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Inhouse Newsletter - FFFAI NEWS

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  • 1. GOLDEN JUBILEE YEAR VOL. 1 ● ISSUE 3 CONGRATS! Ahmedabad CHA Association on Silver Jubilee Year 1962 50 years of Customs Act coincides with FFFAI Golden Jubilee year 2012 Honouring The Past - Celebrating The Present - Welcoming The Future
  • 2. Congratulation to FFFAI World Customs Organization, “Certificate of Merit“ awarded to Mr. Shantanu Bhadkamkar, Chairman of FFFAI Mr. Marc Van Peel, Chairman, Port of Antwerp, Certificate awarded to FFFAI on occasion of Golden Jubilee year Mr Shantanu Bhadkamkar , Chairman, FFFAI being awarded at MALA awards in appreciation of its 50 years service to trade Mr. Shantanu Bhadkamkar , Chairman , FFFAI being awarded at Conquest 2013 at N.Delhi towards 50 years of service to industry Mr. Shankar Shinde, Treasurer, FFFAI accepting award from Mr. Shashi Kiran Shetty, CMD of AVVASHYA GROUP Mr. Shantanu Bhadkamkar, Chairman FFFAI being awarded at the Gujarat Star Award toward service to industry Mr. Shankar Shinde, Treasurer, and Mr. Sailesh Bhatia, FFFAI and accepting AILBIEA,NEWS Award 1  ISSUE 3 FFFAI Stellar  VOL. 2 Mr. Bharat Thakkar, President, ACAAI congratulates Mr. Shantanu Bhadkamkar and presents Memento. EMPOWERING THE FREIGHT FORWARDER
  • 3. MESSAGE FROM CHAIRMAN The greatest discovery of all time is that a person can change his future by merely changing his attitude.” - Oprah Winfrey Dear Members, ‘Certificate Of Merit’ by the ‘World Customs Organisation’ is a prestigious award. It is a matter of great pride that on the occasion of the International Customs Day 2013 celebration in New Delhi on 5th February 2013, coinciding with the 50 Years of the Indian Customs Act, I received the Certificate Of Merit as a representative of FFFAI, in the Golden Jubilee year of FFFAI. Such Awards create a greater sense of responsibility to the fraternity we belong to and serve thought the platform of FFFAI. In addition, in the same month FFFAI was honoured in two more events. In the Conquest 2013 Conference, jointly organised by Exim India and ASSOCHAM on February 13th, FFFAI was honoured for service to the Industry. In an earlier event, on February 8th, Port Of Antwerp recognised contributions of FFFAI by presenting a Certificate of Appreciation to FFFAI; a certificate, rarely issued to organisations. Shantanu Bhadkamkar These awards are amongst the chain of recognitions FFFAI has received during last Chairman, FFFAI year or so, it is highly satisfying that our apex body is getting it’s due recognition. Despite our success, this is no time to rest on our laurels. In business we lose some business to the competitors, and gain some from the competitors. Today, it is no longer a case that merely our competitors took away a lot of our business; all the CHAs today are faced with a situation of surviving in an industry, which has all the features of having crossed the maturity phase and and are facing the classical phase described in the motivational book by Spencer Johnson, written in the style of a parable or business fable. I am please to a link of “Who Moved My Cheese” short movie. I have read the book long time back and refresher was necessary, it is a good rendition of this book: http://www.youtube.com/watch?v=-JL0Xg6YTlk&feature=player_embedded As Chairman of FFFAI in the Golden Jubilee Year, I take pride of the fact that our members have made significant contributions in facilitating the country’s International trade; on personal level, I am proud of being a Custom House Agent. CHA & Freight Forwarding business is highly evolutionary in nature, meaning we need to adapt to constant change, continuously upgrade our knowledge and service, and do so at lowest cost while expecting minuscule monetary return. Hence, Motivation i.e. sustained motivation is the key of building and maintaining the ability to hold on, so that we can face any challenge from anywhere in the world. I wish to quote, Booker T. Washington, “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome”. A life of a CHA is full of challenges, endless obstacles and dire hardship; hence, our success should be measured in the context of the situations of uncertainties we overcome to service the customer. Amongst other important developments include the launch of the FIATA Diploma by IIFF. FFFAI Biennial Convention, the most important event of our Industry will be held from June 13th - 17th, 2013 in New Delhi. It will be held in conjunction with IFCBA Board Meeting and AGM, hence it will be an International event. IFCBA will host a special session for the FFFAI delegates. We look forward to see you for the FFFAI Convention. Also on cards is FFFAI Trade Fair, which will give you and opportunity to you to showcase your services to all the stakeholders. I hope you liked the FFFAI Handbook, FFFAI Calendar & FFFAI Flag sent to you at the begging of the year. We will appreciate your suggestions on the same. We really cherish this opportunity of bringing the newsletter to our valued members and stakeholders. Encouraged with this response, we are extremely pleased to come out with this FFFAI News issue during our Golden Jubilee Year. We will be happy if we are able to achieve higher heights with a degree of completeness by active participation of everyone. Please set apart some time out of your busy schedule so that we can get in to an active and fruitful work initiative for betterment of our members in particular and International Logistics Industry in general; let us get into an active dialogue to discuss the future plans. We solicit your well considered suggestions for common good. If you’re not yet actively engaged and want to join the important work we are doing, I urge you to participate in our activities and engage directly by taking lead in any of the events or assignments. We hope this edition of the newsletter will be as cherished and enjoyed by the members as much as we enjoyed compiling it. Wishing you a happy reading time..., and look forward to hear from you. Shantanu Bhadkamkar Chairman EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 1
  • 4. CONTENTS - Vol.1 - No.3 MAR 2013 MESSAGE FROM CHAIRMAN FFFAI News FFFAI In-House Magazine & Ezine 8 Taxation a Precursor to Economic Growth _ K R BHARGAVA 26 Publisher Shantanu Bhadkamkar Interview Mr. Shantanu Bhadkamkar Chairman - FFFAI Editor Shankar Shinde Technical Content Case Laws, Important Notices / Notifications / Clarifications, Q&A, Nailesh Gandhi, T.V. Sujan, Anthony D’Souza, George Joseph, Madhusudan Kumra, A.V Vijaykumar, Vinod Chowdhary, Vinod Gandhi, M.G.Sachdeva Quiz, Contests & Competitions Philomena Pereira Coordinator Regional Reports Capt. Ashish Samarth Printing & Distribution Sailesh Bhatia Advertisements & Sponsors Sarfaraz Khan Office Bearers & Presidents of Member Associations Young Forwarder Will include once finalized Thinkable Thoughts Arun Kumar Sharma In Lighter Vein Amit Kumar Jain Member News – Personal Achievements Amit Kamat IIFT News Radhakrishnan R. Pankaj Shah Womens Wing Philomena Pereira Counceller’s Corner Prakash Khemka Printed & Published by Shantanu Bhadkamkar on behalf of Federation of Freight Forwarders’ Associations in India (FFFAI). Printed at Nikeda Art Printers Pvt Ltd., Unit No. H & I, Kanjur Industrial Estate, Quarry Road, Near Mangatram Petrol Pump, LBS Road, Bhandup (W), Mumbai - 78 and published at Mahinder Chambers, Opp. Dukes Factory, W.T. Patil Marg, Chembur, Mumbai 400 071. No part of this publication may be reproduced or transmitted in any form or by any means including photocopying or scanning without the prior permission of the publishers. Such written permission must also be obtained from the publisher before any part of the publication is stored in a retrieval system of any nature. No liabilities can be accepted for inaccuracies of any description, although the publishers would be pleased to receive amendments for possible inclusion in future editions. Opinions reflected in the publication are those of the writers. The publisher assumes no responsibilities for return of unsolicited material or material lost or damaged in transit. All correspondence should be addressed to FFFAI. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. 2 16 FFFAI Celebrates Golden Jubilee 24 HANDBOOK RELEASE ORDINARY MEMBERS 10 The use of Social Media by Logistics and Supply Chain Organizations 30 IIFF- Fiata Diploma Course Inuagurated Pancholi 32 Interview with Mr.Kartik Customs – President Ahmedabad 33 34 36 38 40 FFFAI NEWS  VOL. 1  ISSUE 3 House Agents Association UNION BUDGET 2013-2014 WOMEN WING REPORT FFFAI Activities and Reports... FFFAI meet at Ludhiana, and Amritsar MILESTONES NAME OF MEMBER ASSOCIATIONS Ahmedabad Custom House Agents Association Aurangabad Custom House Agents Associations Association of Custom House Agents Trivandrum Bangalore Custom House Agents Association Ltd. Bombay Custom House Agents Association Calcutta Custom House Agents Association Chennai Custom House Agents Association Cochin Custom House Agents Association Coimbatore Custom House & Steamer Agents Association Custom House Agents Association Hyderabad Delhi Customs Clearing Agents Association Goa Custom House Agents Association Indore Custom House Agents Association Kakinada Custom House Agents Association Kandla Custom House Agents Association Ludhiana Custom House Agents Association Mangalore Custom House Agents Association Mundra Custom House Agents Association Nagpur Custom House Agents Association Nashik Custom House Agents Association Pune Custom House Agents Association Rajasthan Custom House Agents Association Tuticorin Custom House Agents Association Visakhapatnam Customs House Agents Association EMPOWERING THE FREIGHT FORWARDER
