Vallarpadam is not SEZ, argues customs

KOCHI: In the ongoing fight between the Vallarpadam International Container Transshipment Terminal (ICTT) and the customs department over the right to scrutinize goods movement, the customs department has filed an affidavit in the Kerala High Court stating that ICTT was designed as a transhipment terminal but is now dealing with domestic goods also, which necessitates customs check and violates ICTT's status as a special economic zone.
In the affidavit filed through customs standing counsel John Varghese, the department points out that the contention of the India Gateway Terminal Pvt Ltd, which operates ICTT, that the terminal is operating as a special economic zone cannot be accepted as domestic cargo is also being transported through ICTT.
According to the agreement between ICTT and the developer Cochin Port Trust, domestic cargo, except bulk, has been shifted to ICTT.
Handling of domestic cargo is not part of the authorized operations and the cargo has to be handled as per the provisions of the Customs Act, 1962, the department says.
The customs department is arguing that the functions of the department at ICTT are beyond the provisions of SEZ, which is claimed by ICTT as the reason for not allowing the customs officials inside.
Handling and clearance of import or export cargo, clearance of vessels and anti-smuggling activities are subject to the provisions of the Customs Act and are statutory functions of the customs department.
Moreover, these activities are not part of the authorized operations of ICTT and are beyond the scope of section 53 of the Special Economic Zones Act, the affidavit says.
Section 53 of the SEZ Act states, "A Special Economic Zone shall, on and from the appointed day, be deemed to be a territory outside the customs territory of India for purposes of undertaking authorized operations."
Further, statutory functions of customs officers are not confined to the gates of ICTT, the department says.
Statutory functions include boarding of vessels, granting of entry inwards or outwards, rummaging of vessels, crew clearance, port clearance to vessels, supervision of loading and unloading of cargo, clearance of import or export cargo meant for the domestic tariff area and transshipments, the affidavit states.
The memorandum on administrative structure and process of clearing cargo in ports in SEZs also state these as functions of the customs department, the affidavit states.