DIRECT PORT DELIVERY (DPD)

DIRECT PORT ENTRY (DPE)

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
PREFACE

The Import-export procedure is a multi-stage, multi-stakeholder process. It

can be viewed to start with the physical process of movement of goods from
the entry point in the country or exporters’ premises with filing of the bill of
entry / shipping bill and manifest.

For import or export of goods, the importer/exporter or his agent has to

obtain an Importer-Export Code (IEC) from the DGFT prior to filing of bill of
entry/Shipping Bill. Under the EDI System, IEC number is received online by
the Customs System from the DGFT. The exporter is also required to register
Authorized Foreign Exchange Dealer Code (through which import/export
proceeds are to be released/realized) and open a current account in the
designated bank for credit of export incentives, if any.

Further, all the importers/exporters intending to import/export under any

import/export promotion scheme need to get their licenses etc. registered at
JNCH, which requires, inter alia, presentation of relevant original documents
and submission of bond and furnishing of security / surety, etc…

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
What is Direct Port Delivery (DPD) / Direct Port Entry (DPE)?

The DPD/DPE initiative is directed towards reductions in transaction

time and cost associated with EXIM trade by streamlining the time
taken by stakeholders in the cargo clearance process, simplifying
customs procedures, providing security assurance to the
government and expediting faster evacuation of containers from the
port.

DPD/DPE facility is extended to the importers & exporters for faster

movement of containerised cargo in and out of the terminals,
reductions in transaction time and cost associated with EXIM trade
by streamlining the time taken by stakeholders in the cargo clearance
process, simplifying customs procedures, providing security
assurance to the government. It also ensures decongestion of the
ports and faster evacuation of cargo. It also benefits for the carrier,
as the equipment rotation become faster and the handling time
reduces, etc..
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

Direct Port Delivery facilitates a container to be picked up from the

port terminal without the conventional steps of transferring to a
Container Freight Stations (CFS) for customs formalities. Under the
DPD, importers can complete customs clearance of their shipment
and take delivery of it at the port within a stipulated time frame
(usually 48 hours) of the shipment being offloaded. If the importer fails
to take delivery within this time, the shipment is transferred en-bloc
(as a whole) to a pre-designated CFS. The importer then has to follow
the CFS model, under which cargo delivery takes roughly seven to
nine days.

Direct Port Entry scheme aims to reduce export release time and
associated cost. Under this scheme, export containers are allowed
direct entry into the port terminal prior to granting Let Export Order
(LEO).

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

Who can avail this facility?:

1. Importers with Authorised Economic Operator (AEO) status.

The World Customs Organisation (WCO) defines an AEO as “a
party involved in the international movement of goods in
whatever function that has been approved by or on behalf of a
national customs administration as complying with WCO or
equivalent supply chain security standards”. They include
“manufacturers, importers, exporters, brokers, carriers,
consolidators, intermediaries, ports, airports, terminal
operators, integrated operators, warehouses and distributors”.
India’s AEO programme is implemented by the Central Board of
Indirect Taxes and Customs (CBIC).

Contd..

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
Who can avail this facility? Contd..

2. Importers with a clear track record of compliance and import /

export volume of 25 Full Container Load (FCL) TEUs through a
particular port or otherwise in the preceding financial year.

3. Importers who don’t fulfil the first two conditions can still be
eligible for DPD/DPE if their “imports/exports have enjoyed a
consistent pattern of customs risk facilitation” and/or if they
“provide an assurance that they would be in a position to pick
up containers directly from the terminal”. Or have Factory
stuffing/Self sealing approvals. This relaxation is aimed at micro,
small and medium enterprises (MSMEs). The discretion of
accepting such an application lies with the chief customs
commissioner.

Refer CBIC Circular No. 29/2019 –Customs dated 5 September, 2019

.
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process, in detail:

The standard import clearance process can be largely categorized

into following stages commencing with filing of the Import General
Manifest (IGM) by the Shipping Lines. This is followed by electronic
submission of bill of entry by the importer or an authorized Custom
House Agent (CHA) on his/her behalf based on self-assessment. The
bills of entry which are filed after grant of entry inwards are known
as normal bills of entry.
The Customs Act, 1962 also provides the facility for filing bills of
entry within thirty days of the expected arrival of the vessel. These
bills of entry, which are filed before the grant of entry inwards, are
called advance bills of entry. Filing of advance bills of entry enable
initiation and processing of the documents even before the arrival
of the goods, thereby resulting in reduction of the release time.

Contd...

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process, in detail: Contd…

Recognizing the importance of early filing of bills of entry in

reduction of release time, the provisions of the Customs Act
(Section 46) were amended vide Finance Act, 2017 to prescribe that
the importer shall file a bill of entry before the end of the next day
following the day (excluding holidays) on which the vessel carrying
the goods arrive at customs station at which such goods are to be
cleared for home consumption or warehouse.

The law also provides for imposition of charge for late filing of bill
of entry without sufficient cause for such delay.

Contd…..

