CUSTOMS PREVENTIVE MANUAL (CENTRAL) VOLUME I (GENERAL)

CHAPTER – TWENTY ONE

COASTAL TRADE
PRELIMINARY
India is a vast sub-continent, which is having an extremely long coast line of over 3,500 Kms.
Owing to this, transportation by waterborne vessels whether riverline or lying in the sea, constitutes the
cheapest mode of transportation of bulk cargo, as compared with any other form of transportation.

Bulk items like coal, salt, building materials etc. are transported from the areas wherein they are
mined/manufactured, to the consuming centres on the coast, by coastal vessels both sailing as well as
mechanised. Another major important bulk item, which constitutes a sizeable proportion of coastal traffic,
is transportation of petroleum products from the refineries located on the coast, to the storage
tanks/depots as well as sales and distribution outlets, located at various points on the coast. Thus, it is
but obvious that movement of coastal goods by sea is an extremely important day-to-day activity.

It is clear that coastal traffic of normal and bulk cargo is important to the country’s economy as it
reduces the pressures on other modes of bulk transportation, which are not only expensive but already

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over-stretched. As the coastline of India is vast, there are large number of coastal ports, bearing

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importance and quantum of coastal traffic, depending on their locations as well as size.
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Accordingly, controls of each of such minor ports and the traffic entering as well as emanating
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from the them, vary from port to port. Procedures for transactions of work from the Customs point of
view, have been laid down and defined. The movement of coastal goods and vessels carrying coastal
goods, which is mostly through Bunders/Minor ports, is monitored by the Coastal Trade Establishment
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(CTE) section of the Custom House.

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DEFINITION OF COASTAL TRADE:

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The expression “Coastal Trade of India” should be taken to mean the conveyance of goods (other
than imported goods) or passengers from one port of India to another port thereof, but a vessel engaged
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in a voyage starting from or ending at port outside India or which in the course of a voyage between two
ports in India touches a port outside India for the purpose of embarking or disembarking passengers or
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goods should not be regarded as engaged in the coastal trade in India.

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Provisions relating to Coastal Vessel and Coastal Traffic have been made in Chapter XII of the
Customs Act, 1962.

Section 91 of the Customs Act, 1962, stipulates that provisions of Chapter XII of the Act, relating
to coastal goods and vessels carrying coastal goods, shall not apply to Baggage and Stores.

ENTRY OF COASTAL GOODS-

Section 92 of the Customs Act, 1962, prescribes that the consignor of any coastal goods shall
make an entry thereof by presenting to proper officer a bill of coastal goods in the prescribed format duly
endorsed of its truthfulness.

The prescribed Bill of Coastal goods requires, inter alia, a description of the goods and remarks
whether they are inland goods or foreign merchandise. The declaration has to be elaborate, the consignor
has to declare value, “sort”, specification, quantity, composition and description to the best of his
knowledge, and belief, and further certify that the goods are in accordance with the contract entered into
with the buyer. The proforma is similar to that of import and export goods, in respect that consignor has to
make a declaration as to the truth of the contents.

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Bill of Coastal Goods (Form) Regulations, 1976

In exercise of the powers conferred by section 157, read with section 92, of the Customs Act,
1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following regulations,
namely: -
1. Short title and commencement. – (1) These regulations may be called the Bill of Coastal
Goods (Form) Regulations, 1976.
(2) They shall come into force on 1.1.1978.
2. Bill of Coastal Goods. – The Bill of Coastal goods to be presented by the consignor of any
coastal goods under sub-section (1) of section 92 of the Customs Act, 1962 shall be in the Form
appended to these regulations.
Bill of Coastal Goods
(Original/Duplicate )
Consignor’s Name ………………… Date of Presentation………….
Address…………………………….

Name of vessel: Port of Loading Master or Agent Colour Port at which goods to be discharged

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Rotation No.

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Year:
Packages
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(Details of goods to be given for each class of description).
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Number and Marks and Quantity Description FOB Remarks whether inland goods or foreign
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Description numbers and weight of goods value merchandise.

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(in words and

figures)
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Total :
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Total No. of Packages (in words) I/We declare that:

(For Customs Use only) (a) the value, sort, specification, quality, composition and
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description of goods mentioned in this Bill are stated to

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the best of my/our knowledge and belief and I/We certify

that they are in accordance with the terms of contract
entered into with the buyer/consignee in pursuance of
which the goods are being loaded and transported; and,

Custom House Passed for Loading (b) the particulars given above are true.
Seal Proper Officer
Signature of the Consignor/Agent if acting for consignor.
Place and date
____________________________________________________________________________________
………………….Packages landed
………………….Packages short landed ………………Packages passed out of Customs Control.
Proper officer Proper Officer.

[ Notfn. No. 424, dated 23.10.1976,as amended by Notfn. No. 224-Cus., dated 22.10.1977. ]

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Loading / Unloading of Coastal goods

Section 93 of the Customs Act, 1962, stipulates that loading of any Coastal goods on the vessel
shall not be permitted by the Master of the vessel unless a bill relating to such goods has been passed by
the proper officer and has been delivered to the master by the consignor.
Section 96 of the Customs Act,1962, prohibits loading/unloading of coastal goods from any
vessel at any port other than a Customs Port or a coastal Port appointed under Section 7 of the Act for
the purpose
Similarly, Section 98 (1) of the Act prescribes that Sections 33, 34 and 36 shall also apply to the
Coastal goods as they apply to the imported goods or export goods. Section 98 (2) of Act stipulates that
Section 37 & 38 shall also apply to Coastal vessels as they apply to vessels carrying imported goods or
export goods. Section 98 (3) empowers Central Government may make rules regarding application of all
or any of the provisions of Chapter VI & of Section 45 of the Act, to coastal goods or vessels carrying
coastal goods.
Section 99 of the Customs Act, 1962, empowers the Central Government to make rules for
preventing the export of any coastal goods which are dutiable or prohibited under the Act or under any

