An in-house e-newsletter of

APRIL - JUNE 2018: VOLUME XIX FOR PRIVATE CIRCULATION ONLY

Customs related GST & IGST issues are beinggradually resolved and soon stage is set forsmoother operations and less of complexities. TheCentral Board of Indirect Taxes and Customsformerly known as CBEC has been working hard totranslate the ‘Ease of Doing Business’ into reality.Some of the notable initiatives are:-

1. Launch of CustomsSWIFT clearances [SingleWindow interface forfacilitating Trade].

The Customs SWIFTenables importers/exporters to file acommon electronicIntegrated Declaration onthe ICEGATE portal. The Integrated Declarationtakes care of the requirements of Customs,FSSAI, Plant Quarantine, Animal Quarantine,Drug Controller, Wild Life Control Bureau andTextile Committee and it replaces nineseparate forms required by the said 6 differentagencies including Customs.

2. Filing of declarations by importers, exporters,Customs brokers and manifests by shippingand airlines through digital signatures witheffect from 01-01-2016.

President’s Message

Wherever the customs documents are digitallysigned, the Customs does not require the userto physically sign the said documents. Around97% of import and export declarations andmanifests are being filed electronically withdigital signatures. The balance 3% is being filedthrough Service Centre.

3. Deferred duty payment for select categoriesof importers and exporters, registered asAUTHORIZED ECONOMIC OPERATORS [AEO]has been introduced in the recent Budget. Thisprovision will enable release of cargo withoutpayment of duty, which shall enable speedierclearance and improved liquidity in hands ofthe businesses.

4. Documents required for Import/Export - Thenumber of documents required for export /import have been reduced to three, namely,electronic declaration, Invoice cum packing list& Bill of Lading

5. 24X 7 customs clearance facilities extended to19 sea ports and 17 Air Cargocomplexes.

6. Special Valuation Branches:The procedure for handlingrelated party transactionsand those involving specialrelationships completelyrevamped. Extra Duty Depositswaived and the provisions for

renewal of SVB orders have also beendispensed.

7. Promoting the AEO [Authorized EconomicOperator] Scheme with full vigor and gusto,urging the Trade, particularly the Importers/Exporters, Custom Brokers, and otherconnected with the EXIM Trade to apply andobtain the AEO Certification. This is being donewith utmost sincerity as special cells have beencreated to help and assist the trade and theapplicants.

“The Customs SWIFTenables importers/exportersto file a common electronic

Integrated Declaration on theICEGATE portal.”

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Jayyannt LapsiaaPresident

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Besides, CBIC has announced Special refundFortnight from 31st May to 14th June 2018 for clearingall pending GST refund applications, which havebeen submitted on or before 30th April 2018.

Undoubtedly, the efforts of the CBIC are towardspositive trade facilitation, and, in keeping in syncwith the Government’s resolve to infuse Ease ofDoing Business in right earnest, however, there arecrucial areas which need to be addressed to makethe above initiatives a super success. Some of thesignificant areas which need utmost attention are:-

a. Response mechanisms and replies to Tradeissues/queries/clarifications should be instantand time bound.

b. A nodal officer from CBIC should be appointedand he/she should be empowered to addressbasic issues and clarifications.

c. Delays at variousCustoms stationsin assessment ofdocuments and inoverall attitude issuescausing delays indispensation ofassessments, clearances,examination etc. need tobe eradicated and actioninitiated against erringofficers. This results inincrease of dwell time and also spiraling oftransaction costs

d. Manpower resources to be replenished atsome of the Major Ports, especially JNPT,where, due to skeleton staff, especially atappraisement levels, pile of document is hugeand causes frustrating delays and agonizingmoments to Trade, resulting in increase ofdwell time and also spiraling of transactioncosts.

e. Old and redundant Public Notices/StandingOrders and Notifications should be scrappedand replaced with the latest ones. Many a timenotifications and Public Notices which are asold as over 6 to 10 years are still being followedwith great intensity, despite sea of change inoverall scenario, and, particularly in relationsto reasons for which the P.N./Notification wasissued long ago.

“Undoubtedly, the efforts of theCBIC are towards positive trade

facilitation, and, in keeping insync with the Government’s

resolve to infuse Ease of DoingBusiness in right earnest...”

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f. Interpretative, classification and valuationissues pertaining to reputed importers/exporters should be settled at the office of therespective Commissionerate itself and shouldnot be investigated by DRI [Directorate ofRevenue Intelligence]. These issues should besettled in a strictly time bound frame withoutcausing reputed importers/exporters toundergo mental torture, agonizing andstressful moments and should be settledamicably, within the duration of office hours,and not beyond.

The above needs to be addressed by CBIC on warfooting to ensure that real essence and fruits of Easeof Doing Business and Trade Facilitation measuresare passed on to the Trade; thereby, achieving theeventual purpose of coming out with host of tradefacilitation measures which are for the mainobjective of fulfilling Government’s promise of

Ease of Doing Business andof Transparent Governance.

The true intent and ongoingefforts of CBIC and many highranking officers at variousCustom Stations is a positivesign and indication of betterdays to come. And, fromAILBIEA’s perspective, this isa welcome sign and shoulddrastically see healthier

rankings of our country in the area of ease of doingbusiness, very soon.

Just as the CBIC is in the trade facilitation mode bycoming out with various trade friendly measures,similarly, the trade should also respond by adoptingethical means and following basic ethical protocolsto ensure that the atmosphere is not vitiated,polluted and corrupted by their selfish and narrowminded actions. The Real success of these tradefriendly initiatives and facilitation truly lies in thesynergy and holistic approach by both theGovernment and the Trade towards working intandem and in an atmosphere of abundanttransparency.

With warm regards,

Jayyannt LapsiaaPresident

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AILBIEA CELEBRATIONS

1011, Mighty, Near RBK International School, Ghatkopar-Mankurd Link Road, Chembur West, Mumbai 400 088, India.Tel: + 91 22 6155 9910 Fax: + 91 22 6155 9955 Website: www.ailbiea.com

Industrialists and Senior Revenue Officials graceAILBIEA annual meeting

AILBIEA (All India Liquid Bulk Importers andExporters Association) is India’s most respected,progressive and highly recognised trade bodycommitted in addressing the challenges facing theLiquid Bulk Trade (crude and related mineral oil,vegetable oil, industrial oil, chemicals, petro-chemicals, ethanol, etc.) in India celebrated its16th Anniversary on 6th April 2018 at the Hotel Trident,Nariman Point.

Senior officials from the Customs department (ChiefCommissioner and Principal Commissioner), portofficials, top corporate houses engaged in liquid bulk

trade, noted industrialists including Mr. NadirGodrej, Godrej Industries Ltd and a large gatheringof stakeholders in the liquid bulk business gatheredunder the auspices of AILBIEA to discuss variouschallenges confronting the trade and to brainstormstrategies for future growth.

