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Dated: 10.04.2025

Goods Transshipment Regulations under Indian Customs

Comparative Table: Key Indian Customs Transshipment Regulations

Feature	Goods Imported (Conditions of Transhipment) Regulations, 1995	Sea Cargo Manifest and Transshipment Regulations, 2018 (SCMTR)	Transshipment of Cargo to Nepal under ECTS Regulations, 2019
Issuing Notification	Notification No. 61/1995-Cus. (N.T.)	Notification No. 38/2018-Cus. (N.T.)	Notification No. 68/2019-Cus. (N.T.)
Objective	To regulate domestic transshipment of imported goods	Digitize and modernize sea cargo manifest and transshipment processes	Enable secure cargo movement to Nepal using GPS-based tracking
Primary Mode of Transport	Rail, road, air, sea	Sea (and multi-modal: sea + rail/road)	Rail and road (via Indian ports to Nepal)
Scope	Indian customs station to another customs station	Sea arrival/departure + inland/foreign transshipment	Cargo from Indian ports (e.g., Kolkata, Vizag) to Nepal
Cargo Type	All import cargo	Import, export, coastal, and transshipped cargo	Nepal-bound containers (inland clearance)
Transshipment Process	Requires written permission and bond; sealing by customs	Requires digital manifests, specific forms, and security bonds	Declaration + general bond + ECTS seal and GPS tracking
Sealing Requirement	Yes; Customs sealing required (exempt if one-time seal used)	Yes; based on route and mode	Mandatory ECTS sealing
Bond Requirement	Yes (general/specific bond)	Yes (Form IX/X series) – exemptions for direct port-to-port	Yes (general bond per declaration)
Electronic System Usage	No (manual or semi-digital)	Yes (mandatory digital manifest via ICEGATE)	Yes (real-time ECTS web portal monitoring)
Tracking Mechanism	Manual verification at destination	Manifest-based with optional tracking	GPS-based Electronic Cargo Tracking System (ECTS)
Penalties for Non-compliance	Bond forfeiture	₹50,000 fine + possible registration revocation	Bond forfeiture and sealing/reporting penalties
Stakeholders Involved	Importer, transporter, customs	ASC, ASA, ATO, ATP, ACU, FF, Customs	Authorized carrier, Customs, Nepalese border officials
Geographic Coverage	India	India (with cross-border coastal cargo via SL/Bangladesh)	India–Nepal corridor
Legal Backing	Sections 54, 157 & 158 of the Customs Act	Sections 30, 157 & 158 of the Customs Act	Sections 54 & 157 of the Customs Act

The Sea Cargo Manifest and Transshipment Regulations, 2018 (SCMTR), issued via Notification No. 38/2018-Customs (N.T.) dated 11th May 2018. Enforced from 1st August 2018, SCMTR replaces outdated regulations and aligns Indian customs processes with international best practices.

Objective of SCMTR

SCMTR streamlines and digitizes the customs procedures related to sea cargo manifests and transshipment. It aims to:

• Ensure transparency and traceability.
• Simplify the filing of manifests.
• Introduce uniform processes for the movement of goods.
• Ensure secure and monitored transshipment within India and via foreign territories.

Key Definitions

• Arrival Manifest: Integrated declaration on arrival of vessel/train/truck.
• Departure Manifest: Declaration before departure.
• Authorized Carrier: Includes shipping lines, train operators, and custodians registered under Regulation 3.
• Designated Foreign Route: Cargo movement via Sri Lankan or Bangladeshi waters.
• Custodian: A person approved to hold cargo under Section 45 of the Customs Act.

Registration (Regulation 3)

• All persons responsible for delivering manifests must apply using Form-I.
• Registration valid for 3 years, extendable to 5 or 10 years for AEOs.
• Registration is pan-India valid.

Delivery of Manifests

Arrival Manifest (Regulation 4)

• Must be filed electronically.
• Comprises:
  • Entry inward (Form-II)
  • General declaration (Form-III)
  • Vessel stores list (Form-IV)
  • Crew property (Form-V)
  • Cargo declaration (Forms VIA/VIB)

Departure Manifest (Regulation 5)

• Filed before departure.
• Includes:
  • General declaration (Form-III)
  • Cargo details (Forms VIIA/VIIB)

Sensitive Cargo Declaration (Regulation 6)

Separate declaration (or nil declaration) required for:

• Arms, ammunition
• Explosives, narcotics
• Gold, silver
• Radioactive material

Transshipment Procedures (Regulations 7–9)

• Applies to cargo moving between:
  • Ports ↔ ICDs/CFSs/SEZs
  • Ports ↔ Ports (including via foreign waters)
• Forms required:
  • Transshipment manifest: Form-VIII
  • Bond formats: Form-IXA to IXD, Form-XA to XD
• Bond exemptions: Sea-to-sea direct transshipment does not require bonds.
• Containers sealed by customs must be accounted for at the destination.