  • 5. EDITORIAL Shankar Shinde Editor FFFAI News Phase to : Learn – Un-Learn and Re-Learn It is time for CHAs to review their business strategy with the ongoing economic slowdown , Looking at the economy stagnation in USA and the recession in Europe , there looks little hopes for India EXIM trade to take off by year end (2013) until there are some government policies initiatives to take a turnaround on the slowdown. In the last issue we had covered for a wakeup call , on various aspect , where SWOT analysis needs to be carried for every business and reviewed with an ongoing economic situation .Further the responsibilities, accountability and liability of CHA ‘s are increased with the change of regulation to Self Assessment which further fears leading to culpability. The logistics is the backbone of the EXIM Trade, There is a huge talent gap in logistics requirements which need to be filled with necessary education and training across the Country, looking for the opportunity in Logistics with FDI norms relaxed in retails with scope for FMCG gives some hope to have positive long term impact, Logistics would be playing an important role in making the market price competitive for Indian Exporters and Importers with right solutions to cost effective, on time delivery to save transaction cost and dwell time. The year ahead 2013 will be of great hopes and challenges , Industry turnaround is predominantly depend upon government initiatives and policy support to sustain healthy growth in EXIM trade and a shift in customers behaviour toward more tightening of inventory controls with reduction orders , which will shift the market from high segment movement cost to lower in logistics. We have been able to associate with our knowledge partners KPMG ,to understand the present state of our Industry which was produced in last issue and now look forward to see how the Logistics would be the Game Changer. We are happy to produce the summary on Logistics Game Changers for our well wisher, readers in this present FFFAI News issue. Hope you enjoy reading it. Shankar Shinde Editor FFFAI News shankar.shinde@globalbm.com EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 3
  • 6. OFFICE BEARERS MR. SHANTANU BHADKAMKAR CHAIRMAN MR. RAMAN RAJ SUD IMMEDIATE PAST CHAIRMAN MR. V.S.PRADEEP VICE CHAIRMAN MR. A. V. VIJAYAKUMAR VICE CHAIRMAN MR. NAILESH V. GANDHI VICE CHAIRMAN MR. AMIT KAMAT HON. SECRETARY MR. A. R. RAMARAJ VICE CHAIRMAN MR. PHILIP CC VICE CHAIRMAN MR. NARINDER PRABHAKAR VICE CHAIRMAN MR. SHANKAR SHINDE HON. TREASURER BOARD OF ADVISORS SHRI ARVIND N. PARIKH SHRI VINOD R. GANDHI SHRI N.T.RAMA RAO SHRI VINOD K. CHOWDHRY SHRI KURIEN MATHEW SHRI RAFEEQ IQBAL SHRI P.S.KRISHNAN 4 SHRI NAVAL H. MEHTA SHRI M.G.SACHDEVA SHRI RAM SHARMA CHUNDURU MR. R. RADHAKRISHNAN FFFAI NEWS  VOL. 1  ISSUE 3 EMPOWERING THE FREIGHT FORWARDER
  • 7. EXECUTIVE COMMIT TEE MEMBERS MR. SAMIR J SHAH CAPT.PIYUSH SINHA MR.ASHISH PEDNEKAR MR. O.G. HARI RAJ MR. PANKAJ SHAH MR. SAILESH BHATIA MR. C. B. BUJANGARAM MR. S. PARTHASARATHY MR.MOHD. NAYEEMUDDIN MR. ADIL KHAN MR. K. SURESH KUMAR MR. K.S. DESIKAN MR.SARFARAZ A. KHAN MR.OMPRAKASH AGRAWAL MR. RAGHU JAIRAM MR. ALAN JOSE MR.SHAILENDRA JAIN MR. KAILASH GUPTA MR.SHASHIDHAR V.HEBBAR MR. DEBASHIS DUTTA MR. DEVENDRA THAKKER MR. PUTTARAJU MR. RAVI JOSHI MR. GEORGE JOSEPH MR.SHANKAR PRASAD VERMA MR.DEBASHISH MODAK MR. S. NATRAJA MR. R.RAJESH KUMAR MR.DILIEEP T. ABRAHAM MR.G.A.KALYANA MOORTHY MR. C.S.NARENDAR MR.RAJENDER KUMAR GOYAL MR. S. RAMAKRISHNA MR. J.A. D’SOUZA MR.ANURAG VIJAYVARGIYA MR. AMIT KUMAR JAIN MR.SURESH KUMAR SHARMA MR. A.V. RANGA RAO MR. RAMESH BANSAL MR. T. V. SUJAN MR. PRAMOD SONETA MR. RAJESH VERMA MR. MADHUSUDAN KUMRA MR. MANOJ H. KOTAK MR. MANISH MISHRA MR. SHAREEF. M. MR. M. SHEKHAR PUJARI MR. SUDHIR AGARWAL MR. PARMANAND CHAND MR. S. Y. RANADE CAPT. ASHISH SAMARTH MR. JAGVIR SINGHJAIN MR.J.P.JOE VILLAVARAYAR MR.C.KARTHIKEYA PRABU MR.K.V.KRISHNA KUMAR MR. P.V. JAGANNATH MR. ARUN SHARMA MR. SUDHIR KUMAR JAIN EMPOWERING THE FREIGHT FORWARDER MR.PRAKASH KHEMKA FFFAI NEWS  VOL. 1  ISSUE 3 5
  • 8. NOMINEE OF ASSOCIATE MEMBERS MRS.PHILOMENA PEREIRA MR. DILIP BHAT MR. KIRAN RAMBHIA MR. RAJENDRA GARACH MR. S.B. SALIAN MR. SURESH DALVI MR.TEJ MAYUR CONTRACTOR MR. KISHORE T.S. MR.C.S.NAGENDRA PRASAD MR. SUBRATA GHOSH MR. SUDIP DEY MR. SUJIT CHAKRABORTY MR. VISHAL DADHA MR. D. VIJAYKUMAR MR. B. N. RAJMOGHON MR.N.V.S.PRASAD MR. TUSHAR JANI MR. VIPIN VOHRA MR. RAJEEV SIKKA MR. PANKAJ MEHTA MR. SANJEEV HARALE MR. ASHOK DHAKANE SPECIAL INVITEES OF FFFAI MR. DUSHYANT MULANI 6 MR. RAVINDRA GANDHI FFFAI NEWS  VOL. 1  ISSUE 3 EMPOWERING THE FREIGHT FORWARDER
  • 9. LIST OF COUNCILS AND SUB-COMMITTEES (2011-13) NAME OF COUNCIL SUB-COMMITTEES Sea Freight Council Mr. Sailesh Bhatia - Convener Mr. Alan Jose Mr. A.V.Vijaykumar Mr. Debhasis Dutta Banking Mr. Sarfaraz Khan - Convener Mr. Sudip Dey Air Freight Council Mr. Samir J Shah - Convener Mr. Vipin Vohra Mr. Kishore T.S. Mr.V.S.Pradeep Customs Council Mr. Omprakash Agrawal - Convener Mr. Rajesh Verma Mr. Sudip Dey Mr. C. Karthikeya Prabhu Mr. Ramesh Bansal Mr. T.V.Sujan Mr. J.A.D‘Souza Mr.Subrata Ghosh Mr.Shailendra Jain Mr.Sudhir Agarwal ICD based CFS council Mr. Narinder Prabhakar - Convener Mr. Sudhir Agarwal Mr.Shailendra Jain Mr.Rajesh Verma Rail/Concor Capt. Piyush Sinha - Convener Mr. Anurag Vijayavargiya Multimodal Transport Council Mr.Shantanu Bhadkamkar Convener Mr. S. B. Salian Insurance Mr. Sarfaraz Khan - Convener Mr.Debashish Modak Mr. N.V.S.Prasad Golden Jubilee Mr. R.Radhakrishnan - Convener Mr.Ashish Pednekar -Co Convener Mr.Sailesh Bhatia Mr. Pankaj Shah Mrs. Philomena Pereira Members Directory Mr. Sailesh Bhatia - Convener Mr.A.R.Ramaraj Mr.D.Vijaykumar Service Tax Mr. A.V.Vijaykuma Mr. George Joseph Trade Relations Mr. V.S.Pradeep Mr.Philip. C.C Government Relations Mr. Ashish Pednekar International Network Mr.Shantanu Bhadkamkar Convener Mr.Sailesh Bhatia Mr. V.S.Pradeep Brochure Mr. Sailesh Bhatia IT/ EDI Council Mr. Nailesh Gandhi - Convener Mr. K.Suresh Kumar Mr. S. B. Salian Website Mr. Nailesh Gandhi - Convener Mr. Amit Kamat Mr.Shankar Shinde Road Council Mr.George Joseph - Convener Mr. Sailesh Bhatia Mr. Nailesh Gandhi Mr. Ramesh Bansal Mr. S.Nataraja Mr.N.V.S.Prasad Mr.T.V.Sujan DMIC/ DFCC Mr. Arun Sharma - Convener Mr. Ramesh Bansal Capt. Piyush Sinha Port based CFS Council Mr. A.V.Vijaykumar - Convener Mr. Georg Joseph Mr. C.Karthikeya Prabhu INDIAN INSTITUTE OF FREIGHT FORWARDER (IIFF) Chairman Mr. Shantanu Bhadkamkar President Mr Shankar Shinde Hon. Secretary Mr. Pankaj Shah Infrastructure Mr. V.S.Pradeep - Convener Mr. Prakash Khemka Mr. Philip.C.C. Visioning Mr. Tushar Jani Mr.Shantanu Bhadkamkar CHALR Under Customs Council Mr. S.Ramakrishna - Convener Mr. J.A. D‘Souza Mr. Madhudushan Kumra Mr. Devendra Thakker Disciplinary Action Mr. Shantanu Bhadkamkar CFS WING Hon. Treasurer Mr. Shankar Shinde Committee Members Mr.O.G.Hariraj, Mr. T.V.Sujan, Mr. Samir Shah, Mr. Alan Jose, Mr. V.S.Pradeep, Mr. Debashish Dutta, Mr. D.Vjaykumar, Mr. Tej Mayur Contractor EMPOWERING THE FREIGHT FORWARDER WOMEN WING MEMBERS Appellate Mr. P.S.Krishnan Constitution Mr. Shantanu Bhadkamkar Direct Tax Mr.A.Ramaraj - Convener Mr.George Joseph Mr.Sudhir Agarwal KYC Mr. Rajesh Verma - Convener Mr.Debhashis Modak Mr. S.Nataraja AEO/ MRA Mr. Samir Shah - Convener Mr. Narinder Prabhakar Mr. A.V.Vijaykumar Mr. Nailesh Gandhi Customs Business Process Reengineering (Self Assessment) Mr. Nailesh Gandhi Membership Mr. A.Ramaraj Registration Mr.Shankar Shinde - Convener Mr. Pankaj Shah Mr. Amit Kamat Mr. K.S.Desikan Standard Trading Conditions Mr. Shantanu Bhadkamkar Convener Mr. George Joesph Mr.S.Ramakrishna Code of conduct (Harmonization) Mr. Phillip. C.C CHALR & Other Cases Mr. J.A.D‘Souza MSME Mr. S.Ramakrishna Mr. O.G.Hariraj News letter Mr. Shankar Shinde ISO 9001 Mr. Pankaj Shah Media Mr. Arun Sharma FFFAI certificate of competence Mr. Shantanu Bhadkamkar Mr.G.A.Kalyanamoorthy Aiysha Khan Alka Shah Anisha Talajia Anuradha Prabhakar Beena Rambhia Beena Shah Bela Desai Binita Tanna Chaitaly Mehta Christine Glen Cinthu T Deaon Goswamy Deaons Goswamy Deeplaxmi Pednekar Devanshi Shah Dipti Desai Geetha Rubin Janet Dsouza Jyoti Bhadkamkar Kajal Shinde Kirti Chand Lara Menezes Leena Ganguly Marshneel Tarkar Meena Ramakrishna Melisia Pereira Mrunal Tanna Nagalakshmi C Naman Shah Neeta Shah Niketa D Desai Nisha Petkar Pallavi Bhatia Philomena Pereira Phoram Sampat Poonam Sharma Preceilla G. Goswamy Preceilla Goswamy Preeti Garach Priyaanil Thomas Pushpaleela Nadar Radhika Contractor Ramila N Desai Rani Das Rathik D‘Silva Rekha Pandey Renu Agrawal Rita Contractor Sheena Binu Shivani Goswamy Smita Thakkar Sonali Jhaveri Sridevi Ramaraj Suhasini Bobbli Tanu Nikhra Tejashri Gosalia Trisha Agrawal Usha Bansal Vandana Khemka Varsha Parulekar YOUTH WING MEMBERS Jisby Ann Bose Abhijeet P Nair Abhishek Vasant Patil Amit Ghosh Amit Chandrakant Thakker Ashwin Sankar Bejoy Majumder Dev Kumar Mullick Dr Darshan Mashroo Gorakh Tukaram Shinde Gulshan Ashok Dhakane Harish Ramanathan Kajal Datta Shinde Karan Kiran Rambhia Kashmira Ashok Dhakane Kriti Venkatesh Dikshit Mihir Pankaj Shah Mihir Shantanu Bhadkamkar Rajeshwar K Pattikankam Reshma Radhakrishnan Dixit Rishi Dev Ratan Rishi Sanjay Tiwari Rohan Radhakrishnan Dixit Sangeetha Prabin Kumar Saptarshi Kar Sayantan Kumar Ghosh Suraj A Rajan Vaibhav Vohra Vijay Chinnappan Gounder FFFAI NEWS  VOL. 1  ISSUE 3 7
  • 10. FEATURE ECONOMIC GROW TH Taxation a Precursor to Economic Growth –Part-II KULDIP R BHARGAVA, FORMER CHIEF COMMISSIONER OF CUSTOMS By K R Bhargava F inance Minister’s wish that taxation should be precursor to economic growth is a genuine wish; it is happenable; it can happen but he needs to build a movement within the organization involving officers from top to bottom to move to that goal; and removing a fear of unknown in the minds of officers that retards such movement. I am motivated to write as TIOL carried a news item in Breaking News Column from Mumbai in the first week of January, 2013 in regard to refund of Security Deposit in Project Imports. The story in brief is follows: An importer imported heat exchanger plates under the Project Imports scheme in 2004. In terms of CBEC’s circular, he furnished 2% Security Deposit. After the imports were complete and necessary installation/utilization certificate was furnished, assessment was finalized and importer was entitled to refund/release of Security Deposit. The competent authority sanctioned the refund amounting to Rs. 1,73.754 but credited the same to Consumer Welfare Fund of India for the reason that 8 FFFAI NEWS  VOL. 1  ISSUE 3 applicant could not discharge his obligation as required under the provisions of Unjust Enrichment in as much as that burden of 2% of Security Deposit was not passed on the buyers. Aggrieved by the order, applicant filed appeal before Commissioner (Appeals) who upheld the order of the lower authority. Again aggrieved by the Order in Appeal, party went before CESTAT and it is CESTAT that gave relief to the importer in December 2012 (2012-TIOL1969 CESTAT Mumbai) and held that relevant provisions of Section 27 relating to refund of duty and interest were not applicable in case of refund of Security Deposit. It is not difficult to appreciate that Security Deposit is given/taken in project imports to secure any short levy/ short payment that may come to notice on finalization of the imports. And if no short levy/short payment is seen at that time by the competent assessing officer, justice demands that without wastage of time, Security Deposit should be released to the importer. Let us look at the relevant part of provisions of Section 27 of the Customs Act, 1962; and for convenience, these are reproduced below: [Section 27- Claim for refund of duty.