Kochi trade reiterates demand for separate Customs examination yard at Vallarpadam SEZ

The trading community at Kochi port has reiterated its demand to set up a separate customs examination yard at Vallarpadam SEZ, even as the cargo handling operations at the international container transhipment terminal is going on in full swing.

Customs check

Sources in the industry pointed out that with the opening of the Vallarpadam Terminal in the SEZ, all domestic tariff area (DTA) has been shifted from the Rajiv Gandhi Terminal to Vallarpadam. Therefore, Customs examination has become imperative for the DTA import goods.

Since Customs jurisdiction is only at container freight station (CFS) and not within the SEZ, all import cargo has to be taken to the CFS outside for the purpose of Customs examination.

It is pointed out that there is no sufficient CFS to handle the entire imports and the trade has to bear not only the transportation to the CFS but also the CFS cost, which has now risen by 40 per cent.

Prior to the shifting of DTA imports to Vallarpadam, the trade did not have to incur all such additional expenditure.

Contrary to the promises made regarding faster and cheaper imports, the sources said the authorities have not made any arrangements.

Exclusive yard for DTA cargo

If the terminal operator provided the desegregation and a separate yard for examination of DTA cargo, it would have given access to Customs, thereby, reducing the expenditure incurred by the trade.

The sources requested the authorities to ensure that a separate yard is provided in the designated non-processing area for examination of cargo despatched to importers in DTA at the earliest.

Besides, the SEZ authorities, as an alternative, may earmark an area in the large extent under its possession for the yard so that the Customs personnel shall have access for examination of DTA cargo. This will also help reduce the cost, the sources added.

Mr C.J. Mathew, Development Commissioner of Cochin Special Economic Zone, said that they have made alternate arrangements at Vallarpadam for import and export containers as long as Customs examination is not required.

The port management has also augmented its facilities at Willingdon Island for those containers where examination is required. He also pointed out that shortage of CFS in Kochi is considered to be the reasons for the problems being faced by the trade at the moment. Major ports such as Chennai, JNPT and Tuticorin have no special examination yard and this has been conducted at CFS, he said.

Official sources in the terminal pointed out that in the changed scenario, it is very important for the trade to realign their logistics in order to get the maximum benefit instead of relying on same old practice.

Regarding setting up desegregation and a separate yard at the terminal, he said the terminal operator is only a unit in the SEZ and has no authority to decide on such matters.

Besides, the Customs has issued a trade facility, whereby, it has instructed that all cargo meant for the DTA has to be examined only at a CFS.

In order to assist the trade, the Customs have issued special permission for ACP (accredited client programme) and RMS (risk management system) containers have been given clearance for direct delivery from the terminal, he said.