With Customs' nod, Kerala's Vizhinjam set to become gateway for exports & imports, Pg9

Key Highlights:

• The Vizhinjam International Transshipment Seaport has been officially notified as a Customs port by the Central Board of Indirect Taxes and Customs (CBIC).
• This designation allows the port to commence export and import (EXIM) cargo operations starting August 18.
• Since its operational launch in July 2024, Vizhinjam had exclusively functioned as an international transshipment hub.
• The port was developed under a Public-Private Partnership (PPP) model involving the Kerala government and Adani Ports and Special Economic Zone (APSEZ).
• Within 18 months of commercial operations, the port handled 2 million Twenty-foot Equivalent Units (TEUs) of container traffic.

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Detailed Insights:

• The new status as a Customs port is expected to transform Vizhinjam into a comprehensive export-import gateway, aiming to reduce logistics costs and enhance supply chain efficiency.
• Vizhinjam's strategic location near major international shipping routes and its natural deep draft enable it to accommodate Ultra Large Container Ships, potentially reducing India's reliance on foreign transshipment hubs like Colombo.
• Initially, EXIM operations will be restricted to full container loads (FCL) due to the absence of a designated Container Freight Station (CFS) at the port.
• For imports, FCL containers must be moved directly from the terminal to the importer's premises within 48 hours, while exports will only accept factory-stuffed or Customs-sealed FCL containers.
• This development aligns with the Sagarmala Project, a government initiative focused on port-led development, modernization of port infrastructure, and improved connectivity to optimize logistics.
• The port's expansion is projected to significantly boost Kerala's economy, create employment opportunities in the shipping and logistics sectors, and strengthen India's overall maritime trade competitiveness.

Key Concepts Involved:

• Customs Port: A port officially designated by the government for the entry and exit of goods, where customs duties are levied and all customs procedures are conducted.
• Transshipment Hub: A port facility where cargo is transferred from one vessel to another for onward journey, typically without undergoing customs clearance in that country.
• Public-Private Partnership (PPP): A collaborative model where government entities and private sector companies jointly undertake projects to deliver public assets or services, sharing risks and resources.
• Twenty-foot Equivalent Unit (TEU): A standard unit of measurement for cargo capacity in container shipping, representing the volume of a standard 20-foot-long intermodal container.
• Container Freight Station (CFS): A facility, usually located near a port, where less than container load (LCL) cargo is consolidated or deconsolidated for export or import, and customs examinations can occur.
• Central Board of Indirect Taxes and Customs (CBIC): The apex body under the Ministry of Finance, Government of India, responsible for policy formulation and administration of indirect taxes, including Customs duties.
• Sagarmala Project: A flagship program by the Government of India aimed at promoting port-led development, modernizing port infrastructure, enhancing port connectivity, and developing coastal communities.