Chapter 10: Inland Clearance Depot – ICD or Dry Ports

1. What is a Dry Port (Inland Clearance Depot)? Dry ports, also called
Inland Clearance Depots (ICD), are common facilities where goods can
be handled, stored temporarily, and inspected by customs. These
facilities operate inland but serve the same functions as a seaport.
Goods can be stored or re-exported from here.

2. Location and Connectivity of Dry Ports Dry ports are located inland,
away from the sea, but are linked directly to seaports through
transportation routes. This allows for imports and exports to flow
efficiently between the sea and land. Even countries without direct sea
access can use dry ports through road or rail links.

3. Role and Security of Dry Ports Dry ports must be secure, providing
areas for temporary storage and customs checks. It’s crucial for dry
ports to be accessible to all shippers and transporters, whether
through private or public operation.

4. Special Conditions at Dry Ports In some cases, dry ports have

designated areas to prevent specific groups, like certain forwarders or
agents, from controlling the entire port. This ensures fair access for all
users.

5. Handling Goods at Dry Ports Dry ports handle various goods, especially
large quantities or bulk goods. Some goods may bypass the seaport
and directly move to the dry port for clearance. Goods may also switch
between transportation modes, such as from road to rail.
 6. Bulk Cargo and Containerized Cargo Most dry ports handle different
types of cargo, including both bulk and containerized goods. Bulk cargo
is loaded and unloaded directly from transportation like ships, whereas
containerized cargo is handled in pre-packed containers.

7. Handling at the Exporting Country At dry ports, goods are processed

and packed for export in the exporting country before being shipped
out. There are different methods depending on the type of goods and
destination.

8. Import and Export Processes at Dry Ports There are two main processes
at dry ports: a) Export from Land-Locked Countries – Goods are
transported from the dry port to the sea port, making it easier for
countries without direct sea access to engage in trade. B) Import from
Sea Ports – Goods arrive at the sea port and are then moved inland to
the dry port for processing and distribution.

( Chapter 10 short note) Export procedures

1. Presentation of Shipping Bill

Submit 6 copies of the shipping bill.

Relevant forms like DEEC, drawback forms are attached.

Submit original, duplicate, triplicate (export promotion), and transfer copies.

2. Noting

Copies are presented in a prescribed format.

Inspector stamps the date of presentation.

Serial numbers are assigned to shipping bills.

Inspector processes shipping bills for checks.

3. Processing

Classification and assessment completed.

Submitted to Noting Clerk for stamping.

Inspector assigns a serial number for processing.

Shipping bill checked against prescribed forms (GR1 forms, invoice, packing
list).
 4. Assessment

Inspector forwards the bill to the Appraiser/Supt. For assessment.

All necessary checks are done.

If benefits under DEEC/Drawback are claimed, this is noted.

Shipping bill forwarded to customs for finalization.

5. G.R.I Formalities

Exporter submits shipping bill with the GR1 forms.

Form is processed and presented to Reserve Bank of India (RBI).

Shipping bill is forwarded for examination and container sealing.

6. Arrival of Export Goods at ICD

The exporter presents the shipping bill and necessary documents.

CONCOR provides space for containers and issues a carting order.

After receipt of goods, examination order is given.

7. Examination (Phase I)

Inspecting officer examines the goods.

Draws necessary samples if required.

Signs the shipping bill and records the report.

8. Examination (Phase II)

Goods stuffed into containers.

A report is prepared, and the container is sealed under supervision.

9. Shut Out Cargo Handling

After container stuffing, details recorded on shipping bill.

Container is sealed and approved by the superintendent.

10. Customs Copy of Stuffing Sheet

Presented to the Supt. To obtain “Let Export” order.

11. Port Handover

Two copies of the shipping bill are transferred to CONCOR.

A custodian register is maintained for tracking shipments.

The shipment is transshipped to the exit port.

IMPORT PROCEDURE( At Gateway Port)

1. Condition for Transshipment: Containers are normally sealed unless

customs suspect misdeclared goods.
 2. Removal of Containers:

Formalities completed.

Containers moved to rail or road transport under customs supervision.

3. Documentation:

Transshipment permit issued in quadruplicate.

Distribution:

One copy for record.

