1. MULTI COUNTRY consolidation (mcc) operations (The customs purview)
International Chartered Shipbrokers Seminar 25 May 2016
MULTI COUNTRY consolidation (mcc) operations (The customs purview)
Thilak Arumapperuma Arachchi
Superintendent of Customs
Export Facilitation Unit
Industries and Services Directorate
Sri Lanka Customs

2. 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*

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. PROCEDURES AT CUSTOMS

11. 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

12. 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

13. 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

14. 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

15. 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.

16. 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

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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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