Economy

Norms set for trans-shipment at Vallarpadam

The Department of Revenue under the Union Ministry of Finance has issued a memo laying down a procedure for clearance of containers passing through the International Container Trans-shipment Terminal (ICTT) here.

Shipping industry sources said this was the first time that a procedure had been laid for a trans-shipment terminal in India, which cleared the way for ending stand-offs between various government agencies regarding clearance of containers passing through trans-shipment terminals.

For Vallarpadam ICTT, the new development comes as a breather because container movement here has come down to 18 per cent for the first month of the current financial year as compared to the same period last year. Shippers have, in the past, complained of inordinate delays in clearing containers passing through the Vallarpadam terminal.

It may be recalled that container movement through the ICTT here had been severely affected by delays for lack of clarity on who should clear transhipment cargo passing through the terminal.

An inter-ministerial committee had been constituted early this year to find a solution to the procedural problem.

The Customs Department had insisted that it would have to check every container that passed through the ICTT here.

The move had resulted in considerable delay in the movement of containers passing through Kochi.

According to the office memo, issued on May 18, containers originating in a foreign country and headed for another foreign country (moving through sea) via ICTT Vallarpadam will be cleared by Customs at the Special Economic Zone.

Containers originating in India and going to a foreign country (sea-to-sea) will be cleared by SEZ Customs. Containers originating in India and headed for a foreign country and moving either on road or rail-to-sea will be cleared by the Department of Revenue, Customs. Similarly, containers originating from a foreign country and headed for a destination within India and moving from sea-to-road or rail transportation will be cleared by the Department of Revenue, Customs.

Containers originating in a foreign country and headed for a destination in India, moving sea-to-sea, will be cleared by SEZ Customs.

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Printable version | May 16, 2021 8:49:17 PM | https://www.thehindu.com/business/Economy/norms-set-for-transshipment-at-vallarpadam/article3446592.ece

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