CFS Report (Visit to SATTVA CFS on 13.01.

2020)
Introduction to CFS:

Container Freight Station is a registered Customs area notified under section 8 of the Customs Act,
1962. It is a place where stuffing, destuffing, aggregation and segregation of export/import cargo
consolidation and storage (warehousing) takes place.

What is CFS?

CFS stands for Container Freight Station and refers to a warehouse where cargo that belongs to
various exporters or importers is consolidated or deconsolidated before being exported or imported.
CFS shipping plays a vital role in both importing and exporting and create a centralized location for
suppliers to send their products and act as a staging area.

Container Freight Stations are commonly found close to harbours, within terminals, close to massive
warehouses or near major railway hubs, because once the cargo is deconsolidated for the individual
shippers, the goods will either be transported by trucks or trains or picked up by customers. If truck
drivers want to pick-up the cargo, you need a delivery order (permission to release to goods) and a
customs clearance form to indicate that products are allowed into the country for their
(de)consolidation service, the CFS charges a fee based on the volume of the cargo.

What is ICD?

ICD means Inland Container Depot situated at inland points away from sea ports. ICD copy is a term
used in India in the field of Imports and Export of sea shipments. ICD is formed to help importers and
exporters to handle their shipments near their place of location. If the sea port is away from the places
of importers and exporters Inland Container Depot (ICD) helps them to save time and money in the
procedures and formalities. In Inland Container Depot (ICD), a combination of services of sea
custodian, customs department, carriers, freight forwarders, customs brokers etc. are carried out to
facilitate exporters and importers for smooth handling of cargo.

ICD is also act as Dry port or CFS in many countries.

About SATTVA:

SATTVA is a 26-year-old company experienced CFS, ICD, Warehousing, 4PL logistics, railway
sidings, and to provide facilities for storage of cargo/commodities - import and export.

 Inland Container Depot with Public Bonded Warehouse at Pondicherry for handling
Import/Export/Bonded cargo - Inaugurated on 10 April 2000.
 Container Freight Station with Public Bonded Warehouse at Tiruvottiyur, Chennai for
handling Import and Export and Bonded Cargo - Inaugurated on 16 April 2000.
  M/S Sattva Logistics Private Limited has acquired a property at Thondamanatham village,
Pondicherry to the extent of 5 acres and have constructed a warehouse of 60,000 sq. ft and
presently handling import/export/domestic cargo.
 We have established two CFS’s, one in Vichoor and second one at Ennore and Eredene
Capital, UK is the investment partner for these companies.
 We have established one satellite CFS in Ambur on the Chennai–Bangalore National highway
to cater to the leather cluster of North Arcot district of Tamilnadu.
 We also offer services in the logistics consultancy and executed several projects for third
party companies like establishing Rail linked ICD in Garihatsu, near Delhi, putting up coal
handling conveyor-based system in Mettur, re-export of tsunami affected cars for Hyundai
Motors, India etc.
 Construction of Raw Water Pump House at Sethiathope and Treated Water Pump House at
Vadkuthu, to Reliance Energy Ltd. Chennai. Consultant M/s Mecon Ltd. Project Value Rs.
444.54 Lakhs.
 Operation and Management of Container Freight Stations of Public Sectors.
 Operation and Management of Public Bonded Warehouse for a leading Public Limited
Company.
 Development, Management, and creation of First Rail based Inland Container Depot.
 Undertaking of Feasible study for Coal movement from South Ports to Mettur Dam for a
leading Manufacturing Company.

