Direct Port Delivery (DPD):

Direct Port Delivery (DPD) is a flagship scheme of Customs to reduce release time and cost. The scheme allows registered importers to complete customs clearances at the terminal itself and thus take the container directly to the factory (without proceeding to the Container Freight Station).

CBIC has taken various steps which have had the impact of reducing the dwell time as well as bringing down the logistics cost of EXIM clearances. One of the flagship initiatives in this regard has been the Direct Port Delivery (DPD) of containers to the importers thus obviating the need of routing the clearance through the Container Freight Stations (CFSs). The initiative was first launched at JNPT and thereafter extended to other ports. This one single reform alone has played a critical role in improving our ranking in the Doing Business. Not surprising, therefore, has been the wide appreciation for this step amongst the importers and its acknowledgement by World Bank. CBIC by promoting DPD has raised the bar of efficiency. Taking all the factors into consideration, following guidelines are being prescribed for implementation of DPD across all the formations:

(i) Inclusions: The following categories of importers may opt for facility of DPD:

(a) importers who have already been accorded either AEO Tier I, II or III status;

(b) importers with a clear track record of compliance and an import volume of 25 Full Container Load (FCL) TEUs through a particular port or otherwise in the preceding financial year;

Importers falling under the said categories shall furnish information prescribed in application format Annexure-A. While the criterion at (b) is desirable, Chief Commissioner may, however, in deserving cases of importers, relax the TEU benchmark. Such importers could be the ones whose imports have enjoyed a consistent pattern of customs risk facilitation / who provide an assurance that they would be in a position to pick up containers directly from the terminal. This dispensation may be particularly considered for the MSME sector.

(ii) Exclusions: The following categories of importers however would be excluded from facility of DPD:

(a) importers against whom a case of mis-declaration of description of goods or of concealment / diversion of imported goods / evasion of duty has been made in the preceding five years;

(b) importers facing prosecution proceedings in a matter under the Customs Act, 1962;

(c) those importing goods that are subjected to 100% examination in terms of extant policy;

(d) importers importing mostly LCL consignments.

(iii) Conditions: The facility of DPD shall only be extended only to such consignments (a) which have either been fully facilitated or not subjected to examination; and (b) importers open a PD account with the terminals and arrange for their own transport to take delivery of containers from the terminal; and (c) any other procedural formality prescribed by the zone for better administration of DPD scheme 5. In view of the above guidelines for availing DPD, Customs field formations at sea ports where containerized cargo is received are advised to issue/re-issue Public Notices for the benefit of importers so that they could avail DPD.