Containerized cargo handling operation for export & import

Containerized Cargo handling is an very important activity in international shipments (export/ import), place of stuffing plays a vital role here.

Once booking is done & cargo is ready exporter will have to decide where the stuffing (process of loading cargo in to containers) will be done.

In this article we will discuss about places of stuffing & the process of container handling.

Usually containers kept/ stacked at the empty yards of CFS (Container freight station) or ICD (Inland container depot).

So wherever the stuffing will be done containers need to be collected/picked from CFS or ICD. Exporter or Freight forwarder need to show the booking copy or booking reference no to the nominated CFS/ICD if containers are available in that particular yard authorized persons of that CFS/ICD yard will release the container s to the exporter/freight forwarder.

It is exporter’s call or importer's call in case of ex-works shipments where he wants to stuff his cargo, usually it depends on the resources available at exporter's premises or the distance from nearest CFS or ICD.

A CFS situated at the coastal areas & a ICD situated at non coastal areas (where sea ports are not available). So if exporter’s warehouse/factory is near to the sea port he can choose one of the nearest CFS available or otherwise he will opt a nearby ICD.

If stuffing is done at CFS then the containers directly taken to the port after customs clearance, if it is stuffed at ICD then the containers will be taken to nearest sea port by train (railway siding).

Here we will discuss all stuffing options one by one.

A) CFS Stuffing

Once cargo is ready it will loaded in to truck and sent to the CFS, meanwhile exporter will provide all necessary documents to their CHA and also ask freight forwarder or liners to arrange the containers.

Once CHA gets all the documents it will file shipping bill checklist and it will be submitted to customs officer along with other required documents, CHA will show the documents to custom officers and ask for stuffing permission, if all documents are fine custom officer will give the permission. Once truck reaches to the CFS those will be taken inside the CFS if the custom has permitted. CFS is custom bounded area so for each and every activity permission of customs is required. After receiving all permissions stuffing will be done at CFS.

Once stuffing is completed the CHA executive will request customs inspector/superintendent or any other customs official on duty at that CFS to inspect the cargo, after inspection containers will have to be sealed,  if everything found in order customs officials will pass the shipping bill and issue Let Export Order (LEO). 

After LEO received stuffing report will be issued by customs official.

Stuffing report  is the copy of let export order in which all container no, seal no & no of package are mentioned, and customs official put their stamp and sign, it is basically the confirmation by customs that the containers are properly inspected, sealed and the provided information are correct as per their knowledge.

Simultaneously CHA/ Freight forwarder will have to send request to line for Form-13 once stuffing process is completed. The details of container no, seal no, shipping bill no, no of package, net weight, gross weight, booking copy etc. has to be sent to liner or it’s agent, liner will check all the details and availability of slots in that particular vessel, if everything is in order liner will issue Form-13s online and send it to the exporter/Freight forwarder, Once Form-13 received those have to be handed over to the trailer.

Basically Form-13 is like a gate pass at port or container terminal, it is a type of permission,  port authorities will check Form-13 while entering the trailer inside the port.

Once LEO & stuffing report are issued, containers are sealed accordingly and loaded to trailers (vehicle), weighment done and sent to the port, each trailer will get one copy of stuffing report, Form -13 & gate pass from CFS.

B) ICD Stuffing

Like CFS stuffing process is same in ICD.

Once stuffing completed & let export issued containers will be sealed, loaded in rail and sent to the port.

C) Factory stuffing

The process of Factory stuffing is bit different from CFS/ICD.

In this case once goods are ready at exporter’s factory/plant, factory people ask the CHA persons to send the containers (containers has to booked previously) from CFS to their factory. CHA will contact liner of freight forwarders who booked the containers, containers will be finalized and then CHA will request customs officers to give permission for sending the containers to the factory from CFS, once permission granted containers will be sent to the factory.

Then concerned person of that factory will contact central excise authorities and request them to come down to the factory premises for monitor & inspect the stuffing process.

Central excise authorities will come to the factory and monitor the below process.

The cargo will be stuffed in front of the excise officials, and sealed, then weighment of the containers will be done and weight details will be entered in Packing list and total net & gross weights also be mentioned in Invoice, based on that weight Invoice amount will be finalized (If cargo packages are not uniform then the weight of individual package has to be mentioned).

After that central excise people will check these documents along with other required declarations & cargo, if everything is in order they will stamp & sign in the documents and seal these documents in a cover and hand over that cover to the exporter/factory people, that cover should not be opened by anyone, that will be opened at port by the customs officers.

Once everything completed sealed containers will be sent to the port directly for inspection and further process, the cover containing original signed documents will be sent to the CHA. CHA will get Xerox copy of invoice & Packing list for filling shipping bill checklist and request for Form-13 to liner.

Once vehicle reached at port or any pre-gate copies of Form-13 & Shipping bill check list will be handed over to the driver and then containers will be taken inside the port.

Meanwhile CHA people will go to customs officials on duty at port and hand over the cover given by central excise along with shipping bill checklist. Custom officer will check everything if all are in order will issue Let export order.

D) Factory stuffing with self/ RFID-sealing 

RFDI - Radio Frequency Identification

From November 2017 for all factory stuffing containers self-sealing made mandatory.

Self-sealing process is implemented in order to save time, tempering of the seals, reduce transaction cost etc. Also it will improve the visibility and enhance the security of the cargo during transportation from factory to ports.

To avail this facility exporter has to take permission from Principal commissioner of customs, necessary document has to be produced at custom house to get self-sealing permission.

Exporters need to submit one request letter to Commissioner of customs along with copies of IEC, PAN, GST, list of authorized signatories, warehouse/ Factory details etc. , Containers can be self-sealed within the permitted area/premises only, it is not applicable for CFS/ICD stuffing or Air cargo.

Self-sealing means after stuffing of the containers it will be sealed by exporter themselves and send the containers to port directly, physical inspection by customs officers will not be done in this case.

Seals used for self-sealing are RFID seals, which can be purchased from some authorized dealers (authorized by central excise) only (booking can be done online through vendors websites seals will be delivered at the door).

At the time of dispatch vendors will feed the details given by exporters e.g. Name of exporter, IEC code, Description of goods, GSTN number etc.

Once stuffing is done and it is finalized which seal to be used in which containers at that time exporter has to link shipping bill no with associated seal nos.

At the time of filing shipping bill RFID seal nos has to be feed, also self-declaration has to be given by exporters, once stuffing is completed and containers are sealed with RFID seals containers will be moved from factory to port as per availability of Form-13s, once containers reached at port all associated documents will be submitted to custom officer, custom officer will feed the details on system if everything is in order let export order will be issued.

In case of self/RFID sealing export open order may be issued by system randomly, while registering the shipping bill online at ICEGATE, system randomly issued open order for any lot.

e.g. one shipping bill filed for 10 containers, at the time of registering if open order comes it will be applicable for all 10 containers.

If open order comes, all containers of that particular shipping bill has to be taken to the nearest CFS and all containers will be opened and examined by on duty custom officer at CFS and then let export order will be granted(if open order comes containers will be taken to CFS and it will be cleared with the same process as it happened for CFS stuffing).