ICD/CFS - Guidelines, norms and application form for setting up of ICDs/CFSs - Single Window Clearance system through Inter Ministerial Committee set up by Ministry of Commerce.

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F. No. 434/12/92-Cus-IV 05-06-1993 Sub: - Guidelines, norms and application form for setting up of ICDs/CFSs - Single Window Clearance system through Inter Ministerial Committee set up by Ministry of Commerce – Regarding. I am directed to forward herewith a copy of modified Guidelines, norms and application format for setting up ICDs/CFSs forwarded by Ministry of Commerce. These guidelines may kindly be examined and if any changes are to be incorporated, the same may be communicated to the Board. Guidelines, Norms and Application Form for Setting up Inland Container Depots (ICDs) and Container Freight Stations (CFSs) Part A Definition of ICD/CFS: An Inland Container Depot/Container Freight Station may be defined as: - A common user facility with public authority status equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers carried under customs transit by any applicable mode of transport placed under customs control and with customs and other agencies competent to clear goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export. Distinction between ICD & CFS: 2. An ICD is a place where containers are aggregated for onward movement to or from the ports whereas CFS is a place where containers are packed and unpacked and aggregation/segregation of cargo takes place. An ICD may have CFS attached to it. ICDs are located outside the port towns whereas no site restriction applies to CFS. Function of ICDs/CFSs: 3. Activities and operations in the ICD/CFS may be divided into the following main groups:- (a) Receipt and, dispatch of containersiable cargo. (b) Truck operations. (c) Loading/unloading of containers to and from trains. (d) Stuffing/destuffing, aggregation/de-aggregation of containers. (e) Customs clearance. (f) Gate checks & security. (g) Storage of cargo and containers. (h) (i) Record keeping and data storage. (j) Billing and cash collection. Information flow & Communication. 4. The operations of the ICD/CFS revolve around the following centers of activity:- (i) Siding: The place where containers are loaded on and unloaded off. Arrival and dispatch of trains etc. also takes place at this location. (ii) Containers Yard: The place where loaded and empty containers are stacked prior to their dispatch by specified mode of transport or prior to delivery to the customer. (iii) The Containers Freight Station: The area where containers are packed and unpacked and aggregation/segregation of cargo takes place. (iv) The Customs examination bay: The designated place where the containers are placed for examination by customs, separately for import and exports. Benefits of ICDs/CFSs: 5. The benefits and potential benefits arising from an ICD/CFS are as follows: Increased trade flows. Lower door-to-door freight rates. (i) (ii) (iii) Safety of cargo. (iv) Avoidance of clearing and forwarding agent's fees at seaports. (v) Avoidance of storage, demurrage and late documentation fees. (vi) Possible avoidance of the need to extend the period of marine insurance. (vii) Optimal use of road and rail transport and better utilization of capacity. (viii) Benefits to seaports. (ix) (x) Inventory savings. Improved communications, etc. 6. An ICD/CFS is expected to bring about a reduction in the through transport rate per box compared to alternative cargo routes and rate paid prior to setting up ICD/CFS. Prior Survey a must: PART B ICD/CFS introduces double handling of cargo and, therefore, possibly higher total handling cost per box on origin to destination basis. For the facility to be successful, reduction in total transport cost must outweigh any increase in handling cost. This underlines the need for sound economic justification for setting up ICD/CFS through a carefully evaluated traffic likely to be handled at the proposed facility. A survey/feasibility study must precede setting up of all ICDs/CFSs and copy of the report should invariably accompany the application for setting up such a facility. Data for carrying out analysis could be from secondary sources and field observations, structured over time and space. The letter is more realisation and truthful. Prior discussions must be held with exporters, shipping lines, freight forwarders, port authorities, concerned Collectors of Customs/Excise etc., and their point of view fully reflected in the report. 2. The traffic flow between Inland centers of production and ports need to be analyzed with reference to:- *Commodities. *Directional-split (imports/exports) *Proportions of less-than-container load (LCL) and full-container-load (FCL) *Forecasts of future growth. *Modes of transport available. *Possible reduction in tonne per kilometer or box per kilometer costs. 3. A facility to be economically viable for the management; and attractive to users, railways for full train load movements and other transport operations; seaports; shipping lines; freight forwarders etc., must have certain minimum amount of traffic. The prospective entrepreneurs are, therefore, strongly advised to study very carefully the viability of the project from the TEU traffic availability point of view. While it is not proposed to lay down any minimum TEU figures as part of the criteria for approval of ICDs/CFSs, following are suggested indicative minimum: For ICD - 6,000 TEUs per year (Two way) For CFS - 1,000 TEUs per year (Two way). Design and lay-out of ICD/CFS 4. Key to a good lay-out is the smooth flow of containers, cargo and vehicles through the ICD/CFS. The design and layout should take into account initial volume of business, estimated volume in 5/10 years horizon and the type of facilities exporters would require. The initial layout should be capable of adaptation to changing circumstances. The design broadly should encompass features like (rail) siding, container yard, gate house and security features, boundary wall (fencing), roads, pavements, office building and public amenities. The track length and number