Direct Port Delivery Scheme for Importers

On the fifth of September 2019, the Central Board of Indirect Taxes and Customs (CBIC) discharged a circular concerning the eligibility criteria for availing Direct Port Delivery (DPD) theme by Importers.
Outline
The Government of India (GoI) introduced a right away Port Delivery system for importers to avail the selection of taking delivery directly from the port, rather than the CFS methodology.
It was enforced to minimize the delivery time, regularize the method of storing containers at ports and cut back supplying price of the containers. This helps to make more room for consignments if the manufacturer needs necessary or further cupboard space.
The DPD – system operates in 2 styles of modes, they are:
DPDDPD – The bourgeois takes delivery from the port with own transport
DPD/CFS – The bourgeois chooses the CFS method for delivery
This announcement seeks to increase its operation to all or any the ports in India by streamlining general tips, eligibility criteria and mode of operation. Since this method offers prolonged nominal prices for an operation.
CBIC recommends all the importers to register with.

Objectives of DPD
To decrease the time for allocating and re-allocating the shipping consignment
  • Play a significant role to own a nominal rate for the operations
  • Simplify the principles, laws and eligibility criteria for easy doing business
  • Encourage SMEs, MSMEs and shipping industries to actively participate in DPD system
  • Increase the infrastructure of the ports to store additional consignments
  • Support authorized consumer Program to extend voluntary compliance among the importers

Eligibility Criteria for Direct Port Delivery theme by Importers
Avoiding Clearance through instrumentality Freight Stations (CFS)

 One of the required initiatives by CBIC is taking necessary measures to avoid routing the clearance through CFS. This initiative has reduced time and established cost-efficient for all the importers. It had been 1st launched at JNPT and shortly is going to be enforced to different ports.
Since CBIC adopts the DPD method, the consignments would be transferred by the inner team instead of members from the company. This enables the containers to be properly sealed, labeled for identification and sorted and keep for allocation once the amount is a smaller amount than full.
Regulating tips
CBIC has regulated the rules to extend the mode of operation in any respect ports in India. The regulated tips can methodize the eligibility criteria, which can successively increase registered importers and modify the method of business.
Factors for availing DPD theme
Other than the advantages of your time management and cost-efficient method, importers opt to avail DPD for the subsequent reasons
  • Non-receipt of original documents from foreign countries
  • Consistent delay in delivering the order
  • Financial and credit constraints
  • Delay in settlement of debt of shipping lines
  • Choosing Pd account with the terminals