lssuance of Suggestive guidelines for Empty container depots (ECD)

Published

With reference to the subject, the matter of inconvenience being faced by EXIM

trade was raised ty various associations at different fora, regarding Empty

Container Yards (ECDs) and related issues.

  1. Empty Container Depots (ECDs) are usually the facilities set up to consolidate

and store empty containers, repairs and are a critical component of the supply

chain. To make the operation of ECDs more efficient and transparent a need is

being felt to prepare guidelines in this regard.

     3 . Furthermore, as per the discussion held in Joint meetings held at JNPA and

subsequently with the Service improvement Group the suggested guidelines have

been prepared in consultation with relevant stakeholders for furtlier issuance to

trade and concerned Ministries.

  1. This issues with the approval of Competent authority.

Guidelines on establishment and efficient operation of Empty Container Depots (ECDs)

  1. Empty Container Depots (ECDs) are facilities set up to consolidate and store empty containers that are required for EXIM trade, on behalf of the shipping lines lor onward transportation via land or sea route. They also facilitate repair of damaged containers, usually provide lilt on and lilt off service for loading and unloading of containers and are a critical component of the supply chain. To make the operation of ECDs more efficient and transparent a need is lell 1o, (1) formalize their establishment through their registration under extant Act of the Stales, (2) for standardization of infrastructure and facilities available at the ECDs, (3) rationalize the tariff and service charges and to (4) digitalize the processes and transactions, which will result in uniformity and efficiency in operation.
  2. To attain the above desired objectives, following guidelines are suggested for their adoption by respective Government agencies and private stakeholders. 
  3. ECDs located in States /Union territories may be registered under the Shops and Establishment Act of the respective State Government or under any other extant law, and the ECDs may have proper registration no, with details of their business and operations at a spec,fic location.
  4. Transactions related to the services ente.ed by the ECDs between various parties should be through a GST invoice preferably through online mode.
  5. State Governments /UT administration, while registering the ECDs under their extant Act may ensure that the minimum standard infrastructure (Paved lloors, container truck waiting area, entry exit gates, access roads, driver facilitation /information centers etc.) required lor smooth operation of the ECDs are provided by the applicant /operator/proprietor at the facility.
  6. Respective State Governments in Ministries /relevant authorities in the interest of ensuring transparency may direct the ECDs to publish their services, cost heads, availability of infrastructure, both digital and physical on their websites.
  7. Port Authorities and the Custom authorities at respective container handling ports may encourage the Shipping lines to enter into contracts with ECDs which are registered and their services like storage, cleaning, repair, inspection of empty containers are specifically identified in the contract entered with applicable charges.
  8. Shipping lines, Consignee, CHAs, Freight Forwarders, CFS operators may as far as possible enter into contract only with a registered ECD established order due processes where adequate infrastructure and amenities are provided
  9. On matters related to service provided for repair and maintenance, the shipping lines may have standard operating processes (SOPs) on the type and scale of repairs needed at the ECDs.
  10. The Shipping lines may also have lo enter into contracts with ECDs for services offered by the ECDs including storage, earmarking cost heads with market related margins and ensure that fully paid Delivery Orders (DO) is issued to the Consignee/Freight Forwarder/CHAs such that the Consignee/Freight Forwarder/CHAs/Transporters are not charged any storage charges by the ECDs.
  11. Digitalization and information exchange being the key aspect for efficient logistic planning, Shipping line may facilitate the ECDs to establish appropriate digital information management systems which shall provide data on inventory, quality and other parameters. Shipping Lines can also give access to the Terminal operating system such that the number, aging, and other quality parameters /data are readily available for the trade
  12. . The operators of the ECD must ensure that the crew of the transport vehicle arriving and waiting at the ECDs should be provided with basic amenities like waiting room, drinking water, toilets etc. and that no undue delay is caused to the transporters coming to deliver or pick up the empty containers from the ECDs
  13. lt is also necessary for ECDs to install RFIDs in the premises enabling the gate in and out movement of transport vehicle and use that information in effectively managing the entry and exit of transport vehicle to the ECD and avoid inordinate delay. NICDC Logistic Data Services (NLDS) may also facilitate this at ECDs in the country.
  14. ln order to prevent ambiguity in the provisions of these guidelines, MOPSW and State Maritime Boards and Custom may keep an oversight on the establishment and operations of ECDs operating in the hlnterland of respective port and lCDs 

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