Highlighting the strong positive correlationbetween economic growth and commodityconsumption, AILBIEA Advisor, senior journalist andagribusiness and commodities market specialistMr. G. Chandrashekhar asserted that the country’sconsumption of liquid bulk cargoes (crude oil,

The glittering dias with topmost dignitaries at AILBIEA’s Anniversary event. From left to right: Mr. Jayyannt Lapsiaa[President-AILBIEA], Mr. Raj Chandaria [Managing Director, Aegis Logistics Ltd.], Mr. Nadir Godrej [Managing Director,Godrej Industries Ltd.], Mr. Rajiv Tandon [Chief Commissioner Customs-Zone 1 & GST] Mr. S.K. Das [Principal Commissioner ofCustoms - Mumbai Zone 1], Mr. Nandlal Chawla with his wife [Managing Director, AAK Kamani Pvt. Ltd,], Mr. Anil Yendluri [Director& CEO, Krishnapattanam Port Co. Ltd.], Mr Rupesh Agarwal [Director Procurement - South Asia], Hindustan Unilever Ltd.] andMr. G. Chandrashekar [Senior Business Analyst] and Adviser to the Association.

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vegetable oil, chemicals, biofuels and so on) is setto expand because of strong GDP growth.

In his welcome address, AILBIEA President,Mr. Jayant Lapsia referred to some of the recentachievements of the association with respect toaddressing the operational issues faced by importersand exporters. He urged the revenue authorities totrust the members of the association who weregenerally known to uphold ethical standards. He alsoexpressed optimism that the country’s liquid bulktrade covering crude oil, vegetable oil, chemicalsand others will continue to expand in the wake ofstrong GDP growth and demand.

Mr. Jayant Lapsia stressed on “The need of infusingmore facilitation by reducing stress and anxiety ofreputed and compliant importers and exporters byensuring that DRI, among the country’s premierintelligence agencies held in high esteem, is keptaway from classification and interpretative issues.On the contrary, DRI should focus more onSmuggling, counterfeit notes, and issues of criticalimportance concerning the security”. The DRI officesfrom all over the country were summoning importersand exporters for imports/exports made from eitherMumbai or JNPT Ports. Stating that such summoningdefied logic and the importers & exporters areput to utterly avoidable hardship like travel tofar-off cities with all documents, incurring hugeexpenses by way of travel and stay, in addition tovaluable time.

“It also undermined the presence of SpecialIntelligence and Investigation [SIIB] wing of Customsand also the local DRI offices”, he said. Whilstappreciating the tremendous work done by DRI, MrLapsia reiterated that if “Ease of Doing Business”had to succeed in true sense of the term in letterand spirit, DRI should be kept out of interpretativeand classification issues, as of now, at least for allAEO status holders. And, also the attitude of DRIOfficers should undergo radical change, in treatingthe genuine importers and exporters with utmostdignity and humility and not treat as convicts.

Mr. Lapsia added that the importers/exportersneeded to be graded / ranked based on theircompliance and in following ethical businesspractises. He said that it was imperative for theImporters/Exporters to be serious about theknowledge of Customs initiatives, laws, notificationetc. and, also, in their appointing qualified andreputed vendors as against going for L1 tender

systems and giving away their clearances tounqualified and tainted vendors, to cut costs. “This”,he said, “vitiated the environment and resulted inhost of unethical practises flourishing”.

Dignitaries from the revenue side who shared theirviews with the delegates included Mr. Rajiv Tandon,Chief Commissioner of Customs, Mumbai andMr. S.K. Das, Principal Commissioner of Customs,Mumbai. The meeting was chaired by Mr. NadirGodrej, Managing Director, Godrej Industries Ltd andco-chaired by Mr. Rupesh Agarwal Director-Procurement South Asia, Hindustan Unilever Ltd.

The Chief Commissioner Customs, Mumbai,Mr. Rajiv Tandon, highlighted the various initiativesof his department to promote, facilitate andexpedite clearance. This included deferred paymentof customs duty and the Authorized EconomicOperator Scheme. He also referred to the proactiverole of AILBIEA, particularly that of the PresidentMr. Jayyannt Lapsiaa, in working closely with thedepartment.

The Principal Commissioner of Customs Mr. S.K. Dasspoke on the various initiatives undertaken byCustoms department. He complimented AILBIEA forthe proactive role and also their support inpromoting AEO scheme amongst their members.

Mr. Rupesh Agarwal, complimented AILBIEA and alsoassured the Customs Commissioners of the Tradecoming much closer to the department’s call onvarious issues and also to closely interact with thedepartment.

Mr. Raj Chandaria, Managing Director, Aegis LogisticsLtd. spoke about the high standards set by Aegis intheir operations at various installations, spread overfive ports. “Plans were on anvil to expand thepresence in more ports”, he added.

Mr. Anil Yendluri, CEO and Director, KrishnapattanamPort Co. Ltd. gave an overall view of the Port, givingdetails of the state of the art infrastructure and othersalient features of the port.

Earlier, the highlight of the meeting was theconferment of “AILBIEA LIFE TIME ACHIEVEMENTAWARD” on Mr. Nandlal Chawla, Managing Director,AAK Kamani Pvt. Ltd. The honours were done byMr. Rajiv Tandon, Chief Commissioner of Customs,Mumbai and Mr. S.K. Das, Principal Commissionerof Mumbai by presenting a silver lamp and a citation.Mr Nadir Godrej, M.D. Godrej Industries felicitatedMr. Nadlal Chawla with a colourful shawl.

AILBIEA CELEBRATIONS

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AILBIEA STELLAR AWARDS 2018

OUTSTANDING CONTRIBUTION IN PROMOTINGEXIM TRADE FOR THE YEAR 2017-18

Mr. Nandlal Chawla being presented with a Silver Lamp andShawl by Mr. Rajiv Tandon [Chief Commissioner Customs-Zone1 & GST], Mr. S.K. Das [Principal Commissioner of Customs,Mumbai Zone 1, and Mr. Nadir Godrej [Managing Director, GodrejIndustries Ltd.].

Mr. Nandlal Chawla conferred with the Life Time AchievementCitation at AILBIEA’s Anniversary. From Left to right: Mr. RajChandaria [Managing Director, Aegis Logistics Ltd., Mr. NadirGodrej, Managing Director, Godrej Industries Ltd., Mr. JayyanntLapsiaa [President-AILBIEA], Mr. Rajiv Tandon, ChiefCommissioner Customs-Zone 1 & GST, Mr. S.K. Das, PrincipalCommissioner of Customs - Mumbai Zone 1, Mr. Nandlal Chawlawith his wife, holding the citation, Mr Rupesh Agarwal, [DirectorProcurement-South Asia, Hindustan Unilever Ltd.]Mr. G. Chandrashekar, Senior Business Analyst and Adviser tothe Association and Mr. Anil Yendluri [Director & CEO,Krishnapattanam Port Co. Ltd.]

Mr. Dhaval Parikh & Mr. Gaurang Parikh, Directors, PrasolChemicals Ltd. receiving AILBIEA Stellar Awards for theoutstanding contribution in promoting EXIM TRADE for the Year2017-18 at the hands of the Principal Commissioner of Customs-Zone-1, Mr. S.K. Das.