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other law in force. Further the Government can also make rules for preventing the substitution of imported

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or export goods by goods in the case of a vessel carrying coastal goods as well as imported or export
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RULES RELATING TO COASTAL TRADE
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Rules have been framed under the provisions of Sec. 98 of the Customs Act, 1962, for regulating
the coastal trade by coastal crafts, that is, vessel with sails or motor. The same are reproduced
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hereunder:
With the approval of Government, the following Rules have been framed by the Chief Customs
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Authority under Sections 158-162 of the Sea Customs Act, 1878, ( Note : Sections 158 to 162 of the Sea
Customs Act,1878, correspond to Sections 94 to 98 of the Customs Act, 1962 ) for regulating the
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coasting trade carried on in native craft I.e. vessels other than squire rigged or propelled by steam :
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i) The Export General Manifest shall be in the same form as that prescribed for other vessels under
Sec. 63 and 158 of the Sea Customs Act, 1878. It shall contain, besides the required particulars, the
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following information.
a) In the case of a vessel to which cargo from another Customs port has been transhipped from
another native craft, a note should be made opposite each item of transhipment cargo to the following
effect:
“Originally manifested at the port of ………………for transhipment to the port of ………………
or
“Subsequently manifested at …………………… for transhipment to ………………….
according as the goods were originally manifested at the port of export for transhipment at the port in
question or their destination was changed on arrival there.
b) It shall include all goods brought from another port and not landed or transhipped and also all
arms and ammunition, on board.
ii) If the vessel has arrived originally from another port, the manifest prepared as above, shall be
presented in duplicate along with the document on which the cargo has been discharged endorsed by the
Officer who supervised the landing to the effect that all the cargo manifested for the purpose has been
discharged and inward clearance obtained.

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iii) Both the copies will then be presented to the proper officer together with the original
Transhipment Permits for goods for which Tranship Permits have been granted all Shipping Bills with
endorsements showing the quantity of goods actually shipped. The Master shall also produce the
following documents: -

a) the clearance certificate from the Port Office

b) vessel’s register
c) port and light dues, if any
d) certificate that the vessel is furnished with side lights; and
e) Health Certificate in the case of vessels arriving from infected places.

iv) If any of the goods for which Shipping Bills or transhipment permits have been granted are not
shipped, the master shall, at the same time, put in a certificate in the form of an endorsement on the
reverse of the Shipping Bills or the duplicate transhipment permits to the effect that the goods have not
been shipped or transhipped as the case may be.

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v) One copy of the manifest will be returned and signed by the Proper Officer together with the

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Shipping Bills and transhipment permits and it shall be the port clearance for the vessel.

vi)
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In the case of native craft clearing in ballast for a Customs Port, port clearance will be granted in
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the form attached. The form shall be filled in counterfoil by the master or agent, and, after inward
clearance has been obtained in the manner above described, the Proper Officer who will sign the original
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and return it to the master as his clearance.

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vii) In the case of native craft, entering and leaving a port in ballast it shall be entered and cleared
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like other vessels and shall take a port clearance in the same form as in the case of a vessel entering with
cargo and clearing in ballast.
viii) Within 24 hours of the arrival of any native craft at any Customs port the master must obtain a
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certificate of entry from the Port Office and present it at the Custom House along with the following
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documents:
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a) the port clearance from the last port of call

b) extract from manifest and Shipping Bills for all cargo to be discharged at the port
c) a list of the vessel’s stores
d) port and light dues receipts, if any;
e) the original manifest of which the above is only an extract; and
f) an application to enter the vessel towards if the dutiable goods on board.
ix) After the vessel has been entered, the Export General Manifest will be signed by the Proper
Officer who entered the vessel and returned to the master and will be his authority to break bulk, except
in the case of free goods intended for transhipment which shall not be discharged until a transhipment
permit has been prepared and completed by the owner and presented, along with the document on which
the import cargo is to be discharged, to the Officer deputed to supervise the Transhipment.
x) If free goods originally manifested for importation are subsequently required to be transhipped for
another port, the Export General Manifest shall be presented to the Proper Officer for amendment before
a permit is granted.

[ Board of Revenue (Sept. Rev.) Notfn. Dtd.9.10.1908 and Notfn. No. 93/50 dtd.9.9.1950 ]

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Export General Manifest

Manifest of all goods exported per …………………………………………………………………… of

tons, …………….. Commander, to ………………… under …………………colour.

Marks and Number and Description By whom To whom Index number Remarks
number of kind of of goods consigned considered of Shipping
packages packages Bills
1 2 3 4 5 6 7

Cleared outward the ………… of ………. I do hereby declare that the contents of the
above Manifest are truly stated, Madras, this

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Assistant Commissioner of Customs day of ………….

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Commander
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Note: The Manifest should also contain full particulars of all arms and ammunition kept on board
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whether they form part of the ordinary equipment of the vessel or are the personal property of the master,
the officers or the crew working on board.
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Form of Empty Port Clearance for Native Craft

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No. ……….
Cleared inwards general manifest No.
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Name of Vessel Tindal’s Name Painted No.

Burthen in Tons Colours To what place
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Cargo
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I hereby declare that the foregoing information regarding cargo and destinations is truly stated.
Port,
Dated …………. …. Tindal
Port Port Clearance granted.

Dated …………..……. Customs Commissioner.

Form of Export General Manifest for Native / Coasting Craft

No. of Export General Manifest

(Native Coasting Craft)
Vessel’s Register No. ……………………………………………………………… Manifest of Goods
exported per ……………………………………….of……………………………………………….tons, Tindal
………………………………………………………………………..under…………………………………………
… colours ………………………..to …………………

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Port Dues No. and Description Weight Real By Shipping Remarks

Certificate No. kind of of goods or value of whom Bill No.
Cleared Inward packages Quantity goods shipped
as per General
Manifest Register
No.

