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FOR PRIVATE CIRCULATION ONLY
APRIL - JUNE 2016: VOLUME XVII
relevant topics of EXIM Trade and their sessions
were keenly followed.
Mrs. Shobha Chary­Ombudsman­ inaugurated
the Seminar and was the keynote speaker.
Mr. P. K. Dash­Principal Additional Director
General­NACEN­ had the participants spell bound
and thrilled with his lucid and thought provoking
presentations. Mr. S. Khader Rahaman ­
Commissioner of Customs­Preventive ­ A.P.
highlighted the ease of doing business in Eastern
points, stressing upon government’s keenness to
promote ease of doing business in right earnest all
over the country. Mr. Sukhjit Kumar­Additional
Commissioner of Service Tax­ highlighted the salient
features of Authorized Economic Operator.
Mr. G. Chandrasekhar set the ball rolling with his
powerful speech which gave an insight into the
Liquid Bulk scenario in next coming five to ten years.
President’s Message
Greetings and good wishes!
It was a very memorable anniversary event this year
on 1st of April 2016. The highlight being conferment
of LIFE TIME ACHIEVMENT AWARD on country’s
leading Industrialist Mr. Nadir B. Godrej. Besides, a
new category of awards was introduced i.e. for the
outstanding Executive from our member companies
for his/her excellence in EXIM TRADE.
After the introduction of Hon’ble Prime Minister­
Shri Narendra Modiji’s ‘MAKE IN INDIA’ vision by
the Government of India, the Central board of Excise
and Customs [CBEC] has aptly coined the path
breaking changes made in the warehousing sections
in the Customs Act 1962 as ‘STORE IN INDIA’ .
The anniversary event was very well attended by
doyens of country’s Trade and Industry viz. Padma
Bhushan Mr. Adi Godrej, Mr. M.P.Taparia, Mr. Rustom
Joshi, Mr. Rupesh Agarwal and others, as well as high
ranking officials from Revenue Department viz.
Mr. S.C. Varshney­Chief Commissioner of Central
Excise and Mr. Rajiv Tandon acting Chief Commissioner
of Customs­JNPT and representing CBEC and others.
This coinage of ‘STORE IN INDIA’ was rightly
introduced and christened by Mr. Sandeep
Kumar ­Commissioner of Custom in CBEC­who
has been in charge of overseeing and initiating
the revolutionary changes been effected in the
warehousing sections. Mr. Sandeep Kumar
along with his team, notable member being the
Under Secretary to the Government of India,
Ms. Temsunaro Jamir, have done a great job in
ensuring that Liquid Bulk concerns are taken
on board and duly addressed. Even, Chairman
of CBEC­Mr. Najib Shah ­ ensured that AILBIEA’s
concerns and suggestions were called for and
addressed.
Appreciation and accolades kept pouring in after
the event and there was unanimity in declaring this
year’s event as the BEST and very well organized,
by all those who attended.
The seminar conducted on the anniversary occasion,
in the first half, on the theme of WAKE UP INDIA for
MAKE IN INDIA was, too, a great success. Prolific
speakers from the Revenue Department spoke on
1
Insecurity and fears of clampdown on Corruption
and High­handedness [typical of the attitude
prevalent in Englishmen during British era of the
yore] by the Government, in due course of time, is
amply evident as many officials feel that before the
government seriously starts implementing its
spirited and honest measures of doing away with
antiquated procedures and laws and comes down
heavily on Corruption, it would be better to ‘Make
Hay while Sun Shines’. So the desperation is very
much evident.
However, despite these path breaking changes
being introduced for the betterment and facilitation
of trade, hiccups have been experienced at some
Custom Houses, as they are insisting on strictly
following the Public Notice with immediate effect,
despite the fact that there is a gestation period of 3
months given for the existing practice to continue
to enable
[A] the Board to come out with S.O.P., formats of
Letter of Undertaking, formats of Licenses and
many other issues to be spelt out, and,
CBEC has to monitor the implementation levels and
[B] Tank owners need sufficient time to work
seriousness of practicing ‘Ease of Doing Business’
out on appointing
with stringent measures
Warehouse Keeper
and actions, and, also
and understand
has to take into
CBEC has to monitor the
his role and
confidence vital inputs
responsibilities and
implementation levels and
accordingly put an
seriousness of practicing ‘Ease of from reputed Trade
Associations and Trade
appropriate and
Doing Business’ with stringent
qualified person,
Bodies for better and
measures and actions, and, also
putting in place a
fast implementation of
has to take into confidence vital
soft­ ware linked to
‘Ease of Doing Business’.
inputs from reputed Trade
tank operations
Associations and Trade Bodies for It is time for the
to monitor the
inbound and
better and fast implementation of Government and CBEC
to vigorously push
outward movement
‘Ease of Doing Business’.
forward its various
of liquid cargo,
working out on
measures and schemes
Insurance policy
and also starts initiating
with new clauses and other important action on errant officials who are playing a ‘SPOIL
modalities.
SPORT’ in introduction of ‘Ease of Doing Business’.
Ease of Doing Business introduced by Government
of India thru’ CBEC is undoubtedly a well intended
measure to mitigate ‘CORRUPTION’ and ‘DADAGIRI’
[Highhandedness] of governmental officials,
particularly the revenue officials. Unfortunately, the
honest intentions and strictness of implementing
‘Ease of Doing’ business in many Custom houses is
a mere ‘DREAM’ and far from being even
acknowledged and recognized. Blatant disregard to
this potent mantra of ‘Ease of Doing Business, and,
abusing it with impunity has been rampant, at many
Custom Houses. Trade Facilitation meetings are
turning out to be merely of academic interest and
do not have any ‘teeth’ or power as it was at the
beginning.
We, at AILBIEA, are confident that with vibrant and
robust team of officers at CBEC, with Mr. Najib Shah
leading them from the front, Government will be
successful eventually in implementing revolutionary
TRADE FACILITATION measures and in removing
antiquated procedures and laws.
HAPPY DAYS WILL BE BACK AGAIN!
Enjoy and have a great quarter ahead!
Jayyannt Lapsiaa
President
2
AILBIEA calls for modernization of ports and rationalization of
policies at the Association’s 15th Anniversary Event
Lifetime Achievement Award Conferred on Mr. Nadir B. Godrej,
Managing Director, Godrej Industries Ltd.
The All India Liquid Bulk Importers and Exporters order to make this industry a globally competitive
Association (AILBIEA) celebrated its 15th one.
Anniversary with glittering presence of officials like
Padma Bhushan Mr. Adi Godrej, a captivating orator
Mr. Prakash Mehta, Mr. Najib Shah, Mrs. Shobha
said, “India is a Country with immense potential for
Chary and Corporate dignitaries like Padma Bhushan
growth and AILBIEA is playing a significant role from
Mr. Adi Godrej, Mr. M.P. Taparia of Supreme
the front. Let us all work towards this
Industries, Mr. Rupesh Aggarwal of HUL, Mr. Sudhir
metamorphosis of our nation, economy and
Malhotra of Aegis Logistics Ltd., Mr. Himanshu
international trade. The association also called for
Sanghvi of Overseas Polymers Pvt. Ltd, and many
removal of operational constraints, stamp duty on
other dignitaries. The highlight of this event was
transfer of shipping documents, rationalization and
conferring lifetime achievement award on Mr. Nadir
systemization of customs / excise procedure and a
B. Godrej, MD­Godrej
complete overhaul of the
Industries Ltd., along
available infrastructure.
with presentation of
“AILBIEA under the leadership
AILBIEA Stellar Awards
of Jayyannt Lapsiaa has played an India is set to become a
2016 to Star Performers.
major importer of a wide
excellent role in bringing together
the trade, service providers and the variety of liquid bulk
On the receipt of award
commodities such as
Government. It has been my
Mr. Nadir Godrej said,
biofuels like ethanol and
pleasure to work hand in hand
“AILBIEA under the
with AILBIEA to facilitate India’s biodiesel in the near
leadership of Jayyannt
future. In such a scenario,
global trade over the last twenty
Lapsiaa has played an
it is imperative for our
years. I am honoured to receive
excellent role in
ports infrastructure to be
this award and I am sure that
bringing together the
upgraded with state of
AILBIEA will continue to
trade, service providers
the art technology.