OUTSTANDING EXCUTIVE OFFICER IN THE LIQUIDBULK TRADE FOR THE YEAR 2017-2018

Mr. Sunil Gupta, Laxmi Organics Ltd. receiving the AILBIEA Stellaraward for the Outstanding Executive Officer in Liquid Bulk for theYear 2017-18 at the hands of Mr. Rajiv Tandon, Chief CommissionerCustoms - Zone 1 & GST.

OUTSTANDING PERSONALITY IN EXIM TRADEFOR THE YEAR 2017-18

Mr. Kiran Rambhia’s son receiving the Award for OutstandingPersonality in Exim Trade for the year 2017-18 on his behalf atthe hands of Mr. Rupesh Agarwal, Director Procurement -South Asia, Hindustan Unilever Ltd.

OUTSTANDING PERSONALITY IN EXIM TRADEFOR THE YEAR 2017-18

Mr. Paresh Thakkar receiving the Award for OutstandingPersonality in Exim Trade for the year 2017-18 at the hands ofMr. Raj Chandaria, Managing Director, Aegis Logistics Ltd.

LIFE TIME ACHIEVEMENT AWARD 2018

AILBIEA CELEBRATIONS

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CITATION FOR PROMOTING EXIM TRADE

Mr. Nadir Godrej, Managing Director, Godrej Industries Ltd.receiving the citation for promoting Exim Trade at the hands ofMr. Rakesh Tandon, Chief Commissioner Customs-Zone 1 & GSTand Mr. S.K. Das, Principal Commissioner of Customs - MumbaiZone 1.

Mr Rupesh Agarwal, Director Procurement-South Asia, HindustanUnilever Ltd. receiving the citation for promoting Exim Trade atthe hands of Mr. Rakesh Tandon, Chief Commissioner Customs-Zone 1 & GST and Mr. S.K. Das, Principal Commissioner ofCustoms- Mumbai Zone 1.

Mr. Parthiv Kansara, Adani Wilmar Ltd. receiving the citation forpromoting Exim Trade at the hands of Mr. Rakesh Tandon, ChiefCommissioner Customs-Zone 1 & GST and Mr. S.K. Das, PrincipalCommissioner of Customs- Mumbai Zone 1.

Mr. Rakesh Nayyar, Supreme Petrochem Ltd. receiving the citationfor promoting Exim Trade at the hands of Mr. Rakesh Tandon,Chief Commissioner Customs-Zone 1 & GST and Mr. S.K. Das,Principal Commissioner of Customs- Mumbai Zone 1.

Mr. Anil Yendluri, Director & CEO, Krishnapattanam Port Co. Ltd.receiving the citation for promoting Exim Trade at the hands ofMr. Rakesh Tandon, Chief Commissioner Customs-Zone 1 & GSTand Mr. S.K. Das, Principal Commissioner of Customs- MumbaiZone 1.

Mr. Sudhir Malhotra, President, Aegis Logistics Ltd. receiving thecitation for promoting Exim Trade at the hands of Mr. Rakesh Tandon,Chief Commissioner Customs-Zone 1 & GST and Mr. S.K. Das,Principal Commissioner of Customs- Mumbai Zone 1.

Mumbai Customs-Zone 1 was presented with special citationfor the excellent Trade Facilitation and other proactive measurebeing initiated in the year 2017-18. The citation was received byMr. Ramesh Chander, Commissioner of Customs-Exports, andMr. J.S. Negi, Commissioner of Customs-Imports and PrincipalCommissioner of Customs-Mumbai Zone 1 on behalf of Customsat the hands of Mr. Nadir Godrej, Managing Director, GodrejIndustries Ltd.

AILBIEA presented special citations to Mumbai CustomsZone 1 & 2 [JNPT] for their excellent trade facilitation andproactive measures intiated in the year 2017-18. Thesewere presented by Mr. Nadir Godrej to Mr. S.K. Das,Principal Commissioner who was joined by Mr. J.S. Negi,Commissioner [imports] and Mr. Ramesh Chander,Commissioner [Exports] Zone 1 for Mumbai Customs andto Mr. Rajiv Tandon for JNPT.

Over 300 top CEOs, Customs, Central Excise and Portofficials attended this prestigious event.

AILBIEA CELEBRATIONS

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Nitin Gadkari holds review Meeting of all MajorPorts in Visakhapatnam

The Hon’ble Minister for Shipping Shri Nitin Gadkari alongwith Ministers of State for Shipping Shri P. Radhakrishnanand Shri Mansukh Mandaviya reviewed all the ongoingand future project plans of 12 Major Ports at the ReviewMeeting of Major Ports held in Visakhapatnam on 12and 13th July 2018. Shipping Secretary Shri Gopal Krishna,IAS, alongwith Chairmen of 12 Major Ports was presentduring this review meeting.

The key focus of this review meeting was on driving theoverall plan for the port-led-development under theSagarmala projects, port performance and detailedgrowth plan for each of the 12 Major Ports going ahead.

Shri Gadkari also inaugurated five port projects worth Rs1062 crores in Vishakhapatnam. In addition to this, healso laid the foundation stone for two port connectivityprojects worth Rs.679 crores.

The projects inaugurated includes upgradation of existingiron ore handling facility at Outer Harbour of Vizag Portat a cost of Rs.580 crore awarded to ESSAR VizagTerminals Ltd on DBFOT basis with revenue share of 31%.He also inaugurated the Development Berths at theinner harbour of the port at a cost of Rs.243 crores andPost Panamax Quay Cranes costing Rs.151 crores. Thecapacity of the two new berths is 6.39 MTPA and theywill handle Panamax vessels of draft upto 14.5 meters.The two Post Panamax Quay cranes and four Rubber

Tyre Gantry Cranes have been procured to moderniseoperations and make them more efficient.

The cranes were commissioned in March 2018 in a recordtime of 12 months. They will lead to higher productivityof 27-30 moves per hour and are equipped with latestsafety features.

Shri Gadkari also inaugurated the 4- laning of 4.15 Kmsof port connectivity road – Phase-II, constructed at acost of Rs. 77 crore. This will allow faster transportationof road bound cargo. Visakhapatnam Port Trust (VPT)and National Highways Authority of India (NHAI) hold50:50 equity in the project. Equity of Rs.20 crore by VPTis through Sagarmala.

The Minister also laid the foundation stone for two portprojects worth Rs.679 crore. The first project was forconstruction of Grade Separator from H-7 area to PortConnectivity Road by-passing convent Junction at a costof Rs. 60 crore under Sagarmala. The second project isfor the development of 12.7 km road connectivity to VPTfrom Sheelanagar Junction to Anakapalli-Sabbavaram/Pendurti-Anandapuram road (NH 16) at a cost of Rs. 619crore.

The connectivity will help the Port based cargomovement to avoid the city for both South and Northbound cargo.

