Govt to consider proposal for a shipping monitor

NEW DELHI: Shipping minister V P Goyal has agreed to consider a demand from exporters for monitoring shipping lines, shipping agents, freight forwarders, consolidators and customs handling agents. Setting up of such an authority has been demanded by exporters who have been complaining about overcharging and arbitrary demands.
Acknowledging the points raised by exporters here, Goyal said a regulatory authority could be considered on the lines of the Telecom Regulatory Authority of India.
The minister was speaking at a seminar organised jointly by Northern India Shippers’ Association (NISA) and the Export Promotion Council for Handicrafts (EPCH) here on Wednesday.
Setting up of a statutory authority would take time, exporters and shippers have proposed setting up of an inter-department cell which will take care of the day-to-day hitches faced in clearing consignments.
Goyal and Central Board of Excise & Customs chairman M K Zutshi, who was also participating in the seminar, endorsed this idea.
EPCH executive director Rakesh Kumar and various other representatives of the export community had earlier highlighted the difficulties faced by the export community.
The situation is particularly grim for exporters based in the interior areas of the country who have to spend huge amounts to send their goods to ports, he added.
Since there was no regulatory mechanism, shippers and agents charge arbitrarily, exporters complained.
Expenditure increases as these segments add new heads every now and then to charge exporters additional sums, they added. All this finally adds to transaction costs and affects the bottomline of exporters.
Representatives of freight forwarders and customs handling agents denied the allegations and emphasised that registered agents do not overcharge.
Exporters expressed helplessness in dealing with handling agents since handling work was done at the ports while their offices are situated closer to the manufacturing facilities.
In some cases agents are nominated by the shipping lines who in turn are nominated by buyers. In such cases, negotiating with handlers becomes virtually impossible.
While the customs authorities are empowered to handle most of the issues raised by exporters, the are not in a position to do so due to paucity of staff.
Zutshi said customs authorities do not hold up shipments unless some irregularity like misdeclaration comes to light.