1 2 3 4 5 6 7 8

I do hereby declare that contents of this Port-clearance granted at the Manifest to be truly stated.
…………..Custom House for on the ……(date)…

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Assistant Commissioner of Customs Marks of Tindal

of the Preventive Officer at the Bunder before departure.

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Note – Port-clearance granted at ………………….on …………………… subject to the counter-signature
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Note : if any goods are landed from a coasting vessel which has touched at a foreign port or which has
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on board goods brought from a foreign port in contravention of Section 82 of the Sea Customs Act, 1878,
(this corresponds to Section 32 of the Customs Act,1962 ), i.e. without being entered in the original or an
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amended or supplementary manifest, the Commissioner may impose a penalty under Section 167(33) of
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the Sea Customs Act, 1878 (Sections 167 (1) to ( 81 ) of the Sea Customs Act correspond to Sections
111 to 119 of the Customs Act, 1962) and a note of the fact of such landing shall be endorsed on such
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manifest by such Customs Officer as the Commissioner may from time to time direct.
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[ G.O. No. 3629 –Rev. dtd. 5.12.1911 ]

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Coastal Vessels – Masters Responsibilities

The Masters of coastal vessels are, directly responsible for complying with the statutory
requirements imposed on them by the provisions of the Customs Act, though there is no objection to their
employing licenced Custom House agents for the preparation and delivery in the Custom House of any
documents or other papersprescribed in connection with the entry or clearance of any vessel. Such
documents of other papers must however be signed or otherwise duly attested by Master who is
designated in some ports as a “Tindal”.
Section 95 of the Customs Act, 1962, stipulates that the master of every vessel carrying coastal
goods shall be supplied by the Customs authorities with a book called " advice book “ and master of
such vessel shall carry the advice book on board the vessel. The proper officer at each port of call shall
make such entries in the advice book as he deems fit, relating to the goods loaded on the vessel on that
port.
IMPORTS BY COASTAL VESSELS
The provisions regarding clearance of coastal goods at destination have been outlined in Section
94 of the Customs Act, 1962.

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As per Section 94 (1) of the Act, the master of a vessel carrying any coastal goods shall carry on
board the vessel all the Bills relating to such goods and shall immediately on arrival at any customs or
coastal port , deliver to the proper officer all bills relating to the goods to be unloaded at that port.
Further, Section 94 (2) of the Act stipulates that where any coastal goods are unloaded at any
port, the proper officer shall permit clearance thereof if he is satisfied that they are entered in a bill of
coastal goods delivered to him.
The following working procedure is followed in respect of coastal vessels in coastal trade-
i) Coastal vessels arriving from Customs Ports will on arrival, anchor at the discharging line of the
Free Anchorage or at any of the Bunders or wharves/jetties at which they are permitted by the local
Custom House to land any part/full of their cargo. Within 24 hours of arrival of the coastal vessel, the
Master/Tindal will report to the Preventive Officer in-charge of CTE. The Master/Tindal on reporting will
deliver the following documents in connection with the entry inward of his vessel;
a) the copy of Export General Manifest tendered by him at the previous port;
b) duplicate copies of all Shipping Bills relating to the items indicated in the Manifest;
c) the vessel’s register;
d) port dues receipt (if the vessel is of 10 tons and above)

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e) light dues receipt, if any;

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f) list of vessel’s stores and such other documents as required.

ii)
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In case of coastal vessel arriving in ballast, the Tindal will present in lieu of Export Manifest and
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relative Shipping Bills, an I.G.M. in the prescribed form together with empty port clearance issued at the
port of the departure.
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The officer-in-charge of wharf/ jetty/bunder etc., or CTE where the Master/Tindal reports, shall as
soon as the E.G.M. from previous port and the duplicate copies of Shipping Bills and the other documents
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stated above, are received, check up whether the same are in order in all respect and shall enter the
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requisite particulars of the vessel in the Inward Entry Register and give the entry a serial number such as
C1, C2, C3 and soon of annual series, note the serial nos. and date of entry on the Export Manifest from
previous port (which shall become the Import Manifest) and duplicate copies of Shipping Bills or empty
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Port Clearance and return the documents to the Master/Tindal with suitable direction for payment of the
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port dues/wharfage charges involved. As soon as Tindal submits the same E.G.M. (i.e., now I.G.M.), after
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the payment of port dues/wharfage charges, the officer concerned will note the payment for port dues
receipt No. and date in the Inward Entry Register. Thereafter, he shall permit the Master/Tindal to land
the goods for granting delivery to the various consignees. While being passed out from the
Bunder/wharf/jetty, the Preventive Officer should occasionally scrutinize a few items to see if they agree
with the manifest. This scrutiny is not for the purpose of accounting for all the cargo, but merely a check
against the smuggling of other good. After landing of all the goods is completed, the officer-in-charge of
the wharf/Bunder/jetty shall endorse the landing certificate issued to the Master/Tindal by the Customs
Officer at the previous port of shipment for resubmission to him. He shall also make necessary landing
endorsement on both, EGM from previous port and the duplicate copies of Shipping Bills. If any short
landing to the previous port of shipment. He should also issue a notice to the Master/Tindal calling upon
him to explain as to how short landing took place. In respect of such case of short landing, the officer
concerned shall after obtaining the explanation of the Master/Tindal, submit a report to the Assistant/Dy.
Commissioner of Customs (Preventive). After all formalities in respect of the cargo brought by the sailing
vessel are over and after the statistical returns are prepared the officer concerned shall ensure the proper
filing of the EGM and all the connected duplicate copies of the Shipping Bills and other documents.