- Any person claiming refund of any duty and interest, if any paid on such dutyi. paid by him in pursuance of an order of assessment; or ii. borne by him, may make an application for refund of such duty and interest, if any paid on such duty to the Assistant Commissioner or Deputy Commissioner of Customs------------------.] A simple perusal of aforesaid provisions by a person of common prudence leads firmly to conclude that provisions of Section 27 apply to refund of duty and interest, if any paid on such duty. Security Deposit by its very nomenclature is something different; it is a guarantee prescribed under Para 3.3 of Chapter 5 of CBEC Manual to cover risk of short levy if any that may be noticed while finalizing the imports. If duty is paid correctly; it has to be released to the depositor. To appreciate still better, i quote a simple example below that has been part of our experience. When PET bottles were not there in the market, mother used to send his responsible child to the nearest shop for getting Coca Cola/Pepsi/Limca bottles to serve the guests at home. The shopkeepers used to give required number of bottles on payment of price per bottle and in addition, he retained predetermined amount per bottle as deposit against return of empty bottles. As soon as, the family returned all bottles, security amount was returned in full. If there was any short delivery, he deducted amount against that bottle and returned the balance of Security Deposit. Thus conEMPOWERING THE FREIGHT FORWARDER
  • 11. dition of refund of security amount was return of empty bottles. On the same analogy, 2 % Security Deposit needs to be refunded as soon as Department on finalization of the Project Imports realizes that importer has paid duty correctly and there is no short levy or short payment. The learning point is that our common prudent experience in day to day life coupled with strict reading of the legal provisions helps in arriving at a correct decision in accordance with law without wasting of time. Another important learning point is that because of incorrectly stretching the legal provisions in the instant case, importer will get his release of Security Deposit after a period of more than 8 years and Department will not be bound to pay him any interest for delay in release/ refund of Security Deposit as provisions of Section 27 A apply to delay in refund of duty only. Consequently, he suffers on account of:A.interest loss for 8 years; B.cost incurred in preparing appeal before two authorities and engaging counsel for appearance before authorities; C. time and own manpower deployed by the importer to contest the case; and D.anxiety and uncertainty. Importer must have incurred cost equal to the amount of refund sought. Seeking refund was his compulsion as his auditors and shareholders would have raised serious objections for not applying for release of Security Deposit; otherwise, looking to the difficult, complicated, costly, endless exercise, he might have abandoned the right of seeking refund. What is gain for the Department? There is no gain. a.It loses the case; b.It wastes time of appellate forums; c.It incurs cost in defending an order which was wrong ab initio; d. t causes pain to the people for whom administration I is set up; and e.More importantly, it loses credibility and by no stretch of imagination the decision of the Deputy Commissioner or Commissioner (Appeal) was in the interest of revenue. It was against the public interest. Taxation instead of becoming an accelerating factor or precursor in economic growth proves a retarding factor or inhibitor in economic growth. However, somewhere tax payers can see ray of hope also. On the above subject, JNCH, premier Customs House of the country, in 2010 realized the subject matter being dealt with in a mechanical, routine manner to the determent of trade and came out with a Public Notice No 88/2010 dated 8.9.2010 issued by the Commissioner Imports; the operational part reads as below: [Subject: Refund of cash security deposit paid for registration of contract 2. At present after finalization of project imports and cancellation of Bond, importers are filing refund claim with CRC-I in Performa Part A along with requisite docEMPOWERING THE FREIGHT FORWARDER uments related to project imports. After scrutiny of documents, the Order in Original is passed sanctioning the refund of security deposit after pre auditing wherever warranted. Thereafter, Refund Order is prepared after defacing the concerned documents and file is forwarded to the CAO, JNCH for final disbursement of the sanctioned amount through RTGS account. 3. To further streamline the procedure and for trade facilitation, matter has been reviewed and it has been decided that no refund claim is required to be filed with CRC-I and the entire process of refund of security deposit shall be processed by the concerned Group (GroupVI) itself. The Group shall pass a sanctioning order after the pre audit wherever warranted and then send the Refund order to the CAO after defacing the security deposit challan. The CAO, thereafter, shall prepare the cheque and forward to the Bank for further transfer of the same to the party’s RTGS account. ] It can be noticed that as per Para 2, practice was to treat refund of Security Deposit as refund under section 27 of the Customs Act necessitating passing of Order in Original but on review, it was decided to treat it differently, different than refund of duty and interest. The responsibility to refund/release Security Deposit was given to the concerned Group who on finalization of the imports will prepare a Refund Order and send to the CAO for making payment. Such release of security can take place within one month of finalization of imports. No adjudication or Order in Original is required and importer has not to wait for years to seek release of security deposit. Perhaps, Minister can keep his hope alive in such Public Notices/orders issued by his officers. He and his top management should identify, appreciate and encourage such efforts in an appropriate manner so as to develop the desired culture. And lastly, developing the desired culture is not easy. On 04. 01. 2013, TIOL ran a story “CBEC and Government determined to kill Small Assesses”. The story reveals that justice is largely delivered at CESTAT stage only. Field officers empowered to adjudicate cases in a quasi judicial manner by following the principle of natural justice in accordance with settled principles of jurisprudence do not respect the Board Circulars and Supreme Court judgements; rake up issues settled long back; harass assesses under the authority of Board’s instructions leading to closure of factories. The foregoing story leads to conclude that Minister’s visionary statement; “Taxation should be a Precursor to Economic Growth” is only a wish”. And they say,” if wishes were horses, beggars would have been the riders”. Merely telling the probationers will not help; they will go by the prevailing dominant culture in the field. Both CBEC and Minister need to work closely to convert the Visionary Statement into a Policy and Action Plan Instrument. Centre for Excellence under CBEC may be considered to gear up to meet such challenges.  [Author is former Chief Commissioner of Customs and comments are welcome and can be mailed at kuldiprbhargava@gmail.com] FFFAI NEWS  VOL. 1  ISSUE 3 9
  • 12. FEATURE RESEARCH THE USE OF SOCIAL MEDIA BY LOGISTICS AND SUPPLY CHAIN ORGANIZATIONS Abstract Three years ago social media began to lightly knock on our marketing doors. Today, the door is left dangling, hanging from its hinges. LinkedIn, Facebook, Twitter, Google+ have influenced marketing faster than any other media since the invention of the Internet. Social networking has been adopted at a lightning pace by consumers, first taking hold of college students and then swiftly making its way across the world. Today, it is said that if Facebook were a country, it would be the world’s third largest. In the last decade, marketing companies have never seen a change as vast and swift as the effect social media have had in the way companies communicate with the consumers. In an expert’s opinion those marketers who have embraced all of these new channels will prove to be the “last man standing” when it comes to reaching potential customers. The majority of the world’s leading brands were quick to recognize this new channel as a faster, more effective, and significantly less expensive way of interacting with buyers. This paper focuses on why most of the Logistics and Supply Chain Organizations refrain from using Social media as an effective marketing tool and suggests a roadmap for such organizations to tap the opportunities and develop strategies for reaping maximum benefits out of Social media. Introduction Social media has played a major role in every walk of life, be it business or social relationships. It is a phenomenon that people are still trying to figure out how best to exploit. Let’s face it: For better or for worse, the Facebook generation has revolutionized the way we communicate with each other, stay abreast of news, and market our goods and services. Those of us who were 10 FFFAI NEWS  VOL. 1  ISSUE 3 slow to understand what all the hoopla was about are now compelled to accept that younger workers and customers spend their lives hard-wired to technological devices and applications. E-mails and texting come much more easily to many of them than face-to-face or telephone conversations with other human beings. Meaning of Social Media Some might have familiarization with the following logos but might be unaware what these stand for. Hence the best way to define social media is to break it down. Media is an instrument on communication, like a newspaper or a radio, so social media would be a social instrument of communication. In Web Terminology, this media does not only give you the information but also interacts with you while giving the information. This interaction could be as simple as allowing you to provide your comments or vote for an article. Think of regular media as a single direction communication like a news paper or television which just allows you to read or watch the report but does not allow you to provide your thoughts on the same. Social media is a two - way communication since it allows you to communicate too. Significance of Social Media Social Media helps in attracting new customers and to generate brand awareness. To a certain extent social media also helps to establish preference and demonstrate credibility especially in case of services which are intangible in nature. It is very hard for customers to know what to expect. They can’t try out or evaluate the service levels before they actually commit to buying. Social media allows in providing tangible evidence, such as case studies or testimonials, so potential clients can evaluate the services through the experience and feedback of previous EMPOWERING THE FREIGHT FORWARDER
