Transhipment

The 40 per cent trans-shipment tariff by the US will create major compliance issues for companies in India and the ASEAN region, with high risks for sectors like machinery, electrical equipment and semiconductors, Moody's Ratings said on Tuesday. In July 31, US President Donald Trump announced a 40 per cent tariff on goods deemed to have been transshipped, beyond the broader country-level tariffs. Moody's, in its 'Trade Asia-Pacific' report, said it remains unclear how the Trump administration defines trans-shipment, but the measures appear to target products originating in China and shipping through third countries with lower tariffs. Stating that lack of clarity around trans-shipment tariff poses risks to ASEAN economies, Moody's said if the US maintains a narrow interpretation targeting only goods imported from China, minimally processed or re-labelled and re-exported to the US the economic impact on regional economies may be limited. However, a broader and more punitive ...

India ends 2020 transshipment pact with Bangladesh; Petrapole saw 39 per cent rise in trucks, 64 per cent jump in consignments before facility was withdrawn on April 8

Bangladesh interim government's Commerce Adviser Sheikh Bashir Uddin on Thursday said that his country will not face any problems due to the cancellation of trans-shipment facilities by India and Dhaka will try to overcome the situation on its own. His remarks came a day after India on Wednesday announced the withdrawal of the trans-shipment facility it had granted to Bangladesh for exporting various items to West Asia, Europe and various other countries, except Nepal and Bhutan. Just yesterday, discussions were held with business representatives from various sectors; even buyers were present. We will attempt to overcome the crisis through our arrangements," Bashir Uddin was quoted as saying by Bangla language newspaper Prothom Alo. He said Bangladesh is working to ensure that there is no deficiency in competitiveness through its capabilities. Commercial capacity will be enhanced. Simultaneously, steps are being taken to ensure that there are no shortcomings in connectivity either,

India cited logistical issues for scrapping the facility, saying it caused major congestion at ports and airports, leading to delays, higher costs, and export backlogs

The government has terminated the trans-shipment facility that allowed export cargo from Bangladesh to third countries using Indian land customs stations en route to ports and airports, according to a government circular. Indian exporters, mainly from the apparel sector, had earlier urged the government to withdraw this facility to the neighbouring country. The facility had enabled smooth trade flows for Bangladesh's exports to countries like Bhutan, Nepal, and Myanmar. It was provided by India to Bangladesh in June 2020. "It has been decided to rescind... circular...dated June 29, 2020, as amended with immediate effect. Cargo already entered into India may be allowed to exit the Indian territory as per the procedure given in that circular," the Central Board of Indirect Taxes and Customs' circular, dated April 8, said. The announcement came at a time when the US has imposed sweeping tariffs against a number of countries, including India and Bangladesh. The earlier circular had ..

The government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for three more months till December 31 to promote the country's outbound shipments. The scheme, which provides exporters interest benefits, ended on September 30. In a trade notice, the Directorate General of Foreign Trade (DGFT) said, "Trade and Industry is hereby informed that the Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit, which had earlier been extended till September 30, 2024 has been further extended by three months up to December 31, 2024". It also said the fiscal benefits of each MSME, on aggregate, will be restricted to Rs 50 lakh for 2024-25 till December 2024. "MSME manufacturer exporters who have already availed equalisation benefit of Rs 50 lakh or more till 2024-25 till September 30, 2024, will not be eligible for any further benefit in the extended period," it said, adding, "this extension shall be valid for three months or such .

Courier services provider Blue Dart Express on Monday said it will increase the prices of its shipments between 9-12 per cent from January 1, 2025. The pricing adjustments for 2025, which include inflationary adjustments and cost rationalisation, are designed to partly cover spiraling long-term costs, such as rising input costs to operations, including airline operating costs and infrastructure costs, among others, the company said. Blue Dart will implement the General Price Increase (GPI) from January 1. The average price increase will be in the range of 9 to 12 per cent, depending on product variabilities and the shipping profile, Blue Dart said in a statement. This essential decision ensures the continued provision of quality service, while fostering sustainable ecosystem collaboration, it stated. "This price adjustment is essential for sustaining our operational excellence, while continuing to offer solutions centered on the needs of our stakeholders. In conjunction with our .

The detailed project report (DPR) of a Rs 41,000-crore international transhipment port project at Great Nicobar Island in the Bay of Bengal is being finalised by the government, and it will go ahead with the implementation of the project in the next few months, a senior official said on Sunday. Great Nicobar Transhipment port project has been under scrutiny over environmental concerns. "The project has received the environmental clearances and nod from National Green Tribunal (NGT) and now there is no hurdle in its implementation. "The DPR of the project is also finalised and we are going ahead for its further implementation in the next few months," Ports, Shipping and Waterways secretary T K Ramachandran told PTI in an interview. Last year, the Ministry of Ports, Shipping and Waterways in a statement had said the project is expected to be completed with an investment of Rs 41,000 crore (USD 5 billion), including investments from both government and public-private partnership (PPP)

Blue Dart Express Limited on Tuesday announced an increase in shipment prices effective from January 1, saying the average hike will be 9.6 per cent as compared to the current prices, depending on the shipping profile. The company in a statement said customers signing up from October 1 to December 31, 2023 will not be impacted by the price increase. It said Blue Dart reviews and adjusts its pricing annually. This adjustment considers a multitude of factors including the current macroeconomic factors, geopolitical tensions, tighter monetary and fiscal policies, inflationary pressures, and exchange rate fluctuations, all of which impact the cost structure, the company added. Elaborating on the announcement, Blue Dart Managing Director Balfour Manuel said: "Our annual rate adjustment primarily aligns with inflation and empowers us to maintain service excellence while addressing rising costs." Blue Dart Express Limited, air and integrated transportation and distribution express logist

India's proposed transshipment port in the Andamans needs the right development model

The transhipment port would enable big ships to anchor and raise India's share in maritime trade, create new job opportunities and save a lot of forex, officials stated

The facility has been conceptualised to achieve economy of scale and provide unparalleled customer service

Part of the ease of doing biz initiative, it will give exporters and importers complete freedom for movement of goods