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process in detail: Contd…

The self-assessed bills of entry, whether advance or normal, are

thereafter processed by the Risk Management System (RMS). It is
the RMS which essentially decides whether a bill of entry will be
facilitated, i.e. the self-assessment by the importer is accepted as
such or it merits verification by the group officer and examination by
the docks officer. In cases where, the bills of entry are facilitated by
RMS, the importer proceeds to make the duty payment and thereafter
register the goods for subsequent out of charge. These bills of entry
are called facilitated bill of entry.

In nutshell, the DPD facility viz. the facility of direct clearance of

cargo upon obtaining out of charge from the terminal premises is
available to those bills of entry filed by DPD clients and facilitated by
RMS.

Contd…
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

The DPD process in detail: Contd…

Viewed this way, DPD bills of entry constitute a subset of facilitated

bills of entry. In case of DPD bills of entry, since out of charge is
given from the terminal premises itself and the goods are not
required to be moved to CFS for registration and out of charge, it is
expected that the release time for such bills of entry would be
significantly lower. It may be mentioned that certain facilitated bills
of entry may belong to importers who are not eligible for DPD and
certain bills of entry of DPD importers may not be facilitated. In
both these cases, the goods are required to be moved to CFS
pending assessment and examination, before eventual out of
charge.

Contd…

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process in detail: Contd…
Among the non-facilitated bills of entry, which have been selected
for scrutiny, there are two categories:
a) first those selected for assessment only. In this case, the bill of
entry is assessed by the respective group to which it belongs,
and thereafter the goods are taken for registration after payment
of customs duty. After carrying out final inspection of
documents, the subject goods are given out of charge by the
preventive officer;
b) Secondly, there may be a scenario where a bill of entry is
selected for both assessment and examination. In this case after
the assessment and duty payment is over, an examination of
goods, based on an examination order by group officer/system
instruction as deemed fit, is carried out. Thereafter, if the goods
are found to be as per declaration by the preventive officer, the
subject consignment is given out of charge. These bills of entry
are covered under second check. Contd….
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

The DPD process in detail: Contd…

Lastly, there are certain special categories of cargo, namely, second-

hand machinery, certain chemicals, textiles, food items, drugs, highly
sensitive items (designated as those which are prone to mis-
declaration and evasion) undergo a procedure called first check. As
the name suggests, the goods are first examined by the docks officer
and based on his report and certain other parameters like test
reports, certificates, including those by partner government
agencies, as applicable, the goods are assessed by the respective
assessing groups. After assessment, customs duties are paid and the
goods are given out of charge by the docks officer. These bills of
entry are called first check bills of entry.

Contd…..

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process in detail: Contd…
Customs clearance also includes enforcement of various allied acts
which determine the importability of goods. The role of partner
government agencies (PGA) in the clearance of such cargo is
crucial. CBEC has introduced a single window system to bring on
one platform six PGAs for providing single documentation facility as
well as common risk management system. However, in case of
compliance with certain other allied laws, different procedures are
prescribed, with ultimate responsibility of ensuring their compliance
with the customs officers. Clearance for such goods can be under
both facilitated as well as second or first check, depending on the
conditions imposed on their importability and risk profile. The
release time of such cargo is expected to be considerably longer in
comparison to cargo which does not require reports/NOC from
respective PGA namely Textile Committee, Animal Quarantine,
Wildlife Crime Control Bureau, Drug Controller, FSSAI, Plant
Quarantine, etc..
Contd…..
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
The DPD process in detail: Contd…
In the case of advance bill of entry, the self-assessment particulars
are considered by the RMS immediately upon such filing and before
the grant of entry inward. In case the bill of entry is facilitated, the
importer can proceed to make payment of customs duty even before
the entry inward and be ready for registration of the goods
immediately upon arrival of the cargo. The process of registration
and out of charge would be completed in the CFS in case of non-DPD
cargo and at JNCH itself in the case of DPD cargo.
Since the release time seeks to capture the time taken in clearance of
cargo after its arrival at the customs port, in the case of advance bill
of entry, the time taken in the processes that are completed before
grant of entry inward are assumed to be zero. It is reiterated that the
time clock begins with the grant of entry inward even in the case of
normal bill of entry.
In this respect CBIC/Customs Public Notices/ circulars, time to time
are relevant and gives current information and procedures.
By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

DIRECT PORT ENTRY (DPE):

DPE for export cargo is a facility similar to the “Direct Port Delivery”
(DPD) for the import cargo. The DPE facility has been extended to
exporters as part of the initiative to provide ease in doing business
through reduction in transaction time and cost. The DPE facility was
introduced at JNCH in October 2009 for the following five
categories of cargo: (i) refrigerated containers; (ii) over dimensional
cargo (ODC); (iii) motor vehicles; (iv) perishable non-refrigerated
cargo; and (v) factory stuffed cargo of exporters having Status
Certificate, 100% EOUs and units of SEZs. In October 2016, the DPE
facility was extended to all factory stuffed containers of all the
manufacturing entities, thereby significantly increasing the number
of exporters entitled to DPE.
.