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REGISTER OF ONWARD/INWARD ENTRY OF VESSELS

_______________________________________________________________________________
Clearance Rotation Date and hour of entry If prior to Vessel Nationality
No. Date Hour arrival
_______________________________________________________________________________
1 2 3 4 5 6
_______________________________________________________________________________

_______________________________________________________________________________
Tonnage Agents Port or Ports Commander General Remarks
Description Cargo
7 8 9 10 11
_______________________________________________________________________________

EXPORTS BY COASTAL VESSELS:

i) Any Master/Tindal of sailing vessel intending to carry goods to other Indian ports, shall obtain
entry outwards on presenting to the clerk-in-charge in C.T.E. a landing certificate issued at the time of
entry inwards of the vessel. After noting down the requisite particulars of the vessel in the Outward Entry
Register and assigning a rotation No. to it, the clerk shall grant outward entry.

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REGISTER OF VESSELS CLEARED OUTWARDS

Date and No. of Export No. of Vessel’s Register

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General Register. Name as per Register
1 2 3 4
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Tindal’s Name Colours Destination No. of Export Entries granted Date of Port
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for the shipment of goods Clearance granted.

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5 6 7 8 9

ii) Any person desirous of effecting shipment of goods to other coastal ports by the vessel for which
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an outward entry has been given and duly notified, will be required to file a Shipping Bill in duplicate.
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Shipping Bills so filed shall be carefully scrutinized by the dealing clerk. If everything is found to be in
order, he shall pass the Shipping Bills. Shipping Bills in respect of restricted goods shall be signed by the
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officer-in-charge C.T.E. The original copies of the Shipping Bills shall thereafter be returned to the party
for effecting the shipment.
iii) After all the goods allowed for shipments are loaded on to the vessel, the Tindal/Master of the
vessel shall apply for port clearance by presenting Export General Manifest in duplicate along with the
original Shipping Bills and landing intimation. The clerk concerned shall carefully scrutinise both the
copies of the EGM and other documents and after making sure both the copies correctly reflect the
particulars of goods indicated in the EGM, shall grant port clearance after entering the requisite
particulars in the Port Clearance Register and assigning a serial number. The original copy of the Export
General Manifest together with the duplicate copies of the relative Shipping Bills and the landing
intimation should thereafter be returned to the Master/Tindal of the vessel for submission at the next port
of call. The return of the original E.G.M., duly signed, to the Tindal shall itself constitute the port
clearance. Thereafter, the Tindal will present these documents to the Bunder Officer or the department
concerned, as the case may be, for countersignature on the reverse of the Export General manifest.
iv) If no cargo is taken by the vessel, an empty port clearance shall be issued against an intimation
to that effect by the Master/Tindal and after verifying the necessary documents required under the rules.

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v) The original Shipping Bills which are retained will immediately thereafter, be utilized for preparing
statistical returns. On receipt of landing intimation from the port of destination, the duplicate EGM should
be closed and properly filed together with all the relative documents.
vi) Prior to granting the port clearance, it shall be the responsibility of the dealing clerk to make sure
that the Indian Coastal light dues and other dues if any have been paid.

STEAMERS ARRIVING AT AND DEPARTING FROM ENCLOSED DOCKS OF THE PORTS

i) In so far as imports of coastal goods by steamers are concerned, the same procedure as stated
above should mutatis-mutandis be followed. The Master of the vessel or the local steamer agents, will file
within 24 hours of the arrival of the vessel, a copy of the EGM presented at the previous port of shipment
together with duplicate copies of all relative Shipping Bills. The out of customs charges shall be indicated
on the separate delivery order issued by the steamer agents to each consignee.
ii) In cases where the above procedure is not followed, the usual procedure in force shall be
followed, i.e. the steamer agents shall, within 24 hours of the arrival of the vessel, file an Import General
Manifest in duplicate in respect of all the goods brought by the vessel, in coastal Trade Establishment or
in concerned departments as directed by the local Custom Houses. In such cases it will have to be

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ensured that copies of the EGM with relative Shipping Bills filed at previous ports have been received and

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on receipt of which the earlier Import General Manifest filed by the Agents/Master shall be verified and
compared with the same to ascertain (i) that no discrepancy or short landing are involved, (ii) that the
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coastal goods cleared on bills of entry are coastal goods only and (iii) that no transhipment cargo has
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escaped payment of duty.
iii) On receipt of the IGM the clerk dealing with coastal (imports) shall carefully scrutinize the same
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and enter their requisite particulars in the entry Inward Register and give the entry a serial number of an
annual series, note the register serial no. and date of entry and the No. of receipt for the payment of dues,
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in the IGM and grant entry inwards to the vessel after making sure that all dues have been paid. After
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entry inwards is given, a serial No. assigned to the IGM shall be duly notified. Thereafter, bills of entry in
duplicate filed in Coastal Trade Establishment/Import Department by or on behalf of the respective
consignees shall be received, numbered stamped and scrutinized to see that they agree with all the
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material particulars in the Import General manifest. If everything is found in order, the same shall after
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nothing (in the manifest) be put up to the officer-in-charge Coastal Trade Establishment or clerk
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concerned in the Import Department for giving which will be returned to the consignees for effecting
clearance of the goods through Port Authorities after payment of port dues. The original copies of the
duplicate bills of entry and the outturn statement from the Port Trust, the IGM should be closed and filed
together with all the relevant documents.
iv) Country craft/sailing vessels which arrive with coastal goods from Customs ports and take berth
in the enclosed docks in the port, where the steamers engaged both in the foreign trade and coastal trade
are berthed, shall observe the same procedure as indicated in sub-para (iii) above the clearance of
coastal goods in the town.

Export by Steamers
i) Any Master or agents of a steamer intending to carry goods to other coastal ports will be required
to make an application in the prescribed form in Coastal Trade Establishment or Export Department as
directed by Local Custom House for obtaining entry outwards. After obtaining the necessary orders of the
proper officer (as directed by the Local Custom House) on the application so received to each such
outwards entry granted after noting down the requisite particulars No. of each outward entry should be
notified.

