Policy & Guidelines for setting up of ICDs, CFSs and AFSs – CBIC Circular

Policy & Guidelines for setting up of Inland Container Depots Container Freight Stations (CFSs) and Air Freight Stations (AFSs)

Circular No. 06/2021–Customs

F. No. 394/29 /2020-Cus (AS)
Government of India
Ministry of Finance
Department of Revenue
Anti-Smuggling Unit (CBIC)

Room No. 501, 5th Floor, Hudco Vishala Building,
K. Puram, New Delhi. Dated 22.02.2021

To,
All Principal Chief/Chief  Commissioners of Customs,
All Principal Chief/Chief Commissioners of Customs(P),
All Principal Chief/Chief Commissioners of Customs & CGST,
Webmaster, CBIC.

Madam/Sir ,

Subject: Policy and Guidelines for setting up of Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Air Freight Stations (AFSs)-Reg.

The Board had issued new set of policy and guidelines for setting up of ICDs/CFSs/AFSs vide Circular No. 50/2020-Customs  dated  05.11.2020.  The  said circular laid down various criterion for new approvals, applications and procedures for approval, post approval obligation, regulatory & other compliances, and performance monitoring etc. Post issuance of the Circular, the Inter -Ministerial Committee (IMC) was further reconstituted vide Board’s order dated  18.01.2021.

2. Para 5.5 of the said circular states that the IMC meeting will be held twice a year . It also prescribed that the jurisdictional Commissioners of Customs and the Members of IMC will  furnish their comments/recommendations on the applications  received  in  this  regard within 30 days. However, there was no cut-off date prescribed for submitting the applications and there were instances where applications were received just prior to the IMC meeting . Late submission  of application  poses  two  challenges . Firstly, there is no sufficient time for the jurisdictional  Commissioners  and IMC Members to examine the applications  and to furnish their  comments  on the same. Secondly,  if  an application  is not  placed  in time before  the scheduled IMC meeting, the applicant needs to wait for another 06 months for the next IMC meeting which  in tum hampers  the investment  activities of the stakeholders  particularly in the logistics sector.

3. Further, on  scrutiny  of  the  applications  and  the comments/ recommendations as forwarded by the jurisdictional Commissioners, it has been noticed that there is no objective evaluation of the proposal and many a times the  recommendation  of  the jurisdictional Commissioner does not provide a holistic picture of the feasibility of the proposal. Accordingly, it is felt that there is a need for structured reporting system which will not only minimize the ambiguity but may also help in automation and online processing in the future.

4. Accordingly, the following further guidelines are being prescribed:

(i) The IMC meeting would be held on quarterly basis as per the following schedule-

(ii) All the jurisdictional Principal Commissioners/ Commissioners may forward their comments/recommendations on the application for  setting of ICDs/CFSs/AFSs  as per Annexure–A within the time as stipulated above.

4. The above amendment may be circulated amongst the stakeholders and public at large and the field formations may suitably be sensitized.

5. In the Circular 50/2020-Customs dated 05.11.2020, any aspect which  is inconsistent with this circular shall be brought to notice for suitable modification. In case of a conflict, the provisions of this circular will prevail.

6. Any difficulties in the implementation of these guidelines may be brought to the notice of the Board immediately.

Yours faithfully,

Encl: Annexure-A

Director (Anti-Smuggling)
Tel. No. 011- 26177519
Telefax-26177-3 28/ 572/ 543

Annexure

Format of reporting for Setting up of an Inland Container Depots/Container Freight Stations/Air Freight Stations by the jurisdictional Principal Commissioner/Commissioner

Download Circular Click Here >>

• Penalty for late supply of goods allowable deduction u/s 37 being not a crime or prohibited activity
• Interest received from Cooperative banks allowable deduction u/s 80P to a Cooperative Society
• SC to decide distinction in employees & employer contribution to PF, ESI for allowability u/s 43B
• No liability to collect TCS u/s 206C (1C) from person involved in illegal mining – SC
• Receipts mentioning that it was towards corpus, donation assumed to be for corpus of trust