MULTI COUNTRY CONSOLIDATION (MCC) OPERATIONS 31 May 2016 for National Chamber of Commerce Sri Lanka Thilak Arumapperuma Arachchi Superintendent of Customs Export Facilitation Unit Industries and Services Directorate Sri Lanka Customs

Multi Country Consolidation Bonded warehouse Import – Origin A Deconsolidation Import – Origin B Consolidation Export / Re-export Import – Origin N Local Cargo A Local Cargo N

Multi Country Consolidation (MCC) Consolidates cargo of different origins to Full Container Loads (FCL) as cost-effective transport solution An Extension of Transhipment (T/S) Operations Most of the T/S Procedures are applicable An important aspect of Commercial Hub Ports At present MCC is allowed only in the Port*

Transhipment (T/S) Shipment of goods or containers to an intermediate destination, then to yet another destination. Combine small shipments to large shipments (Consolidation) Dividing large shipment into small shipments (deconsolidation) Change the means of transport (sea to road - Transloading) Designated Customs area avoiding checks and duties

MCC inside the Port – Features Carried out at SLPA T/S Warehouse at BQ T/S Cargo deposited in the T/S Warehouse For one month Possibility to consolidate with other T/S cargo Possibility to consolidate with local export cargo

MCC outside the Port- Features Carried out at Container Freight Stations (CFS) Requires appointment as Customs Bond Since cargo is duty unpaid T/S Cargo transferred under supervision to the bond T/S Cargo deposited in the Bond For one month Possibility to consolidate with other T/S cargo Possibility to consolidate with local export cargo

Container Freight Stations (CFS) CFSs are a result of Need for space for examinations Need for space for cargo consolidations Section 103 A (1) of Customs Ordinance

MCC Bond A separate secure area within CFS A Customs Approved Bond (Section 69) Bondsman signs an Agreement with DGC Not to violate rules of origin To comply with all the Customs requirements To inform any attempt of fraud To corporate with authorities in investigations/verifications Bank Guarantee to secure the liabilities Insurance Cover as a further security Office accommodation to Customs Staff + transport, rest room etc.. Bondsman to provide equipment for measuring, checking, handling

MCC inside Port - involves T/S Manifest to Customs (Sections 29 and 114) Deposit Application at Customs T/S at BQ Re-Shipment Application at Customs T/S at BQ T/S Office: Maintains Inward/Outward Registers Monitors T/S, MCC cargo movements

MCC at CFS Bond - involves T/S Manifest to Customs (Sections 29 and 114) Inward Application Transport of Container from Port to Bond under Customs Supervision Deposit in the bond – for one month Inward Entries in the Bonding Register Receipt of local export cargo on Export CusDec – if required Outward Application and Stuffing for Export Outward Entries in the Bonding Register Transport of Container from CFS to Port under Customs Supervison

PROCEDURE

Deposit of FCL T/S Cargo Shipping Line/Agent submits T/S Manifest at Customs D’ Branch ASC (Port Dues) Acknowledges one copy by stamp and signature and return ASC (Port Dues) Retain one copy At T/S Office at BQ, Shipping Line/Agent submits Deposit Application Acknowledged Manifest T/S Office registers the Manifest and Application and enters the registration number and date T/S Office stamps the Application and enters registration number and date, and release Agent delivers the approved deposit application to SLPA to perform deposit

Re-Shipment of FCL T/S Cargo Shipping Agent submits at T/S Office Re-Shipment Application with Container numbers Name, date and voyage number of incoming vessel Name, date and voyage number of outgoing vessel ASC makes entries on the Outward Register ASC enters the registration reference number on the application Shipping Agent produces the Re-Shipment Application to SLPA to effect the shipment

Deposit of LCL T/S at BQ Warehouse Sub Agent submits sub-T/S Manifest at D’ Branch for registration and stamp Sub Agent submits Deposit Application to T/S Office with acknowledged Sub T/S Manifest Deposit Application is registered in the LCL T/S Register The reference number is entered on the application DDC approves the deposit application Sub Agent delivers the approved application to Storekeeper at BQ T/S warehouse Goods are de-stuffed and deposited in BQ T/S warehouse