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ii) Shipping Bills filed in respect of goods proposed to be shipped in the steamer for which outward
entry has been granted shall be numbered, stamped and carefully scrutinized by the dealing
Clerk/Superintendent/Export Department. If everything is found to be in order, he shall pass the Shipping
Bills in respect of restricted goods and ship’s stores should be signed by the officer-in-charge Coastal
Trade Establishment or such other officer as directed by the local Custom House. The duplicate copies of
Shipping Bills should thereafter be returned to the party for effecting the shipment. After payment of port
dues, if any, the Shipping Bills then be straightway presented to the Section Officer for supervising the
shipment.
iii) After all the goods are loaded on to the steamer, the Master or the Agents, will apply for port
clearance in the prescribed form together with two sets of Export General Manifest, and all the duplicate
copies of Shipping Bills. The clerk dealing with coastal goods (Exports) shall carefully, scrutinize the
application for port clearance and the two copies of Export General Manifest and after making sure that
both the copies of the Shipping Bills correctly reflect the particularity of goods indicated in the Export
General Manifest, grant port clearance in the prescribed form, after obtaining signature of the officer-in-
charge Coastal Trade Establishment or such other officers as directed by particulars and assigning a
serial no. one copy of Export General Manifest together with the submission.

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iv) The original Shipping Bills retained will be passed on to the clerk preparing statistical returns. The

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other copy of the EGM and the original copies of the relative Shipping Bills should thereafter be filed and
recorded after formal closing of the Export General Manifest.
v)
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In cases when the Master or the agents is/are not able to produce the Export General Manifest
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and relative copies of duplicate Shipping Bills at the time of Port clearance, the steamer agents will after
the goods are loaded in vessel apply for port clearance in the prescribed form together with requisite
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documents. After making sure that all the documents are in order, the proper officer will grant port
clearance in the prescribed form, and after entering the requisite particulars in the Port Clearance
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Register and assigning a serial number.

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vi) The steamer agents shall within seven days of the due departure of the vessel, file an Export
General Manifest in duplicate, along with the duplicate Shipping Bill. On receipt of the Export General
Manifest and duplicate copies of Shipping Bills, the latter should be passed on to the clerk preparing
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statistical returns. One copy of export general manifest, should be forwarded to the port of destination and
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the other together with original copies of Shipping Bills filed and recorded after formally closing the Export
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General Manifest.

Transhipments
If the IGM of the previous port of shipment or IGM of this port, as the case may be, include any
items involving transhipment, filing of a transhipment permit in duplicate in the prescribed form will be
necessary. The transhipment permit so presented should be checked, to make sure that the particulars
in the manifest are the same and should thereafter be put up to the Superintendent-in-charge of the
Division or other officer or department concerned for allowing transhipment. After these orders are
passed, the original copy of the transhipment permit should be returned to the party for effecting the
transhipment and the duplicate filed along with the EGM of the previous port or the IGM of this port, as
the case may be. In cases where the on-carrying vessel has been granted outward entry by the Export
Department, both the copies of the Transhipment permit should be returned to the steamer agents for
arranging the transhipment. In such cases after the transhipment permit has been processed by any
department other than the coastal trade establishment or concerned department, the duplicate
transhipment permit should be returned to the officer-in-charge Coastal Trade Establishment or the clerk

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of the department concerned, dealing with the coastal trade, as the case may be, after signing the “Let
Tranship Order” for filing the same with the relative Import General Manifest.

PORT CLEARANCE OF COASTAL VESSELS

Section 97 (1) of the Customs Act, 1962, stipulates that the master of a vessel which has brought
or loaded any coastal goods at a customs or coastal port shall not cause or permit the vessel to depart
from such port until a written order to that effect has been given by the proper officer.
Section 97 (2) of the Act outlines the conditions for grant of such order which are-
a) the master should have answered the questions put to him under Section 38 of the Act,
b) all the charges and penalties due in respect of such vessel or from the master have either been paid
or the payment has been secured by guarantee to the proper officer,
c) the master should have satisfied the proper officer that no penalty is leviable on him under Section
116 of the Act, or the payment of any penalty has been secured by a guarantee to the proper officer,
d) all the provisions, rules and regulations relating to the coastal goods and vessels carrying coastal
goods have complied with.
As per Notfn. No. 93 / 50 dated 9.9.1950, the Board has prescribed that the Port Clearance

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granted to the Coasting vessels other than native craft shall be in the same form as that

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prescribed under Section 65 of the Sea Customs Act, 1878 ( Note: Sections 62 to 66 of the Sea
Customs Act, 1878, correspond to Sections 41 and 42 of the Customs Act, 1962 ).
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Form of Port Clearance
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No. …………….
Port clearance ……………………………………………………………………………………………for
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the ………………………………..burthen ………………………. Tons………………………………….Captain

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…………………… under …………………..Colours bonded for ……………………..

This is to certify, to whom it may concerns, that the agents/owners of the above-mentioned
………………………have rendered an account of her import and export cargoes, and have complied with
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all the regulations of this port.

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Crew ……………………….
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Passengers………………… Custom House, ……………………. Commissioner of Customs

has ………………………… cargo/no cargo.

Irregularity in tonnage declared – check of

Whenever Customs Officer dealing with sailing vessel has any good reason to suspect any
material discrepancy between the tonnage stated in the relative certificate of register and the actual
tonnage of a vessel, they should notify in writing to the nearest Port Trust/Port Commissioner office who
will take necessary action for detention of the vessel and cause it to be re-measured if necessary.

Issue of passes to Sailing Vessels

a) Sailing vessels, which sail from one coastal port to another, will be issued with passes in
prescribed form valid for a period of 12 months .These passes should ordinarily be issued immediately
after the monsoon is over. The passes so issued should bear the condition that the Tindal of the vessel
shall get it checked up by the Officer-in-charge or any other officer entrusted with this work as the case
may be, once in every calendar month. It should be made clear to the Tindal that the pass will become
automatically invalid if the same is not got checked up in this manner.