Contd…

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)

DIRECT PORT ENTRY (DPE): Contd…..

Earlier, the consignments entitled for DPE were allowed to enter

inside the terminal premises without LEO. However, with effect
from 05.12.2016, the procedure has been modified and instead of
allowing DPE without LEO, document processing area created by
all the terminals were made operational and containers were
allowed DPE after issue of LEO from such parking plazas,
developed en-route to the terminal gates. As per the revised
procedure, when the vehicles are brought to these parking plazas
for completion of terminal documentation, customs also complete
the documentation and issues LEO at the parking plaza.

Contd…

By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
DIRECT PORT ENTRY (DPE): Contd…..
At JNPT with its CFS-based model with Direct Port Entry (DPE)
facility, the export procedure is as under:
For Factory Stuffed Containers:
1. The e-seals are affixed at the premises of the exporter, who
himself files the shipping bills in the electronic form. RFID e-seal
based self-sealing procedure has been introduced as a measure
of export facilitation. The detailed procedure for electronic
sealing for containers by exporters under self-sealing has been
prescribed by CBEC Circular No 26/2017 and 36/2017.
2. The goods brought for the purpose of export can be taken to a
CFS or allowed direct port entry through parking plazas at JNPT,
as the case may be. When the factory stuffed container enters
the Parking Plaza / CFS to obtain the Let Export Order (LEO), the
e-seal is checked / examined/ verified by the customs officer with
a e-seal reader / handheld device (HHD).
Contd..
. By Paul V Komban
DIRECT PORT DELIVERY (DPD) / DIRECT PORT ENTRY (DPE)
DIRECT PORT ENTRY (DPE): Contd…..
(iii) After verification of container number, seal number and integrity of
seal, when the goods are presented for registration to customs, RMS
indicates whether or not to examine the goods.
(iv) If goods are not required to be examined, LEO is given and the
container moves to the port terminal for being loaded onto the vessel
with no further checks, except security checks being conducted by
CISF staff at the terminal gates. If the goods require examination, the
containers are shifted to CFS for the same.

For CFS Stuffed Cargo:

In case of LCL cargo, the stuffing of container at CFS is done under
customs supervision. After the LEO is given, the container is moved
to the port terminal by the concerned CFS, without routing the same
through the parking plaza.

By Paul V Komban
Container Freight Station / Inland Container Depot
The Customs Manual defines CFS as
“A common user facility with public authority status equipped
with fixed installations and offering services for handling and
temporary storage of import/export laden and empty containers
carried under Customs transit by any applicable mode of
transport placed under Customs control. All the activities related
to clearance of goods for home use, warehousing, temporary
admissions, re-export, temporary storage for onward transit and
outright export, transshipment, take place from such stations.”
A CFS is an extended arm of Port/ ICD/ Air cargo Complex, where
import/ export goods are kept till completion of their examination
and clearance. The imported goods can be immediately shifted from
the port to CFS which also helps in the reduction of port congestion.
All the activities related to clearance of goods for home
consumption, warehousing, temporary admissions, re-export,
temporary storage for onward transit and outright export and
transshipments take place from such stations. Therefore, clearance
of goods from CFS is an important point of consideration for trade in
respect of export/ import

By Paul V Komban
Container Freight Station / Inland Container Depot
• IMPORT:

The goods received at ports are brought to CFS as a custodian

and stacked in the CFS which is a bonded area, after verification
of the seal by Customs Officers, to ensure the seals are not
tampered, and no unauthorized access to cargo is not taken
place. In respect of import consignment, the Steamer
Agents/liners/ Importers desiring to take the consignment to
CFS, file Import General Manifests (EGM) in the port, showing
items which has to go further to ICD/CFS, to complete the
carriers obligation of delivery, as transit cargo. After obtaining
the permission from the AC/DC, the Container moves to CFS
under Customs escort or under bond and bank guarantee. In
CFs/ICD the CHA / importer files the Bill of Entry with Customs
and then Customs formalities of assessment, examination and
payment of duty are completed. The CFS allow de-stuffing of the
goods. Thereafter, Customs gives “Out of Charge” and the
Custodian , CFS, releases the goods from CFS by issuing a Gate-
Pass.

By Paul V Komban
Container Freight Station / Inland Container Depot
• EXPORT:

In respect of exports, the goods are brought directly to CFS

under a Shipping Bill. The export cargo in Less than
Container Load (LCL)/ Full container Load (FCL) / Factory
stuffed container/ Self sealed container is received by the
Custodian of CFS for safe custody. The Customs accesses
the shipping bill, inspect the cargo and endorse the ‘LET
EXPORT ORDER’ (LEO) in the system. Then if the cargo is
LCL or FCL, the CFS bring the empty container and stuff
the cargo, again under custom’s supervision. After stuffing
of the goods, Container/ Customs Bonded Truck (CBT) is
sealed by the Custom Officer and the same is removed from
CFS for export through the desired Port.

By Paul V Komban