The Hon’able Minister for Shipping Shri Nitin Gadkari alongwith Ministers of State for Shipping Shri P. Radhakrishnan andShri Mansukh Mandaviya. Also seen Shipping Secretary Shri Gopal Krishna, IAS and other dignitaries.

Commerce and Industry Ministry working onNational Integrated Logistic policyThe Commerce and Industry Ministry is working on aNational Integrated Logistics policy which will focus onincreasing the warehousing capacity, an officialstatement said. This was highlighted by CommerceMinister Suresh Prabhu during his meeting with the WorldBank team here.

The team was led by Caroline Freund, Director of Trade,Regional Integration and Investment Climate and JunaidAhmad, Country Director for the World Bank in India.

The Minister also informed the team that work is beingdone towards identifying specific products and marketsto increase India’s exports by $100 billion.“The policy will reduce the cost of goods and make Indianproduct more competitive,” Mr. Prabhu said.In the meeting, it was agreed that a workshop will beconducted with the World Bank and concerned ministriesto identify specific interventions required to streamlinelogistics in the Country.

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Intra-State e-way bill system rolled out across allStates from 3 June onwards

The e-way bill system for Intra-State movement of goodsunder GST got implemented across all States by 3 June2018. As on 30 May 2018, the Intra-State e-way billsystem has been rolled out in the States of AndhraPradesh, Arunachal Pradesh, Assam, Bihar, Gujarat,Haryana, Himachal Pradesh, Jharkhand, Karnataka,Kerala, Madhya Pradesh, Maharashtra, Manipur,Meghalaya, Nagaland, Rajasthan, Sikkim, Telangana,Tripura, Uttarakhand and Uttar Pradesh along with theunion territories of Andaman & Nicobar Islands,

Chandigarh, Dadra & Nagar Haveli, Daman & Diu,Lakshadweep and Puducherry.

In the remaining eight States, the e-way bill system wasrolled out in last few days. On an average, more than1.2 million e-way bills are being generated every day. Ason 30 May 2018, more than 63.2 million bills have beengenerated.

This includes more than 20 million e-way bills forIntra-State movement of goods.

Ministry of Shipping coming up with 6 Major Ports:Mansukh Mandaviya

The Ministry of Shipping is coming up with six new portsin India, four of which would be on the Eastern Coast andthe balance on the Western Coast.

The Minister of State for Shipping Mansukh L. Mandaviyasaid that these ports are being developed at Wadhwanin Maharashtra, Belekeri in Karnataka, Enayam andSirkazhi in Tamil Nadu, Tajpur in West Bengal and ParadipOuter Harbour in Odisha.

Apart from these six new ports that would boost cargohandling and trade for India, the Ministry has alsoidentified to a handful of ports for modernisation.

“More than 150 projects have been identified formodernisation of existing ports including construction ofnew berths and terminals for Major Ports,” addedMandaviya.

One of the projects for expansion and modernisationincludes Jawaharlal Nehru Port Trust wherein first phaseof the fourth container terminal was recentlyinaugurated. Work on the second phase is likely tocommence by the end of 2019.

However, the investment amount and the timeline forthe new six ports were not disclosed.

When asked about investment and funding in the shippingsector, he replied that the Government has to invest inthe creation of infrastructure in the ports sector. “TheMinistry is taking lead through innovative ways to carryout development works,” added Mandaviya.

The Major Ports will be developed by the Governmentand the allied infrastructures would be establishedthrough Public-Private Partnership mode.

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JN Port, commissioned way back on 26th May 1989, hascompleted its 29 years of glorious service to export-import trade on 26th May 2018.

In the recent past, under the dynamicleadership of Shri Neeraj Bansal, IRS,Chairman, JN Port has implementedvarious path breaking initiatives likeDPD, DPE, simplification andrationalization of business processes,Gate Automation among others forEase of Doing Business.

During the last fiscal year, the Portcreated historic milestone by clockingits highest ever throughput of 4.83million TEUs, surpassing the 4.5 millionTEUs handled in the previous financialyear. The Port has been registeringregular n steady growth in the overalltraffic over the past few quarters and registered 7.4 percent growth in container cargo volume during the lastfiscal year.

W ith regards to individualcontainer terminals, GTI handled2.03 million TEUs, the port-ownedJNPCT handled 1.48 million TEUs,NSIGT and NSICT togetherhandled 1.30 million TEUs, and thenewly-opened BMCTPL accountedfor 23,212 TEUs during the fiscal.

Total liquid cargo volume handledduring the year stood at 7.18million tonnes, reflecting 5.98 percent growth over the previousfinancial year.

JNPT has been consistentlyimproving its volume and turnover by implementingmany trade friendly measures. Several steps under Easeof Doing Business and introduction of Direct Port Delivery(DPD) system have substantially contributed in saving oflogistics cost and time for the trade. It is heartening tonote that trade has started increasingly accepting DPDmode and its share has gone up to almost 40 percent.

JNPT completes 29 years of Glorious service toExport-Import Trade

“The Government isfocussed in creating value for

the trade by reducing thelogistics cost and time and

DPD will assist this process.He also said that all

stakeholders should cometogether and provide more

synergy in achievingthis goal.”

The innovative transport solution is offering twin benefitsof saving in time and cost.

At a recent function to commemorate the performanceof JNPT during last fiscal year, ShriGopal Krishna, IAS, Secretary,Ministry of Shipping congratulatedJNPT and all the terminal operatorsand said “The Government isfocussed in creating value for thetrade by reducing the logistics costand time and DPD will assist thisprocess. He also said that allstakeholders should come togetherand provide more synergy inachieving this goal.”

Commenting on the port’s overallperformance, Shri Neeraj Bansal, IRS,Chairman-, JNPT said,” I want to

congratulate all stakeholders and Export-Importcommunity for extending great support and enable theport in achieving the record volume. JNPT is in the midst

of carrying out many trade-friendly measures which willfacilitate Ease of Doing Business.Continuous support andencouragement from Shri NitinGadkari, Honourable Minister ofShipping and from Ministry ofShipping will further guide us inachieving higher goals”.

On a very recent visit byShri.Mansukh Mandaviya UnionMinister for Shipping, Transport,Fertilisers & Chemicals tooexpressed his happiness at theprogress of JNPT over the last few

years, said, “JNPT has taken the lead in recordingsubstantial growth in the port sector.

The Government has plans to double the cargo handlingcapacity of ports by 2050 and JNPT too is rapidlyexpanding its capacity”.

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Govt frees ships from transshipment permits forIndian entities: Nitin Gadkari

The Government hasdone away with licensingrequirement for shipschartered by Indian citizensor companies fortransshipment of containerswith a view to boostingcoastal trade and promotingentrepreneurship, UnionMinister Nitin Gadkari saidrecently. The move is aimedat arresting diversion ofIndian container cargo to

transshipment hubs at foreign ports that has swelled to33 per cent besides creating employment. TheGovernment has done away with licensing requirementfor ships chartered by citizens of India or a companyincorporated in India or a cooperative society registeredin India for transportation of export-import containersfor transshipment purposes, Gadkari, who holds theportfolio of Shipping, Road, Transport and Highways, saidrecently.

