EXIM Cargo growth in Kar­nataka

A highly in­ter­ac­tive ses­sion brought to the fore lo­gis­tics is­sues of ship­pers and op­er­a­tional chal­lenges with Cus­toms, CFS and ports

Maritime Gateway - - Contents -

A highly in­ter­ac­tive ses­sion brought to the fore lo­gis­tics is­sues of ship­pers and op­er­a­tional chal­lenges with Cus­toms, CFS and ports.

Dis­cus­sions in this ses­sion fo­cused on is­sues faced by ship­pers and the evolv­ing role of Cus­toms and CFS. Bring­ing to the fore chal­lenges faced while im­port­ing and ex­port­ing, Srini­vas Rao, Gen­eral Man­ager - Lo­gis­tics, Gokul­das Ex­ports said, “The freight for­warders some­times charge ex­or­bi­tantly for im­ports that are pre­paid or on FOB terms.” He ex­pressed the need for an agency to mon­i­tor the charges charged by freight for­warders.

An­other is­sue he raised was about the lack of trans­parency in billing by the CFS, as in cer­tain oc­ca­sions the fee charged by the CFS ex­ceeds the value of the com­mod­ity. Again the pric­ing strat­egy is not uni­form among the CFS. N Girish, Mem­ber, Ban­ga­lore Cus­tom House Agents’ As­so­ci­a­tion fo­cused on mea­sures im­ple­mented by CBIC. Start­ing of EDI, ICEGATE, RMS fa­cil­ity, 24/7 op­er­a­tions, im­ple­men­ta­tion of SWIFT and e-sanchit plat­form are some of the e-busi­ness ini­tia­tives of Cen­tral Ex­cise and Cus­toms Board. CBIC has also rolled out an in­te­grated risk man­age­ment sys­tem for all the part­ner gov­ern­ment agen­cies (PGAS) to en­sure the con­sign­ments are not se­lected by the agen­cies on rou­tine ba­sis for ex­am­i­na­tion, but based on the prin­ci­ples of risk man­age­ment. De­tail­ing on the ex­tended role of Cus­toms Bro­ker Girish said, the bro­ker en­sures smooth pas­sage of the exim cargo while com­ple­ment­ing the cost as well. He is more of a fa­cil­i­ta­tor and mon­i­tor­ing agency, rather than be­ing an en­forcer and col­lec­tor of taxes.

Re­view­ing the lo­gis­tics sce­nario,

R Srini­vasan, Lo­gis­tics Man­ager, H&M, said com­pared to the past year, things are im­prov­ing. With dig­i­tal­i­sa­tion dwell time has de­creased, but if we com­pare to Sri Lanka, China and Viet­nam, there ware­houses have both ver­ti­cal and hor­i­zon­tal stack­ing. Phys­i­cal in­spec­tion of cargo is ruled out in these coun­tries, while it is still in prac­tice by Cus­toms in In­dia.

If we want to re­duce the cost and time, we need to switch to smart ware­hous­ing rather than ex­pand­ing the ware­hous­ing ca­pac­ity.

“Ma­jor com­mod­ity mov­ing out from the CFS is gar­ments and the in­dus­try is do­ing great,” said E Ajay, Deputy CEO, HAL Cargo Com­plex CFS, as he pro­ceeded to ex­plain their role as a fa­cil­i­ta­tor and rep­re­sen­ta­tive of Cus­toms. There is a lot of com­mu­ni­ca­tion gap be­tween ex­porters, freight for­warder, CFS and CHA. If you see the four CFS op­er­a­tional in the state there is noth­ing com­mon in the rates of­fered and in fact the CFS com­pete to of­fer bet­ter rates to the ship­pers. Ajay de­tailed on the chal­lenges faced by his CFS op­er­at­ing as a gov­ern­ment en­tity. Op­er­a­tional and in­sur­ance costs are in­creas­ing but the CFS is not able to in­crease their charges due to com­pe­ti­tion.

Schemes such as AEO and DPD have tried to kill CFS. Even af­ter in­tro­duc­tion of AEO, HAL ap­points freight for­warders for do­ing busi­ness, which un­der­scores the lack of com­mu­ni­ca­tion. An­other am­bi­gu­ity he pointed out was in use of e-seal­ing and RFID. HAL had ap­pointed 18 e-seal ven­dors, but lack of com­pat­i­bil­ity among the e-seal read­ers has cre­ated is­sues and fi­nally a group of e-seal ven­dors is jointly de­vel­op­ing e-seal reader com­pat­i­ble for all.

“Six years back the cargo mov­ing from Ban­ga­lore re­gion was about

5000 teus and six years down the lane it has grown to 30,000 teus, which in­di­cates the mas­sive growth in this re­gion’s trade,” com­mented En­narasu Karune­san, CEO, Adani Ports & SEZ, South­ern Ports. “To­day we have enough ports, CFS and ware­houses, so the fo­cus has now come down to at what cost do we move the cargo?, at what speed and what is the re­li­a­bil­ity?” ex­claimed En­narasu. These three el­e­ments will mat­ter the most in the next 10 years for our in­dus­try.

(L to R) Jitin Singh Kam­pani, DGM - Char­ter­ing & Mar­ket­ing, OSL Group; N Girish, Mem­ber, Ban­ga­lore Cus­tom House Agents’ As­so­ci­a­tion Ltd; En­narasu Karune­san, Chief Ex­ec­u­tive Of­fi­cer, Adani Ports & SEZ Ltd South­ern Ports; Srini­vas Rao K, Gen­eral Man­ager – Lo­gis­tics, Gokaldas Ex­ports Lim­ited; Ajay E, Dy Chief Ex­ec­u­tive Of­fi­cer, HAL Cargo Com­plex CFS

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.