Pressure from the automotive industry in India has finally resulted in the Chennai Customs Zone agreeing to adopt a faster system for container clearance at the port of Chennai.
Chennai will now permit direct port delivery of containerised automotive parts using bills of entry under the Risk Management System (RMS). RMS Bills Of Entry enable the clearance of low risk consignments based on the acceptance of the importers self assessment and negate the need for examination, therefore speeding up cargo clearance.
The port’s two box handling facilities, Chennai International Terminals (CITPL) and Chennai Container Terminal (CCTL), both argued that most imported consignments were not accessible quickly enough to meet the just-in-time production requirements of the automotive industry. Inbound containers previously had to be cleared at a container freight station, causing delays and even loss of business.
However, Chennai Customs is now allowing automotive manufacturers, who constitute the main importers and exporters of containers in the port, to pick up imported boxes much faster by making use of the Direct Port Delivery (DPD) system. Not only will this improve just-in-time component deliveries, but will also ensure that exports of finished vehicles become more reliable, too.
According to a circular issued by the customs authorities, “Since the bill of entries for most of these automobile-related consignments are completed before vessel berthing for the immediate requirement of production schedules, the delivery from the port can be expedited immediately upon landing of containers in the terminals. Thus, the reduction of dwell time of these consignments can be ensured by facilitating DPD.”
Now, imported consignments for the automotive sector that are covered by RMS Bills of Entry can be cleared in either CCTL or CITPL, without the need to divert them through more specialist installations. As a quid pro quo, both terminals must provide space and facilities for inspection or examination of containers as required.