facilitate India’s global trade”,
and the Government. It
Changes in the
Mr. Nadir Godrej quoted.
has been my pleasure to
infrastructure along with
work hand in hand with
change in mindset of
AILBIEA to facilitate
process owners are equally important, e.g., the
India’s global trade over the last twenty years. I am
customs department to change their drive into
honoured to receive this award and I am sure that
‘Facilitation’ gear. According to Mr. Jayyannt Lapsiaa,
AILBIEA will continue to facilitate India’s global
President, of AILBIEA, “Any country’s economic
trade.”
growth is intertwined with its infrastructure
AILBIEA, an association of traders, manufacturers, development. High transaction cost arising from
importers, exporters and service providers engaged inadequate and inefficient infrastructure, delays
in the business of liquid bulk, which has an whopping and hassles due to antiquated procedures and
volume of 180­200 Million Tons with a revenue of systems, is one of the major hurdles that our
over Rs. 6.5 Lakh Crore, has called for an urgent need economy is unable to attain its full growth potential
for various taxes and policies to be rationalized, with regardless of progress on other fronts. Port
removal of antiquated policies and systems, as also connectivity is still the soft underbelly of the port
for Mumbai and JNPT Ports to be modernized in sector.
3
Efficient infrastructure combined with quality and
expeditious clearance procedures will help reduce
costs and sharpen the competitive edge.”
Mr. Jayyannt Lapsiaa added, “In addition, the
association strongly believes in taking along other
likeminded associations and trade bodies who
pursue fostering of Export­Import TRADE, so as to
create a conducive and friendly environment for
ensuring better results.”
In addition to infrastructure development, the
Association has identified 3 issues which require
urgent remedial attention for the Liquid Bulk
industry particularly imports and exports to match
global scales and standards.
Mr. Nadir Godrej receiving life time achievement award from
Mr. Rajeev Tandon, representing CBEC. In the centre is Padma
Bhushan Adi Godrej and to the left is Dr. Mrs. Rati Godrej.
It is time that Government at the Centre and State
modifies its out­dated policies and procedures and
gives the right encouragement to trade.
Octroi levy, sales tax, stamp duty on import / export
of cargo, removal of antiquated procedures and
systems, and, facilitation to trade by revenue
departments, other Governmental departments
and Port are a few issues which have to be
addressed immediately, if “Make in India” and ease
of doing business have to succeed.
Mrs. Rati Godrej and Mr. Nadir Godrej receiving the Silver
Lamp from Mr. S.C. Varshney, Chief Commissioner of Central
Excise, Mr. M.P. Taparia, Chairman and Managing Director
of M/s. Supreme Petrochem Ltd. and Mr. Rajeev Tandon,
Principal Chief Commissioner of Customs, JNPT.
Ever since its inception, AILBIEA has striven to
address various technical, legal, infrastructural,
administrative and procedural issues of liquid bulk
trade. The stakeholders include importers,
exporters, clearing and forwarding agents, shipping
agents, installation owners, Surveyors, Barge
operators and intermediaries connected with liquid
bulk trade.
The primary objective of this association continues
to be that of playing a significant role of ‘Catalyst’
between various Port Authorities, Governmental
and Revenue Departments and provide more
solidity and clarity in ensuring smooth and fair
operations.
AILBIEA’s anniversary events are aimed at providing
an ideal platform to Trade and Revenue and Port
Departments to have healthy interactions and also
bring in closeness so that various issues could be
amicably understood and settled.
Mr. Nadir Godrej, Managing Director M/s. Godrej Industries
Ltd. handing over the felicitation citation of Central Board
of Excise & Customs [CBEC] to Mr. Rajeev Tandon, Principal
Chief Commissioner of Customs, JNPT, Nhava Sheva
4
Mr. Vikash Sharma, Associate Vice President of M/s. Godrej
Industries Ltd. receiving the Outstanding Executive Award
for the Year 2016 from Mr. S.C. Varshney, Chief Commissioner
of Central Excise.
Mr. Rupesh Agarwal, Director Procurement [South Asia] of
M/s. Hindustan Unilever Ltd. receiving the citation from Mr.
Nandlal Chawla, Hon. Treasurer of AILBIEA.
Mr. Devdas Chandran receiving the Outstanding Executive
Award for the year 2016 from Mr. M.P. Taparia, Chairman
and Managing Director M/s. Supreme Petrochem Ltd.
Mr. Sudhir Malhotra, Hon.Secretary of AILBIEA presenting
the Thanks giving citation to Mr. Nitin Nabar, President and
Executive Director of M/s. Godrej Industries ltd.
Mr.Aseem Kumar and Mr. Kailash Singh receiving the Award
for the Outstanding Contribution to EXIM TRADE conferred
to M/s. TEFLA’S from Mr. Rustom Joshi, Chairman VVF (India)
Ltd. and Mr. Rupesh Agarwal, Director Procurement [South
Asia] of M/s. Hindustan Unilever Ltd.
Mr. Rajesh Kishnani, Managing Committee Member of
AILBIEA presenting the Thanks giving citation to Mr. Sudhir
Malhotra, Group President & COO, M/s. Aegis Logistics Ltd.
5
Padma Bhushan Mr. Adi Godrej honoring Mr. Nadir Godrej
with a shawl on being conferred the Life Time Achievement
Award.
Dr. B.R.Gaikwad, Chairman, CHEMEXCIL & Mr. S.G.Bharadi,
Executive Director receiving the outstanding contribution
award in promoting EXIM Trade from Padma BushanAdi
Godrej
Mrs. Shobha Chary, Former Member Customs [CBEC] and now
OMBUDSMAN South Zone presenting the Outstanding Personality
of EXIM TRADE to Mr. Ashish Pednekar, President, BCHAA
Padma BhushanMr Adi Godrej complimenting President of
AILBIEA Mr. Jayyannt Lapsiaa.
India has trade deficit with 27 countries for last three years:
Nirmala Sitharaman
$118.35 billion. Other countries with which India
has a trade gap include Indonesia, Korea,
Germany, Canada, Taiwan, Russia and Ukraine.
India has trade deficit with 27 countries for last
three years: Nirmala Sitharaman
India has a trade deficit with as many as 27 major
countries, including China, Australia, Iraq and
Iran, during the last three years.
She said India’s exports have been adversely
affected by recessionary trends
across the globe, including in the
EU and the US. India’s agriculture
exports during April­February 2016
worked out at $18.78 billion as
against $18.69 billion in 2014­15,
the Minister said in a separate
reply.
With these countries, India has
trade deficit continuously during
the last three years, Commerce
and Industry Minister Nirmala
Sitharaman said in the Lok Sabha.
She said India generally runs a
deficit with those countries from which high­
demand commodities are sourced. These include
items like crude oil, gold, diamond and fertiliser.
In 2015­16, India’s trade deficit fell 14 per cent to
“Keeping in view the high domestic consumption
base and limited arable land, India’s share in
world agricultural exports cannot be termed as
low,” she asserted.
6
Our common cause is truly great
For it is to facilitate
Our India’s lifeblood, global trade.
And AILBIEA has certainly played
A major role in the steady flow
Of liquid products to and fro.
Often trade was a real pain
But from dialogue there’s much to gain.
Poem by
Nadir Godrej
Before I start to complain
On CBEC I will rain
Some gentle showers of praise.
For numerous forms we had a craze.
These have now been simplified
All Fools’ Day 2016
And I’m delighted this has been tried.
In the past it was all stop and go
But the concept of an AEO
Though delighted with the invitation
Ensures a truly steady flow.
I came here with some trepidation.
In warehousing as you know
An award indeed was cause for cheer
Far fewer permissions are now needed
But the date instilled a nagging fear.
