E-freight in India - Cargo Talk

Trade Associations
FFFAI Convention Report
corporations alter themselves to fit the
thinking, culture, and practices of the
location where they are doing business.
India too is home to such adaptation, and
thus the role of CHA here has only grown
exponentially in importance.”
Highlighting the changing scenario
Sud maintained that AEO (Authorised
Economic Operator) has become a reality
now. Self assessment and KYC (Know Your
Clients) are sweeping changes.
According to him, the need for
competent, resourceful and easily
accessible local service providers is
necessary. And preparing these local
providers to think ‘glocally’ has become
inevitable. Adaptation, innovation and
overall ability in thinking and execution
are the key to narrowing borders, initiating
change and promoting growth.
In his keynote address G Raghuram,
Professor, IIM Ahmedabad, highlighted
that India’s international trade growth has
been at around 15 per cent, though only 16
per cent of GDP and a little over 1 per cent
of world trade. Many growing countries
do better. “Our competitive advantage
in international trade is compromised,
among a few factors, due to transaction
costs,” he said.
Raghuram also underlined some facts
that cause havoc to Indian exporters.
He pointed out that of the total exports
of $200 billion, transaction costs were
18 CARGOTALK OCTOBER 2011
Samir J Shah
$13 - $15 billion. According to him, of
this, $6 billion are ‘addressable’, due
to excessive regulations, compliance,
certification and delays. In 2009, $100
billion of value were ‘liner’ goods.
Average cost per container on account of
transaction cost to an exporter was $945
in India, whereas it was $625 in Vietnam,
$460 in China and $450 in Malaysia.
The exorbitant costs for a container
movement from India includes time and
cost elements for document preparation,
customs clearance, ports and terminal
handling and inland transportation and
handling. India ranks 94 out of 183
countries in trading across borders.
He appealed the government to develop
infrastructure, facilitate industry-friendly
laws and taxation and put focus on supply
chain (cluster focus).
Emphasising the changing role
of a CHA and freight forwarder (from
customs broker to freight forwarder and
from freight forwarder to freight logistics
player) Rahuram suggested, “Determine
the importance of your role in the overall
supply chain of your customers. Identify
the important factors of your service
affecting your customers and customers’
customers.Work in coordination with your
customers, thereby reducing costs and
improving value. Information technology
is a big help here.”
The FFFAI convention had seven
business sessions which were addressed by
Shantanu Bhadkamkar, Vice Chairman,
FFFAI, CP Talresa, President, Udaipur
Chamber of Commerce and Industry,
Nailesh Gandhi, President, Bombay
Customs House Agents’ Association,
J.Krishnan, the then President of Air Cargo
Agents Association of India, Premkumar,
Group Managing Director and CEO,
Uniworld Logistics, S. Xaviers Britto,
Managing Director, Indev Logistics, Sanjay
Khanna, CEO, Celebi, Praful Talera,
Managing Director, Dynamic Logistics, Raj
Khalid, Representative, Port of Antwerp,
D.S Jha, Convenor, FFFAI Convention
2011, Sumeet Nadkar, Executive
Director, Kale Logistics,Debashish Dutta,
Vice Chairman, FFFAI,Samir J.Shah,
Chairman, Business Session, FFFAI
Convention 2011, SK Goel, Member,
CBEC, Atul Dikshit, Additional Director
General, CBEC and Raghu Shankar,
General Manger, International Clearing
and Shipping Agency.
Major Concerns
At this Convention FFFAI has raised
some questions before the Member
Customs, CBEC. Highlights of those
questions are:
• Anti-dumping notification is
issued with a time frame. However, after
the expiry of the relevant date there is a
investigation period of 6-12 months
• In last one year Government
has brought in many changes like KYC
norms and self assessment and proposed
AEO. CHAs now have responsibilities
identity to Customs officers. However,
treatment meted out during processing
and investigation is different between
officers and CHAs
• All ICDs are working 6 days a
week for all functions including assessment.
• The ports should also work
for assessments on all 6 days instead of
present 5 days a week
• CBEC have introduced Version
1.5 of ICEGATE all over India. There
were many problems noticed and resolved
during the implementation at various
centres. Till date the systems are not
working satisfactory and all stakeholders
including Customs officers are unhappy
working on the system
• IGM are not reflected at the ICD
custom centre under 1.5 EDI system. This
is despite the carrier or his agent holding
a valid number of filing. The Bill of Entry
is thus not accepted by the system, as
the IGM has not been generated into the
system
• Slowness of ICEGATE: Under
version 1.5 it takes hours to complete
simple jobs like filling of Bills of Entry
• In view of the large number
of ICD’s / CFS’s and new ports being
developed large number of Central Excise
officers get posted to customs.
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