of tracks should be adequate to handle rakes and for stabling trains where relevant. The per-meter fencing and lighting must meet the standards required by Customs authorities. The gate being the focal point of site security should be properly planned. The administration building is the focal point of production and processing and processing of all documentation relating to handling of cargo and containers. While its size will be determined by the needs of potential occupants, the main core of building may be an open space capable to divisions into different sized offices by partition walls. Fixed provisions can be made for sanitation facilities and possibly a food service facility. A good communication system is a must. Equipping the ICD/CFS: 5. A host of handling equipment of different kind and capacity is available for loading, unloading of containers from rail flats, chassis, their stacking, movement, cargo handling, stuffing, destuffing and so on. The choice of equipment for the facility will have a major impact on the overall design and effective working of the ICD/CFS and should be carefully considered both for the ICD terminal and, in the Container Freight Station. Availability of adequate and proper equipment (owned, hired, leased) at the facility would be an essential requirement. Tariff: 6. Detailed tariff structure and costing should be worked out in advance and information provided with the application. General: The main function of an ICD/CFS being receipt, dispatch and clearance of containerised cargo, the need for an up-to-date inventory control and tracking system to locate containers/cargo is paramount. Each functional unit of the facility (e.g. siding, container yard, gate, stuffing/destuffing area etc.) should have up-to-date, and where possible on-line, real-time information about all the containers etc. to meet the requirements of customers, administration, railways etc. This could be through computers etc. Procedure for approval of ICD/CFS: PART C Proposals for setting lip ICD/CFS will be considered and cleared, on merits, by an Inter-Ministerial Committee for ICDs/CFSs, which consists of officials of the Ministers of Commerce, Finance (Customs), Railways and Surface Transport. The proposals will be examined keeping in view the guidelines and norms mentioned in Part A & B. 2. Application (eight copies) in enclosed form should be submitted to the in the Ministry of Commerce. Joint Director (Infrastructure Division) Applications must be accompanied by copies of feasibility reports mentioned in the guidelines. 3. On acceptance of a proposal, a letter of intend will be issued to the applicant which will enable it to initiate steps to create infrastructure. 4. After the applicant has put up required infrastructure, met the security standards of the area Collector of Customs and provided a bond backed by bank guarantee to the Customs, final clearances and Customs notification will be issued. The bond to be extended would be for a value equivalent to the anticipated value of cargo to be handled. Bank guarantee would be for 20% of the value of bond. 5. The approval will be subject to cancellation in the event of any abuse or violation of the conditions of approval. 6. The working of the ICD/CFS will be open to review by the Inter Ministerial Committee and Customs Department. FORMAT OF APPLICATION FOR PERMISSION TO SET UP INLAND CONTAINER DEPOT/CONTAINER FREIGHT STATION 1. Name of the Organization proposing to setup ICD/CFS 2. Status of the applicant Organization: 3. Place where the ICD/CFS is proposed to be set up and precise reasons for selection of the site. 4. Location of the site with distance from: (a) Nearest Highway (b) Nearest Rail head (c) Nearest Port (d) Nearest ICD/CFS (Enclose a map showing location and modal links to ports) 5. Whether land for the setting up of ICD/CFS already as acquired – If so, (a) area of land (in sq.mtr.) (b) whether owned/hired/on lease; (c) if not, how the land is proposed to be acquired. 6. Name of the Customs Collectorate having jurisdiction to the proposed ICD/CFS. 7. Traffic Protections: Commodity Tonnes TEUs Export (existing/projected) Import (existing/projected) Note: Party-wise expected traffic of export/import containers (TEUs) separately to be attached to the extent possible. 8. Names of the shipping lines, shipping agents, freight forwarders operating/willing to operate. 9. Lay-out plan of the proposed ICD/CFS: (a) Details of rail terminal facilities for receiving Container trains, loading unloading, stacking space for containers. (b) Covered area separately out/disputed/hazardous cargo, office block, etc. for export/import/shut (c) Open area for Container Circulation/Yard: paved/unpaved (d) Gatehouse and security features (detailed layout plan to be enclosed) 10. Infrastructural facilities (area in sq. metres) proposed to be provided: (a) Office accommodation for applicant's staff; (b) Accommodation for custom staff; (c) Accommodation for shipping lines/agents. (d) Accommodation for bank (e) Canteen (f) Computer (g) Weighment facilities (h) Telephone/telex/Fax (i) Flood light/high mast towers for security; and (j) Public & staff convenience/amenities like toilets, drinking water etc. (k) Fire fighting (l) Drainage/Sewerage (m) Strong room for valuable cargo (n) Refer plug points (o) Parking area for lorries outside the facility. 11. Equipment: Details of the equipment (forklift, crane, trailor etc.) to handle the containers and cargoes. 12. Estimated cost of the proposed project. 13. Experience/capability of the applicant in running the ICD/CFS, staff to be employed with their experience and qualifications, responsibilities 14. Financial status of the applicant organization. 15. Movement logistics of containers between the proposed ICD/CFS & Gateway port: Complete details to be provided. 16. Costing and proposed tariff. 17. Scope and plans for future expansion. Note:- The Customs Notification on the ICD/CFS will be issued only after infrastructure and security arrangements are completed & necessary bond with bank guarantee is provided.

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