  • 13. customers. Social media also helps to create loyalty to an existing brand as it has the potential to help create some real brand advocates. They make it simple for fans/followers/connections to share things they like and now not only to tell their friends about us but also complete strangers they would never otherwise encounter. Why Logistics and Supply Chain organizations do not use Social Media Extensively? Generally Logistics and Supply Chain organizations use Social Media very minimally. It is mainly used for posting press releases or connecting with customers or vendors. These organizations mainly use Facebook for external communication, Twitter for propagation of the company’s brand building and LinkedIn for job postings. In fact, a lot of companies have even banned these popular social network sites in their organizations since according to their management, it has hampered productivity of the employees as well as affected the security of the company information. However, this is a matter of debate. A few other reasons are: ‘Social’ creates a wrong impression: As per many supply chain experts, the word ‘Social’ creates an informal impression. As a result, they view “social media” as a medium to socialize rather than business. For example, Facebook’s status prompt — “What’s on your mind?” — is as generic as you can get, and it reinforces the image of social media as a tool to socialize, not to get work done. Getting people change the way they work: With new technology comes the tedious task of training and most importantly convincing them to change. How many people react when confronted with new technologies and processes. Being creatures of habit, getting to change is not easy, especially with the belief that this way of doing things is better (easier and faster) than the new way being proposed. No time or desire to access yet another information system. To paraphrase what is regularly heard: “I barely have enough time in the day to get through my emails and voicemails; how do you expect me to use yet another system to keep track of discussions and status updates?” Simply put, social media is viewed as more work. EMPOWERING THE FREIGHT FORWARDER But such companies need to look at the successes of the other companies. A survey conducted by McKinsey in 2010, 2/3 of the large companies surveyed have increased the use of the social network tools and blogs by 50 % since 2008 and 90% of them have reaped at least one fruitful business from the use of social media, though it has been modest. Opportunities for the Supply Chain Steve Nicholls, an international speaker and Social media strategist has pointed out 4 main business opportunities for Supply Chain organizations, commencing with Collaboration. The supply chain means a set of companies or individuals that work together to create and deliver a product along its many processes from the supplier to the customer. Social media increases the potential for collaboration vastly for businesses with offices scattered all across the globe. Social media platforms can serve as a potential environment to enhance communication not only internally but with other key industry players. Companies in the supply chain can create their own communities in order to develop a more cohesive work process, or participate in external ones as well in order to find out more about certain aspects of supply chain operations. A range of useful online applications such as invoicing, information management or Web conferencing are at disposal to enhance the productivity. Next are the benefits of Collective Intelligence. Problems are bound to happen and social media allows companies in the supply chain to detect them quickly, efficiently and find solutions. Useful, user-generated feedback can be turned into business intelligence for companies’ own benefit. Discussion boards, surveys, rating systems, recommendation systems and idea platforms can all be used by a company to provide and share feedback between each other and thus highlight potential problems. This process not only allows participants to voice their thoughts easily, instantly and from any geographical point, but enables companies to gather extremely valuable information to improve operations and find new ideas.” The real impact of social media platforms won’t be felt unless messages sent via them are targeted rather than FFFAI NEWS  VOL. 1  ISSUE 3 11
  • 14. FEATURE RESEARCH broadcasted to everyone. In other words, there is a need to be able to evaluate the business impact of a piece of information. Finally a few thoughts about Communications and Communities. With social media, the supply chain can enhance communication, create communities, improve collaboration and collect useful information. The key for businesses, however, is to choose the optimal blend of social media applications that will answer specific business goals. Adopting social media to particular business needs will be the core of a successful social media strategy. Benefits and Drawbacks of using Social Media Social Networking guru Tim Richards, also an Operations Manager at States Logistics Services Inc. has suggested the following ways to reap maximum benefits out of social media: Create presence on the web by creating a profile. LinkedIn is most popular choice for most businesses. Facebook and Plaxo are also widely used. These enable you to search and join groups and organizations of your interests and sign up for updates Read profiles of the leaders in your industry and see what group discussions they participate in. Take this unique advantage of social media and do not be shy to jump in. Use online surveys o not follow companies that duplicate media news D or keep talking in marketing voices. Follow companies that provide real solutions through case histories rather than shameless self-promotion. Set up a time each day to monitor your social sites. Use them as a research tool. Browse candidate profiles and job postings to reach out to potential candidates. Post for job openings. Decipher the negative. Discriminate the posts by a disgruntled ex employee and a true negative analysis. Examine both - True criticism and positive comments. Many service providers display a social network link on their homepage. You can click on the Twitter link to “follow” and start receiving its news and announcements. Sign up for RSS Feeds. This helps you stay abreast with current information, news and updates. Start your own group to frame the discussions about your concerns. Most important - Get Customer input. Get info about what the company is doing right or wrong. Create a blog and ask customers to post their experiences and suggestions how to improve. Like everything with this much potential, there are of course downsides, key drawbacks are listed and discussed below: Negative reviews: While social media let people share good things, it also lets them share any negative experiences. While good service helps to dispel stress, customers can quickly turn volatile if something small goes wrong. Customer service recovery is key, and if one can 12 FFFAI NEWS  VOL. 1  ISSUE 3 handle a complaint properly in a public forum they can turn a negative into a positive by demonstrating professionalism in handling issues. Time commitment: Another pitfall of social media is that it is time consuming. It’s important to have a plan, to schedule what conversations one would like to start or encourage to engage fans and followers at certain points and how this links in with other marketing activities. Pushing out content is not the only thing that needs to be regular to keep people interested and brand awareness up. Engaging in conversation is even more important than that. An unanswered post from a customer quickly turns into a demonstration of poor customer service if one forgets to log in for a few days and it goes unanswered. Distraction: Social media are also a can of worms and can be hugely distracting if allowed. One enjoys reading, being interested in what’s going on elsewhere, what the related industries are doing, what customers are saying, what other people’s customers are saying. One can easily run away with on social media and lose hours browsing one link to the next without noticing the time. Monitoring the amount of time spent on social media is the key. Conclusion It’s too early to demonstrate real return on social media investments. While use of social media is free, the time it takes to participate effectively is not, and tracking return is very difficult. Calculating the return on investment isn’t easy, for example, it is difficult to ascertain whether a customer made the decision to avail services from a company based only on an advertisement in the Yellow Pages or because the customer has also read testimonials and feedback on a social media platform. Eventually, this whole discussion about “use of social media by supply chain organisations” is believed to be irrelevant in five years, if not sooner. The use of social media technologies to engage with customers and manage supply chain processes will simply become the norm, just like the Internet and Web became the norm more than a decade ago. References LOG.India - India’s leading Logistics Magazine - Nov 2012 | Vol. 6 | No.3 The Portal - The Journal of International Association of Movers - Sept-Oct 2011 | Vol. XLIII Blogs on Logistics ViewPoints by Adrian Gonzalez nterprise Resilience Management Blog by Stephen F. DeAnE gelis & Bradd C. Hayes General Interviews of employees from Tata AutoComp System Ltd., Pune Nirav C. Thakker, Director, 24x7 Logistics Private Limited and also an faculty to IIFF Institute. EMPOWERING THE FREIGHT FORWARDER