Carrier Responsibilities (Regulation 10)

Authorized carriers must:

• Maintain cargo records and make them available to customs.
• Provide tracking for cargo.
• Ensure safety and delivery of goods.
• Be liable for any loss or pilferage.
• Issue e-delivery orders.
• Publish a schedule of service charges.
• Avoid charges on detained/seized goods.
• Cannot outsource core functions without approval.

Suspension and Revocation (Regulations 11–12)

• Registrations may be suspended for violations.
• Opportunity for a hearing must be given.
• Inquiries must be completed within 90 days.

Penalty and Appeals

• Penalty up to ₹50,000 for violations.
• Appeals lie with CESTAT under Section 129A of the Customs Act.

Annexures and Forms

SCMTR provides structured forms for:

• Registration
• Entry and departure manifests
• Vessel stores, crew effects
• Cargo types (import, export, transshipment)
• Bond formats for domestic and foreign route movements

Key Stakeholders

• Authorised Sea Carriers (ASC)
• Authorised Sea Agents (ASA)
• Authorised Transhippers (ATP)
• Terminal Operators
• Custodians
• Authorised Exporters (for e-sealing)

Processes Involved

Registration

• All operators must register on ICEGATE.
• Entity-wise application and individual authorisations required.
• Online, faceless application and approval system.

Sea Manifest Filing

• Arrival Manifest (SAM): Filed before departure from last port.
• Departure Manifest (SDM): Filed before sailing from Indian port.
• Amendments: Allowed through SMA/SDA messages.
• Entry Inward (EIA) and Departure Notification (DN) managed online.

Inland Manifest (CIM)

• Replaces manual transshipment documentation.
• Tracks movement from Gateway Ports to Inland locations (ICD/CFS/SEZ).
• Messages include:
  • CIMD – Customs Inland Manifest (Departure)
• • CIMA – Customs Inland Manifest (Arrival)
• • ATA/ATD – Actual Times of Arrival/Departure
  • NRA – Notification of Arrival
  • ESN – e-Seal Notifications

Key Features

• Comprehensive reporting for all cargo, including coastal and empty containers.
• Supports container-level details, manifest numbers, and tracking itineraries.
• Advanced structure includes vessel data, cargo, crew, and passenger details.
• Supports consolidation/segregation of cargo through Sub-Manifest Transhipment Permit (SMTP).

Data Exchange & Message Types

• SAM: Sea Arrival Manifest
• SMA: Sea Manifest Amendment
• EIA: Entry Inward Application
• SDM: Sea Departure Manifest
• SDA: Sea Departure Amendment
• DN: Departure Notification
• ATA/ATD: Actual Time of Arrival/Departure
• CLA/CLD: Container Landed/Loaded Data

All message structures follow strict cardinality and data formatting, ensuring integrity and cross-platform uniformity.

Data & Documentation Standards

• Annexures detail formats for:
  • Registration
• • Sea Manifest & Inland Manifest data
• • Message-type field requirements
• • Supporting document codes
• • International standards (LOCODE, HS Code, etc.)

Transshipment of Cargo to Nepal under ECTS Regulations, 2019

Overview

The Transshipment of Cargo to Nepal under ECTS Regulations, 2019 was introduced to facilitate secure and streamlined cargo movement from India to Nepal using the Electronic Cargo Tracking System (ECTS). This regulation applies to transit cargo originating from select Indian ports and destined for Nepal, ensuring that the goods are not diverted or tampered with during the journey.

Scope and Applicability

The regulations apply to:

• Cargo transshipped from Kolkata, Haldia, and Visakhapatnam ports in India to:
  • Birgunj (Nepal) via rail, and
  • Batnaha (India) via rail, and then onward to Biratnagar (Nepal) by road.