“The move will not only arrest diversion of Indiancontainer cargo to foreign ports but will prove amilestone in creating entrepreneurship in shippingoperations while unfurling huge opportunities for citizensincluding former army and navy personnel with desiredsilks and knowledge to charter smaller feeder vesselsand participate in the fast growing container trade,”Gadkari said. This will not only result in ease of doingbusiness but would create huge employment, the

minister said. At present transhipment hubs at Singapore,Malaysia, Colombo and Jabelali near Indian coastline getsabout 33 per cent of the Indian container cargo which isaggregated there before shipped to final destinations.

“Transshipment of Indian cargo at foreign transshipmentports leads to traffic growth there and job creation inother countries, loss of revenue from Indian shippers interms of port and logistic charges and loss of foreignexchange to foreign ports as the transhipment revenuesand charges are collected from Indian exporters/importers by foreign ports,” the minister said. Ifaggregation is done at Indian Ports, jobs will be created,port charges will come and an ecosystem will bedeveloped, he added. “Promoting transhipment in Indiawould lead to cargo growth at Indian Ports emanatingnot only from India but also potentially other countriesin the region, which in turn would lead to creation of jobsin India, growth of accompanying ecosystem, revenuegrowth for Indian Ports and retention of foreignexchange,” he said.

Shipping Secretary Shri Gopal Krishna, IAS said recentthat this is one of the biggest measures in the shippingsector since 1958 and the move will in the first year, asper conservative approach, will result in at least 10 percent reduction of the Indian container cargotransshipment to foreign Ports.

Ports like Vishakhapatnam, Deendayal, Cochin, Tuticorin,Ennore and Chennai are likely to benefit most initially, hesaid. He added that Indian Ports are likely to get anadditional income to the tune of about Rs 200 crore onaccount of this.

NITIN GADKARIUnion Minister of

Road Transport andHighways of India

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GST provided much-needed reform to thelogistics sector

“A recent ICRA survey of 50 transport companiesfound turnaround time in road transport reduced18-20% since implementation of GST. “There arealready signs that introduction of GST is rapidly

leading to reduction in time wastage andharassment at interstate borders as well as checking

clandestine movement of goods.”

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The impact was much more inThe impact was much more inThe impact was much more inThe impact was much more inThe impact was much more inUttar PUttar PUttar PUttar PUttar Pradesh, Biharradesh, Biharradesh, Biharradesh, Biharradesh, Bihar, Madhya, Madhya, Madhya, Madhya, MadhyaPradesh and Maharashtra,Pradesh and Maharashtra,Pradesh and Maharashtra,Pradesh and Maharashtra,Pradesh and Maharashtra,which were particularly difficultwhich were particularly difficultwhich were particularly difficultwhich were particularly difficultwhich were particularly difficultStates for truckers to moveStates for truckers to moveStates for truckers to moveStates for truckers to moveStates for truckers to move

The implementation of the goods and services tax (GST)ushered in much-needed reforms in India’s largelyunorganised logistics and transport sector, and helpedspeed upmovement oftrucks, accordingto industryexecutives.

Transporters andlogistics playershave said that theswitch to GST ledto at least 20%reduction inturnaround timeof trucks afterborder checkposts were dismantled. Besides, they said,implementation of the e-way bill on consignmentsof Rs 50,000 and above was gradually freeing themfrom unnecessarychecking by StateGovernment raidparties.

However, theysaid, full benefits ofGST would only berealised withseamless passagethrough thecurrently cloggedtoll gates, along anend to harassment by state transport and tax authorities.The impact was much more in Uttar Pradesh, Bihar,Madhya Pradesh and Maharashtra, which wereparticularly difficult States for truckers to move througha year ago.

A recent ICRA survey of 50 transport companies foundturnaround time in road transport reduced 18-20% sinceimplementation of GST. “There are already signs thatintroduction of GST is rapidly leading to reduction in timewastage and harassment at interstate borders as wellas checking clandestine movement of goods,” saidVinayak Chatterjee, Chairman, Feedback Infra.

However, SP Singh, senior fellow, Indian Foundationof TransportResearch andTraining, said a lotof Stateswere late ini m p l e m e n t i n gthe e-way bill.“ M a h a r a s h t r aand Punjabimplemented itonly recently.It would takeanother quarterto fully assess

impact. Also, State Departments continue to createhurdles in movement of trucks,” he said. Singh said

the Governmentshould alsorationalise GSTon transportservices. RoadTransport andH i g h w a y sMinister Mr. NitinGadkari had toldthat the sectorhad benefitedmost from GST.“Travel time oftrucks has come

down significantly as the Country has become a commonmarket with removal of border check posts inStates. Ease of transportation has been our focus area,”he said.

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1212

EEPC India suggests ways to make India’s exportmore competitiveIndia can make its export promotion schemes WTO -compliant and make the Country’s exports competitiveby allowing the exchange rate to reflect the real value ofthe rupee, that has only recently shown some parity,helping the exporting community, engineering exporters’body, EEPC India said recently.

Until about a few weeks ago, wehad seen and felt the effect ofundervalued rupee on our exportmargins. Keeping the currency abit muted for export promotion hasnot been appreciated enough.While, some of the existingschemes may come under the WTOscanner, keeping a close watch onthe domestic currency andallowing the benefit for exporters,cannot be treated as an an exportsubsidy in the WTO norms, as theimpact is for the entire economy,in de facto terms. A stable and slightly undervaluedcurrency works both as an export subsidy and an importtariff in a WTO consistent manner,” said EEPC IndiaChairman Mr Ravi Sehgal, in a statement.

The EEPC India Chief said, ‘In particular, it needs to beseen whether the exporters can be paid (the exchangevalue) on the basis of RBI’s REER (Real Effective ExchangeRate ) or if that is not possible a thumb rule should followedto ensure that the deviation of the Nominal ExchangeRate should not be more 15% of the RBI’s six CountryREER .”

He said as the pressure on WTO mounts from severalcompeting and developed countries, the protectionunder the SMC (Agreement on Subsidies andCountervailing Measures) would have to be re-aligned ina manner that Indian exports do not suffer.

The EEPC India said “We shouldcontinue with the current ForeignTrade Policy provisions till 2020 asthat is life of the current policyand it is based on that the longterm contracts have been signed,particularly, in the engineeringsector. Thereafter, we can moveto a fresh set of WTO compatiblemeasures, once out of Annex VIIprovisions”.

Other suggestions of the councilinclude differential rate of around15 per cent of income tax onexport income. A similar law has

been enacted by the US for intangible income for theAmerican firms from overseas.

Incentives should be enhanced to small scale industries(MSME) as these will not be a specific subsidy accordingto the SCM Agreement and hence will not be actionableunder the WTO prohibitive regime.. For this purpose,the incentives could be linked to tax breaks; enhanceddepreciation rates.

