone application interface. All events of physical movement of container shall be recorded and accessible to customs officer via such electronic interface. 19.10. Access control: Entry to the customs notified area shall be controlled by KYC based RFID enabled tags for all authorized personnel including customs, custodians, manual workmen, vehicle drivers etc. Entry/ exit data should always be electronically available to customs authorities. 19.11. Handling equipment: An applicant should propose most modern handling equipment for loading, unloading of containers from rail flats, chassis, their stacking, movement, cargo handling, stuffing/ de-stuffing, etc. Equipment must have a minimum residual life of 8 years duly certified by the Original Equipment Manufacturer or a recognized inspection agency. 19.12. For handling scrap cargo, provision of a compact track loader of reputed make in good working condition and equipped with a telescopic spreader for operations in both 20 ft and 40 ft boxes should be ensured. 19.13. An additi....