FSAI seeks mandatory routing of factory-stuffed export containers through CFSs

The Federation of Ship Agents Association of India (FSAI) has urged the Government of India to mandate the routing of all factory-stuffed, RFID-sealed export containers through Container Freight Stations (CFSs) instead of allowing direct entry into ports, citing serious safety and compliance concerns.

In a representation dated June 20, 2025, addressed to the Secretaries of the Ministries of Ports, Shipping & Waterways and Commerce, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), and the Director General of Shipping, FSAI highlighted the growing global risks associated with cargo misdeclaration—particularly involving Dangerous Goods (DG).

The association pointed to an increasing number of international container vessel incidents where mis declared cargo has been identified as a key contributing factor, resulting in threats to crew safety, vessels, port infrastructure, and the environment. FSAI noted that reliance solely on shipper declarations, especially under direct port-entry systems, leaves significant gaps in verification.

While acknowledging that Pre-Gate systems improve operational efficiency at ports, FSAI argued that they are not designed for detailed physical inspections or risk assessment of high-risk cargoes. In contrast, CFSs are equipped with trained personnel and appropriate infrastructure to conduct thorough cargo verification, particularly for DG consignments.

According to FSAI, mandatory routing through CFSs would add a critical layer of scrutiny, improve compliance with the International Maritime Dangerous Goods (IMDG) Code, and align Indian export practices with global safety standards.

The association also drew attention to ports in sensitive and bordering regions, such as Syama Prasad Mookerjee Port (SMPK) and Deendayal Port Authority (DPA), stating that these locations face heightened vulnerabilities if direct-entry systems are misused. Routing export containers through CFSs, it said, would ensure stricter oversight and reduce security risks.

FSAI further emphasised that a uniform, pan-India policy would strengthen confidence among international shipping lines, enhance India’s reputation as a safe and reliable trading partner, and support the country’s broader objectives of trade integrity, port safety, and national security.

The association has requested the authorities to issue a nationwide directive making it mandatory for all factory-stuffed RFID-sealed export containers to be processed through designated CFSs prior to port entry.

FSAI expressed hope that the government would consider the proposal favourably in the interest of building a safer, more secure, and globally aligned port ecosystem across India.