And geographic constraints are superseded.
Was this just Jayant’s ruse to coax
CBEC has gone very far
Us all to come. for an elaborate hoax?
Under the guidance of Najib Shah.
Usually on All Fools’ Day,
I can’t say the entire story
Quite prudently, I stay away
Can be described as hunky dory.
From any potential joke or ruse
Although freight rates are coming down
But as I had not much to lose
The shipping agents are going to town.
I did decide to come this way,
These days, alas, one always sees
Although today is All Fools’ Day.
A slew of many fanciful fees.’
I salute you with a hearty greeting
To prevent more fees from being slapped
And remind you all of our first meeting.
On us, the quantum should be capped.
I had been set quite off track
Our neighbours don’t fall in this trap
By a very badly spasmed back.
As they already have a cap.
My health had been so compromised,
I’m sure you agree that we ought
Perforce I was hospitalised.
To develop the land around our port.
Such are the tricks played by life
I sincerely hope that we will see
But relief came from my Doctor wife.
A well thought out policy.
For Rati got me back on track
The Ministers that are here today
Accompanied me here and back.
Should show us all a clear way.
And I have been most delighted
It is always such a treat
That every year we’ve been invited
To attend AILBIEA’s annual meet,
To this great annual event
Where all of us can meet and greet
Which all along has been meant
And ensure the extraordinary feat
For a frank exchange of thought.
Of permitting India to steadily grow
A convivial meeting place is sought,
With an unimpeded constant flow
Where players and umpires meet.
Of the vital cargo that we need
I salute Jayant for this feat.
In order for us to succeed.
8
FINS conference on multimodal logistics on June 17 in
Mumbai
The Forum for Integrated National Security expected turnaround. There is going to be a need
(FINS) is organising a one­day conference on for not just operational efficiency improvements,
“MULTIMODAL LOGISTICS: GROWTH LEVER FOR but also technology intervention to take care of this
INDIAN ECONOMY”, on June 17, 2016 at Grand Hyatt, growth story. Ease of doing business, transparency
Santacruz East, Mumbai. The conference will focus and security of cargo and data will be the key drivers,
on various dimensions of economic transformation the communiqué pointed out.
through ports, inland
It is given this scenario
shipping and multimodal
that FINS is organising
The Forum for Integrated
logistics.
this conference, to
National Security (FINS) is
Mr Nitin Gadkari, Union
certain
organising a one-day conference on address Minister for Road Transport,
“MULTIMODAL LOGISTICS: important aspects of this
Highways and Shipping,
transition. Many industry
GROWTH LEVER FOR
will be the Chief Guest of
leaders and government
INDIAN ECONOMY”, on
the event, where he will
officials will share their
June 17, 2016 at Grand Hyatt,
share his vision for
views on the subject so
Santacruz
East,
Mumbai.
economic transformation
as to prepare for the
through inland shipping,
emergence of logistics as
multimodal logistics and allied industries, the an engine for economic growth.
communiqué highlighted.
The conference will deliberate on the following
The august forum will also see various industry
leaders, government officials and thinkers sharing
their thoughts on the subject.
topics:
With the government focusing on ‘Make in India’
and improved transportation infrastructure (rail,
road and waterways), there is a likelihood of the
emergence of new economic hubs/corridors.
Also, with the much­awaited GST regime, logistics
in India is expected to undergo a sea change. More
hub and spoke clusters with world class service
levels will likely come up in India in future.
•
Ports & Waterways: 2 ports, Coastal, IWAI
•
Hinterland Connectivity: Rail, Road, Domestic
Containerisation
•
Logistics Intermediaries and their role:
Warehousing, CFS, user perspective
•
Enabling Technology: RFID, CCS
With best compliments from
The focus on new and improved port infrastructure,
coupled with coastal shipping and inland
waterways, can bring down the total logistics cost
from about 14 per cent to below double­digits and
make Indian exports more competitive in global
markets.
GODREJ INDUSTRIES LIMITED
This will likewise result in a more environment­
friendly transportation network.
Pirojshahnagar, Eastern Express Highway
Vikhroli East, Mumbai 400 079, India
Tel: + 91 22 2518 8010 / 8020 / 8030
Fax: + 91 22 2518 8068 / 8096 / 8081
www.godrejinds.com
Every stakeholder in the supply chain for cargo
movement and handling will, therefore, need to
modify/improve their business model to suit this
9
Ministry of Shipping repeals six rules under Merchant
Shipping Act, 1958
today, the Ministry has rescinded a total of thirteen
rules under the Merchant Shipping Act, 1958.
The Ministry of Shipping, in accordance with the
Government’s commitment to do away with
obsolete laws which hinder efficient governance,
has notified the final rescinding of the following six
rules under the Merchant Shipping Act, 1958:
i)
Out of a large number of rules and regulations, many
had become redundant in course of time and were
leading to avoidable delay, making it necessary to
weed them out to achieve process simplification
and improve governance. The context, purpose and
objectives of all the Rules/Regulations,
administered by this Ministry, were studied and
thirteen obsolete and unnecessary Rules under the
Merchant Shipping Act, 1958 were identified for
rescinding in keeping with the government’s ethos
of Minimum Government, Maximum Governance.
Merchant Shipping (Safety Convention
Certificates) Rules, 1975,
ii) Merchant Shipping (Radio Direction Finders)
Rules 1968,
iii) Merchant Shipping (Distress Messages and
Navigational Warnings) Rules, 1964
iv) Merchant Shipping (Muster) Rules, 1968
v) Merchant Shipping (Pilot Ladder) Rules, 1967
This step will simplify the legislative framework
governing merchant shipping sector in India and
streamline the processes and procedures in the
shipping sector. Besides, the rescinding of these
Rules will further promote ‘ease­of­doing­business’
in India and has been widely welcomed by the
merchant shipping community and businesses.
vi) Life­boatmen’s (Qualifications and Certificates)
Rules 1963
The present notification is in furtherance of the
Ministry’s earlier notification published in Gazette
on 17.11.2015 inviting comments and objections
from public. Already, seven rules stood rescinded
through notification dated 17.11.2015. Thus, as of
RBI to amend forex management rules contributing
towards Ease of Doing Business
In a move aimed at contributing to the ease of doing
business, the Reserve Bank of India on Monday said
it proposes to amend the Foreign Exchange
Management Regulations to mandate that foreign
investment by non­residents on repatriation basis
can be made in equity, debt and any other approved
securities only in dematerialised form.
The RBI, in a statement, said: “This will facilitate
easy and comprehensive availability of
information for the Indian company receiving
foreign investment as well as for effective
monitoring by various regulators and is expected
to contribute to the ease of doing business by
making regulatory compliance easier for the
companies receiving foreign investment and also
Consequently, the depositories, namely, the
facilitating regulatory monitoring.”
National Securities Depository (NSDL) and the
Central Depository Services (India) (CDSL) would In this regard, the central bank has invited
act as the single­point source of data and members of the public, including stakeholders and
information on the extent and nature of foreign experts, in the area to offer their views and
investments in securities issued by Indian comments in respect of the proposed changes by
companies, investment vehicles, etc.
May 25.
10
Major Ports registers 19 % growth in Operating Surplus
during FY 2016
The Operating Surplus of the Major Ports which was
around Rs. 3593 crore in 2014­15 has increased to
around Rs. 4268 crore in 2015­16, witnessing an
overall growth of almost 18.78 percent says a recent
release of Shipping Ministry. Consequently an
improvement in the efficiency of the Major Ports
has lowered the logistic cost for Export­Import
trade. The improvement is due to overall reduction
in the Average Turn Around Time in the Major Ports.
during FY 2016 at Rs. 66 crore as against Rs. 20 crore
witnessed during previous corresponding year. This
was followed by Mormugao, Chennai and V. O.
Chidambarnar Port recording an operating surplus
growth of 123%, 60% and 35% respectively during
FY 2016 over previous corresponding year.