Re-Shipment of LCL T/S Cargo Sub Agent submits Re-Shipment Application to T/S Office Re-Shipment Application is registered in the LCL T/S register against the corresponding Inward entries The reference number is entered on the application Stuffing is carried out under Customs Supervision at BQ T/S warehouse Local export cargo delivered to BQ can also be stuffed (MCC) with Customs Approval Stuffed container is sealed by IC of Customs Enters container number(s) and seal number(s) in the application Sub Agent prepares the Shipping-Note (SN) ASC Endorses the SN upon verification for Shipment

Transfer of FCL/LCL T/S Cargo from Port to Air Cargo Applications shall be registered at T/S Office Shall be referred to DDC(Exports) for approval Subject to: Scanning at the port Transfer under Customs Supervision on T/S Cargo Movement Control Form Customs Doc-Center shall issue Gate Pass On receipt of Container ASC at the receiving Port (e.g. Air Cargo) endorses the receipt on the Movement Control Form IC shall produce the Movement Control Form T/S Office once the transfer is complete.

Transfer of T/S Containers from Port to MCC Bond Bondsman make Inward Application in triplicate at T/S Office (Customs, Customs at MCC Bond, SLPA) with Delivery order from Shipping Line Certified Manifest of the cargo in the container(s) T/S Office Registers the application and allocate a number Verify container numbers & seals against Manifest Release duly stamped copies of the Inward Application, manifest, Delivery Order Bondsman presents said documents to Storekeeper Relevant Terminal of the Port Port terminal issues gate pass for internal transfer Storekeeper stamps the documents and release Customs Doc-Center issues Customs Gate Pass

Transport to MCC Bond Under Customs Seal Customs gate staff note the seal in the Gate Pass and on the Inward Application

Receiving at MCC Bond Customs at the Bond verifies the seal with the Gate Pass and Inward Application Note the time of arrival and retain the Inward Application

De-Stuffing from the Container at MCC Bond De-Stuffing In the presence of Customs Tallied against the manifest Details are entered in the Bonding Register with reference to Inward Application Cargo is stored in the warehouse Customs certify on the Inward Application the tally of the cargo as per Manifest and release to the Bondsman Customs will tally receipts and removals at the bond weekly basis

Receipt of Local Exports at CFS Shipper delivers cargo with Customs Declaration – one copy Shipping Note (5 copies) Cargo Dispatch Note (3 copies) – per lorry Customs at Bond allow acceptance on the CDN Cargo is tallied against the CDN in the presence of Customs Bondsman holds cargo for one month pending consolidation

Stuffing at CFS Bondsman receives Cargo Engagement List/Stuffing Plan from the Shipping Line/Consolidator Bondsman makes an Outward Application (4 copies) with Tally sheets of respective containers Boat Notes Passed Customs Declarations for local cargo Statement on details of T/S cargo with references from Inward Applications Customs at Bond compares the details against documents and seal the container Customs at Bond, endorses the Outward Application and Respect CusDecs giving Container numbers “Local Cargo – consolidated with T/S Cargo – Shipment Allowed” “T/S Cargo consolidation – Shipment Allowed” “Consolidation of Local Cargo – Shipment Allowed” Customs at Bond retain on copy of the Outward Application and release two to Bondsman

Transport from CFS to Port Bondsman raises “Master Cargo Dispatch Note” (5 copies) + eCDN Agent submits CDNs at Export Facilitation Center (EFC) EFC stamps and Acknowledges the CDN (+updates eCDN) Container is released to the port Agent submits SN at EFC EFC passes the SN and stamps for shipment Export release is updated for local export cargo

Sri Lanka - A Leading Commercial Hub in the World? It has the potential Join Hands Come Forward Make it a reality! I Thank You Thilak Arumapperuma Arachchi Superintendent of Customs