With the implementation of Sea Cargo Manifest report by the Customs
the ease of doing business would take a back seat and Indian ports may face the
prospect of becoming feeder ports Mr C R Raghavendra, the newly elected
chairman of the Chennai and Ennore Steamer Agents’ Association.(CHENSAA) said.
Sea Cargo Manifest if implemented
mainline vessels may skip Indian ports
Talking to Sagar Sandesh immediately after taking over leadership of CHENSAA, Mr Raghavendra said with the
stringent rules imposed on the EX IM Trade following the implementation of the some of the provisions of the Sea Cargo Manifest (SCM)from August One, there is every chance
that the main line vessels may skip Indian ports.
The new sea cargo manifest rules which is being implemented by the
customs authorities from August one in a phased manner in all the Indian ports.
It will be implemented on a trial basis for the first ninety days.
Under the new regulations the steamer agents are bound to declare the
details of the cargo kept in containers on board though they are not meant for
discharge in Indian ports. The trade is ready to declare the container number
and the port of discharge but that is not considered adequate by the
New regulations insist on details of the
cargo, trade sees no point in it
The trade is of the view that there is no point in declaring the
details of the cargo which is not meant for discharge in Indian ports. The
authorities also insist on knowing the identity of the shipper and the
Insistence of 10 lakh deposit, small
businesses go out of business
The customs are also insisting that all non AEO clients to deposit a
sum of Rs ten lakhs as deposit on a Pan India basis. At present the EXIM trade
is paying a deposit of Rs 25,000 on a port to port basis. Insistence of the
deposit will ensure that small agents go out of business.
If a dispute not solved with the Customs,
the agent loses license for all Indian ports
There is another catch in issuing licenses on a Pan India basis. If
there is a dispute between the member of the trade and the customs in one port which
could not be resolved, the agent loses the license for all the Indian ports.
Such companies lose the license to operate in any Indian port.
Trade does not know the value of the
transported cargoes to declare
Another conditionality imposed on the trade is to make them declare
the exact value of the cargo in the bill of lading. The trade is against the
measure since in most of the cases they may not be aware of the value of the
Declaring all HS numbers cumbersome,
hurdle to quick conduct of business
The latest regulations also make it mandatory to declare HS numbers of
the cargo placed in the containers. A container may contain fifty different
types of cargo and it would be difficult for the trade to mention all the HS
numbers. The exercise could become cumbersome and therefore not healthy for the
quick conduct of business at ports.