The Ministry of Finance issued Circular No. 22/2024-Customs on November 8, 2024, providing clarifications on insurance and bond requirements for Customs Cargo Service Providers ( CCSPs ). This circular refines previous guidance to reduce operational costs and align with the Ease of Doing Business framework, focusing on insurance calculations and bond validity under the Handling of Cargo in Customs Areas Regulations ( HCCAR ), 2009.

Expert-Led PF & ESIC Course – Enroll Now & Get Certified Clarified Guidelines on Insurance and Bond Requirements: According to Circular No. 22/2024, the CBIC clarifies that insurance for goods stored in customs areas will now be based on an average dwell time of 5 days, a reduction from the previous 10 days stipulated in Circular No. 42/2016. This updated duration reflects improved efficiency in cargo handling and a reduced average storage time for goods. Under the clarified guidelines, CCSPs are now only required to maintain insurance coverage for goods stored over this shorter period.

The Commissioner of Customs retains the authority to specify the necessary insurance amount, taking into account instances where goods are already insured by importers or exporters. The notification also clarifies the validity of custodian bonds for CCSPs operating under the Authorized Economic Operator – Logistics Operators ( AEO-LO ) program. Notification No. 75/2024-Customs states that custodian bonds for AEO-LOs will remain valid as long as the AEO authorization is active, except in cases where the authorization is revoked or suspended. Expert-Led PF & ESIC Course – Enroll Now & Get Certified

In line with these clarifications, the CBIC has also addressed the value of custodian bonds, reducing the required amount to match the revised 5-day insurance period instead of the previous 10-day basis as set in Notification No. 115/2016. To ensure effective implementation of these clarified guidelines, the CBIC has advised jurisdictional Commissioners to issue public notices informing all stakeholders. CCSPs facing challenges or difficulties in adapting to these updates are encouraged to seek assistance from the Board. To Read the full text of the Circular CLICK HERE