What is container freight station (CFS) and what are its customs procedure and functions? ?

What is container freight station (CFS) and What are its customs procedure and functions? ?

Hi, in this post I will talk to you about What is a Container Freight Station (CFS)? What are its roles and responsibilities? What are all its function and procedures ?, and What is the role of customs in it? First let us understand step-by-step from what is Sea port.

SEA-PORT CARGO YARD:

A port is a docking place for ships (vessels) with many wharves (loading/unloading platforms) where EXPORT cargo is loaded into the ship (vessel) and IMPORT cargo is discharged from the vessels.

What is Container Freight Station (CFS) ?

In order to meet the growing volume in respect of Exports and Import activities, the ports are not equipped with adequate space and handling equipment thus reducing the efficiency thereby causing delay in clearance to the trade. Consequent to this, CFS set-up have been developed to relieve the extra volume from the Port.

A CFS location container box is unloaded on truck for Export.

This CFS facility is otherwise termed as an extension of Port that should be situated within the purview of the ‘Customs Warehousing Zone’. The CFS facility is run by the Government and Private parties controlled by the Customs authorities to effect import and export container clearances. This CFS facility is otherwise termed as an extension of Port that should be situated within the purview of the ‘Customs Warehousing Zone’. The CFS facility is run by the Government and Private parties controlled by the Customs authorities to effect import and export container clearances.

As in Port, the entire CFS premises is termed as ‘Customs Area’ which is under CCTV surveillance and the import and export container stock are covered under comprehensive insurance policy. Many agencies are licensed to operate in ‘Customs Area’ by providing handling equipment services for cargo stuffing and destuffing activities. In addition, a few more Agencies are licensed to ensure safety to the men and material, pollution control, Health-care, Canteen, House-keeping besides deploying round the clock vigilance by Security forces.

What are the Procedures and Functions of a CFS?

Maritime trade is important for India’s growing economy. India’s total Exports in 2018-19 has reached a new peak of USD 538.08 Billion. To boost more on trade potential and the urgency of reducing dwell time of cargo at CFS facility, Commerce Ministry has made in risk management committee for streamlining of Customs procedures and the functioning of CFS.

The important issues relate to Risk management-based Customs clearance, expeditious clearance of goods from Ports, EDI based customs control, integration of customs with other agencies, transshipment, amendment to Import General Manifest (IGM), bank guarantee, consolidation of Less than Container Load (LCL) cargo and e-payment of customs duty.

Customs ensures that the import and export of goods and their activities are allowed in notified places under section 7 of the Customs Act (CA) 1962. Custodians are appointed under section 45 of CA, 1962 for safe storage of goods till they are cleared for home consumption (after payment of customs duty) or warehoused.

Role of Container Freight Stations:

With an aim to de-congest the port, the concept of CFS has come-up to speed-up the clearance of the goods and to minimize the dwell time of cargo. Therefore, clearance of goods from CFS is considered more important.

Procedure of clearance of goods at CFS:

The main function of CFS is receipt, dispatch and clearance of containerized cargo, maintain the inventory and tracking (RFID) system to locate containers.

Import containers are moved from Port under Customs escort or under bond and bank guarantee (BG). After completion of customs formalities, Customs officials at CFS give ‘Out of Charge’ (OOC) and the custodian releases the goods after collecting the CFS charges.

Remember to note that after de-stuffing the cargo from the import containers, remove the empty containers from the CFS premises to the container empty yard immediately to avoid container demurrage charged in USD.

With regard to exports, under a Shipping Bill, the export cargo in Less than Container Load (LCL) or Full Container Load (FCL) is received by CFS for safe custody. After stuffing, Container Bonded truck is sealed by the customs official, removed for export from CFS to Port.