One sealed copy to customs.

Details of containers entered in a register by the Preventive Officer.

4. Landing Certificate:

Issued by customs at the destination.

Upon verification, responsibility shifts to CONCOR for further action.

5. Presentation of Shipping Bill:

Containerized goods allowed if endorsed as transshipment goods.

Steamer agent files a transshipment application (quadruplicate).

6. Approval by Assistant Commissioner:

Application processed with all particulars.

Endorsement stamped for transshipment.

7. Transport Arrangements:

Movement handled by CONCOR via rail/road.

CONCOR ensures satisfactory movement of containers.

AT THE CONTAINER INLAND DEPOT( ICD)

 1. Arrival of Containers at ICD:

CONCOR (custodian) is responsible under Section 45 of the Customs Act,

1962.

Upon arrival, transshipment permits, sub-manifest, containers, seals, etc.,

are presented by CONCOR.

ICD customs check transshipment permits with the sub-manifest.

Certification by ICD customs is required for Gateway Customs.

Gateway Customs verify the bond if necessary and certify the Bill of Entry.

2. If Seals are Found Intact:

The examination is conducted in the presence of customs officers.

Seals are broken at the time of examination.

 3. Seals Found Broken or Tampered:

CONCOR notifies the customs officers immediately.

Further actions are taken as required.

4. Documentation:

Relevant documents such as invoices, packing lists, Bill of Lading, etc., are
presented.

The original Bill of Entry should have the endorsements on the reverse side.

5. De-stuffing Procedure:

CONCOR sends a request for de-stuffing of containers.

LCL containers are de-stuffed in the presence of customs officers.

All packages, boxes, and goods are tallied, and marks/numbers are verified.
Records are kept on the sub-manifest, and customs sign off on the process.

6. De-stuffing FCL Containers:

De-stuffing is carried out only if requested by customs.

7. Maintaining Register:

For both LCL and FCL cargo, a register is maintained as per customs
regulations.

8. Clearance of Goods for Home Consumption:

Clearance based on Bill of Entry, which includes documents like:

Delivery order

Invoice

Packing list
Bill of lading

The importer’s declaration includes details about the nature of the

transaction.

Flowchart Creation:

For each point:

1. Container Arrival (ICD) → Present Documents (sub-manifest, seals) →

ICD Certification → Gateway Customs Certification (if necessary)

2. Seals Found Intact → Examination in Customs Presence → Seals Broken

at Examination

3. Seals Broken → CONCOR Notification → Further Actions by Customs

4. Document Submission → Check Endorsements on Original Bill of Entry

 5. De-stuffing Request → Customs Supervision → Tallied and Verified
Records → Customs Sign-off

6. FCL De-stuffing (Only if requested by customs)

7. Maintain Register for LCL and FCL Cargo

8. Goods Clearance → Submission of Bill of Entry (Invoice, Delivery Order,

etc.) → Importer Declaration

Step 1: ICN Verification & Noting of Bill of Entry

Importer/CHA presents Bill of Entry.

Noting Clerk makes entries in IGM register.

Noting Clerk stamps and forwards Bill of Entry for Alert Check.

Step 2: Alert & Licensing Check

Alert Inspector performs Alert Check.

Bill of Entry forwarded to Appraiser for Appraisement.

Step 3: Appraisement

First Appraisement: Goods are assessed based on documents.

If disputes arise, goods are further examined.

Second Check: Physical examination after duty payment and before

clearance.

Step 4: Examination

First Check: Recorded in Bill of Entry.

Second Check: Physical examination after duty payment.

Step 5: Examination Order

a) 5% of goods inspected from large consignments.

b) 1% inspected for reputable importers.

 c) Random inspection for goods from different firms.

d) Reduced inspection for reputed foreign firms.

Step 6: Detailed Examination

Bill of Entry presented for inspection.

Verification of container seals and physical examination.

Step 7: Concurrent Audit

Customs audit teams conduct audits before duty payment.

Step 8: Detachment of Bill of Entry

Finalized Bill of Entry handed over to importer/CHA.

Clerk updates Bill of Entry register.

Step 9: Duty Payment

Importer/CHA pays duty after receiving the assessed Bill of Entry.