Shippers o' To Documentation Charges
The Confederation of Indian Industry (CII), the premier Indian corporate body, has written to the additional commerce secretary, Nripendra Mishra, seeking the withdrawal of documentation charges imposed by the Mumbai and Nhava Sheva Ship Intermodal Agents Association (Mansa).
The documentation charges have been hiked by Mansa with effect from May 1, 1997. Mansa is the representative body of foreign shipping lines and their agents operating from Mumbai and Nhava Sheva ports.
Importers have been paying documentation charge of Rs 30 for the receipt of a delivery order against a bill of lading since 1995. This has, however, been hiked from May 1 to vary between Rs 150 to Rs 700 depending upon the number of containers.
CII has contended in its letter that neither shipping lines nor their agents have the right to collect documentation charges as these are being collected as a part of the terminal handling charges by shipping lines or their agents.
A bill of lading is issued by shipping agents to the exporter after the goods have been placed aboard. It serves as a receipt and confers title to the goods.
The bill of lading is faxed by the exporter to the importer. The importer, in turn, has to produce it before the shipping line or its agent who then issues the delivery order. It is this order that enables the importer to take custody of the goods from the port trust authorities.
Mansa has also hiked several other charges. These include Rs 100 for the issue of a B\L, and charges for the amendment of a import general manifest (IGM). The amendment charges include a service charge for the issue of a B\L.
Earlier, another trade body, Western India Shippers Association (WISA), too, had written a letter to Mishra. WISA too has taken the line that the imposition of documentation charges is illegal as this is covered under terminal handling charges.
WISA contends that Karmahom Conference, the cartel of shipping lines, with which it is often at loggerheads has defined terminal handling charges as the charge payable by the merchants for receipt, storage, delivery of containers to or from ships coupled with associated documentation.
This clearly means that the charges being collected for the issue of delivery ord-ers as well as bill of lading are already being recovered under terminal handling charges, says the WISA spokesman.
The law also seems to be on the side of the shippers. WISA had sought advice from the Indian Chamber of Commerce on the legality of documentation charges.George Rebello, a High Court advocate has opined that the levy of the documentation charges two years ago was illegal. He has opined that the issue of a delivery order is merely an exchange for the Bill of Lading.
The issue of a delivery order is for the convenience of the owners because it signifies that holder of a bill of lading is not liable for charges in the nature of freight, etc. In the circumstances, the charge of Rs 30 was unlawful.
The quantum should not have been the criteria for resistance. The levy should have been opposed on principle.
Mansa president Dinesh Lal could not be reached for comment.