Key Definitions

• Authorized Carrier: Includes sea carriers, train operators, shipping lines, or custodians registered under SCMTR, 2018.
• ECTS: GPS-enabled Electronic Cargo Tracking System used to monitor cross-border movement.
• Managed Service Provider: The designated technology provider (appointed jointly by India and Nepal) for ECTS operations.

Procedure for Transshipment

1. Declaration Requirements

• Authorized carriers must:
  • Declare Nepal-bound cargo in the arrival manifest.
• • Submit a triplicate transshipment declaration along with the commercial invoice.
• • Undertake to transport cargo to Nepal using rail or rail-road combinations.
  • Use ECTS seals procured from the managed service provider.
  • Execute a general bond as instructed by the customs officer.

2. Permission to Load

• Loading of cargo onto rail is permitted only after customs approves the transshipment declaration.

3. Sealing and Movement

• Customs ensures:
  • The container/wagon is sealed with an ECTS seal.
  • The seal number is entered into the ECTS web application.
  • Two copies of the declaration (with seal details) are sent with the goods; one copy is retained.

4. Exit from India

• Containers stop at the land customs station (LCS) of exit.
• Customs checks seal integrity through ECTS web tools:
  • If the seal is intact, cargo continues to Nepal.
  • If tampered, cargo is inspected for verification before permission is granted.

5. Final Submission

• One declaration copy is retained at LCS; the second is given to the Nepalese customs.

Bond Discharge

• Customs officers extract trip reports from the ECTS system.
• Once cargo is confirmed to have reached Nepal, the bond is discharged or re-credited.

Annexed Form: Declaration of Transshipment

The triplicate declaration includes:

• Cargo details (marks, invoice, HS Code, weight, CIF value).
• Route information (Indian port, LCS, Nepalese discharge point).
• Carrier and driver details.
• Customs endorsement of sealing and unsealing.
• Confirmation of no diversion or tampering.

Goods Imported (Conditions of Transshipment) Regulations, 1995

The Goods Imported (Conditions of Transshipment) Regulations, 1995, issued via Notification No. 61/95-Cus. (N.T.) dated 28-09-1995, and amended by Notification Nos. 31/98-Cus. (N.T.) and 59/2000-Cus. (N.T.)

Overview

The Goods Imported (Conditions of Transshipment) Regulations, 1995 were enacted under the Customs Act, 1962, to streamline and regulate the process of transshipping imported goods from one customs station to another within India. These regulations replaced the earlier 1984 transshipment framework and provide detailed procedural safeguards for customs clearance and cargo integrity.

Key Definitions

• Custodian: An entity approved under Section 45 of the Customs Act to hold imported goods at a customs station.
• Declarant: The person in charge of the import conveyance or the authorised agent/transhipper.
• Transporter: Railways, shipping line, aircraft operator, or vehicle owner responsible for carrying transshipped cargo.

Conditions for Transshipment (Regulation 3)

Transhipment is permitted under the following conditions:

• A written application must be submitted to the proper customs officer.
• The goods must be indicated as ‘for transhipment’ in the Import Manifest or Import Report.
• Transhipment can be done via rail, air, sea, or motor vehicle. If a motor vehicle is used, written permission from the Commissioner of Customs is required after considering:
  • Nature of goods.
  • Value and revenue implications.
  • Other relevant factors.
• A bond must be executed by the declarant, transporter, or custodian to guarantee:
  • Successful delivery of goods to the destination customs station.
  • Supervised mode change during transit if applicable.

Single or general bonds may be accepted for multi-modal or repeated movements.

Terms of the Bond (Regulation 4)

• The bond will be discharged once a certificate is presented from the customs officer at the destination station confirming receipt of goods.
• If not furnished within one month (or extended period), the bond amount equivalent to the value/market price of the goods is forfeited.

Fee for Transhipment (Regulation 5)

• A nominal fee of ₹20 per transshipment application is applicable at all customs stations.

Sealing of Goods (Regulation 6)

Before transhipment, goods must be sealed as follows:

• Rail: Customs seal the containers in the presence of the declarant, transporter, or custodian’s representative.
• Air/Sea/Motor Vehicle: Small packages are placed in durable bags and sealed similarly.

Materials and sealing bags are to be provided at the cost of the declarant/transporter/custodian.

Amendment by Notification No. 59/2000-Cus. (N.T.):

• If a container is already sealed with a one-time bottle seal by the shipping line and its serial number is informed to customs, then customs need not reseal the container, enhancing operational efficiency.

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