Port wise details are as under:
Operating Surplus of Major Ports during FY 2016
(Rs. In Crores)
Major Ports
FY 2015 FY 2016 % Increase
Cochin
20
66
230.0%
Mormugoa
40
89
122.5%
Chennai
134 214
59.7%
VO Chidambaranar 238 321
34.9%
Kandla
264 353
33.7%
Kolkata
385 487
26.5%
Visakhapatnam 316 365
15.5%
JNPT
837 938
12.1%
Mumbai Port
325 360
10.8%
Kamarajar
472 518
9.7%
Pradip
418 447
6.9%
New Mangalore 145 110
­24.1%
In the Ports like Paradip, V. O. Chidambaranar and
Visakhapatnam, there has been reduction in the
Average Turnaround Time by over 40%.
On the other hand the Operating surplus growth in
Cochin Port was highest with 230 percent increase
Nepal Trade resumes at Haldia Port
This creates a new gateway for smooth, seamless
and integrated container movement for the
Nepal trade through Haldia, which in
turn unravels
a plethora
of business
opportunities.
Another accomplishment was added to Haldia
International Container Terminal’s ever growing
success story as it handled a Nepal consignment
of 43X20
feet Import
l a d e n
containers
w h i c h
arrived in
Port of
Haldia after
a span of nearly 2 decades. The consignment
arrived on board MV TuangGyi Star and was moved
by CONCOR rake. 3 Rakes carrying empty
containers also arrived Haldia from Nepal.
This chapter
bears a
testimony to
the increasing faith bestowed on Haldia by the
Nepal trade which in turn is a result of the
incessant efforts of team to deliver quality
service experience through operational
excellence.
11
Govt. decides to do away with Landing Certificates required
under MEIS as a part of Ease of Doing Business
Government with the approval of the Minister of
State (I/C), Ministry of Commerce and Industry Smt
Nirmala Sitharaman has decided to extend the
market coverage to all countries in respect of
Merchandise Export from India Scheme (MEIS) 2787
lines. Henceforth, Landing Certificates shall not be
required under MEISw.e.f.
04.05.2016. A Public Notice
No.06 has been notified in
this regard. Accordingly,
revenue foregone under
the scheme has been
revised from Rs.21,000 crore
per annum to Rs.22,000
crore per annum. This step
has been taken as part of
ease of doing business and
reduction of Transaction Cost of the exporters.
Under MEIS Markets/countries of the globe are
grouped into 3 categories for grant of incentives
under MEIS:­
Category A: Traditional Markets (34)
Include European Union (20), European Free Trade
Association (EFTA)
(Switzerland, Norway,
Iceland and Lichtenstein­
4), USA and Canada(2).
Category B: Emerging &
Focus Markets (140)
Include Africa (55), Latin
America and Mexico (45),
CIS countries (12), Turkey
and West Asian countries
(13), ASEAN countries (10), Japan, South Korea,
China, Hongkong and Taiwan(5).
The Merchandise Export from India Scheme (MEIS)
was introduced in the Foreign Trade Policy (FTP) Category C: Other Markets (64)
2015­20 on April 1, 2015. MEIS aims to incentivize
export of merchandise which are produced/ Products which were not eligible to get incentives
manufactured in India. At the time of introduction in all markets required submission of Landing
of MEIS on April 1, 2015, the scheme covered 4914 Certificate as a proof of landing in the designated
tariff lines at 8 digit level. Countries of the globe market. Out of total 5012 tariff lines under MEIS,
were grouped into 3 market categories (Country incentives to 2787 lines was available only to limited
Group A, Country Group B &
countries. Therefore, it
Country Group C) for grant
The annual resource allocation required submission of
of incentives under MEIS. under MEIS was enhanced from Landing Certificates for
Slight changes in lines
Rs.18,000 crore to Rs. 21,000 crore claims. Government had
covered etc. were made on
received many
in October 2015.
14.07.2015 and 15.7.2015.
representations pointing
Thereafter on 29.10.2015,
out difficulties in obtaining
110 new Tariff Lines at 8 digit level were added landing certificate from Shipping Lines/Agents etc.
under the scheme.
Exporters also had to bear associated charges/cost
on account of this procedure.
The rates/Country coverage for 2228 lines at 8 digit
level were enhanced. As on date, 5012 Tariff Lines
at 8 digit level are eligible for rewards under MEIS.
The annual resource allocation under MEIS was
enhanced from Rs.18,000 crore to Rs. 21,000 crore in
October 2015.
Keeping in view these facts, the Government with
the approval of the Commerce and Industry Minister
has decided to extend the market coverage to all
countries in respect of these 2787 lines.
Henceforth, landing certificates shall not be
required under MEISw.e.f. 04.05.2016.
The MEIS Scheme covers 5012 tariff lines.
12
Indian logistics market to touch US$ 307 billion by 2020
Logistics market in India is expected to be worth
US$ 307 billion by 2020, Mr. Ram Kripal Yadav, Union
Minister said at an ASSOCHAM event held in New
Delhi recently.
standards. Through this program, government plans
to invest INR 2,870 billion in generating total port
capacity of 3,200 MMT and cater to expected cargo
traffic of 2,500 MMT by the end of 2020.
India spends around 14.4% of its GDP on logistics
and transportation as compared to less than 8%
spent by the other developing countries, said Mr.
Ram Kripal Yadav while inaugurating a conference
on ‘National Summit: Logistics India 2016,’ organised
by The Associated Chambers of Commerce and
Industry of India (ASSOCHAM).
The Cargo and Logistics Industry in India can expect
to grow at CAGR of 16% in the coming years with
inflow of new investments that in turn will create
new opportunities for the logistics sector. The ‘Make
in India’ campaign will see investments connect
India to global production networks and would
generate significant new business for logistics in
India. This will make India an attractive location to
do business as
compared to
others in the
region.
In his address, Mr. Yadav said, the building of
dedicated
rail freight
corridors
will promote
efficient
haulage of
containerized
cargo by rail.
One key
advantage
of the
dedicated
freight corridor is that freight trains could be run on
time tables similar to passenger trains, and the
frequency can be theoretically increased to one
train in 10 minutes. This will reduce time for goods
transportation between Mumbai and Delhi to 18
hours from 60 hours now.
Going forward, the
evolution of
India’s Cargo and
Logistics Industry
can be realized
through uniform
progress across
all segments.
Appropriate policy changes and opening up capacity
and increasing speed with which goods are
transported in all modes of transportation,
especially rail and water transport, are imperative
for the growth of the industry. Transportation of bulk
commodities from road to appropriate modes such
as rail and waterways can free up capacity for fast
moving goods. Further, setting benchmarks and
standards for the industry will drive uniformity of
warehouses, storage and transport equipment.
Access to cheap capital should be made available to
Logistics Service Providers for investments in
infrastructure, enabling them to extend longer
credit periods to their clients and supplementing
their working capital. The Government should create
a uniform tax structure and do away with multiple
check points and documentation requirements,
which would lead to speedier delivery of cargo.
Waterways are 50% cheaper than road and nearly
30% cheaper than rail. The coastal leg, apart from
being more fuel efficient, can also carry larger parcel
sizes and provides a great opportunity for
consolidation of loads, said Mr. Yadav. The
Government of India’s ambition to replace the
National Maritime Development Program (NMDP)
with the more comprehensive Maritime Agenda
2010–2020 is in line with its objective to increase
port capacity. It intends to encourage private
investment in both major and non­major ports and
bring port performance at par with international
13
Govt. highlights steps to encourage domestic Shipbuilding
Industry
The Government of India has taken the following
steps to encourage Shipbuilding Industry:
customs control in terms of Section 65 of the
Customs Act, 1962.
(i) To promote shipbuilding and repair in Indian
shipyards, the Union Cabinet has on December
9, 2015 approved Shipbuilding Financial
Assistance policy for Indian shipyards for
contracts signed during a ten year period, viz.