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b) Before any goods are discharged, notice of intimation to discharge shall be given to the Customs
Officer on duty at the wharf/jetty/bunder where they are to be discharged and/or the department/officer
concerned.
c) If the vessel arrives in ballast or with passengers only the pass must be produced to the Customs
Officer or department concerned for endorsement before the vessel leaves port.
d) Special care should be taken by all officers dealing with such vessels to see that no vessel is
allowed to discharge cargo or to leave port with expired passes and to require such passes to be
renewed before permitting any operation.
e) The Master of a vessel plying under such pass is required on arrival in port to deliver to the
concerned officer on duty where the cargo is to be discharged or to the department concerned, the pass
held by him together with a Kutcha Import Manifest for the cargo. After verifying that the Port Trust/Port
Commissioners fees have been paid he will permit to discharge the cargo and when discharge has been
completed, this officer will sign an endorsement to the following effect on the passes and on the manifest,
if any.
“Landed at ……………………………………………..Bunder/Wharf/Jetty from …………………………. Port”.
f) The pass will then be returned to the Master as his authority to leave the port in ballast. When

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any provisions and stores which are liable to export duty are taken on board a vessel plying under such

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pass, the concerned officer will enter the quantity so shipped on the pass. The import manifest if any
delivered will be forwarded on the following day to the Statistical Department for registration of Trade
Statistics.
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g) When the Master of a vessel plying under such a pass wishes to load cargo for Customs port, he
shall enter his vessel outward and obtain port clearance in accordance with the ordinary procedure.
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Proforma of pass
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No.
To, Signature
The Asstt. Collector of Customs
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Sir,
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Please permit my vessel ………………………………………………………………………………….

Tindal…………………………………………………… P No. ……………..…of Tons employed in bringing
…………………………………….from the port of ………………………………..to discharge the said goods
at the port of …………………………………………………………………for 12 months before entry inwards.

Port…………… Toney No.

Signature or the Mark of Left Hand Thumb Impression of

Tindal.
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Permitted on the conditions prescribed in the Central Board of Revenue Notfn No. 57 of 9 July, 1927
L.C. No.
D. B. C. No. PH
P. D. No.

………………….. Assistant Commissioner of Customs

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Note:
1. A special pass shall be granted to sailing vessels/ country craft only when they are employed in
bringing form Customs Port Chunam, sand stones for building purposes green grass, poultry, fresh
fruits, vegetables or other market produce.
2. To such vessel a special pass may be granted to be in force for 12 months. But before any goods are
discharged notice of intention to discharge them shall be given to the Customs Officer on duty at the
wharf where they are to be discharged.
3. The Tindal of the vessel shall get such pass checked up by the officer-in-charge, once in every
Calender month.
4. The Pass will become automatically invalid if the same is not get checked up in the manner at (3).
5. The Master of the vessel plying under such pass is required on arrival in port to deliver to the officer
on duty where the cargo is to be discharged the pass held by him together with a Kutcha Import
Manifest for cargo consisting of building material and other market products.

CARGO JETTISONED DURING THE VOYAGE

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When the Master of a Tindal of a coastal vessel reports on arrival, that he has jettisoned some

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cargo during report in the form of a statement and shall obtain the Tindal’s signature or the left hand
thumb impression if he is an illiterate. The officer concerned shall then closely question the Tindal
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concerning the facts and also whether he has touched at any port having jettisoned the cargo.
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The vessel shall then be inspected with a view to ascertain whether she bears any indications to
support the Tindal’s statement. The result of the officer’s examination should then be noted at the foot of
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the statement which should be sent on to the Divisional Superintendent for acceptance of such action as
he considers fit to take.
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After the Divisional Superintendent has dealt with the report, entry inward shall be completed and
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report sent to Coastal Trade Establishment or concerned department in the Custom House.

LANDING AND SHIPMENT OF PERISHABLES LIKE FRESH FISH, FRUITS AND VEGETABLES
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a) Fresh fish caught within port limits may be landed and passed from any authorised bunder/place
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of landing at any time without documents.

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b) Sailing vessels plying under monthly/yearly passes may land their daily market produce of fresh
fruits and vegetable at any time where the Port Trust/Port Commissioners collect their fees at all hours of
the day or night.
c) Consignments of fresh or frozen fish, fruits and vegetables by steamers from Customs Ports may
be passed by the Preventive Officer on duty/department concerned at any time including Sundays and
holidays without the Asst. Commissioner’s order on presentation of an incomplete bill of entry in duplicate
signed by the owner containing full particulars of goods. No supervision fee will be charged for such
operations which will be carried out by the preventive staff posted at the Docks gates as per local orders.
Note: Potatoes, onions are not considered as perishable for the purpose of these orders.

STORE LIST FOR COASTING VESSELS

Vessels in the Coasting Trade arriving via a port/ports outside India should furnish a separate list
of stores taken (with details of brand/type and quantity for each kind of article) and quantity of each type
of stores remaining unconsumed on arrival. Vessels engaged in regular sailing trade other than plying
under general pass, need not file an Import Stores List in the prescribed form provided that :

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a) Details of the stores on board for consumption of tindal and the crew as well as the articles
owned by the crew are endorsed on the manifests both import and export.
b) A list of arms and ammunitions carried by such vessels is included in the cargo book or presented
with the vessel’s manifest, and
c) When a vessel has touched a port/ports outside India, a statement showing all the stores, if any,
taken at such ports and remaining unconsumed on arrival is submitted.
Note 1: If the store list has not been prepared when the Boarding officer boards the vessel, he should
obtain a list of arms and ammunition forming part of ship’s equipment and private property
declaration of the officers and crew members as in the case of vessels in foreign trade, seal up all
the stores and arms and ammunition for check when the store list is submitted.
Note 2 : If any sailing ship proceeds direct to any port, outside India, she may be given ex-bond
supplies of stores on the clear understanding that on reversion to the sailing trade, duty will be
leviable on the entire stores brought by the vessel (and not merely the unconsumed portion of ex-
bond supplies taken by her at the first Indian port on her return journey).

