Clarification on Insurance Amount and Bond Value for CCSPs and validity of Bond for AEO-LO

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ranean (, TTS OFFICE OF THE COMMISSIONER O area, TON a5 UR, GTA - 361001 Rajkot han Ce erce and Industry, Jamnagar - 361001 Jamnagar Highway, Beside- Jamnagar Chamber of eb in Email ID: commr-custjmr@nic.in Phone No.: (0288-2772701) Fax No.: (0288-2772702) -BNo. CUS/Tech/275/2024-Tech-O/o Commr-Cus-Prev-Jamnagar ‘Date:: 05.02.205.02.2 025 , Subject: SPs and Clarification on Insurance Amount and Bond Value for CC validity of Bond for AEO-LO— reg. Attention of all Importers, Customs Brokers (CBs), Trade Members proseke 4 Stakeholders is invited to the Circular No. 22/2024 a Customs dated 08.11. Prsitiats vide File No. 520/32/2022-Cus-VI, regarding Clarification on Insurance Amount an ie Value for CCSPs and validity of Bond for AEO-LO. | 2. Attention is also invited to Board's Circular: No. 42/2016-Customs datedda 31.08.2016 which provided that average time taken for clearance of goods should be a relevant factor in deciding amount of insurance and accordingly prescribed 10 days as an average dwell time to be considered while calculating the insurance amount as provided under Regulation 5(1) (iii) of the Handling of Cargo in Customs Areas Regulations, 2009 (hereinafter referred to as HCCAR). dated 3. Further, attention is also invited to the Board's Circular No. 32/2013-Customs under 16.08.2013 which additionally clarifies that the custodian bond executed by CCSPs Cargo Regulation 5(3) shall remain valid till the validity of approval granted to Customs Service Providers (CCSPs) under Regulation 10. 4.

ionally clarifies that the custodian bond executed by CCSPs Cargo Regulation 5(3) shall remain valid till the validity of approval granted to Customs Service Providers (CCSPs) under Regulation 10. 4. It has been represented to the Board that the guidelines prescribed vide the above referred circulars may be reviewed for reduction of cost incurred on insurance amount by | Customs Cargo Service Providers (CCSPs) under Regulation 5(1) (111) of HCCAR, 2009 by C also bringing the attention of the Board regarding the reduction in average dwell time of imported goods and transit time for export goods. 5. The matter has been examined. In view of the present NTRS data and as a measure of Ease of Doing Business, it has been decided to partially modify the earlier Circular No. 42/2016-Customs dated 31.08.2016 with regard to Regulation SC1)Gii) of HCCAR, to lay down that the amount of insurance to be provided by CCSP¢ should be equal to the average value ofgoods likely to be stored in the Customs area for a period of 5 days (based on projected capacity) and for an amount as Commissioner of Customs may specify having regard to the goods that are already insured by the importers or exporters. Corresponding changes have also been carried out in Regulation 5(3) of HCCAR 2009 vistodi ntucation No. 75/2024-Customs (N.T:) dated 07 T1 oye to reduce the value of custodian bond being furnished in respect of im orted/export : datedstorage from the current 10 days as stipulatedIpulated inj N ifj on Noe tpn cxtent of > days 26.08.2016, : nication No, 115/2016-Customs (N.T.) Regulation6.

ished in respect of im orted/export : datedstorage from the current 10 days as stipulatedIpulated inj N ifj on Noe tpn cxtent of > days 26.08.2016, : nication No, 115/2016-Customs (N.T.) Regulation6. The.10 of Notification HCCAR, No. 2009 73/2024-Customsproviding that ic +1.)T.) Fmdd dat cart uso amends CCSPs | 6 “at the approval for appointment of ARO and as custodian has been made valid, till such time their AEO authoy; “oh ine not suspended or revoked in terms of Regulation 12 of HCCA pi warner: 8 valid terms of clarification provided in Circular No 32/2013-C *, 2009, “Accordingly, in custodian bond executed by CCSPs je ICDS/CFSs at, Brg 16.08.2013, the validity same as the validit of a n Dt ci LO shall have the y Pproval granted under Regulation 10 of HCCAR, 2009. Se

7, ; be brought to the Difficulty, if any, in implementation of this hereee notice of the Commissioner of Customs, Customs (Prev.) Jamnagar. (onieSfard Lal) Commissioner Encl: 1. Circular No. 22/2024 — Customs dated 08.11.2024. Copy to: As per mailing list.