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Customs has released a new circular for the “Facilitation of Direct Port Delivery to RMS Bills of Entry of Automobile Industry from CCTL / CITPL container terminals in Chennai Port. The main objective is to encourage ease of doing business and reduce the transaction cost by increasing the direct port delivery from the terminals. This is very much in line with the government’s objective of EASE of DOING BUSINESS to improve trade efficiency.
The Facility Circular No 23/ 2016 dated 25th Nov 16, was born from the concerns highlighted by the automobile industry, which is one of the main driving force of the Tamil Nadu economy. The industry players under the RMS scheme were required to transfer the containers from the port to the CFSs/O Yard before they could be transported to the respective factories. Import consignments were not immediately available to the consignees for the Just- In-Time production which often led to extended lead times.
This circular address these above concerns and by allowing these import consignments to be cleared directly inside the Chennai container terminals ( CITPL & CCTL ) by Customs and be allowed for direct delivery to the factories, the importer enjoys savings in time and reduction in the transaction cost. Chennai Customs commissionerate should be commended for taking the concerns of the trade seriously and producing this good initiative that will benefit the industry as a whole.
Auto majors who are presently handling their containers at Kattupalli, can now enjoy the same facilities provided in the 2 container terminals at Chennai Port. This circular will also benefit the shipping lines who spend additional costs to call at two different ports; Chennai and Kattupalli. Quote by CITPL official: “This is a big plus for our auto industry customers for whom JIT is so important. This will ensure production lines are not delayed due to containers not reaching the factory on-time. It will be significant savings in cost as it will eliminate an extra transportation and additional handling.“
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