1. What is a Direct Port Delivery [DPD] Facility?
The simple meaning of the DPD Facility is that your import containers can be delivered directly from the port terminal to your factory or warehouse. There is no need to route them through the Container Freight Station (CFS). This leads to significant cost savings, time savings, and reduces congestion at the ports since containers do not stay at the port, utilizing space, but instead head directly to their destination.
Now, you must remember that the DPD (Direct Port Delivery) Facility is only for importers, not exporters, and the rules and regulations of DPD vary from terminal to terminal.
There are different terminals at JNPT, Mundra, and Chennai ports, among others. While the basic concept of DPD remains the same, some procedures may differ from one terminal to another.
So, as you can see in the image, there is a general comparison for importers in India, which outlines three models or options available.
- The first is the normal traditional CFS (Container Freight Station) model. The second is the DPD-DPD (Direct Port Delivery) model, and the third is the DPD-CFS model.
- As shown, the DPD Facility also has two types: the DPD-DPD model and the DPD-CFS model.
- In the upcoming sections, we will compare these two models to understand them in an easy way.
Please watch the below Video in HINDI and understand all the concepts related to Direct Port Delivery [DPD] Facility. In this video we will also use examples to illustrate how much you can save with this facility for a 20ft and 40ft Container. So let's get started.
2. Who is eligible for Direct Port Delivery DPD Facility?
The first basic criterion is that the DPD (Direct Port Delivery) Facility is available only for FCL (Full Container Load) containers and not for LCL (Less than Container Load) cargoes. Apart from this, there are other prerequisites as well and you can find all these details in the following image –
Now, you might wonder about the minimum number of containers you need to import to be eligible for the DPD Facility. The answer is zero.
Yes, this means that even if you are a new importer, you can still apply for the DPD Facility, provided that you meet the criteria given in the image. However, if you are AEO Certified, you automatically become eligible for the DPD Facility. AEO Certification is important for every exporter and importer. For more information on AEO, please click the Link here - https://afleo.com/authorized-economic-operator-aeo/
In the DPD-DPD model, one main condition is that you must take delivery of the cargo within 48 hours of unloading at the terminal; otherwise, you will incur heavy charges from the terminal. To take delivery, you need three basic things: a Delivery Order (DO) from the shipping line, Out of Charge (OOC) certificate, and payment of stamp duty.
However, sometimes you may not be able to fulfill this condition due to various reasons and, instead of saving costs, you end up paying heavy terminal charges beyond 48 hours.
Therefore, there is another option called DPD-CFS, where the goods are moved to a CFS (Container Freight Station), and you are not liable for taking delivery within 48 hours.
3. Benefits of DPD Facility
Opting for the DPD facility enables you to save considerably. This ranges from Rs.5 to 7 thousand for a 20’ container and Rs.7 to 10 thousand for a 40’ container. The table below presents the details you need –
In the case of DPD-CFS, you also have the option to choose the CFS, which allows you to negotiate better and lower your costs. After registering for DPD, CFS operators often reduce their charges and offer subsidized rates compared to the normal CFS method.
Additionally, your general clearance time is also reduced, which is another significant advantage.
DPD containers also receive priority in scanning, examination, and assessment.
4. How to Apply for a DPD Facility?
The application procedure for the DPD Facility can vary at different ports.
At the JNCH port, the process involves two steps. First, you need to apply online for a Letter of Permission (LOP) on the JNCH website.
Based on your application, JNCH will issue a permission letter.
With this permission letter, you then need to visit the terminal for registration, where you will receive a unique DPD code for your company. For the unique DPD code, you need to open a PD (Payment Deposit) Account with the terminal, which should have sufficient funds to cover terminal handling charges.
Documents required for the online application of the Letter of Permission are:
- Request Letter
- PAN Card
- Authorization Letter from the Customs broker for carrying out clearance of containers
- AEO Certificate (if applicable)
- GST Certificate
- IEC Certificate
Once the unique DPD code is issued, you need to provide this code to your CHA (Customs House Agent) to carry out further activities at the time of shipment.
5. How can we assist you to get Direct Port Delivery [DPD] Facility?
Our experts help you navigate through the DPD Facility –
- We help you open a PD account to facilitate the DPD facility.
- We also help you apply for DPD on time to ensure no delays in receiving the cargo.
- We coordinate with you and the authorities in case of any issues and make sure to resolve them.
We ensure the documents required for DPD are in order and there are no last-minute hiccups
We have helped over 250 companies obtain their Direct Port Delivery (DPD) Facility and handle their renewals.
For DPD, you need to complete a one-time registration, which can provide you with lifetime benefits. We advise every importer to opt for DPD registration, and if you face any difficulties, please reach out to us.
6. Why Afleo Group?
Our sole aim is to provide highly reliable services at the most competitive costs to exporters, all under one roof.
Social Media Presence: We strive to enhance our relationships with clients by maintaining a presence on every social networking site. This allows us to keep them updated on the latest notifications, circulars, and amendments in foreign trade policies.
24/7 Telephonic Service: We are committed to offering prompt and efficient services to our clients who cannot wait until morning for their issues to be resolved. We are just a phone call away; you can call or email us, and we will try to respond as quickly as possible.
FAQ's
The papers that you must submit without fail for DPD are –
- Copy of the Delivery Order
- Copy of Terminal discharge report
- Original Bill of Lading (B/L)
- Original FTA certificates
Yes, considering the SME meets all the prerequisites and applies on time, it can opt for this facility.
Direct Port Delivery was first introduced by the Jawaharlal Nehru Customs House (JNCH) in Mumbai
Yes, DPD is available in all container ports in India. So, you can check with the nearest port and see if they have the facility or not. In case it is available, you can register and apply for this service.
You can track your cargo under Direct Port Delivery via the port authority’s cargo tracking system or the one provided by your logistics partner. They will provide you with live updates.
The Direct Port Delivery facility is usually applicable for every cargo, but some sensitive items require more security and careful handling, which increases the DPD charge.
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