2016­2026. The Union Cabinet has also approved
that all Government departments or agencies
including CPSUs have to provide Right of First
Refusal to Indian shipyards while procuring or
repairing vessels meant for Governmental or
own use till 2025 after which only Indian
shipyards would build and repair vessels.
(iv) To promote ease of doing business in the sector,
in the Union Budget 2016­2017, Government has
issued simplified procedure for tax compliance
for the shipyards while procuring duty free
goods for shipbuilding and ship repair.
The Union Cabinet has approved
that all Government departments
or agencies including CPSUs have
to provide Right of First Refusal to
Indian shipyards...
(ii) The Institutional Mechanism on Infrastructure
working under the Department of Economic
Affairs, Government of India has, on
December 21, 2015, recommended inclusion of
stand­alone shipyards undertaking
shipbuilding and ship­repair in the Harmonized
List of Infrastructure sectors
(v) To bring down the cost of construction of barges,
river sea vessels (RSV Types 1 & 2) and port and
harbour crafts and to meet demand for steel by
ship and barge builders, the Government has,
on February 9, 2015, decided that re­rolled steel
obtained from re­cycling yards/ship breaking
(iii) To provide a level playing field for indigenously
built ships vis­à­vis imported ships, the
Government has on November 24, 2015
exempted Customs and Central Excise duty on
inputs used in manufacture of ships and relaxed
the limitation to operate shipyards under
units would be certified for use in construction
of these vessels.
This information was given by Minister of State
for Shipping, Shri Pon. Radhakrishnan in the
Rajya Sabha.
14
Smt. Nirmala Sitharaman, Minister of State for Commerce and
Industry launches Export-Import Analytics Dashboard
information to investigate facts at more detailed
level; e.g. starting from the first insight of overall
exports in a fiscal year, user can proceed to query
what are the top commodities being exported to a
particular market, say, USA and then choose a
specific commodity, look at its trend, from which
ports it is being exported and so on.
Export­Import Analytics Dashboard are simple to use
Analytics Dashboards that would facilitate the
general public to have an accurate perspective on
the facts around the trade performance of India.
This endeavor of the Ministry is also in tune with
the principle of “Government at the doorstep”.
Given the high priority accorded to Transparency in
Governance by the new Government, the dashboard
on export – import will enable
small
and
upcoming
businessmen to foray into
global trade based on
reliable information directly
accessible
through
Government sources.
The Export­Import Analytics dashboard launched
enables analysis of trade
information of India relating
to: Export Overview:
provides analysis of data by
time
period,
export
destinations and ports of
export. Import Overview:
provides analysis of data by
Export­Import Analytics
time period, countries of
represents data graphically
Import and ports of import.
exposing patterns, trends and Smt. Nirmala Sitharaman, Minister of
Balance of Trade: The Balance
Commerce & Industry
correlations that might go
of Trade (BOT) can be
undetected in text­based data. The dashboard gives
analysed over time periods for different Regions,
a graphical collection of exports and imports from
Countries and Ports.
India; e.g., the Export turnover of the Country – how
it performs over time? What are the export The data for analysis is presented as a month’s
destinations? What items are being exported? aggregate at its lowest granularity, namely, at the
Which are the ports – inland, sea or airports from level of Country, commodity, port etc. Presently
Monthly data from April 2014 till January 2016 has
which the exports are taking place?
been provided. Progressively additional dashboards
The user friendly Dashboard developed by the
and data for older period will be added.
Ministry enables the user to interactively query the
15
IMF retains India growth forecast at 7.5% for 2016-17
cent in 2015, the Fund said adding that “India’s
growth is projected to strengthen to 7.5 per cent in
2016 and 2017.”
The International Monetary Fund has retained its
growth forecast for India this year at 7.5 per cent,
largely driven by private consumption even as weak
exports and sluggish credit growth weigh on the
economy. India’s growth momentum is expected to
be underpinned by private consumption, which has
benefited from lower energy prices and higher real
incomes, IMF said and called
on the policymakers to
speed up the structural
reform implementation.
An incipient recovery of private investment is
expected to help broaden the recovery. Moreover,
higher levels of public infrastructure investment
and Government measures to reignite investment
projects should help crowd­
in private investment, it said.
The report noted that
policymakers should
capitalise on the favourable
economic momentum to
speed up the structural
reform implementation. It
further noted that the long­
awaited goods and services
tax should be implemented, as it would create a
single national market, enhance economic
efficiency, and boost GDP growth. According to IMF,
growth in Asia and the Pacific is expected to remain
strong at 5.3 per cent this year and next. However,
China and Japan, the two largest economies in Asia,
continue to face challenges.
In its latest Regional
Economic Outlook for Asia
and the Pacific, IMF said
weak exports and sluggish
credit growth (stemming
from weaknesses in
corporate sector and public sector banks’ balance
sheets) will weigh on the economy. “India has
benefited from lower oil prices and remains the
fastest­growing large economy in the world, with
GDP expected to increase by 7.5 per cent this year
and next,” IMF said. India remains on a strong
recovery path, with GDP growth reaching 7.3 per
India ratifies Trade Facilitation Agreement of WTO to ease
Customs norms and boost Exports
Government has ratified the Trade Facilitation
Agreement (TFA) of the WTO and the pact aims to
expedite the movement, release and clearance
of goods, including goods in transit.
India is the 76th WTO member to accept the TFA.
TFA sets out measures for effective cooperation
between customs and other appropriate
authorities on trade facilitation and customs
compliance issues.
“Trade Facilitation
Agreement was handed
over to WTO Director­
General by India on April 22,
2016,” Minister of State for
Commerce and Industry Nirmala Sitharaman said
in Rajya Sabha. The Trade Facilitation Agreement
will enter into force once two­thirds of WTO
members have completed their domestic
rectification process, Sitharaman added.
“These objectives are in
consonance with India’s
‘Ease of Doing Business’
initiative,” the Minister
said. She said the ratification of the WTO’s TFA
will help in improving border procedures, and also
help further India to boost economic growth by
reducing trade costs, improve trade flows and reap
benefits from international trade.
16
Govt. relaxes norms for faster movement of Coastal cargo
Revenue Department has relaxed the norms for
cargo movement from one port to another, a move
that will spur developmental activities in coastal
cities. The Central Board of Excise and Customs
(CBEC) relaxed norms after receiving
representations that the present procedure
governing movement of coastal goods was
restrictive. “The container carrying coastal goods
shall be clearly
marked with
the words
‘For Coastal
Carriage Only’
on all sides.
There shall be
no examination
of the coastal
goods, the
container shall
be sealed with
tamper­proof
one­time
bottle seal and then the same can be loaded on to
the vessel,” CBEC said in a circular. It further said
non­containerized cargo will also be allowed to be
loaded on the vessel provided it is clearly marked
on the packing ‘For Coastal Carriage Only’ to make
it easily identifiable.
However, the preventive officers with the prior
approval of senior officers “may from time to time”
carry out random checks so as to ensure that no
export or imported goods are “inadvertently or by
intention” loaded onto such coastal vessels. After
looking into various representations to CBEC, it was
felt that there is a need to relax the procedure so as
to facilitate faster movement of the Coastal goods.
It was also
opined that
relaxations in
norms will bring
down the
transaction cost
and also give
fillip to the
development
activities in the
coast cities.
Ministry of
Shipping has also
relaxed cabotage restrictions to encourage
movement of coastal goods. Vessels like RoRO (Roll
on Roll Off), PCC (Pure Care Carriers), Pure Car and
Truck Carriers (PCTC), LNG vessels, Over­
Dimensional Cargo or Project Cargo are covered
under the new relaxed policy guidelines for five
years up to September 2020.
BPCL gets approval to build new LPG terminal at Haldia Dock
The proposed project is estimated to cost around
$104m and is scheduled for completion within one
year from the date of award of
the environment clearance.
Kolkata ­ India’s state oil firm Bharat Petroleum
has been given the green light to build a LPG
import and storage terminal at
Haldia Dock Complex in West
Bengal, India.