  • 15. FFFAI NEWS Conquest 2013 T he Conquest 2013 International Conference on Infrastructure, Logistics and Supply Chain, the fourth edition of the event, and the 2nd Northern India Multimodal Logistics Awards 2013 held at the Le Meridien on February 13. The conference, jointly organised by Exim India and Assocham, lived up to its gradually built up reputation of being the definitive avenue for discussion and debate on all the relevant topics pertaining to the present and future of the maritime, cargo and logistics industry in North India. The awards, too, have been gaining in popularity, which was reflected in the increased enthusiasm and response from the fraternity. The inaugural session was graced by the top policymaker for all things maritime, the Shipping Secretary, Mr P. K. Sinha. He made the key revelation that the government plans to deregulate tariff at the Major Ports and change the role of the Tariff Authority for Major Ports (TAMP) so as to attract more private investment. He also stressed on the need to have an integrated plan to fill the connectivity gaps in logistics and said that the government had initiated the process to boost coastal shipping by augmenting coastal infrastructure, improving road/rail infrastructure and bringing in private investment. The focus was on facilitating a modal shift from road, he pointed out. Numerous other opinions were expressed, impediments highlighted and solutions suggested throughout the day, at the inaugural session and the four technical sessions that followed, which will be compiled in the form of a wishlist and presented to the relevant Ministries and other authorities. The inaugural session also had, as guests of honour, Mr L. Radhakrishnan, IAS, Chairman of Jawaharlal Nehru Port Trust, Mr Anil K. Gupta, MD, CONCOR, and Mr S. K. Goel, CMD, India Infrastructure Finance Co. Ltd. Mr Asok Kumar Mohapatra, Former Secretary, Ministry of Shipping, gave the opening remarks and outlined the conference theme, while Mr D. S. Rawat, Assocham Secretary-General, proposed the vote of thanks. The third technical session focused on Growing importance of Forwarding, Supply Chain and State-of-the-art Warehousing facilities, and had as participants Mr B. B. Pattanaik, MD, Central Warehousing Corporation, Mr Shantanu Bhadkamkar, Chairman, Federation of Freight Forwarders’ Associations in India (FFFAI), Mr Arun Sahu, DG (Systems), Central Board of Excise & Customs, Mr Anil Arora, MD, M. J. Logistics Services Ltd, and Mr Harpreet Singh Malhotra, Promoter & MD, Tiger Logistics (I) Pvt. Ltd. EMPOWERING THE FREIGHT FORWARDER Conference on “Vision for Port Lead Development of Maharashtra” Maharashtra Chamber of Commerce, Industry & Agriculture organized a One Day Conference on “Vision for Port Lead Development of Maharashtra” on 9th January, 2013 at Hotel Taj Vivanta, Mumbai. Minister of State for Home Hon’ble Shri Satej Patil, Minister of State for Ports Hon’ble Shri Bhaskar Jadhav, Mr. L. Radhakrishnan, Chairman of JNPT, MACCIA President Mr. Ashish Pednekar, Vice President and Convener of the Conference Mr. Amit Kamat, MACCIA’s Port Committee Chairman Mr. Atul Kulkarni, MACCIA’s Sr. Vice President Mr. Ramchandra Bhogale were on the dais for the Inauguration function of this Conference. MACCIA taken an opportunity to recognize some special efforts taken by the Giant personalities in this sector. An award is presented to Jawaharlal Nehru Port Trust for Contribution to Maharashtra’s Economy. Capt. Deepak Tewari awarded as an Exemplary Shipping Professional and Mr. Shashi Kiran Shetty awarded as a Global Indian Maritime Personality. These awards were presented at the hands of Mr. L. Radhakrishnan, Chairman of JNPT. The Conference consisted of two technical sessions and one panel discussion with the valedictory session at the end. Mr. S. K. Sharma, Principal Secretary, (Transport & Excise), Home Department, GOM was the Chairman for First Technical session on “Government’s Role in facilitating Port Infrastructure Development”. Capt. BVJK Sharma, Mr. H. D. Gujrati, Capt. Gaurav Rana & Mr. Dileep Bhagwat presented their views on different subjects in this session. The second technical session on “Value Addition by Non – Major Ports” was chaired by Mr. Niraj Ambani, Head – Reliance Logistics. Different presentations were made by Mr. Anil Devli, Capt. N. K. Sah, Mr. Detlef Kaufhold, Mr. Shakeel Kudroli and Mr. Ashok Vaid in this session. The Panel discussion on Port Development Vision was led by Former secretary Shipping Mr. M. P. Pinto with the experts like Capt. J. B. Rohilla, Mr. Raj Khalid, Mr. Richard Bradshaw, Mr. Xerxes Master and Ms. Ami Mistry, which was a fruitful one. The Conference was well attended by participants from shipping as well as port sector with different stake holders. There was an active participation from Port of Liverpool and Port of Antwerp for the conference. FFFAI NEWS  VOL. 1  ISSUE 3 13
  • 16. FEATURE REPORT SUMMARY Logistics Game Changers – Report summary Introduction A sophisticated logistics sector should constitute the backbone of a large, mature economy. In this context, although India’s logistics sector has witnessed increased investment, evolving regulatory policies, mega infrastructure projects and several other initiatives, there is a need to significantly accelerate the pace of such developments. While traversing this road to development, there are multiple projects and services that are currently either at the planning or implementation stage. Such developments span across all modes of transportation and logistics services and involve the active participation of all stakeholders, ranging from logistics service providers and policy makers to end users and industry think tanks. KPMG in India’s report titled “Logistics Game Changers – Transforming India’s Logistics Industry” features analysis on the key developments and opportunities across various modes of transportation — including road, rail, air, ports and water, as well as the storage segment — which could rightly be termed as game changers for the logistics industry. In this context, KPMG has researched the potential of certain key projects and trends imperative to realize an efficient, effective, lean and reliable Indian logistics network. Logistics Game Changers Game Changers Trends Air Emergence of new cargo centers Increasing participation of service providers 14 While the metros have led the initial charge, opportunities in the air cargo sector now extend to tier-II cities, which constitute the majority of the country’s population. Against a CAGR of 10.5 percent at metro (tier-I) hubs between 2006 and 2011 — when volumes increased from 1.3 MMT to 2.1 MMT — the tier-II (non- metro) hubs witnessed increased growth of 14.5 percent during the same period, with volumes increasing from 0.13 MMT to 0.26 MMT. From a relative perspective, Trivandrum, Cochin and Calicut appear to be favorable for freight-forwarding companies; Pune, Nagpur, Guwahati and other cities seem to be inclined toward 3PL service providers. Ahmedabad is equally attractive for both classes of services, or a step ahead, for larger companies that provide a much wider spectrum of logistics offerings. FFFAI NEWS  VOL. 1  ISSUE 3 Game Changers Trends Improved air cargo infrastructure at airports Heightened focus on developing cargo terminals and related infrastructure has driven initiatives in recent times. Investment in airport infrastructure has grown substantially over the last FiveYear plan, with Twelfth Five-Year Plan (2012–17) outlining investments worth INR675 billion, an increase of 86 percent over the Eleventh Plan allocation. Ports Maritime Agenda 2010–2020 Under this program, the GoI plans to invest INR2,870 billion in generating total port capacity of 3,200 MMT and cater to expected cargo traffic of 2,500 MMT by the end of 2020. It intends to encourage private investment in both major and non-major ports and bring port performance at par with international standards. Non-major ports Between 2007–08 and 2011–12, cargo traffic at non-major ports increased at a CAGR of 13 percent over a CAGR of 2 percent at major ports; its share increased from 28 percent to 39 percent, clocking 338 MMT in total traffic versus 560 MMT at major ports. Growth of traffic at non-major ports over the past few years has been primarily led by the development of ports in Gujarat, mainly the Mundra, Pipavav and Hazira ports. EMPOWERING THE FREIGHT FORWARDER
  • 17. Game Changers Trends Game Changers Trends Containerization The EXIM container market in India has grown at a CAGR of 12 percent in the past five years, as compared to the 8–10 percent growth that other commodities such as POL, Iron ore and coal experienced during the same period. At 51 percent, the containerization level in India continue to fall short of that in developed countries, which have achieved significant levels of 70–80 percent. Evolution of trucking community East coast ports With their contribution to India’s total trade expected to increase from 23 percent in 2010 to 34 percent in 2014, east coast’s ports are expected to significantly drive growth in the ports sector. GoI plans to create additional port capacity of 900 MMT and invest INR1,126 billion to boost cargo-handling capacity at ports along the east coast. Non-major ports are expected to contribute 57 percent of total investments in east-coast ports and 46 percent to total capacity added in eastcoast ports. The existing Indian road freight transport industry is highly fragmented, with 70–75 percent of truck owners operating a maximum of five trucks each, while operators owning more than 20 trucks constitute about 9–11 percent of the ownership pie; the remaining share of 15–20 percent belongs to operators owning 6–20 trucks. This disaggregated ownership has resulted in fierce competition amongst operators resulting in truck owners resorting to overloading to recover investments. Rail Dedicated Freight Corridors The project envisages the construction of two corridors, one each on the west and east routes, spanning a total length of about 3,300 km. Freight via the DFC is expected to increase from 140 MMT in 2016–17 to 182 MMT in 2021–22 at a CAGR of 5.4 percent. Container traffic, which is likely to be an important constituent of total traffic on the Western DFC, is