Eligibility Criteria for availing of Direct Port Delivery (DPD) Scheme by Importers

Circular No. ES/133/2019-20                                                                     6th September, 2019

To: Members of the Council

Sub.: Eligibility Criteria for availing of Direct Port Delivery (DPD) Scheme by Importers

Dear Member,

We would like to inform you that CBIC has issued Circular No. 29/2019 – Customs dated 5th September, 2019 on the above subject.

As you are aware, to reduce the dwell time as well as to bring down the logistics cost of EXIM clearances CBIC has taken various steps. One such initiative has been the Direct Port Delivery (DPD) of containers to the importers thus removing the need of routing the clearance through the Container Freight Stations (CFSs). This initiative was first launched at JNPT and thereafter extended to other ports. With the Schemes operation at all the ports, the Board has felt the need to provide guidelines / eligibility criteria so that the DPD Scheme can be widely publicized. Importers who have not availed the benefit of the DPD Scheme due to lack of awareness may kindly join this program with certainty.

Ideally, any fully facilitated Bill of Entry (BoE) filed at the gateway port ought to get the DPD benefit. However, feedback from the field has suggested that factors like –

  • non-receipt of original documents from abroad and consequent delay in issuance of Delivery Order,

  • financial and credit woes,

  • delay in settlement of dues of shipping lines,

  • opening PD Account with the terminals

These are some of the reasons inhibiting a larger section of importers to opt for DPD.

CBIC by promoting DPD has raised the bar of efficiency. It is, therefore, but natural that other players in the EXIM logistics chain get their act together so that this successful reform measure could be made even more widespread.

In this regard, Board has felt the need for providing guidelines for implementation of DPD across all the formations –

  1. Inclusions: Following categories of importers may opt for facility of DPD :

(a) Importers who have already been accorded either AEO Tier I, II or III status;

(b) Importers with a clear track record of compliance and an import volume of 25 Full Container Load (FCL) Twenty-Foot Equivalent Unit (TEUs) through a particular port or otherwise in the preceding financial year;

Note: Importers falling under the said categories shall furnish information prescribed in application format given in the Circular i.e. Annexure-A.

The criterion at (b) is desirable, Chief Commissioner may, however, in deserving cases of importers, relax the TEU benchmark. Such importers could be the ones whose imports have enjoyed a consistent pattern of customs risk facilitation / who provide an assurance that they would be in a position to pick up containers directly from the terminal. This dispensation may be particularly considered for the MSME sector.

  1. Exclusions: Following categories of importers however would be excluded from facility of DPD: -

  1. Importers against whom a case of mis-declaration of description of goods or of concealment / diversion of imported goods / evasion of duty has been made in the preceding five years;

  1. Importers facing prosecution proceedings in a matter under the Customs Act, 1962;

  1. Those importing goods that are subjected to 100% examination in terms of extant policy;

  1. Importers importing mostly Less Container Load (LCL) consignments.

  1. Conditions: Facility of DPD shall only be extended only to such consignments:

  1. Which have either been fully facilitated or not subjected to examination;

  1. Importers open a PD account with the terminals and arrange for their own transport  to take delivery of containers from the terminal;

      c Any other procedural formality prescribed by the zone for better administration of DPD scheme
      .

In case of any difficulty, members may kindly send their query to CBIC at jscus@nic.in and dircus@nic.in.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR

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