Clarification on Insurance Amount and Bond Value for CCSPs andvalidity of Bond for AEO-LO-reg


Quick Summary
This notification clarifies the insurance amount for Common Customs Service Providers (CCSPs) and the validity of bonds for Authorised Economic Operator - Lower Risk (AEO-LO-reg). It refers to a previous circular from 2016 which stated that the average time for goods clearance should influence the insurance amount. Specifically, it confirmed that 10 days should be considered the average dwell time for calculating insurance under the Handling of Cargo in Customs Areas Regulations, 2009.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Customs Policy Wing
****
             

Room No. 252A, North Block, New Delhi
                     Dated: 08-11-2024

To,
All   Principal   Chief   Commissioners/Chief   Commissioners   of   Customs/Customs
(Preventive)/Customs & Central Taxes,
All Principal Commissioners/Commissioners of Customs/Customs (Preventive),
All Principal Director Generals/Director Generals of Directorates under CBIC.

Subject: Clarification on Insurance Amount and Bond Value for CCSPs andvalidity of Bond for AEO-LO-reg.

Madam/Sir,         
Kind attention is invited to Board’s Circular No. 42/2016-Customs dated 31.08.2016which  provided  that average  time  taken  for  clearance  of  goods  should  be  a  relevantfactor  in deciding  amount  of insurance  and  accordingly  prescribed  10  days  as  anaverage dwell time to be considered while calculating the insurance amount as providedunder Regulation 5(1)(iii) of the Handling of Cargo in Customs Areas Regulations, 2009(hereinafter referred to as HCCAR).

Official copy of the circular has been attached

FAQ :

This notification provides clarification on the insurance amount for CCSPs and the validity of bonds for AEO-LO-reg.

The notification refers to Board's Circular No. 42/2016-Customs dated 31.08.2016.

The average time taken for clearance of goods is a relevant factor in deciding the insurance amount for CCSPs.

10 days is the prescribed average dwell time to be considered when calculating the insurance amount.

This calculation is made under Regulation 5(1)(iii) of the Handling of Cargo in Customs Areas Regulations, 2009 (HCCAR).

 

Guest
Notification No : Circular No. 22 /2024-Customs
Published in Custom
Source : https://taxinformation.cbic.gov.in/view-pdf/1003246/ENG/Circulars

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