Besides, the council has suggested a separate refundmechanism for all indirect taxes , which are levied in thesupply chain for export production. Such a mechanismwould also be WTO -compliant and include refund ofelectricity levy (which is very high in several States), taxeson fuel, stamp duty, entry tax, road tax, property tax,input credits blocked due to tax inversion etc.

•••

“The EEPC India said “Weshould continue with the

current Foreign Trade Policyprovisions till 2020 as that is

life of the current policy and itis based on that the long termcontracts have been signed,

particularly, in the engineeringsector. Thereafter, we can

move to a fresh set of WTOcompatible measures, once out

of Annex VII provisions”

1313

JNPT identifying potential acquisition targets:Neeraj BansalJawaharlal Nehru Port Trust (JNPT), the largest containerport in India, wants to use its sizeable cash reserves tobuy out smaller cash-strapped ports to quickly ramp upcapacity.

The Mumbai-based port operator has hired a consultantto carry out a feasibility study and identify potentialacquisition targets, said Mr. Neeraj Bansal, IRS,Chairman, JNPT.

Among the options being evaluated on the West Coastare the loss-making Mormugao Port Trust in Goa andDighi Port, a private port in Maharashtra’s Raigad districtowned by Balaji Infra Projects Ltd and IL&FS Ltd, whichwas last month admitted into insolvency court.

The Ministry of Shipping is also creating a special purposevehicle to bring in Government stake in the greenfieldport at Vijaydurg Port in Maharashtra’s Sindhudurgdistrict.

This is expected to cater exclusively to the proposed 60million-tonne per annum oil and gas mega refinery onthe West Coast.

The Ministry is also in the process of giving JNPT the rightsto develop Rewas Port. The project had been awardedto Reliance Logistics and Ports, a Reliance Industriessubsidiary, in 2002, but work on the project has not evenbegun.

“The ports sector is changing very fast,” Bansal saidrecently. “JNPT is exhausting its capacity to handle coal,steel and other cargo. The State requires these materialsfor power, infrastructure and other industries. At this

time, when the port is making profits, we must invest ininfrastructure creation and look for good investmentopportunities,” he said.

In fact Dighi Port is part of the Dedicated Freight Corridorand the Delhi-Mumbai Industrial Corridor. Dighi Port hasa capacity of 30 million tonnes and has started partialoperations.

“JNPT is operating at close to full capacity today. Becauseof its capacity constraints, it has seen a lot of cargo trafficmove to ports in Gujarat, like Hazira, Mundra andPipavav, said K. Ravichandran, Senior Vice-President &Group Head, Corporate Ratings, ICRA.

These acquisitions will help JNPT regain its market share,Ravichandran said. “Trade is expected to grow 10-12%annually. JNPT is a profitable port and operates efficiently.It is AAA rated, has significant cash reserves and hasspent the last couple of years building road connectivity.

The cost of an acquisition depends on the financial healthof the port.

“A highly profitable port will be priced at an EV/EBITDAmultiple of 10-15 times. For a weak port, depending onhow much debt it has, this multiple will be much lower,”he said.

Bansal of JNPT said: “We are looking at options toleverage our savings. Ultimately, we need to create moreassets, so we have more muscle, more centres fromwhich to serve the nation. The Government is advocatingfor port-led development. If JNPT can create (a profitableport) here, why not do it in other places too?”.

•••

1414

Sanjay Bhatia felicitated for being upgraded inrank of Secretary

Shri Sanjay Bhatia - I.A.S. (MH-85) the Chairman, Mumbai Port Trust upgraded to the Rank of Secretary to theGovt. of India.

On this occasion, Shri Kersi Parekh, Working President & Trustee - Mumbai Port Trust, Office-bearers and the Activists ofTransport & Dock Workers’ Union, Mumbai felicitated Shri Sanjay Bhatia - I.A.S., Hon’ble Chairman of Mumbai PortTrust on 19th May, 2018.

Inter departmental parleys are intensifying betweenDepartment of Commerce and Revenue for early releaseof pending Rs.14,000 crores of export refunds relatingto GST as the Government has already disposed off GSTrefunds amounting to Rs.20,000 crores by April 2018,according to the Additional Directorate General ofForeign Trade, Mr. N K Srivastava.

Addressing a Workshop on Issues in Export & Import ofGoods & Services vis-à-vis Foreign Trade Policy underaegis of PHD Chamber of Commerce and Industry here,Mr. Srivastava also disclosed that the focus of theGovernment is also shifting towards creation of sectorspecific export promotion to enable India further rise itsexports.

Commerce & Finance Ministry working togetherfor early release of Rs.14,000 cr of GST refundto exporters

To this effect, a Committee has been constituted withinthe Department of Commerce to examine the potentialof sectoral exports that have been until now stayed putunattended to, added Mr. Srivastava pointing out thatconcentration of India’s exports proceeds till nowremained largely on services particularly relating to IT.

Elaborating on dispensation of pending exports relatedrefunds though Mr. Srivastava pointed out that thedisbursal would happen sooner than anticipated butblamed the exporting community also stating that theirfiling of GST refund cases have been in correct and propermanner.

It is on account of this that the exports refunds have alsobeen delayed but with the inter-departmental

1515

The Ministry of Shipping is clearly in reform mode. Onthe heels of the recent relaxation of the cabotagelaw, which allows foreign flag vessels to operate inIndian waters, it is now set to allow Indian playersto charter foreign flag carriers without anypre-conditions.

At present, a foreign ship isallowed to be chartered only -among other conditions - if asuitable Indian ship isunavailable for that purpose atreasonable charter rates.

In fact, the entire charteringrule book is set to see asignificant simplification. Thesemeasures will increase theshipping capacity in theCountry, bring down the costof transportation alongthe coast and eventuallyencourage Coastal Shipping. Atpresent, only 100 million tonnesof cargo is moved along thecoast in India, and 80 per cent of it comprisespetroleum products, coal and iron ore.

“While we were relaxing cabotage rules, we foundrestrictive practices in the chartering of foreign

consultations progressing faster between Departmentof Commerce and Revenue, pending exports refunds toan extent of Rs.14,000 crore are likely to be facilitatedquickly.

In his welcome remarks, Vice President, PHD Chamber,Mr. D K Aggarwal highlighted the grievances being facedby exporters relating to their refunds and asked thegovernment to take up the issue with faster andaccelerated pace.

According to him, Indian exports in the last couple ofyears have not been proceeding with required pace and

speed including volumes and exports have shrunk only toan extent of 12% of GDP which is a matter of concern forIndia in particular and trade in general.

Chairman, Indirect Taxes Committee, PHD Chamber, Mr.Bimal Jain in his theme presentation drew a comparisonbetween pre-GST and post-GST exports and pointed outthat in the current regime must ensure ease of businesswith simplification for exports of goods and services withtimely refund of GST so as to ensure no working capitalgets blocked in the hands of exporters.