The project also includes
establishing a bottling plant
comprising of two LPG­mounded
bullet storage facility of 350
tonnes capacity each, besides
loading facilities, coupled
with machineries and loading gantries for bulk
tanker.
The regulatory approval will
allow Bharat Petroleum to
construct the terminal capable
of handling one million tonnes
per annum (mtpa) of
refrigerated propane and butane, as well as
facilities for bottling and distribution of LPG.
17
Bulk cargo accelerating growth at Major Ports
World trade has been
low. India’s exports and
imports have dipped.
Yet, the goods moved
by the country’s Major
Ports have surged in
2015­16.
Consider this: The
monthly cargo traffic at
Major Ports has risen steadily from a low of 46.85
million tonnes in September 2015 to 52.22 million
tonnes in January 2016, nudging up to the record
53.72 million tonnes moved in March 2015. The cargo
handled between April 2015 and February 2016 was
27 million tonnes more than in the same period of
FY 15. Seven of the 12 Major Ports reported traffic
growth in January 2016.
traffic handled by both the major and non­major
ports for 2014­15 was 1,052 million tonnes. Lack of
operational efficiencies and competitive pressures
have eroded major ports’ market share from 75 per
cent in 2001­02 to 55 per cent in 2014­15.
“Unlike non­major ports, which have the freedom
to charge tariff based on market forces, major ports’
tariff are regulated by the Tariff Authority of Major
Ports (TAMP). The role of TAMP and issues related
to tariff regulations have been questioned by
industry, with many believing that present system
penalises performance and efficiency,” says
Sharma, explaining the challenges.
Surprisingly, the growth has been in an environment
of slowing external trade. Global merchandise trade
fell from $1,521 billion in November 2014 to $1,124
billion in February 2016. India’s exports and imports
too shrank in this period.
Manish Sharma, Partner ­ Infrastructure, PwC, thinks
the jump in cargo traffic in FY16 over the previous
fiscal was due to a growth in bulk traffic at Kolkata,
Haldia, Paradip, Mormugao and Kandla. “The key
reasons for growth are an increase in coal shipments
(coastal and imports), restart of iron ore exports
(from mid­year) and increase in edible oil imports.”
But, he says, “Five months is not a significant period
to suggest a trend as seasonal changes and global
externalities can have a big impact on such short
time periods.”
In this backdrop, the Sagarmala Port project recently
unveiled by Prime Minister Narendra Modi recently
appears well­timed. The Rs. 8­lakh crore
investments envisaged under the Sagarmala project
over the next couple of years is expected to increase
port capacity and operational efficiencies of the
Major Ports. An emphasis on the port sector and
national waterways can bring down transportation
costs significantly. The cost of transporting goods
through waterways is a third of that by road and
half by rail.
While there has been a definite improvement in
the cargo handled, Major Ports continue to operate
well below their capacity. The traffic handled
between April 2015 and January 2016 was 522 million
tonnes, while the ports have a capacity to handle
893 million tonnes.
Besides, over time, Major Ports have lost significant
market share to the non­major ports. The total
18
A Balasubramanian, Port management expert and “The lack of timely berth availability for coastal
lawyer, J Sagar Associates, says: “Sagarmala has an vessels at Major Ports is a key issue impacting
Coastal Shipping
underlying strategy to
provide missing
Sagarmala has an underlying strategy to economics. W ith
connectivity to the
provide missing connectivity to the major coastal traffic
to
major ports among
ports among others and aims to minimise envisaged increase manifold,
others and aims
cost and time for cargo evacuation.
there will be critical
to minimise cost
But
simultaneous
improvement
in
both
need to have
and time for
Major
and
non-major
ports
is
required
to
presence of low­cost
cargo evacuation.”
address
the
needs
of
the
country
non­major ports
But simultaneous
along the coastline
improvement in both
Major and non­major ports is required to address outside Customs notified areas to cater to coastal
traffic,” says Sharma.
the needs of the country, say experts.
Customs to revamp Accredited Client Programme (ACP) for
Importers
should have imported goods valued at Rs 10 crore
in the previous financial year or paid duty more
than Rs 1 crore. They should have filed at least 25
bills of entry in the previous financial year. Besides,
if one has a pending tax show­cause notice in the
past three years, he will be ineligible to avail of
the scheme. Close to 13 per cent of import cargo is
cleared under the programme each year in value
terms.
The Government will liberalise a programme to
allow select importers to make deferred
payments and extend to them easier Customs
clearance. The move is expected to lower the costs
and time for importers.
The Customs department is set to revamp the
decade­and­a­half­old Accredited Client
Programme (ACP) for importers, liberalising the
strict pre­requisites to join the scheme, such as
no tax show­cause notice in the past three years,
a requirement most importers would fail to meet.
Members of the scheme would enjoy benefits
such as no routine checks for consignments.
Importers would face only risk­based checks of
consignments. “We will allow payments after 10
days, although selectively,” said an official.
“The revamp is in line with the tax department
moving to post­assessment audit, where you clear
goods, pay tax, and get audited later,” said
BipinSapra, Tax Partner, EY. “Allowing clearance as
soon as possible and doing assessment later will
be a big initiative as port capacity across the
Country is limited,” he added.
The other trade­friendly measures include the
Government launching a 24x7 single­window
interface for facilitating trade at Customs (Ports)
from April 1. With this, importers and exporters
will have to fill just one form at Customs ports for
clearance from all agencies including the Food
Safety and Standards Authority of India, Drug
Controller General of India, Plant Quarantine and
Wildlife Crime Control Bureau.
The deferred payment scheme was announced
in the Budget this year.
Despite India being an import­dependent nation,
the ACP has only 300 members. “Introduction of
the deferred Customs duty scheme possibly
under the programme is keenly awaited and will
definitely be a move towards ease of doing
business in India,” said Saloni Roy, Senior Director,
Deloitte. Currently, to be a member of ACP, one
19
India proposes BRICS portal to address trade issues for
Exporters-Importers
schemes, and trade policy. “We want traders,
especially the small and medium ones, to get the
regulatory framework in one place. The BRICS
specific database is good for standardisation and
exchange of good practices,” said a Commerce
Department official, who did not wish to be
identified. BRICS brings together economies
comprising 43 per cent of the world population,
accounting for 37 per cent of the world GDP and 17
per cent share in the
global trade.
The next time any of the BRICS countries tweaks its
import or export licences, imposes anti­dumping
duty or changes the criteria for product registration,
the other members of the grouping of emerging
economies are likely to learn about the
development instantly.
This could be possible if a proposal floated by India
to create a database of various barriers to trade
other than those
related to tariffs
among Brazil, Russia,
India, China and
South Africa gets
accepted.
Intra­BRICS trade
increased more than
tenfold between 2002
and 2012, and is
projected at $6.14
trillion in 2015. At
present, the
Government has a
database of 30,000
Indian exporters and
importers of various
products, but Ajay
Sahai, Director General of the Federation of Indian
Export Organisations, which maintains the database,
said that the data of BRICS nations can also be stored.
The portal could also be useful in listing trade
opportunities across borders, officials said. As per a
suggestion, the BRICS portal could be expanded to
a single­window system wherein information
created in an exporting Country could be reused for
facilitation in the importing Country.
India, under its
presidency of BRICS,
wants to strengthen
trade across the five
nation grouping,
besides globalising
its ease of doing
business drive as
part of which it is planning a dedicated portal to
address trade­related issues among the partners
through a single window.
The Commerce Ministry has proposed to create a
database of various non­tariff measures comprising
information on standards, packaging and labelling
requirements, sanitary and phytosanitary measures,
technical barriers to trade, preferential tariffs, rules
of origin, Government incentives and promotional
20
Govt. committed to improve exports from India: Nirmala
Sitharaman
Minister of State (Independent Charge) in the
Ministry of Commerce & Industry Nirmala
Sitharaman has said that Government has taken
steps to promote exports of Indian goods.
