OFFICE OF THE COMMISSIONER OF
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA,
URAN, RAIGAD, MAHARASHTRA 400 707
F.No. S/12-2/2006-07 AM (X) JNCH Date: .04.2006
STANDING ORDER No. 15/2006
of foreign going vessels to coastal vessel- Customs duty collection of ship
stores consumed during coastal run-reg.-
Attention of Officers of this Custom House is invited
to the provisions regarding Conversion of foreign going vessels to coastal
2. In this
regard please find enclosed herewith Government of India, Ministry of Finance,
Department of Revenue, New Delhi letter F. No.450/66/2005-Cus-IV dated
concerned are directed to comply with above instructions.
COMMISSIONER OF CUSTOMS,
Encl : As above
Board of Excise & Customs
November 24th, 2005
Conversion of foreign going vessels to coastal vessel- Customs duty collection
of ship stores consumed during coastal run-reg.-
The undersigned is directed to bring your kind attention to Circular No. 58/97,
dated 6-11-1997 issued vide F. No. 450/77/95-Cus. IV on the procedure for
collection of duty on ship stores consumed during coastal run. During the deliberations of Inter
Ministerial Group consisting of representatives of Ministry of Shipping,
Ministry of Commerce and Planning Commission under the Chairmanship of
Secretary (Revenue), one of the issues that came up was the delay being caused
by Customs authorities for conversion of foreign going vessel to coastal
vessel. It was also mentioned by the Ministry of Shipping that whenever any
vessel is converted from foreign going to coastal, customs require a notice of
three days. Such conversions are quite frequent in the tanker industry.
Sometimes due to exigency of operation, a coastal vessel is required to be
converted to foreign going for loading at foreign ports, when the vessel is
waiting at the anchorage out side the port limits in India. In such cases, customs require the vessel to be brought
inside the port at berth for carrying out conversion formalities.
It may be noted that as per the provisions of Circular No. 58/97, dated 6-11-1997 issued vide F. No. 450/77/95-Cus. IV, there is no requirement of
advance notice of three days for converting foreign going vessel into coastal
vessel. All field formations should scrupulously adhere to the provisions of
Circular No. 58/97, dated 6-11-1997. Paragraph 3 of
the above circular mentions about the option of payment of duty on the entire
quantity of Bonded stores carried by the ship, or only
on estimated quantity of the Bonded stores that may be utilized during coastal
run when the vessel is converted into coastal vessel. Similarly steamer agent
is entitled to refund of duty in case of unutilized duty paid stores. The
assessment in all such cases should be completed within prescribed time.
However, it should be ensured that conversion of foreign going vessel to
coastal vessels and vice versa should be expeditious and without any delay.
Further, in case of exigencies, when the vessel is anchored outside the port
limit, full cooperation should be extended to the master of the vessel/ steamer
agent for getting the expeditious conversion of costal vessel to foreign going
vessel, if necessary by deployment of Customs staff to such vessel for
completing the conversion process and to subject
to safeguard of revenue.
3. All concerned may be directed to comply with above instructions.