expected to grow from 3.8 million TEUs in 2016–17 to 5.3 million TEUs in 2021–22. Warehousing Emergence of modern The demand for industrial warewarehousing formats housing space is estimated to have grown from around 391 million sq. ft. in 2010 to 476 million sq. ft. in 2013, at a CAGR of 6.8 percent. The share of modern warehousing is anticipated to grow from 15 percent (62 million sq. ft.) in 2010 to 30 percent (178 million sq. ft.) by 2015. The highest growth is expected from engineering goods, and IT, electronics and telecommunications sectors, estimated to grow at CAGRs of about 8.6 and 8.2 percent, respectively, during 2010–13. Free-trade warehousing zones Roads Development of National Highways (NH) NH constitutes about 2 percent of total road network and accounts for more than 40 percent of total road freight. During the first eight Five-Year plans, the total length of the developed NH stood at 11,930 km; in contrast, over the last three plans developed NH stood at 43,050 km — almost 3.6 times in length in 0.4 times the time period. A comparison of the Twelfth Plan versus Eleventh plan suggests a 3.6-fold increment in proposed construction and upgrades of the NH. EMPOWERING THE FREIGHT FORWARDER While the full potential of FTWZs in the Indian context is still at a premature stage and remains largely unexplored, the concept has been time-tested across multiple geographies with significant success. As a concept, FTWZs offers significant value-addition opportunities to multiple industries by virtue of being deemed foreign territory. Water Inland waterways Growing at 7.2 percent over the past five years, IWT cargo traffic was estimated at 79 MMT in 2011–12. India falls short in the share of IWT at 0.5 percent as compared to China at 8.7 percent, the US at 8.3 percent and Europe at 7 percent. The development of the Indian IWT landscape holds immense potential due to its characteristic advantages over other modes of transportation, especially for bulk movement FFFAI NEWS  VOL. 1  ISSUE 3 15
  • 18. FEATURE REPORT SUMMARY Coastal shipping Coastal shipping is an important component in the development of domestic industry and trade due to its environment-friendly, cost-effective and fuel-efficient services. In 2011–12, coastal cargo constituted 17 percent of total cargo at Indian ports and increased at a nominal CAGR of 4.5 percent to 160 MMT in 2011–12 over the past five years. In 2011–12, coastal traffic at major ports accounted for 70 percent of total coastal cargo traffic and 18–20 percent of the total cargo handled at major ports. Coastal traffic at nonmajor ports comprised 14 percent of total cargo handled for the same period. Recommendations and next steps At a time when awareness around specific initiatives is widely recognized, the objective is to capture distinct aspects that could potentially revolutionize each segment. That said, the collective evolution of India’s logistics industry can only be realized through uniform progress across segments. For India’s logistics sector to fulfill its role in supporting the country’s rise as a complex, multi-layer and mature economy in future decades, the following recommendations should be considered to develop a universal roadmap for the industry: • Create appropriate policy changes per mode of transportation (road, rail, water and air), increasing investment in the various modes of transportation and opening up capacity, especially for rail and waterways. • Harmonize and streamline processes across government bodies that have a role to play in the logistics sector, thereby reducing stoppages and touch points of cargo movements, as well as increasing the speed with which goods are transported within, into and out of the country. • Engineer the overlap of cargo networks, so that intersections of modes of transport are close to the produc- tion centers of bulk, industrial, consumer goods and farm produce. • Set benchmarks and standards for the industry, thereby driving the uniformity of warehouses, storage and transportation equipment • Channel the movement of commodities to suitable modes of transportation. Divert the transportation of bulk commodities from road to increasingly appropriate modes such as rail and waterways, thereby freeing up capacity for consumer goods and also reducing the risk of accidents. • Decongest airports and seaports, shifting cargoclearance activities away from expensive real estate to inland or port or airport locations. • Establish safety, health and environment (SHE) related standards centrally to facilitate uniformity across industry sub sectors and companies while increasing safety and limiting the adverse environmental effects of the sector on society. Conclusion The objective of the Logistics Game Changers report is to identify critical initiatives and measures that are likely to serve as prerequisites to growth across six individual segments of the Indian logistics landscape. Rather than focusing on the real and perceived shortcomings of the India’s logistics landscape, the report aims to highlight the need to bridge various gaps that prevail in each segment of the industry, thus posing as hurdles along its growth curve. The various game changers identified in the report do not symbolize the desired end state of logistics in India; rather, they represent a few of the many initiatives that must be implemented if India’s economic potential over this decade is to be fulfilled. The report highlights potential game changers spanning marquee infrastructure initiatives such as the DFC project, National Highway development program and the Maritime Agenda. Additionally, it intends to highlight various legacy trends such as fragmented trucking and unorganized warehousing landscape, which need to evolve rapidly.  - Prahlad Tanwar, KPMG Members quotes I have received a hand book (It should be called “hands” book, as only two hands together can pick it up), along with a calendar, newsletter and a very well worded Greetings card. It would be no exaggeration to say, that you have been doing exemplary work as the Chairman of FFFAI. I can well imagine the amount of time that you must be devoting to the Federation’s work. My congratulations. Arvind Parikh – Former President FIATA & Advisor FFFAI 16 FFFAI NEWS  VOL. 1  ISSUE 3 EMPOWERING THE FREIGHT FORWARDER
  • 19. FFFAI NEWS Coimbatore Steamer Agents & Customs House Agents Association 1.Coimbatore CHA Association celebrated the annual function with family get-together on 2.Tade Felicitation Seminar at Coimbatore -an initiative by FFFAI -FICCI -SACHAA. Seminar was conducted on the Trade felicitation in association with FICCI , SACHAA ,and FFFAI .Sri Shashank Priya ,Prof WTO and Anil K Sinha Senior Technical Director NIC made presentation. Sri. V.S.Krishnan Chief Commissioner addressed as the key note speaker for the event and Sri A.K.Reghunath addressed the gathering .. Another initiative taken by FFFAI -FICCI -SACHAA in association & support of British High Commission. In this Shri Anil.K.Sinha ,Technical Director DGFT , Dr. Shashank Priya ,Professor ,WTO ,Chief Commissioner & Commissioner were present Also Mr. V.S.Pradeep ,Vice Chairman ,FFFAI showed hispresence for the event. Mr.Rajesh, President ,SACHAA offered felicitation and thanked Sri Manab Manjumdar ,Asst General Secretary ,FICCI who put real effort to make this Seminar a grand success.FICCI representative Sri Balakrishnan also spoke on FICCI -FFFAI-SACHAA- initiative and the need for Organising more if such Trade felicitation Seminars in future. Many othe industrialists,Textile manufaturer’s, Steamer agents and Custom House Agents participated and took active participation in the interactive session. Association also organised training session for CHA Members on SEMINAR for FORM - G Examination for the Members staff . The Superintendent of Customs Shri Venkateswaran, was the GUEST LECTURE. Cochin Customs House Agents Association DR.K.N.RAGHAVAN CUSTOMS COMMISSIONER, COCHIN ADDRESS AND MR. S.D. CHAND, MR. V.S. PRADEEP SEMINAR on Customs Valuation/Capacity building-An initiative by FFFAI-CCHAA. A seminar on Customs Valuation/Capacity building was organised on dt.11.01.2013 at Conference Hall of CCHAA ,Cochin. Shri. S.D. Chand, Dy. Commissioner of Customs at Directorate General of Valuation, Mumbai and International Trainer accredited by the World Customs Organisation rendered a seminar “Customs Valuation”. Dr.K.N.Raghavan Customs Commissioner, Cochin was invited to be the chief guest A large participants was observed at the session from the fraternity. Mr.V.S.Pradeep, Vice Chairman, FFFAI and President CCHAA, presided the welcome address and Mr.Bruce Thadathil Hon.Sec CCHAA proposed vote of thanks. Session on “Export- Import Regulations, Customs Formalities, Export Promotion and Incentive Schemes”an initiative by FIEO -FFFAI -CCHAA. A session on “Export- Import Regulations, Customs Formalities, Export Promotion and Incentive Schemes” was conducted on 22.01.2013 at Central Hall of CCHAA, Cochin. Sri V.S.Pradeep ,Vice Chairman ,FFFAI and President CCHAA in his welcome addressed the gathering. Shri. Debashish Paul, Appraiser, Cochin Customs delivered a speech on Customs Formalities. Shri. Gopalakrishnan, PRO, JDGFT Kochi, spoke on Export, Import regulations and Incentive schemes followed by question/answer and interaction session. Shri. Vijaykumar, Chapter Head, FIEO Kerala explained about the various services provided by Federation of Indian Export Organistaion. Sri Bruce Thadathil ,Hon Sec.CCHAA proposed vote of thanks. EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 17
