CBIC issues Guidelines for implementation of Direct Port Delivery

Sep 06, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs September 05, 2019, has issued Guidelines for implementation of Direct Port Delivery (DPD) across all the formations.

However, CBIC has taken various steps to reduce the dwell time as well as to bring down the logistics cost of EXIM clearances. One of the flagship initiatives in this regard has been the DPD of containers to the importers thus obviating the need of routing the clearance through the Container Freight Stations (CFSs).

Although this initiative is in operation at all the ports, however, CBIC has felt the need for providing general guidelines / eligibility criteria so that reach of DPD could be made maximized. Importers who have so far not availed the benefit of DPD for reasons including lack of awareness, may now join this program with certainty.

Therefore, the guidelines are being prescribed for implementation of DPD across all the formations, namely:

(i)                  Inclusion: The following categories of importers may opt for facility of DPD:

(a)    importers who have already been accorded either Authorized Economic Operator (AEO) Tier I, II or III status;

(b)    importers with a clear track record of compliance and an import volume of 25 Full Container Load (FCL) TEUs through a particular port or otherwise in the preceding financial year;

Importers falling under the said categories shall furnish information prescribed in application format (Page 4).

(ii)                Exclusions: The following categories of importers however would be excluded from facility of DPD:

(a)    importers against whom a case of mis-declaration of description of goods or of concealment / diversion of imported goods / evasion of duty has been made in the preceding five years;

(b)    importers facing prosecution proceedings in a matter under the Customs Act, 1962;

(c)     those importing goods that are subjected to 100% examination in terms of extant policy;

(d)    importers importing mostly Less Container Load (LCL) consignments.

(iii)               Conditions: The facility of DPD shall only be extended only to such consignments

(a)    which have either been fully facilitated or not subjected to examination; and

(b)    importers open a PD account with the terminals and arrange for their own transport to take delivery of containers from the terminal; and

(c)     any other procedural formality prescribed by the zone for better administration of DPD Scheme.

[Circular No. 29/ 2019-Customs]


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