Sailing of Vessels (Statement of Crew) Rules, 1960 attestation by the Customs officer in the

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prescribed statement of crew forms

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Under the sailing vessels Rules the Tindal or the owner of a sailing vessel is required to maintain
an up-to-date statement of crew in the prescribed proforma which is required to be produced by him for
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inspection on demand by the Registrar of the Port, the Regional Officers (Sails) or by any other officer
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appointed in this behalf. The Ministry of Shipping and Transport vide their Min. Notification No. 9 MT
(6)/61 dated the 23rd July, 1964 issued in pursuance of Rule 4 of the aforesaid Rules have appointed
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officers of customs are officers competent to exercise the powers under the sailing vessels (statement of
crew) Rules,1960.
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Contravention of statutory provisions under Sailing Vessels (Inspection) Rules, 1952 by the
owners of sailing vessels
All the sea-going sailing vessels/fishing vessels should be in possession of valid Inspection
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Certificates in the interests of safety of life and property at sea. The non-compliance of the statutory
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provisions is a punishable offence. It is, therefore, necessary that all the officers should strictly ensure
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that no port clearance is granted to any sea-going sailing vessels/fishing vessels which does not fully
comply with the rule requirements pointed out above except the cases where the specific permission of
the Directorate has been obtained.

Implementation of The Merchant Shipping (Sailing vessels) Rules, 1997

Attention of all Officers and Staff is hereby drawn to the ‘The Merchant Shipping (Sailing Vessels)
Rules, 1997 issued by the Ministry of Surface Transport, published in the Gazette of India, March 1, 1997.
As per Part III, Para 43(3) under Sub heading ‘Crew and identity card’ of the said rules “No Officer of
Customs may clear outward any vessel unless the tindal thereof in possession of permit and the other
crew members of the crew thereof are in possession of valid identity card issued by Regional Officer
(SAILS).”
This Order is issued on the basis of the Gazette of India, March 01, 1997, and Regional Officer
(SAILS), Mercantile Marine Department, Director general of Shipping, Ministry of Surface Transport letter
No. 57-MURD (1)\98 dated 18.9.98.
This Order takes immediate effect and should be adhered to scrupulously.
[ Standing Order No. 7414 dated 24.11.98 issued by Commissioner of Customs (Gen.), Mumbai ]

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ISSUE OF PASSES TO MECHANISED FISHING VESSELS-FIXING OF VALIDITY PERIOD

In supersession of Ministry’s instruction contained in circular F. No. 574/5/77-LC-II dated 1.1.79
and F. No. 581/8/92-LC dated 30.11.92 regarding issue of passes to mechanised and non-mechanised
fishing vessels, I am directed to say that it has now been decided that the periodicity for renewal of fishing
passes should be as under.
(i) Non-Mechanised/Mechanised Fishing vessels – 6 months from the date of issue
(ii) Fishing trawlers (both small & large) - 3 months from the date of issue
2. Necessary instruction to this effect may please be issued to all concerned immediately. They
should also be instructed to ensure that renewal of the seasonal fishing passes is as far as possible
completed on the same day on which the renewal is requested, without giving any cause or complaint of
harassment or delay. Further at the time of renewal full verification may also be carried out.

[ Circular No. 18/95-Cus. dated 6/3/95 in F. No. 581/8/92-LC ]

VESSELS CARRYING COASTAL GOODS – RELAXATION IN CUSTOMS PROCEDURES

Section 98-A of the Customs Act, 1962, empowers the Central Government to grant exemptions

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generally, either absolutely or subject to certain conditions, to the coastal goods or to vessels carrying

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coastal goods from all or any of the provisions of the Chapter XII of the Act.

(A)
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Please refer to Notification 43/97-Customs (N. T.) date 11th September, 1997 issued
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under Sec. 98 A of the Customs Act, 1962 to exempt vessels from the provisions of Section 92, 93, 94,
97 & 98 (1) of the said Act.
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2. The relaxations are applicable to the vessels which exclusively carry coastal goods and ply as
coastal vessels. It will not be applicable for vessels which convert the status from foreign run to coastal
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run & vice-versa. The loading & unloading operation by coastal vessels must take place at separate &
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exclusive berths in the ports where both coastal and foreign traffic is handled. The provisions of Section
95, 96 & 98 (2) will also remain operative in case of such vessels. In terms of section 95, the master of
vessels is required to maintain “advice book” and the proper officer of customs can inspect the book and
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make entries as deemed fit, relating to goods loaded at the port.

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In terms of section 96 the coastal goods can only be loaded or unloaded at places notified under
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section 7 of the Customs Act, 1962. In terms of section 98 (2), the provisions contained in section 37 & 38
are applicable for coastal goods as applicable to vessels carrying import and export goods.

Accordingly, the Customs Officers would continue to have powers to board and vessels carrying
coastal goods and can require the person incharge of Vessels to produce any documents & to answer
any question. They should devise selective checks of coastal vessels, at random both at the ports, of
loading and unloading so that there is effective check and the impression that the department has
abdicated its responsibility, does not gain ground.

The light dues charges leviable on such coastal vessels may be collected by the customs till
alternate arrangements are made by Ministry of Surface Transport.

In case of the vessels which change their status from foreign to coastal or vice versa, the existing
provisions contained under Chapter XII of the Customs Act, 1962 shall continue to be operative.