•••

“In fact, the entire charteringrule book is set to see a

significant simplification.These measures will increasethe shipping capacity in the

Country, bring down the costof transportation alongthe coast and eventually

encourage Coastal Shipping.At present, only 100 million

tonnes of cargo is moved alongthe coast in India, and 80 per

cent of it comprises petroleumproducts, coal and iron ore.”

Government to relax curbs on Indian firmschartering foreign ships

vessels. We need to correct this quickly,” ShippingSecretary Gopal Krishna said.

At present, the number of ships available at the rightprice to carry cargo (both domestic and export-import) along the coast is inadequate, thanks to whichpeople take either the road or rail route. “Once we

have ships available at cheaperrates, we will encourageCoastal Shipping and theoverall logistics cost will reducesignificantly,” Gopal Krishnasaid.

The overall easing ofchartering rules, he felt, wouldgive a fillip to entrepreneurshipin the sector.

“By opening up, we givechance to our entrepreneurswho do not have enough fundsto buy ships to come into thebusiness by chartering avessel,” he said.

The idea is similar to cab aggregation, which doesnot require an entrepreneur to own vehicles. “Ourattempt is to increase shipping capacity, and a lot ofcargo will move on our coast,” he said.

•••

1616

Shipping Ministry prepares ’42-point agenda’ tosimplify export-import operation at PortsOf these, 20 amendments relate to exports and22 relate to imports:

Carrying out export-import operations via sea route isset to become easier with the Union Shipping Ministryworking on 42 amendments in the port operations tosimplify cargo maneuvers.

“Out of the four pillars under Sagarmala, two of them(port modernization and development and portconnectivity) focus on removing bottlenecks to bring Easeof Doing Business,” a Senior Government Official saidrecently adding, “So, for this, 42 items have beenidentified across all Major Ports which relate to Ease ofDoing Business”.

The list, has 42 areas to “reduce cost and dwell-time ofcargo” at clearance points at ports. Of these, 20amendments relate to exports and 22 relate to imports.

Government’s flagshipprogramme, Sagarmala, to pushblue economy in the Countryfocuses on areas like portdevelopment and modernization,port-led industrialization, portconnectivity and coastalcommunity development.

The programme spreads acrosstwo decades till 2035 and has 415 projects under itsambit. About 86.5 percent or 359 projects have beenplanned for port development and connectivity.

The programme will see a total investment of Rs. 8 trillionto make sea-route as a favourable choice for transportinggoods.

Maritime transportation of goods was marred by issuessuch as high cost for handling and transporting goods,shortage of suitable vessels to handle cargo, absence ofmechanical handling equipment at ports and slowmovement of goods at ports.

“To address these issues, a list has been prepared by theMinistry to identify these concerns and is to beimplemented by port authorities. The idea primarilyaddresses Ease of Doing Business, to make thingstransparent and allow all the stakeholders to shareinformation,” he said.

He said stakeholders like owner of the shipping line

India has 12 Major Ports and 187Minor Ports. As per Governmentestimates, almost 94 percent ofthe Country’s freight uses rail orroad as a medium to commuteeven as 90 percent of India’strade by volume and close to70 percent by value is via the

maritime route.

carrying goods, the Custom Department, railways, andtransporter carrying goods outside port should have allrelevant information about the consignment beingshipped, time of arrival and time when the consignmentwill leave the port premises.

“This information will be provided digitally to all of them,reducing dwelling time and waiting time for all the peopleinvolved in the process,” he said.

To improve export related activities, the Ministry hassuggested setting up of joint traffic management squadconsisting representatives from all stakeholders, makinggate-CCTV (closed circuit television) footage available tocustom officials, ensuring customs officers’ presence ineach lane as temporary measure until all clearances arecarried out, expanding scope of direct port entry tofactory stuffed containers, simplifying port clearance for

vessels and integration of customs,port community and terminalsystems at the gate among otherthings.

Some of the steps that the Ministryhas suggested for facilitatingimports include simultaneous rakeinspection while loading rakes,introduction of mobile wallets toenable 24×7 payment to officers at

custom duty, increasing volumes for direct port delivery,mandatory advance filing of import declaration,modification of methods for calculating stamp duty of onimport container, mandatory issuance of e-delivery orderand advance invoices by shipping lines and direct deliveryof all facilitated cargo without routing it through anycontainer freight station.

Custom officials, Central Industrial Security Force (CISF),Directorate General of Shipping, Terminal Operators andrespective State Governments have been entrusted withthe majority of the task to expedite the necessaryamendments in the processes.

India has 12 Major Ports and 187 Minor Ports. As perGovernment estimates, almost 94 percent of theCountry’s freight uses rail or road as a medium tocommute even as 90 percent of India’s trade by volumeand close to 70 percent by value is via the maritimeroute.

•••

16

17

‘Sagarmala’ receives Gold Award at the 52ndSkoch Summit 2018The Ministry of Shipping’s flagship programme for port-led-prosperity ‘Sagarmala’ received the ‘Gold Award’ ininfrastructure sector in the recently concluded 52nd SkochSummit 2018 in New Delhi, recognizing the programme’scontribution to India’s socio-economic transformationand it ’s role in propelling fast-track growth andinfrastructure development. The Sagarmala Programmealso received the ‘Order of Merit’ at the Summit. TheSecretary (Shipping) Shri Gopal Krishna shared the awardwith Minister forShipping, RoadTransport &Highways, WaterResources, RiverD e v e l o p m e n tand GangaRejuvenation ShriNitin Gadkari.

The SkochAwards recognizeleadership andexcellence inaccelerating socio-economic changes.These awards havebecome abenchmark of bestpractices in India in the fields of Governance,infrastructure, finance, banking, technology, corporatecitizenship, economics and inclusive growth.

The Joint Secretary (Sagarmala), Ministry of Shipping,Shri Kailash Kumar Aggarwal received the award fromShri Sameer Kochar, Chairman, Skoch Group and ShriGopal Krishna, Secretary, Ministry of Shipping, who wasthe Chief Guest at the valedictory session of the awardsceremony. The ‘Order of Merit’ was received by ShriAbhishek Chandra, Deputy Secretary (Sagarmala)Ministry of Shipping.

Sagarmala is the flagship programme of the Ministry ofShipping for port-led-development of the Countrythrough harnessing India’s 7,500 km long coastline,14,500 km of potentially navigable waterways andstrategic location of India on key international maritime

trade route. The Sagarmala Programme hinges on fourpillars, namely; Port Modernization, Port Connectivity,Port-linked Industrialization and Coastal CommunityDevelopment. The programme aims to double the shareof domestic waterways (inland & coastal) in the modalmix, generate logistic cost savings of Rs. 35,000-40,000Cr per annum, boost merchandize exports by USD 110Billion and enable creation of 1 Crore new jobs, including40 Lac direct jobs, in the next 10 years.

Under Sagarmalaprogramme, morethan 576 projectswith an estimatedproject cost of Rs.8.7 Lac Crore havebeen identified forimplementationover 20 years.D e v e l o p m e n twould be doneacross areasof portmodern izat ionand new portd e v e l o p m e n t ,e n h a n c i n gconnectivity of

ports, industrialization linked to ports and coastalcommunity development. Out of 576 projects identified,69 projects worth over Rs. 13,500 Crore have alreadybeen completed so far and another 424 projects worthover Rs. 4.1 Lac Crore are under various stages ofimplementation and development. Around 97 projectsworth over Rs. 38,000 Crore are expected to becompleted this year.

