Cabotage law relaxation has not increased transshipment volumes

The relaxation of Cabotage laws to give preference to domestic shipping industry announced with lot of fan fare by the Shipping ministry as a game changer has not succeeded in increased transshipment volumes as predicted by the Ministry. The relaxation of the laws was announced by the central government nearly three years ago.

The Chennai and Ennore Ports Steamer Agents Association (CHENNSA) has therefore suggested further easing of procedures by the Customs authorities.

Simplified customs procedure existed in India’s neighboring countries which we could emulate Mr Y Leeladharan, Chairman of CHENNSA said

Addressing the Annual General meeting of CHENNSA Mr Leeladharan has come out with specific suggestions to be implemented by the Central Board of Indirect taxes and customs  (CBIC) to improve the situation.                                                                             

He said compliance of Export Transshipment Permit                                                                   process in both ports of Origin and gateway ports is taking enormous time. He suggested that ETP procedures should be dispensed with by the customs authorities. The laden containers delivered to the terminal only after complying with customs procedures for loading into a vessel at the Origin port for discharge at gateway port.

There is no need to file Export General Manifest EGM by the Shipping lines at the port of origin, he said.

The containers which are off-loaded at Gateway Ports to be auto-permitted to load on the mother vessel (without any delays – under hot connection) by accepting the details of such containers either by E-Mail or Hard copies, from the Shipping Lines. The information may be verified by the Officials by availing load list from respective terminals at a later date.

Shippers may be facilitated to avail Draw Back and IGST Refund on sailing of the mother vessel as the shipping lines files the Export general manifest.

Once the Laden containers been loaded on board vessel/Bill of Lading been issued, it is the responsibility of Shipping Line to deliver the containers at destination on time irrespective of Transshipment Ports are involved.

Mr.Leeladharan  was also of the view that focusing on micro level issues may lead to successful implementation of Macro level projects.