Transportation of goods (Through Foreign Territory) Regulations, 2020

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Background:

The transportation of goods from one part of India to another through a foreign territory was hitherto covered by the Transportation of Goods (Through Foreign Territory) Regulations, 1965. Such movements were however uncommon, and the regulations were not effectively used due to absence of bilateral arrangements with neighbouring countries.

In the recent past, India and Bangladesh have signed the Agreement for use of Chattogram and Mongla ports for movement of goods to and from India (“ACMP”) on October 25, 2018 and a Standard Operating Procedure inter alia prescribing the documentation, procedure and time limits and extension thereof, for movement of goods under the ACMP has also been signed on October 5, 2019. Further, as per the Article VIII of the Trade Agreement between India and Bangladesh signed on June 6, 2015, the two countries have also agreed on a Protocol on Inland Water Transit and Trade between the People’s Republic of Bangladesh and the Republic of India on June 6, 2015 (“PIWTT”). The ACMP covers movement of goods from one part of India to another through Bangladesh and the PIWTT covers bilateral trade between India and Bangladesh, movement of goods from one part of India to another through Bangladesh and also export to third countries using each other’s territories.

Clarification:

In view of the above, the Transportation of Goods (Through Foreign Territory) Regulations, 1965 have been superseded by the Transportation of Goods (Through Foreign Territory) Regulations, 2020 vide Circular No. 14/2020- Customs dated 21 February 2020. The new regulations provide for:

  • Movement of goods from one part of India to another through Bangladesh under the ACMP
  • Movement of goods from one part of India to another through Bangladesh under the PIWTT
  • Movement of goods from one part of India to another through land route which lies partly over the territory of a foreign country.

Further, clarified that for movements under PIWTT only transit movements are covered by the new regulations i.e. movement of goods from one part of India to another through Bangladesh. For bilateral trade and export to third countries, the extant provisions shall prevail. Or any other movement under the regulations, the consignor of the goods, the carrier or their authorised agent shall file a Custom Transit Declaration (“CTD”) and a bond.

Furthermore, clarified the procedure for each movement in detail.

Read more at: http://www.cbic.gov.in/resources/htdocs-cbec/customs/cs-circulars/cs-circulars-2020/Circular-No-14-2020.pdf

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