Reg.1 Short title and commencement

       (1) These regulations may be called the Handling of Cargo in Customs Areas Regulations, 2009.
       (2) They shall come into force on the date of their publication in the Official Gazette.

Reg.2 Definitions

       (1) In these regulations, unless the context otherwise requires, -
       (a) Act means the Customs Act, 1962 (52 of 1962);
       (b) Customs Cargo Services provider means any person responsible for receipt, storage, delivery, dispatch or otherwise handling of imported goods and export goods and includes a custodian as referred to in section 45 of the Act and persons as referred to in sub-section (2) of section 141 of the said Act;
       (1) specified means specified by a notification or an order issued under the provisions of the Act;
       (2) the words and expressions used herein and not defined but defined in the Act shall have the same meanings respectively assigned to them in the Act.

Reg.3 Application

These regulations shall be applicable to the handling of imported and export goods in customs areas as specified under section 8 of the Act.

Reg.4 Retrospective Application

Any action taken or anything done in respect of appointment of Customs Cargo Service providers, immediately preceding the coming into force of these regulations, shall be deemed to have been done under the corresponding provisions of these regulations. Customs Cargo Service providers already approved on or before the date of coming into force of these regulations shall comply with the conditions of these regulations within a period of three months or such period not exceeding a period of one year as the Commissioner of Customs may allow from the date of coming into force of these Regulations.

Reg.5 Conditions to be fulfilled by Customs Cargo Service provider

       The Customs Cargo Service provider for custody of imported goods or export goods and for handling of such goods in a customs area shall fulfill the following conditions, namely:-
       (1) Provide the following to the satisfaction of the Commissioner of Customs, namely:
       (i) Infrastructure, equipment and adequate manpower for loading, unloading, stacking, handling, stuffing and de-stuffing of containers, storage, dispatch and delivery of containers and cargo etc., including:-
       (a) standard pavement for heavy duty equipment for use in the operational and stacking area;
       (b) free of cost or rent fully furnished office accommodation for Customs, Customs Electronic Data Interchange (EDI) Service Centre, with required amenities and facilities and residential acco

Reg.6 Responsibilities of Customs Cargo Service provider

       (1) The Customs Cargo Service provider shall
       a keep a record of imported goods, goods brought for export or transshipment, as the case may be, and produce the same to the proper officer as and when required;
       b keep a record of each activity or action taken in relation to the movement or handling of imported or export goods and goods brought for transhipment;
       c display or make available in any other manner, information of process or movement or handling of imported or export goods and goods brought for transhipment;
       d demarcate separate areas for unloading of imported goods for their storage with respect to the category of importers, nature of goods, place of destination, mode of transportation or any other criterion as the Commissioner of Custom

Reg.7 Power to relax and regulate

       (1) if the Commissioner of Customs is satisfied that in relation to the custody and handling of imported or export goods in a customs area, the Customs Cargo Service provider, for reasons beyond his control, is unable to comply with any of the conditions of regulation 5, he may for reasons to be recorded in writing, exempt such Customs Cargo Service provider from any of the conditions of regulation 5.
       (2) The Commissioner of Customs may regulate the entry of goods in a customs area for efficient handling of such goods.

Reg.8 Commencement of operations

The Customs Cargo Service provider approved for custody of imported or export goods and for handling of such goods shall not commence any operations in a customs area for the first time unless the Commissioner of Customs is satisfied that all the requirements of the Act have been fulfilled and grants permission to commence the operations by an order in writing.

Reg.9 Application for approval of Customs Cargo Service provider

       (1) An application to act as a Customs Cargo Service provider for custody of imported or export goods and for handling of such goods in a customs area shall be made in the form of a letter to the jurisdictional Commissioner of Customs containing details as prescribed in Form A'.
       (2) The Commissioner of Customs shall dispose of the application within forty five days of the receipt of the application.

Reg.10 Approval of appointment of a Customs Cargo Service provider and review thereof

       (1) Where the Commissioner of Customs is satisfied that the applicant has fulfilled the conditions prescribed in regulation 5, he may approve such an applicant as a Customs Cargo Service provider, for a period of two years from the date of issue of such approval.
       Provided that a Customs Cargo Service provider already approved on or before the date of coming into force of these regulations, shall be deemed to be approved as a Customs Cargo Service provider under these regulations for a period of five years from the date of compliance with the conditions of these regulations as stipulated in regulation 4.
       (2) The Commissioner of Customs shall review the approval granted under sub regulation (1) before the expiry of the initial period of approval of two years or five years, as the case may be, and may extend such approval to a further perio

Reg.11 Suspension or revocation of approval for appointment of a Customs Cargo Service provider

       (1) The Commissioner of Customs may, subject to the provisions of these regulations, suspend or revoke the approval granted to the Customs Cargo Service provider subject to the observance of procedure prescribed under regulation 12 and also order for forfeiture of security, if any, for failure to comply with any of the provisions of the Act and the rules, regulations, notifications and orders made thereunder;
       (2) Notwithstanding anything contained in sub-regulation (1), the Commissioner of Customs may, in appropriate cases where immediate action is necessary, suspend the approval granted to a Customs Cargo Service provider where an enquiry against such Customs Cargo Service provider is pending or contemplated.

Reg.12 Procedure for suspension or revocation of approval and imposition of penalty

       (1) The Commissioner of Customs shall issue a notice in writing to the Customs Cargo Service provider stating the grounds on which it is proposed to suspend or revoke the approval and requiring the said Customs Cargo Service provider to submit within such time as may be specified in the notice not being less than thirty days, to the Assistant Commissioner or Deputy Commissioner of Customs nominated by him, a written statement of defence and also to specify in the said statement whether the Customs Cargo Service provider desires to be heard in person by the said Assistant Commissioner or Deputy Commissioner of Customs.
       (2) On receipt of the written statement from the Customs Cargo Service provider, or where no such statement has been received within the time-limit specified in the notice referred to in sub-regulation (1), the Assistant Commissioner or Deputy Commissioner of Customs

Reg.13 Renewal of approval for appointment of Customs Cargo Service provider

       The Commissioner of Customs may on application made by the Customs Cargo Service provider before the expiry of the validity of the appointment under regulation 10, renew the approval for a further period of five years from the date of expiration of the original approval granted under regulation 10 or of the last renewal of such approval, as the case may be, if the performance of the approved Customs Cargo Service provider is found to be satisfactory with reference to his obligations under any of the provisions of the Act and the rules, regulations, notifications and orders made thereunder.
       EXPLANATORY MEMORANDUM
Handling of Cargo in Customs Area Regulations, 2009 provide for a comprehensive mechanism for handling of goods in a customs area and set out the terms and conditions for all facilities where customs cargo is handled. It also provides for the conditions and responsibilit