In addition the Government continues to provide
the facility of access to duty free raw materials and
capital goods for exports through schemes like
Advance Authorisation, Duty Free Import
Authorisation (DFIA), Export Promotion Capital
Goods (EPCG) and drawback/refund of duties.
Sitharaman said, “The Government takes steps to
improve the competitiveness of Indian goods
through steps like improvement in infrastructure She also highlighted that, “The Government is
and ease of doing business. International Trade is implementing a number of measures and incentives
governed on the basis of various factors including for promoting the exports of agricultural products.”
demand and supply, global economic situation and
The Agricultural and Processed Food Products Export
competitive pricing.” She added, following are some
Development Authority
of the measures
(APEDA), under the
Government has taken
administrative control of
The Agricultural and Processed Food
recently to promote
Products Export Development Authority the Department of
exports.
Commerce extends
(APEDA), under the administrative
The Merchandise
financial assistance to
control of the Department of
Exports from India
Commerce extends financial assistance the eligible exporters
Scheme (MEIS) was
under “Agriculture
to the eligible exporters under
introduced in the
export promotion
“Agriculture export promotion Plan
Foreign Trade Policy
Plan Scheme” which
Scheme” which comprises of various
(FTP) 2015­20 on April 1,
comprises of various
components namely; Market
2015. MEIS aims to
components namely;
Development; Infrastructure
incentivize export
Market Development;
Development;
Quality
Development;
of merchandise which
Infrastructure
and
Transport
Assistance.
are produced/
Development; Quality
manufactured in India.
Development; and
At the time of introduction of MEIS on April 1, 2015, Transport Assistance. Also, exports of grapes are
the scheme covered 4914 tariff lines at 8 digit level. eligible for an incentive of 5 percent under the
Slight changes in lines covered etc. were made on Merchandise Exports from India Scheme (MEIS). In
14.07.2015 and 15.7.2015. Thereafter on 29.10.2015, addition to this Grape Net is an internet based
110 new Tariff Lines at 8 digit level were added electronic service offered by APEDA to the
under the scheme. The rates/Country coverage for Stakeholders for facilitating testing and certification
2228 lines at 8 digit level were enhanced. As on date, of Grapes for export from India to the European
5012 Tariff Lines at 8 digit level are eligible for Union in compliance with the standards identified
rewards under MEIS. The annual resource allocation by NRC Pune, on the basis of consultation with
under MEIS was enhanced from Rs. 18000 crore to exporters. The cultivation of grapes is supported
Rs. 21000 crore in October 2015.
through Centrally Sponsored Scheme i.e. Mission
for Integrated Development of Horticulture (MIDH)
The Government has introduced the Interest
in all the States by providing assistance in the form
Equalisation Scheme on Pre & Post Shipment Rupee
of planting material, drip irrigation, trellies and
Export Credit with effect from 1.4.2015. The rate of
integrated nutrient and pest management, she
interest equalisation is 3 percent per annum.
added.
21
Ministry of Commerce & Industry Launches Twitter Seva to
assist exporters-importers
In a major initiative to get administration of the
Ministry of Commerce & Industry closer to people
and changing the paradigm of Governance, the
Minister of State for Commerce & Industry Smt
Nirmala Sitharaman launched the “Twitter Seva”.
Industry, Cement, Linoleum and Rubber Industry will
be addressed by DIPP.
Under the Twitter Seva, anyone who is desirous of
assistance from the Ministry of Commerce &
Industry can use the hashtag #mociseva.
According to a media statement, through this Twitter
Seva, queries on matters relating to Department of
Commerce (DoC) and
Department of
Industrial Policy &
Promotion (DIPP)
will be answered.
An institutionalized mechanism with a special
Twitter cell has been created in the Ministry
manned by a set of
dedicated officers
who will monitor
and direct all the
tweets to the
Queries regarding
concerned officers
DGFT, DGS&D, SEZs,
of the Department.
Tea, Coffee, Rubber &
All officers have
Smt.
Nirmala
Sitharaman
launching
Twitter
Sewa
in
New
Delhi
Spices Boards,
been sensitized to
APEDA, MPEDA and any other matter relating to respond to the tweets within a short time frame.
Department of Commerce will be addressed by DoC This Seva is open to all the services provided by the
while queries regarding Manufacturing Policy, Department of Commerce and Department of
Industrial Corridors, Investment Promotion, Make Industrial Policy & Promotion.
in India, Start­up India, Foreign Investment
It may be noted that the initiative of the Minister of
Promotion Board (FIPB), FDI, Intellectual Property
Commerce & Industry is in the line of “Minimum
Rights, Patents, Trade Marks, Designs, Geographical
Government, Maximum Governance,” promoted by
Indicators, Copyrights, Paper, Light Engineering
the Prime Minister Mr Narendra Modi.
22
Institute of Chartered Shipbrokers signs MoU with Indian
Maritime University
Agreement to promote mutual understanding
renews a bilateral commitment to academic and
educational co­operation
Chancellor of the Indian Maritime University K Ashok
Vardhan Shetty said: The Indian Maritime University
is pleased to sign this MoU with the Institute of
Chartered Shipbrokers, whose professional
qualifications cover the full spectrum of shipping
commercial activity and whose Members and
Fellows occupy executive positions in the maritime
industry with very high professional standards.
The Institute of Chartered Shipbrokers (ICS),
Maritime Industry’s only body dedicated to
professional education, has signed a new
Memorandum of Understanding with the Indian
Maritime University.
The MoU will promote academic and educational
co­operation and mutual understanding between
the two educational leaders on a basis of equality
and reciprocity.”
The MoU was signed by Mr. Sean Walsh of ICS and
IMU’s Vice Chancellor Mr. K Ashok Vardhan Shetty
during the Indian
Maritime Summit,
which was
inaugurated by Prime
Minister Shri Narendra
Modi.
The Institute has
continued to expand
its international links
and resource base to
meet growing
The summit is the
demand for its
inaugural flagship
examination
initiative of the
programme. Earlier
Ministry of Shipping of
this year, the Institute
the Government of
signed agreements
India and aims to The Institute’s Sean Walsh and IMU Vice Chancellor K Ashok Vardhan
Shetty sign the MoU in the presence of India’s Minister for Road that will see its
provide a platform Transport and Shipping Nitin Gadkari
London­based exams
for companies,
hosted by the UK Chamber of Shipping and has also
institutions and education to explore the potential
been recognised as strategic partner by China’s
business and growth opportunities in India’s
Ministry of Transport and the Shanghai International
Maritime sector.
Shipping Centre.
Director of the Institute of Chartered Shipbrokers, The Institute of Chartered Shipbrokers (ICS) was
Julie Lithgow said: “The Institute is delighted to sign established in 1911 and received Royal Charter in
this MoU with a first class partner in education in a 1920. It is the only internationally recognized
Country that is committed to expanding its maritime professional educational body in the maritime
education and skills base. The market for potential arena and represents shipbrokers, ship managers
maritime educational growth in India is enormous and agents worldwide. ICS is based in the heart of
with over 150 maritime sector projects currently the City of London and has 25 branches in key
committed to be developed by the Indian shipping locations worldwide with 4,000 individual
Government. This co­operation among educational and 120 company members. ICS membership
leaders will make significant and powerful impact represents a commitment to maintaining the
on young people in India wanting to build their highest professional standards across the shipping
careers in the shipping sector.”
industry.
The IMU is the only central university of its kind in
India dealing with exclusively maritime disciplines.
It was founded by Act of Parliament in 2008 to act as
a leader in the development of training and human
resources in the Indian Maritime sector. Vice
In India, The Institute operates two local chapters
at Mumbai & Chennai each, covering the West &
East coast respectively. Both these centres handle
memberships, promote Maritime education, and
conduct Examinations twice a year.
23
Mumbai Port handles 61.11 MT cargo in 2015-16
Mumbai Port handled 61.11 million tones cargo,
which is marginally lower than its all time high figure
of 61.66 million tones achieved in previous year,
inspite of discontinuation of its coal operations at
Haji Bunder.