  • 20. FEATURE FFFAI GOLDEN JUBILEE CELEBR ATION T FFFAI Office bearers with Hon‘ble Guest of Golden Jubilee event. Mr. Praveen Thipsey “International Grandmaster“ being awarded Inspector of Police, Mr. Kishore Kumar Keshav Shinde, Nominee for Galantry award being awarded Mr. Ramesh Mahale – Senior Police Inspector, recipient of President Gold Medal being awarded FFFAI awarded “ Hall of Fame” mention to Mr. Arvind Parekh 18 FFFAI NEWS  VOL. 1  ISSUE 3 he Federation Of Freight Forwarders Associations In India (FFFAI) celebrated Golden Jubilee on 2nd December 2012. During an elegant function held at Trident Hotel, Bandra-Kurla complex in Mumbai, Mr. Shantanu Bhadkamkar, Chairman, FFFAI welcoming the guests and invitees shared the vision for the future. In his welcome address said “Golden Jubilee is a great time to look back and celebrate what one has achieved”. In his concluding remarks he expressed confidence about the industry by mentioning, “We desire to excel our past performance and expand our horizons. Looking ahead, I believe the best is yet to come”. On the occasion, FFFAI Member’s Handbook & FFFAI NEWS, In-house Magazine of FFFAI were released. The members hand book is a collector’s item, and will be distributed to members free of cost. Guest Of Honour, Mr. Diwakar Gupta - Managing Director, State Bank of India & Chairman FFFAI, Mr Shantanu Bhadkamkar Launched the FFFAI-SBI Co-Branded ATM Imprest Card, a first of its kind in India. The first cards were presented to Chairman FFFAI, Mr Shantanu Bhadkamkar, Mr. Sailesh Bhatia, Convener, Sea Freight Council-FFFAI & Mr. Sarfaraz Khan, Convener - Banking & Insurance Sub-Committee. The unique feature of this card is that the FFFAI Member Company gets control of disbursement of cash to the staff, the workload & responsibility of the Company’s cashier is taken over by the Bank’s ATM & staff in turn has convenience of drawing cash from the closest ATM. FFFAI recognised people from different walks of life, who had made the nation proud as a part of corporate social responsibility on this occasion: FFFAI Handbook release (LtoR) Mr. Shankar Shinde, Mr. C.S. Prasad, Mr. Shantanu Bhadkamkar, Mr. L. Radhakrishnan, Mr. Diwakar Gupta, Mr. Amit Kamat, Mr. Sailesh Bhatia) FFFAI awarded “ HALL OF FAME “ mention to Mr. Tushar Jani EMPOWERING THE FREIGHT FORWARDER
  • 21. FFFAI honoured, Mr. Praveen Thipsay, “INTERNATIONAL GRANDMASTER” & recipient of “ARJUNA AWARD”. Mrs. Bahgyashree Thipsay was also honoured for their achievements in chess. Mrs. Bhagyashree Thipsay, INTERNATIONAL WOMAN MASTER, is also recipient of PADMASHREE & ARJUNA AWARD. FFFAI honoured Inspector of Police, Mr. Kishore Kumar Keshav Shinde for his act of bravery, presence of mind & strong will power he displayed on the night of 26/11/2008, to protect life and property for which he recommended for ‘PRESIDENTS POLICE MEDAL FOR GALLANTRY’. Mr. Ramesh Mahale was honoured for this thorough and flawless investigation in the “26/11 Mumbai Terror Attack Case”. Shri. Ramesh Mahale is recipient of Director General of Police Medal for Unblemished Service for 15 consecutive years & President’s Police Medal for Meritorious Service. Mr Arvind Parikh, Past President & Advisor, FFFAI was bestowed with mention in Hall Of Fame for being the first Asian Forwarder to become a President of FIATA and leading Indian Forwarder to be International. Mr. Tushar Jani, Convener Of Sub-Committee on Visioning was bestowed with mention in Hall Of Fame for being the first CHA to acquire Cargo Aircrafts. Mr. Shashikiran Shetty, a longstanding member and supporter of FFFAI events, was honoured for being the first CHA-Forwarder to have global presence, with offices in 68 countries in the world & agency network in rest of the world. Mr. Naval Mehta, Advisor –FFFAI was honoured being a founder member of FFFAI. FFFAI recognized contribution of Member Associations to the Federation; each association was personally felicitated by presenting Golden Jubilee Plaque. FFFAI’s Women Wings FFFAI Youth Wing with advisors Release of FFFAI, SBI co-branded Imprest card by hands of Mr. Diwakar Gupta. FFFAI News release - Second Issue FFFAI- IIFF sign MOU with centre of Education Ahmedabad, Mumbai, Cochin, Chennai, MET- Nasik FFFAI awarded “ HALL OF FAME “ mention to Mr. Shashi Kiran Shetty FFFAI awarded “ Hall of FAME “ mention to Mr. Naval Mehta, Founder of FFFAI EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 19
  • 22. FEATURE FFFAI GOLDEN JUBILEE Mr. L. Radhakrishnan, Chairman, JNPT Port being welcome and felicitated Mr. Diwakar Gupta, Managing Director and Chief Financial Officer, SBI, Guest of Honour being welcome and felicitated Mr. C.S. Prasad , Chief Commissioner of Customs , Nhava Sheva address the audience at FFFAI Golden Jubilee event Mr. Pankaj Shah , Convenor ISO 9001, hands over FFFAI ISO certification award to FFFAI Chairman FFFAI Golden Jubilee event 20 FFFAI NEWS  VOL. 1  ISSUE 3 Indian Institute Of Freight Forwarders (IIFF), signed Memorandum Of Understanding with the following Centers of Education: Ahmedabad Custom House Agents Association, Bombay Custom House Agents Association, Chennai Custom House Agents Association, Cochin Custom House Agents Association & Mumbai Education Trust ( Bhujbal Knowledge City ) Nasik. for conducting FIATA - Diploma Course in Freight Forwarding. Addressing the function, Mr. Diwakar Gupta, Managing Director and Chief Financial Officer of State Bank of India shared that it has been a matter of immense and pleasure working with the Federation to solve the requirements with the advanced technology. Guest Of Honour, Mr. C. S. Prasad, Chief Commissioner of Customs, Mumbai Zone II said, ‘Custom House Agent and Customs are partners, both play an important role for the growth of trade’. Addressing the function, Chief Guest, Mr. L Radhakrishnan said, “More standardisation of procedures with adoption of advanced technology and coordination between Port, Customs, CHAs and other stakeholders, we the service providers will be able to deliver quality services”. Mr. Amit kamat, honorary secretary proposed a lucid vote of thanks. The function was followed by a musical performance & dinner. Members & guests including members of FFFAI, Customs Department, Port Trusts, Shipping Companies, Airlines, CFS Operators & Trade attended the function. Earlier in the morning, Golden Jubilee Series Lecture Sessions held for members of FFFAI & host association. The first interactive session on KYC & Protection Of CHA was moderated by Mr. K. R. Bhargava, former Chief Commissioner Of Customs. Mr. Shankar Shinde – Honorary Treasurer – FFFAI introduced the session, Mr. Kartik Pancholi – President ACHAA highlighted key issues, and Mr. George Joseph, President – BCHAAA summed up the session. In the second session Mr. Deepak Ghaisas made a thought provoking speech on Disruptive Innovations & Growth Strategy while Mr. Hetan Patel delivered an excellent presentation FDI funding for the industry. FFFAI Youth Wing founded for youth emancipation, was launched by Mr. K.R.Bhargava, former Chief Commissioner Of Customs on the eve of the Golden Jubilee, on 1st December 2012. The Youth Wing has 35 members from all across the country below 30 years from CHA to be lead by Mr. Vaibhav Vora – Convenor and Rishi Tiwari – Co-Convenor FEDERATION OF FREIGHT FORWARDERS’ ASSOCIATIONS IN INDIA (FFFAI) is the apex body of 24 Custom House Agents Associations and Sole Representative of more than 3500 Custom House Agents and Freight Forwarders in India who are engaged in freight forwarding, shipping and logistics, controlling 90% of India’s logistics trade employing more than a lakh people. On 2nd December, 1962, former Union Minister of Finance Late Shri Morarjee Desai founded the Federation EMPOWERING THE FREIGHT FORWARDER
  • 23. Of Customs Clearing Agents Associations Of India; now, Federation Of Freight Forwarders Associations’ In India. Activities undertaken In The Golden Jubilee Year: Numerous activities and new initiatives were taken up in the Golden Jubilee Year by FFFAI: FFFAI launched Golden Jubilee Celebrations Lecture Series. Amongst the speakers were Mr. S.K. Rahman, Additional Commissioner of Customs on ICEGATE; Honorable Speaker of Tamil Nadu Legislative Assembly graced as Chief Guest; presentation on MSME Registration and Credit Rating by Mr. Mukesh Singh of M/s. Haribhakti SME Transformation & Support Solutions Pvt. Ltd.; presentation on Global Economy by Mr. R. Venkatesh; Mr. C. Rajindran, Commissioner of Customs; Mr. Anand Deshpande, M.D. Persistent Systems Ltd, shared his success story and entrepreneurial vision, explaining how in each phase of growth, the entrepreneurs should change their business and themselves; Mr. Sankalp Bhattacharya of KPMG, State of the Industry; Mr. S. D. Chand, Dy. Commissioner of Customs, President Gold Medalist and the only WCO Accredited Trainer in India made an excellent presentation on Valuation. Ace shooter & Arjuna Awards awardee, Smt. Anjali Bhagwat, the former world number one & one of the greatest Indian women athletes of all time launched `Women’s Wing` of FFFAI. Maritime Forum comprising of stake holders such as FFFAI, AMTOI, INSA, FEDSAI, CAI & CSLA was constituted to bring all stake holders in the maritime fraternity on a common platform. FFFAI News, the quarterly in-house newsletter of FFFAI was launched during the Golden Jubilee celebration. Coastal Shipping & IWT Council was Constituted For Promoting Green Initiatives In the newly launched CSR Initiatives, FFFAI recognised the achievements of and the contributions made to the nation the Defence Forces, Police Department, Customs Department, and Sports Personnel by Felicitating the Achievers: Smt. Anjali Bhagwat, professional shooter & Arjuna Award Awardee; Subhedar major Vijay Kumar, Sport Shooter, Silver medalist in London Olympics; Padma Bhushan Shri Chandrakant Borde, former Cricket Captain; Shri Surendra Chavan, Mountaineer: Scaled the Mount Everest Summit in 1998 from the North Side; Shri Raj Khalid, Sport Shooter: Raj Khalid is a former national champion, he is well known to the industry as India Representative of Port of Antwerp; Col. Sadanand B. Salunke, Vir Chakra (VrC); Col. Gautam Khot, Vir Chakra (VrC); and Mr. S. D. Chand, Dy. Commissioner of Customs, President Gold Medalist and the only WCO Accredited Trainer in India. During the Golden Jubilee Year, FFFAI adopted ‘Empowering The Freight Forwarder’ as the tag line to strengthen the brand equity of the organization. The ‘FFFAI Certificate of Competence By Experience’ has been instituted to recognise the proficiency of experienced Members.  FFFAI Chairman along with advisors at 50th year cake cutting ceremony FFFAI Celebrates 60th Birthday of Mr.V.S.Pradeep, Vice Chairman, FFFAI. FFFAI Celebrates 60th Birthday of Mr. R. Radhakrishnan, Advisor and Former Chairman FFFAI FFFAI celebrates 60th Birthday of Mr. K.V.Krishna Kumar, EC member FFFAI and Vice President of Vizag FFFAI celebrates Wedding Anniversary of Mr.& Mrs Prakash Khemka EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 21
  • 24. PICTORIAL ALBUM FFFAI HONOURS MEMBER ASSOCIATION Ahmedabad - Mr. Kartik Pancholi , President ( ACHAA) Cochin – Mr. V.S. Pradeep, President ( CCHAA) Aurangabad – Capt. Piyush Sinha , President (ACHAA) Trivandrum – Mr. K. Suresh Kumar , Vice President ( ACHAT) Bangalore – Mr.K.N. Shivanna, Vice President ( BCHHA) Delhi – Mr. Shailendra Jain , Vice President ( DCHAA) Bombay - Mr George Joseph , President ( BCHAA) Goa – Mr. Amit Kamat , President ( GCHAA) Chennai – Mr. A.V Vijaykuma , President ( CCHAA) Hyderabad – Mr. C.S. Narendra , President ( CHAAH) 22 FFFAI NEWS  VOL. 1  ISSUE 3 EMPOWERING THE FREIGHT FORWARDER
