Change in rule at ICTT benefits cashew sector

The cashew industry here has welcomed the decision of the authorities of the Vallarpadam International Container Transhipment Terminal (ICTT) to restore the on-wheel customs clearance facility for raw cashew imports. K.N. Raghavan, Commissioner of Customs at Kochi, formally notified the decision on February 24.

Through the facility, the raw cashew importer can now load the container from the ICTT yard and subject it to Customs clearance there itself, without shifting it to a privately operated container freight station (CFS) yard nearby for Customs checking.

The decision comes in the wake of a delegation from the Cashew Processors and Exporters Association holding talks with the Cochin Port, ICTT, and Customs authorities earlier this month.

Association president A.M. Salahudeen said that restoration of the facility would cut costs by over Rs.9 crore annually for the industry.

Economic importance

Given the economic and social importance of raw cashew imports by way of providing employment to women and also as a major foreign exchange earner, the commodity had enjoyed on-wheel customs clearance facility at ICTT. But in October last year, the facility was withdrawn.

This resulted in all raw cashew import containers arriving at ICTT mandatorily being shifted the CFS yard for Customs clearance.

For the new arrangement, each container was charged Rs.5,000 — the breakup being Rs.2,000 for container transportation charge, Rs.2,000 for loading and unloading, and Rs.1,000 as administrative charges.

Each year more than 3 lakh tonnes of raw cashew are imported through the ICTT annually and that means 16,000 containers.

Mr. Salahudeen said that with the on-wheel customs clearance facility being restored the fee charged has come down to Rs.618 per container.

During talks, the ICTT authorities also agreed to resume operation of the weighbridge inside the terminal complex.

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Earlier it used to be moved out for Customs nod

Fee per container down to Rs.618 from Rs.5,000

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- The Hindu