It handled 9.6 lakh tons of Pulses with a growth of
40.75% compared to corresponding period of last
year, which is the highest for last five years. Mumbai
Port provided various facilities like additional
storage spaces, concessional rates for extended
storage of pulses to
facilitate import of
pulses to meet the
shortages in the
Country.
The Port handled
1,73,034 automobile
units in 2015­16, which
is an all time high and
whopping 23.76%
increase over previous
year.
The 3.50 million
tones Traffic of
chemicals handled at
Pir Pau shows a
growth of 9.84%
The Pure Car
Carrier ‘M.V. Hoegh
Transporter’ on 17.12.2015 was loaded with 5376
export vehicles, which has been the highest ever
parcel size of export vehicles on a vessel through
Mumbai Port.
compared to previous year.
The above achievements could be possible due to
concerted efforts made by the Port cargo handling
workers, officers and various stakeholders / Port
users, informed Shri YashodhanWanage, Chairman
(I/c), Mumbai Port Trust.
Mumbai Port handled 5.98 million tones of Iron and
Steel cargo with a growth of 27.03% compared to
previous year, which is an all time high in the history
of Mumbai Port.
24
CBEC launched SWIFT; integrated declaration form for import
goes live
For speedier clearance of inbound shipments, CBEC
has launched Customs SWIFT which enables
importers to file a common electronic ‘integrated
declaration’ on ICEGATE portal.
“In order to reduce the transaction costs and
decrease cargo release time, a number of steps have
been taken by the Central Board of Excise and
Customs. A significant leap in this direction is launch
of the Customs Single Window,” he said.
Earlier, importers or customs brokers had to file nine
forms required by six different agencies and customs
for clearances of consignments from different
Government agencies.
Stating that there was strong willingness and
support from all stakeholders for the single window
project, the CBEC
Chairman said, “the
“The integrated declaration
departments outreach
compiles the information
program and enthusiastic
private sector
required for Customs, FSSAI,
participation helped the
plant, quarantine, animal
quarantine, drug controller, wild department to launch the
life controller bureau and textiles project in a timely
manner.”
“The integrated
declaration compiles
the information
required for Customs,
FSSAI, plant,
quarantine, animal
quarantine, drug
controller, wild life
committee and it replaces nine
controller bureau and
separate forms required by these Shah noted that Indian
textiles committee and
Customs is amongst a few
six different agencies and
it replaces nine
select countries that
Customs,
”
the
Central
Board
separate forms
have functional single
of
Excise
&
Customs.
required by these six
window clearances,
different agencies and
inclusive of multiple
Customs,” the Central Board of Customs and Excise PGAs and integrated risk based selection.
said in a statement.
He said that the data shared by importers will be
“With the roll­out of the single window, CBEC has confidential and data will be shared with right
also introduced an integral risk management facility agencies only.
for partner Government agencies..
As of now Customs SWIFT (Single Window Interface
CBEC Chairman Najib Shah said the time and cost for Facilitating Trade) is primarily for importers,
associated with imports and exports clearances has CBEC Chairperson said, adding the department will
been a matter of concern for the Government.
build similar platforms for exporters as well.
25
Shipping Ministry to revise model pact for Port projects
The Government is preparing for a large­scale
tinkering of a so­called model concession
agreement (MCA) used by Major Ports while
granting rights to private firms for developing cargo­
handling facilities, as it looks to boost investor
sentiment in the sector through better allocation
of risks between the Government and the private
firms amid slowing global trade.
annual revenue gets the deal, typically stretching
30 years.
A concession agreement sets out the terms and
conditions of a port contract.
Any increase in the tenure of the concession period
will be capped at 10 years in case an increase is
necessitated due to lower traffic. However, a
reduction in concession period due to higher
volumes will be capped at 3 years.
The new model concession agreement will provide
for renegotiating the concession period either by
compressing the 30­year period or extending the
term if the actual average traffic exceeds the target
traffic or falls short of it by more than 20%.
The MCA that is followed currently mandates that a
private developer handles a minimum guaranteed
cargo (MGC) every year specified in the 30­year
contract. Failure to achieve the prescribed MGC for The private developer may opt to pay a further
premium equal to 10% of the gross revenue in lieu
three consecutive years
of a reduction in
can lead to termination
concession period.
of the contract.
The Government is preparing for a
Cargo­handling contracts
large-scale tinkering of a so-called
The Government plans
to be auctioned by Union
to replace MGC with a
model concession agreement (MCA)
G ov er nm e n t ­o wn ed
minimum guaranteed
used by Major Ports while granting
ports will allow
revenue (MGR) that a
rights to private firms for developing
flexibility to its operators
private developer has to
cargo-handling facilities, as it looks to to move to new tariff
pay the port authority
regimes than the one
boost investor sentiment in the sector
for each year of a
prescribed at the time of
through better allocation of risks
30­year contract. In case
signing the deal.
between the Government and the
gross revenue from
operations falls short of private firms amid slowing global trade. Currently, private
MGR in a year, the
developers are bound by
private developer can
the tariff guidelines
make good the shortfall by paying from his pocket applicable on the date of signing the concession
or let the project go into default and subsequent agreement for setting the rates to be collected from
termination if the shortfall occurs for three users of the facilities, according to the current MCA.
consecutive years.
“However, in the event the said tariff guidelines
“For a multi­cargo terminal, the MGR gives more are either amended, revised or replaced by a fresh
flexibility,” says N. Muruganandam, Managing set of tariff guidelines at any time during the
Director of Indian Ports Association. “Even if the concession period (typically spanning 30 years), such
facility is not doing well in one particular cargo, it is amended, revised or fresh set of tariff guidelines,
able to do it in some other cargo which has a higher as the case may be, shall be the applicable tariff
tariff. So, we are looking at overall revenue”.
guidelines, provided the concessionaire (the private
developer) exercises an option to recover tariff
“Whereas if you go by MGC, the developer will only under such amended, revised or fresh set of tariff
target a particular cargo of a certain capacity. So, it guidelines within a period of 30 days from the date
becomes more stringent. The MGR gives more of its publication in the official gazette,” the Shipping
flexibility because in case the tariff goes up or Ministry wrote in the draft of the revised MCA.
revenue goes up, even with less cargo, they will be
So far, in case the existing tariff guidelines are later
able to meet the MGR,” Muruganandam added.
amended, revised or replaced by a fresh set tariff
Port contracts are decided on the basis of revenue of guidelines, it was not made applicable to an
share—the entity willing to share the most from its existing private developer.
26
Mumbai Port to float global tender for development of land
Mumbai Port will be floating a global tender to contiguous. There are various agencies at both the
appoint a project management and implementation central and the state levels which deal with various
consultant for preparing
facets, making coordi­
a master plan for
nation a key challenge,”
Mumbai Port will be floating a
developing its land.
he said.
global tender to appoint a project
“Till now, the plans that
Preparatory work at the
have been made are
management and implementation
port will take up to four
general. We do not have
consultant for preparing a master
months, and the plan
a detailed master plan
plan for developing its land. “Till
should get completed
enlisting where to build
now, the plans that have been made within six months, he
a road, a marina or a
are general. We do not have a
said. This will be followed
restaurant. I need to detailed master plan enlisting where
by development of the
appoint a consultant
to build a road, a marina or a
infrastructure, which
for that,” recently
restaurant. I need to appoint a
shall take between two
appointed Chairman
and four years, Bhatia
consultant for that,” recently
Sanjay Bhatia of the
appointed Chairman Sanjay Bhatia added. Keeping cruise
Mumbai Port Trust
of the Mumbai Port Trust (MbPT) shipping as its focus area,
(MbPT) said recently.
Bhatia said it had been
said recently.
Bhatia said there were
decided to prioritise the
a slew of challenges for
passenger berth in the
implementation, with coordination among various
port for hosting such ships. Cargo movement will
authorities the biggest.
be limited to the offshore container terminal and
“About 1,000 acres of the overall 1,800 acres of the the Indira Dock.
MbPT is available for development but this is not
27
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