‘Every challenge, an opportunity’
S Ramakrishna has recently been appointed as the Chairman of Federation of Freight Forwarders’ Associations in India (FFFAI). He speaks with about his vision for the federation and the substantial growth the industry can achieve when all stakeholders join hands in attaining a common objective. What is your vision as Chairman of FFFAI?
In the new role, I would like to see every challenge as an opportunity. At FFFAI, we would begin by making IceGate ERP-friendly, enabling it to be linked to e-way bills and getting data in CSV or Excel files to upload on various government portals. For customs, at FFFAI we have suggested many measures that could be pursued and completed during my term as Chairman, though this will be a continuous process. We would also urge the government to give Indian customs brokers and freight forwarders recognition, make the MSME sector a separate vertical, and appeal for an ‘industry’ status. In my opinion, these steps will encourage the industry to work better, especially in the case of small and mediumsized companies.
Do you have a strategy in mind to deal with challenges?
The industry must work cohesively and flawlessly while raising issues with concerned authorities, the policymakers, or the government, so that pragmatic solutions can be developed. Thorough study and an in-depth understanding of any issue can only provide remedial suggestions in the common interest of the industry and for the country’s economic development. We, at FFFAI, will be launching such awareness programmes in the days to come, to cope with challenges and to transform them into opportunities.
What is your opinion of the evolution of FFFAI since its inception?
The evolution of FFFAI has been an exciting journey. It is a matter of immense pride that FFFAI is the apex body and the sole representative of 28 member associations from all over India, representing 6,500 customs brokers and employing over 100,000 people. In addition, organisations that are directly or indirectly connected with freight forwarding, shipping, and commerce are also associated with FFFAI. Earlier, customs clearance of cargo at ports was handled by three kinds of people who were regulated by the customs department. This included those who were responsible for preparing the documents for customs. It was the oldest-known category that came into existence even before the establishment of the Bombay Port Trust in 1873 and the enactment of the Customs Act in 1878. Then came those who were engaged in the physical handling of cargo at the docks and had no authority to process documents through customs. The third kind emerged towards the end of the 18th century. They were clearing agents licensed by the Sea Customs Act 1878. They could assume the activities of either of the other two categories and also enjoyed the added authority of signing documents on behalf of merchants. In 1960, with the New Customs House Agents Licensing Rules, with modifications to the then existing CHA Licensing Rules 1957, were notified. A need for a joint representation to the government and common action was felt. Accordingly, a joint conference of all clearing agents’ associations in India was called. On July 9, 1960, a meeting
We would make IceGate ERP-friendly, enabling it to be linked to e-way bills and getting data in CSV
between clearing agents’ associations of Mumbai (then Bombay), Kolkata (then Calcutta), Chennai (then Madras) and Kochi, and the Karachiwala Association was held in Mumbai. It was during this meeting that it was resolved to form a federation of all the customs clearing agents’ associations in India. On December 2, 1962, the Federation of Customs Clearing Agents Associations of India (now, Federation of Freight Forwarders Associations’ in India) was inaugurated.
How do you see FFFAI adding value to the logistics industry?
The positive role that FFFAI plays is recognised by Government of India, and we are the only logistics trade association member of the National Committee on Trade Facilitation (NCTF). It is a front runner, an industry think tank, and a voice for issues faced by customs brokers, freight forwarders, and the entire logistics industry in the country. FFFAI consistently takes initiatives for making its members efficient and expert logistics players, supported by training and other skill development initiatives developed by its own institution - Indian Institute of Freight Forwarders (IIFF). We are also very focused on generating business for the customs broking, freight forwarding, and logistics community. Hosting regular B2B meetings between our members and their overseas counterparts are also instances in this regard. The FIATA World Congress 2018 was also hosted by FFFAI for the first time in India.
Are there any issues that you will be taking up with the government?
Of late, our government has been extremely positive and proactive in facilitating trade and addressing the issues of the logistics industry, in consultation with industry associations. It is highly commendable that the government has announced numerous policies aiming to fasten cargo clearance at ports and airports. My focus would be to raise those issues or ambiguities that hinder proper implementation of policies. In addition, cost-effective mechanisms from government agencies, custodians, terminal operators, carriers, and other industry stakeholders would be a crucial task in making Indian exports competitive.