What is ICD?

ICD means Inland Container Depot situated at inland points away from sea ports. ICD is a term used in
India in the field of Imports and Export of sea shipments. ICD is formed to help importers and
exporters to handle their shipments near their place of location. If the sea port is away from the places
of importers and exporters Inland Container Depot (ICD) helps them to save time and money in the
procedures and formalities. In Inland Container Depot (ICD), a combination of services of sea
custodian, customs department, carriers, freight forwarders, customs brokers etc. are carried out to
facilitate exporters and importers for smooth handling of cargo.

Why is Inland Container Depot important?

At an ICD, the sea custodians, freight forwarders, customs brokers as well as officials from the customs
department provide their services to the importers and the exporters. They process their shipment near
their godowns and factories, away from the far-off ports. ICDs help de-stressing and decongesting the
ports where the storage spaces are limited due to the land’s judicial use

Inland Container Depots provide facilities like custom clearances as well as other export/import
procedures in the mainland, near large industrial complexes, away from the seaports. Once the cargo is
cleared at the ICD, it does not have to go through customs at the port and is cleared for export.

PROCEDURE FOR EXPORT/IMPORT THROUGH ICD

Exporters may take goods to the ICD/CFS and file the Shipping Bill and other documents. The customs
officers examine the goods and they are stuffed into the containers and thereafter the containers are
sealed. The Container Corporation of India or any other authorized agency, either by rail or road,
transports such containers to the seaports. Then, the containers are loaded into vessels for delivery of
the same at the specified foreign port.

In the case of export through ICD, the exporters are requested to file two additional Copies of Shipping
Bills known as "Transference Copies" along with other documents. The rest of the procedure is the
same as in the case of exports through Customs Port/Airport.

Procedure in case the Containers are to be stuffed in the Factory premises

 
Whenever the exporters intend to stuff their export cargo into the container at their
factory premises the exporters should requisition empty containers from steamer
agents who normally supply the containers and also seek the permission of the
Customs authorities to remove the empty containers from the port to their factory
premises.

This permission is necessary as the containers are generally of foreign origin and
when they are allowed to be taken out from the customs area necessary precautions
shall be taken by taking a Bond /Guarantee from the steamer agents concerned to
 ensure that the empty containers permitted to be taken out are brought back to the
port/ICD. The exporters after obtaining the permission from the Customs authorities
my take empty containers to their factory. The exporters should requisition the
services of central excise officers’ in charge of the factory to examine the export
goods and supervise loading into the container. The central excise officers examine
the goods with reference to the export invoice etc., and permit the exporters to load
their goods. After the loading is completed, the containers are sealed with the Central
excise seal and the Export invoice and other connected documents are signed by the
Central Excise Officers. A sample of the seal used to seal the container is forwarded
to customs officers of the PORT/ICD along with the other signed documents. On
receipt of the container and on presenting the shipping bill and other connected
documents the customs officers may verify the seal and allow export if the Central
Excise seal is found intact without further examination of the goods. However, if the
seal on the container is found broken or tampered with or on a reasonable suspicion
regarding the correctness of the value or quantity or quality of the goods in the
container, the customs officers may re-examine the goods before allowing export

Custom Clearing Process starts once the exporter satisfies all the prerequisites to export and
obtains the shipping order for reserving the space in the ship. Find below the steps involved in
custom clearing process for the export of goods from India:
1. Arrival of Goods at the Port

After the arrival of goods at the port, the clearing and forwarding agent submits the documents to
the Custom House for further procedure. The checklist of the document includes a packing list,
invoice, letter of credit, certificate of origin and other relevant documents. In addition, duty
drawback and MEIS benefit if any on that particular commodity should be mentioned on the
shipping bill. The checklist is uploaded to ICEGATE.

2. Generation of Shipping Bill

On receiving the required documents, the customs officer verifies the documents according to the
physical quantity of goods received. He/she generates the shipping bill for export of goods from
India and gives a copy to the dock appraiser.

3. Examination of Goods

The dock appraiser examines the goods according to the examination order. If the goods are
found as declared in the documents, he/she generates a ‘Let Export’ order. In case of any
discrepancy in the order, the goods might be sent back to the export department. Otherwise,
goods are forwarded to the preventive superintendent and loaded to the assigned vessel under
supervision. In such a case there will be delay in the custom clearing process for export of goods
from India.
4. Loading of Goods
The clearing and forwarding agent forwards the ‘Let export’ marked bill to the steamer agent. The
loading of cargo takes place under the supervision of the preventive officer. If the preventive
officer is satisfied with the loading of goods on the vessel then the officer gives ‘Shipped on
Board’ endorsement on the shipping bill.  Besides, the commanding officer of the ship issues
‘Mate receipt’ confirming the export of goods. Custom clearing process is almost completed at
this step.

5. Export General Manifest

The shipping agents are to submit shipping wise Export General Manifest to the Customs
Department, both electronically and manually, within seven days from the date of sailing of the
vessel.

6. Claim of Duty Drawback

Shipping Bill facilitates the exporter to claim duty drawback on the exports.  The drawback branch
officer processes the drawback electronically, once the exporter ascertains the status of the
shipping bill and drawback claim from the query counter. The claim is credited to the exporter’s
bank account after completion of the procedure.