[Circular No. 40/97-Cus.dated 19/9/97 in F.No. 450/86/92-Cus. IV ]

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(B) Please refer to circular No. 40/97-Cus (NT), dated 19.9.97 on the above subject. In
continuation of earlier measures, the following further relaxations have granted in the case of vessels
carrying coastal goods exclusively.
2. By notification 14/98 Cus. (NT) dated 27.2.98, the earlier notification No. 52-Cus, dated 1.2.63
has been rescinded. The earlier notification 52-Cus, dated 1.2.63 required the vessels carrying coastal
goods to file IGM/EGM in terms of the provisions contained in section 30 and 41 of the Customs Act.,
1962, Consequently the vessels carrying exclusively coastal goods will not be required to file IGM/EGM.
3. In terms of notification 15/98-Cus. (NT) dated 27.2.98, vessels carrying exclusively coastal goods
have been exempted from the delivery of Advice Book on arrival at each port of call to the proper officer
of Customs at that port, as required u/s 95 (1) and 95 (2) of Customs Act, 1962. However, the master of
each vessel shall carry the Advice Book on Board the vessel, and the proper officer of customs may,
whenever the deems necessary, call for the Advice Book for his inspection or inspect the same on board
the vessel.
[Circular No. 16/98-Cus. dated 11.3.98 in F. No. 405/86/92-Cus.IV ]

( C ) Apropos Govt. of India Notification No. 43/97-Customs (N.T.) dated 11.09.97 and

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followed by Ministry of Finance, Department of Revenue Circular No. 40/97 in F.No. 450/86/92 Cus IV

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dated 19.09.97 issued under Section 98 of Customs Act, 1962, the vessels carrying coastal goods
exclusively are hereby exempted from the provisions of Section 92, 93, 94, 97 and 98 (1) of the said Act.
Henceforth
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1. The consignor of coastal goods need not make an entry for the goods being shipped nor
file any bill as prescribed in Section 92 of Customs Act, 1962, with the customs authority.
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2. Master of such vessel need not obtain permission from Customs authorities for loading
and unloading.
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3. The mater of such vessel need not carry or deliver the bill pertaining to the goods carried
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by the vessel.
4. The master of such vessel need not obtain permission for clearance of the cargo at the
destination from the customs authority.
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5. No written permission from customs authority is required for the master of such vessel to
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cause or permit the vessel to depart from the port.

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6. No customs supervision is required for loading and unloading operation of such vessels
at the designated place.
7. No customs restrictions will be there on such vessels for loading and unloading
operations on Sundays, holidays and after working hours.
These relaxations are applicable to the vessels that exclusively carry coastal goods and are
engaged in plying as coastal vessels only. These relaxations are not applicable for the vessels that
convert the status from foreign run to coastal run and vice-versa.
The loading and unloading operations must take place at a separate and exclusive berth in the
port, notified under section 7 of the Customs Act 1962 for this purpose, so that mixing of the coastal
goods with foreign goods is prevented. A Shed in the Docks has been nominated as a place for loading
and unloading of the coastal cargo by Port Trust , which is now notified as a designated place under
Section 7 of the Customs Act, 1962.
Such coastal vessels berthing at the designated place as above are exempted from the provision
of the Section 92.93. 94. 97 and 98 (1) of the said Act. However, they are not exempted from the
provisions of the Section 95 and 96 of the Customs Act. As such the customs officers incharge of the
respective shed/section in the Docks would continue to have powers to board these vessels and require

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the person incharge of the said officer shall carry selective checks on such vessels, at random. The
checks as a matter of routine would no longer be necessary. If any discrepancies are noticed suitable
endorsement will be reported to Assistant Commissioner of Customs (Docks)/(Preventive General). As
such if becomes imperative on the master of the vessel to maintain advice book on board and produce
the same to the customs officer for inspection whenever demanded as laid down under Section 95 of the
Customs Act, 1962.
The light dues may be collected by the customs authorities until alternate arrangements are made
by the Ministry of Surface Transport.
The carting and delivery of the coastal goods will be carried out through the gate exclusively
assigned for this purpose. The Port Trust has assigned a Gate in the Docks as a gate to be exclusively
used for this purpose. The delivery/transport challans shall be distinct and separate for the coastal goods
wherein the details such as number of packages, name of the vessel and time of delivery at the gate or
the shed as the case may be shall be mentioned on the said challan.

[Based on Standing Order No. 7438 dtd. 15.03.99 issued by Commissioner of Customs (General) in
F.No. S/43-705/97P]

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Use of Foreign Going Vessels as Lightering Vessels
It has been observed that the Steamer Agents of foreign going/foreign flag barges/tankers seek /
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obtain permission for use of the same for stream discharge of petroleum products/chemicals/cargo (bulk)
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from the importing vessels (i.e. mother vessels). For a vessel to be used as a lightering vessel, it has to
be a coastal vessel, as, such vessel are plying between the mother vessel in stream and the place of
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landing of cargo. It has also been observed that such vessel after arrival from abroad, discharge import
cargo and thereafter obtain Export rotation number and remain in anchorage for indefinite period without
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giving export programme of the vessel.

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Here it may be clarified that the vessel which has already entered for export cannot be used for
the purpose of Coastal Trade or for lightering purpose, since these vessel are eligible for supplies of
Bonded Stores/provisions/fuel on the strength of export rotation number. Thus such vessels ply in the
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harbour/coastal area and often simultaneously enjoy the benefits of foreign going vessels. This is not only
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irregular but also incurs loss to the govt. revenue. It may also be clarified that such lightering vessels are
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required to obtain necessary certificate from the Director General of Shipping in terms of provision of the
Merchant Shipping Act and also required to be converted from Foreign Trade to Coastal Trade.
In the light of the above, it is hereby directed to all concerned that while recommending/granting
permissions for stream discharge it should be ensured that vessels in which the cargo is to be discharged
(i.e. lightering vessel) is a coastal vessel or is converted into a coastal vessel, if it is a foreign flag/foreign
going vessel. Secondly, the officer posted for supervision over the stream discharge of import cargo/or
concerned Section Officer or Boarding Officer if notice that the lightering vessel is also a foreign going
vessel, he should seal the bonded store on board the vessel and also stop supply of bonded
stores/provision/fuel till such vessel is engaged in coastal run. However, it is clarified that such vessel can
be allowed to accept stores/provision/fuel under the cover of free Shipping Bill. Also such incidents may
be brought to the notice of A.C./Export [through A.C.P.(G)] for cancellation of Export rotation number.

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