The Union Cabinet chaired by the Prime Minister, ShriNarendra Modi, had given its ‘in-principle’ approval forthe concept and institutional framework of SagarmalaProject on 25th May 2015.

The National Perspective Plan (NPP) was released by thePrime Minister Shri Narendra Modi during the inauguralMaritime India Summit held in April 2016, in Mumbai.

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The Sagarmala Programme also received the ‘Order of Merit’ at the Summit.The Secretary (Shipping) Shri Gopal Krishna shared the award with Ministerfor Shipping, Road Transport & Highways, Water Resources, RiverDevelopment and Ganga Rejuvenation Shri Nitin Gadkari.

•••

181818

Indian Maritime Awards 3rd Edition Honors TopProfessionals from Logistics and Maritime Industry

After the resounding success of the previous two editions,the much anticipated third edition of the Indian MaritimeAwards organized by Daily Shipping Times was rolledout at a gala evening in Mumbai on June 22, 2018.

Ms. Amruta Fadnavis, Dr. Malini Shankar, IAS, DGShipping and Mr. Neeraj Bansal, IRS, Chairman-in-Charge, JN Port graced the occasion. The event broughttogether some of the leading lights of the Maritime andLogistics sector under one roof to cheer and applaud keyachievers.

The award seeks to promote the overall logistics sectoras well as encourage people to augment these modes oftransport both as service and as a business.

Mr. Kalpesh Modi, Editor-in-Chief and Managing Director,Daily Shipping Times, said, “Managing and organizingIndia Maritime Awards on such a large scale in shortspan of three years has been a dream come true. Westrive to felicitate the excellence of individuals andcompanies from the Maritime and Logistics sector whohave carved a niche for themselves through theirperformance and become the role model for others inthe Maritime and Logistics trade.”

The stage was set with the thought provoking paneldiscussion on “Staying Relevant in a Transforming LogisticsLandscape” moderated by Mr. Prahlad Tanwar, ExecutiveDirector - KPMG. The panelists included eminent namesfrom the Maritime and Logistics sector like Mr. NeerajBansal, IRS, Chairman - JN Port, Mr. Krishna B Kotak,Chairman - J. M Baxi Group, Mr. Mukesh Oza, GroupPresident & CEO - Samsara Group, Mr. Suresh Parekh,Director - Polestar Maritime and Mr. T. Venkataraman,Managing Director - Goodrich Maritime.

The star attraction at the award function was theYoungest Entrepreneur in Logistics, Master Tilak Mehta,the 13 year old founder of Papers N Parcels, the appenables courier service. Ms. Amruta Fadnavis and

Mr. Mukesh Oza felicitated him for his stupendous successachieved at such a young age. He has become the rolemodel of many others.

Other key achievers that were felicitated during theAward ceremony were Mrs. Sangeeta Sharma, Director(Liner & Passenger Service Division), The ShippingCorporation of India who bagged “Woman Professionalin Shipping & Logistics”; Mr. Ritesh S Ramakrishnan, JointManaging Director, Transworld Group who wasadjudicated as the “Face of the Future”; Mr. NeerajBansal, IRS, Chairman-in-Charge, JN Port as “BusinessReformer of the Year” and Mr. R. Radhakrishnan,Chairman Clearship Group as “Doyen of the Decade.”

“Business Reformer of the Year” Award Mr. Deepak Shetty, IRS

“Best Port of the year - Containerised” Award J N P T

“Best Port of the year – Non Containerised” Award -Kandla Port Trust

1919

“Best Terminal of the year” Award - APM Terminals Mumbai,Gateway Terminals India Pvt. Ltd.

“Port Personality of the Year” Award - Mr. Ravi Parmar, IASChairman, Kandla Port Trust

“Woman Professional in Shipping & Logistics Industry”Award Ms. Mrunal Tanna

“Lifetime Achievement” AwardMr. C. S. Manohar

India needs toincrease its share in

Global exports to3.4 %: PM

Prime Minister Narendra Modi recently called forIndia to more than double its share inglobal exports from the current 1.6 per cent to 3.4per cent.

Speaking after laying the foundation stone of VanijyaBhawan, a new office complex for the Departmentof Commerce, Modi emphasized the need for anincrease in exports, and said that States must bemade active partners in this effort.

He said the Department of Commerce must resolveto raise India’s share in total global exports to atleast 3.4 percent, from the current 1.6 percent.

Similarly he said, efforts must be made to raisedomestic manufacturing output, to reduce imports.In this context, he gave the example of electronicsmanufacturing. He said the Union Government hastaken a number of steps to boost domesticmanufacturing.

The Prime Minister unveiling a plaque to mark thelaying of foundation stone of Vanijya Bhawan onAkbar Road, New Delhi

20

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20

India to provide tariff concessions on 3,142items to APTA membersIndia has agreed to provide tariff concessions on 3,142products to Asia Pacific Trade Agreement (APTA)members, including Bangladesh and Sri Lanka, fromJuly 1, the Commerce Ministry saidrecently. However, these dutyconcessions will be more for leastdeveloped countries (LDCs) and lessfor developing nations.

APTA is an initiative under theUnited Nations Economic and SocialCommission for Asia and the Pacific(UN ESCAP) for trade expansionthrough exchange of tariffconcessions among developing Country members of theAsia Pacific Region. It is in place since 1975.

It is a preferential trade agreement (PTA), under whichthe basket of items, as well as extent of tariffconcessions, are enlarged during the trade negotiatingrounds which are launched from time to time.

The six member countries are Bangladesh, China, India,Laos, Korea and Sri Lanka. The results of fourth roundof negotiations under the APTA have been implementedwith effect from July 1, the Ministry said in a statement.

“India has, on its part, exchanged tariff concessions on

3,142 tariff lines (or goods) with all member countriesand special concessions on 48 tariff lines for LDCs, withBangladesh and Laos,” it said. The fourth round of trade

negotiations were formallyconcluded and signed by theMinisters of the member countriesduring their meeting on January 13last year.

The decision of this meet has nowbeen implemented by all memberswith effect from July 1, it added.With the implementation of thisdecision, the coverage of

preferences of total tariff lines for each member wouldcome of 10,677 products, up from 4,270 items at theconclusion of the third round.

The average Margin of Preference (MoP) beingprovided under the agreement is 31.52 per cent. ButLDC members are entitled to greater concessions on1,249 items with an average MoP of 81 per cent. Undera free trade agreement, countries cut or eliminateduties on most number of goods traded between thembesides liberalising norms to promote services tradeand investments. But under a PTA, duties areeliminated on a certain number of identified items.

India is a founding member of APTA withthe other five members being Bangladesh,China, Laos, South Korea and Sri Lanka.