The ongoing controversy over the operational roles in the ICTT at Vallarpadam between the Kochi Customs and SEZ officials continues to hog the limelight.

The Customs officials are sticking to their stand for a demarcated space and facilities inside the terminal for inspection of export and import containers.

Highly placed sources in the Customs Department told Business Line that unless a demarcated space provided inside the SEZ area, it would be difficult for them to post officers for long in the SEZ.

The Customs had even threatened to withdraw their officers from the terminal any time from December if the Government failed to come out with a solution on the issue at the earliest.

According to the guidelines issued by the Commerce Department, the sources said there should be processing area and a non-processing area within the SEZ. All provisions of the Customs Act 1962, Rules and Regulations issued there under will apply to the port as demarcated from the rest of the SEZ.

Currently, there is no such demarcated area at Vallarpadam and the Customs personnel posted there are practically working without proper space and facilities. However, SEZ officials were of the view that Section 53 of the SEZ Act states that a notified SEZ is deemed to be a territory outside the Customs territory for the purpose of undertaking authorised operations.

It may be recalled that the Development Commissioner, Mr M.S. Rao, during his visit to Kochi last week had stated that the Study Group constituted by the Commerce Department with representation from the Revenue Department will be submitting a report shortly, which is expected to indicate the future modalities for operating the ICTT.

The Committee is examining the best practices followed in other container transhipment terminals elsewhere.

The Customs sources pointed out that the words “deemed to be a territory outside the customs territory of India for the purpose of undertaking the authorised operations” has been misunderstood as an exclusive territory under the control of Vallarpadam SEZ authorities preventing the discharge of the official duties of the other Government officials in Sec 47 of the SEZ Act.

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