Difference between ICD & CFS:

CFS ICD
Only customs area. Independent Customs Station.
Stuffing, destuffing, aggregation/segregation of ICD Terminal is located in the hinterland of
import/export cargo takes place. gateway port serving as dry for customs
examination and clearance of cargo.
Also known as Customs Cargo Service Also known as Inland Customs Depot.
Provider.
It is an extended arm of Port/ICD. It is a full-fledged station for Port.
CFS should always be near the port. ICD can be away from the port.
CFS is attached only to near port (Ennore Port, ICD can be attached with any port.
Kaatupalli Port, Chennai Port).
It is only for customs area for inspection, Filing of bills, assessments of all customs
clearance, and delivery of containers. activities like clearance and delivery of cargo is
done in single compound.
 SCHEMES

EXPORT IMPORT

DPE DPD
(Direct Port (Direct Port
Entry) Delivery)

DPE:
It is a trade facilitation initiation to reduce dwell time of export cargo from factory to onboard the
vessel by directly allowing the entry of export containers into the ports and processing the export
clearance in the port itself.

DPD:

Under this model, importers complete customs clearance of their shipment and take delivery of it at
the port within a stipulated time frame (48 hours) of the shipment being offloaded.

EXPORT PROCESS IN CFS

PNR Porcess
Processed by CFS Form-13
Vessel Operator at (CMFC - (for release by
Planning Container Monitoring terminal
and Facilitating operator)
Centre))

Transportersend
empty container
IGM/ IAL Filing Vessel Birth with EIR Rport,
Out gate Copy to
driver

1. Exporter loads goods on truck, delivers it at CFS with shipping bill.

2. Goods are unloaded and received by CFS custodian.
 3. Goods undergo customs clearance procedures.
4. After customs authorities endorse shipping bill with “let export order”, CFS stuffs goods into
the container.
5. CFS seals container hands it over to port/terminal for export

IMPORT PROCESS IN CFS

Empty
Document
PNR - IN Yard Container
Checking CFS OUT - GATE
CFS IN - GATE Out

Customs Document
Direct Out Billing
Clearance Checking

Cargo Out
De-stuff Out
Empty Out

1. Importer/carrier/steamer agent files import general manifest (IGM) – with details of cargo,
exporter, importer, ship/aircraft – at port/terminal to move cargo to CFS .
2. Container received at port/terminal is forwarded to CFS.
3. Cargo is offloaded, stacked and de-stuffed at CFS.
4. Cargo owner or their clearing agent files bill of entry, proceeds with cargo clearance and duty
payment .
5. Customs endorses bill of entry with “out of charge” order.
6. CFS custodian issues gate pass to release cargo to the importer.

CFS Charges:
A CFS charges a fee for each activity it performs. Exporters and importers must pay attention to these
charges. Failure to do so can result in a) increased logistics costs, b) shipment delays, and c) poor
relations with customs authorities, which is never good for business.

Charges for Export Activities by CFS:

 Container stuffing. A composite fee is charged, which includes the cost of cargo carting,
placing of the empty container, moving of laden container and the labour involved in these
activities.
 Cargo storage.
 Per-day ground rent for empty and laden containers
 Charges for Choking. Lashing, Palletizing and Labelling (If done by the CFS Custodian).

Charges for Import Activities by CFS:

 De-stuffing and delivery: This fee include the cost of transporting laden containers to CFS and
grounding for customs examination.
 Cargo handling for customs examination.
 Cargo storage.
 Per-day ground rent for laden containers.
 Container scanning: This cost is incurred when customs authorities select a consignment for
image scanning for any number of reasons – for example, to detect radiation or to check if the
goods are as declared.

Other additional charges done by CFS:

 Port entry
 Transportation to and from CFS/port
 Usage of equipment’s like Reach Staker, Fork lifting, Trailers and Mechanical Cranes.
 Weighment, or weight verification of a packed container before it is loaded on a vessel.
 Reworking, which is the shifting of cargo from damaged containers to other empty containers.
 Shifting of cargo within CFS.
 Container sweeping and repairs.
 Provision of labour for cargo segregation, unpacking and repacking packages for customs
examination, restacking and other activities.
 Amendments in documents.

All these charges vary according to 20”, 40” and 45” containers and also according to the warehouse
chosen based on the cargo nature.
CONTAINERS