CBIC, trying to reduce the stay time, improve supply chain effectiveness and limit the expense on logistics for EXIM (Export-Import), has attempted different steps and initiatives. One of such flagship initiatives is the Direct Port Delivery (DPD) of containers to the merchant, by sparing merchant the time and assets required for routing the clearance through the Container Freight Stations (CFS).
Trivia: The DPD activity was first launched at JNPT and from that point stretched out to different ports.
Worried about the absence of awareness about the plan, the CBIC gave Circular No. 29/2019-Customs, dated September 05, 2019 to explain the provisional rule and qualification criteria for benefiting DPD scheme, maximize the DPD reach and urge importers to join this program together with certainty.
Reasons limiting merchants from opting on DPD benefits
Actually, any completely facilitated Bill of Entry (“BoE”) filed at the gateway is sufficient for a merchant to profit DPD advantage. However, the accompanying reasons (as per the feedback from the field) have been confining a bigger segment of importers to pick in for the DPD benefits:
- Non-receipt of original docs from abroad and subsequent deferral in issuance of Delivery Order,
- Financial and credit burdens,
- Deferral in settlement of dues of transportation lines,
- Opening PD Account with the terminals, and so forth.
Taking the note of imperatives supra, the accompanying rules are being endorsed for the usage of DPD over every one of the formations.
- Importers who have just been agreed either AEO Tier I, II or III status;
- Importers with a reasonable track record of consistence and an import volume of 25 Full Container Load (FCL) TEUs through a specific port or usually in the previous financial year;
While the rule at (b) is alluring, Chief Commissioner may, in any case, in required instances of importers, loosen up the TEU benchmark particularly for MSME Sector. Importers whose imports have delighted in a reliable example of customs risk assistance/who give a confirmation that they would be in a situation to get compartments directly from the terminal.
- Importers against whom an instance of misdeclaration of the description of goods or of concealment/diversion of imported products/evasion of duty has been made in the earlier five years;
- Importers confronting indictment proceedings in an issue under the Customs Act, 1962;
- Importers bringing in products that are exposed to 100% examination regarding extant strategy;
- Importers bringing in generally LCL consignments.
- Qualified Consignments
The facility of DPD will be broadened, in view of the accompanying conditions
- which have either been completely encouraged or not exposed to examination; and
- importers open a PD account with the terminals and arrange their very own vehicle to take delivery of compartments from the terminal; and
- some other procedural custom recommended by the zone for better administration of DPD scheme
In perspective on the above rules for profiting DPD, Customs field arrangements at seaports where containerized load is received are encouraged to issue/re-issue Public Notices to support importers with the goal that they could benefit DPD.
Enquire with Certicom Consulting for any further queries.