  • 25. Kandla & Mundra , Mr Ramesh Bansal , President (KCHAA & MCHAA) Kolkatta – Mr. Sachi Kmar Koley , President ( CCHAA) Ludhiana – Mr. Narinder Prabhakar , Hon Secretary ( LCHAA) Mangalore – Mr. Phillip C C , Former President ( MCHAA) Nagpur – Mr. Prakash Khemka , President ( NCHAA) Nasik – Mr. Shankar Shinde , President ( NCHAA) Pune – Mr. Vinod Sharma , Hon. Secretary (PCHAA) Tuticorin – Mr. A.R. Ramaraj , (TCHAA) FFFAI’s 24 Member Associations being honoured on the occassion of Golden Jubilee Year presented Memento In appreciation of their outstanding contribution to the fraternity of Customs House Agents. EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 23
  • 26. PICTORIAL ALBUM FFFAI 6 TH EC MEET FFFAI office bearers at 6th EC Youth Wing launched by hands Mr. K.R. Bhargava – former Chief Commissioner of Customs , Nhava Sheva Mr. K.R. Bhargava , former chief Commissioner of Customs . Nhava Sheva being presented Memento at Golden Jubilee FFFAI’s EC House Guest at FFFAI Golden Jubilee Celebration FFFAI’s EC House FFFAI’s dinner party EC Meet FFFAI Music entertainment 24 FFFAI NEWS  VOL. 1  ISSUE 3 FFFAI Music entertainment EMPOWERING THE FREIGHT FORWARDER
  • 27. Mr S Ramesh being presented FFFAI handbook by Mr Prakash Khemka, President Nagpur CHA Assn. alongwith Mr. Sudhir Agarwal, Mr. Ulhas Mohile S L Meena, Commisisoner of Customs ( Valuation) Congratulation to Mr. Samir Shah for being awarded as the best trainer Prof. Suneel Kelkar MET sign MOU with IIFF Cochin MOU Bombay MOU Richard Tsai, David Mac ,CSCP & CILP being presented by Shantanu Bhadkamkar and Shankar Shinde Ahmedabad MOU FFFAI’s dinner party EMPOWERING THE FREIGHT FORWARDER MoU with chennai FFFAI NEWS  VOL. 1  ISSUE 3 25
  • 28. INTERVIEW FFFAI - CHAIRMAN SHANTANU BHADKAMKAR FFFAI CHAIRMAN Interview with Mr. Shantanu Bhadkamkar How do you feel on receiving this award of WCO – certificate of Merit ? It’s a prestigious Award, hence I surely feel very proud and happy about it. Such Awards create a greater sense of responsibility to the fraternity we belong to and serve through the platform of FFFAI, above all I am extremely grateful to the Members of the Executive Committee of FFFAI, who have nominated me unanimously for this award by sending a recommendation to CBEC. I am also grateful to CBEC for the same. The greatest satisfaction is, I have been Awarded the certificate as representative of FFFAI in the Golden Jubilee year. How important is IFCBA role in WCO? IFCBA plays a very important role in WCO. As an observer in the Permanent Technical Committee of the WCO, IFCBA represents the private sector perspective in this important intergovernmental organisation. The Secretary It’s our General of IFCBA presently chairs mission in the PSCG (Private Sector FFFAI to make Consultative Group). Also as a logistics as a managing director of IFCBA I had career of first an opportuinity to make a choice. If presentation to the Permanent dream is Technical Council of WCO - Brussel something on Facilitation of SME Sector & that doesn’t WCO Economic Competitiveness let you sleep, package, for the first time such an this is my important role was entrusted to dream the private sector 26 FFFAI NEWS  VOL. 1  ISSUE 3 Having taken so may positions and contributing towards social aspects, What keeps you inspired and motivated to work for the Federation? All good organisations, particularly an apex Federation like FFFAI, have social responsibility, we can’t limit our role to serving only our own fraternity. FFFAI is a great platform to serve not just our fraternity but also one of the most important segment of the economy ie EXIM Trade. It’s such a great platform but it’s real strength is only now being realised. As much as you do to serve better, you realise there’s so much more to be done. The greatest inspiration comes from the wholehearted support I got, not just from the members but also from all other stakeholders including the government. What attracted you to this career and how you foresee the future for the industry? I inherited family business, which is how I joined this industry. However, it’s our mission in FFFAI to make logistics as a career of first choice. If dream is something that doesn’t let you sleep, this is my dream. What are the highlights of your career? True highlight of my career is yet to be, it’s our vision to lead FFFAI towards a Self Regulating Organisation (SRO). This is a long drawn process but career in the federation doesn’t end with serving as Chairman, I will not just take the initial steps for it but will work towards it, until this goal is realised. With relaunch of IIFF-FIATA Diploma, and steps we have taken for proliferation of EMPOWERING THE FREIGHT FORWARDER
  • 29. our training initiatives by tyit’s our vision to ing up with reputed institutes lead FFFAI and initiatives for thought towards a Self leadership, we will build a Regulating strong case for SRO. Organisation CHA towards SRO , how do (SRO). This is a you think this would help long drawn customs, Industry and CHA’s process but Customs department has career in the many roles and responsibilifederation ties, CHALR being only one of doesn’t end with it. FFFAI has an impeccable serving as reputation. FFFAI being an Chairman, I will Apex organisation and sole not just take the representative of CHAs at nainitial steps for it tional and international level, but will work can work in collaboration with towards it, until the customs and other authis goal is thorities for ensuring high realised professional and ethical standards in the industry in a focused manner. Both the Customs and the trade will be biggest beneficiaries of highly professional services of self regulated CHAs with self regulation implemented by the apex body of CHAs. CHAs have rendered yeomen service to the international trade. With self regulation and high standards, we will instil both sense of security and highest level of professional pride for the profession. notwithstanding hurdles and problems almost in every single case. How do you view the state of the industry today? What change would you like to see in your industry ? ‘Who Moved My Cheese’ describes our present situation the best. I have read it some 10 years back. short movie http://www.youtube.com/watch?v=JL0Xg6YTlk&feature=player_embedded is a good rendition of this book. We need to define and reinvent ourselves today, we don’t have grace time to wait and watch. 10. What is best Indian practice in Global context ? Our ability to adapt to huge diversity along with our ability to deal with adversity, complexity and uncertainty is exemplary. This is not exactly best practice as is commonly understood but these are our best strengths and values. It is these strengths, we should harness and need to leverage for setting best practices models suited for customer service in global context. If you had not joined the Logistics sector, which profession would you have been? I joined family business as I was the only successor, otherwise my personal choice was to pursue a career of research in theoretical physics. Generally speaking, what , in you opinion, has been mankind’s best invention? Now that social media has become such a huge part of our everyday life, everyone has the potential to be considered influential, regardless of their standing in the ‘real world’. Social media will influence and change our lifestyle beyond comprehension. Along with Internet, social media is the most powerful invention. But at a more fundamental level, it is language and wheel which has primarily brought us to this level. So what fascinates you about the freight forwarding industry? The most fascinating aspect of this industry is it’s international character. Besides we deal with wide range of issues of regulatory and legal nature, physical logistics, planning and management. Above all, unlike many other professions which are only advisory in nature, we deliver solutions, optimised solutions. We ensure that cargo reaches the destination safely, securely, following all the laws and do so in fastest possible time frame, Which famous person would you like to have meet? “Generations to come, it may well be, will scarce believe that such a man as this one ever in flesh and blood walked upon this Earth.” - Albert Einstein on Mahatma Gandhi The more you learn about Chanakya (traditionally identified as Kautilya or Vishnu Gupta), Chatrapati Shivaji Maharaj and Mahatma Gandhi, you realise that we Indians, let alone the rest of the world, are yet to realise their multifaceted manifold greatness. I congratulate you and the entire team of Office Bearers of FFFAI for the success of Golden Jubilee Celebrations. I acknowledge with thanks the receipt of the FFFAI Hand Book which depicts the achievements of FFFAI and the names & photographs of various dignitaries. You have rightly said that a dream is a thing which does not allow one to sleep. You have toiled very hard to make this Golden Jubilee Celebration a great success. This success shows that you must have spent many sleepless nights to fulfil this dream of yours. I have no words to express my heartfelt feelings for you. S L SHARMA, MANAGING DIRECTOR, SKYWAYS GROUP EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 27
  • 30. FEATURE HANDBOOK PRESENTATION O Mr. Shantanu Bhadkamkar presenting FFFAI Handbook to HE Ms. Cathy Berx - Governor of the province of Antwerp n the occasion of Golden Jubilee of Federation of Freight Forwarders’ Association of India (FFFAI) I present to you Members Handbook of FFFAI. It has been an earnest desire of our Chairman, Shri Shantanu Bhadkamkar to present to the members of FFFAI a handbook that contains members’ database and other useful information for members. This handbook is a handy reference book for members, which contains besides contact details of all members of FFFAI, useful information for members such contact details of ministries, commissionerates of customs, port trusts, certification & inspection agencies, embassies & consulates, trade missions as well as tools for daily use and reference such as INCOTERMS, Container sizes and specifications, Air container sizes, Conver- Mr. Shantanu Bhadkamkar & Mr. Sailesh Bhatia presenting Memento to Mr Marc Van Peel, Chairman, Port of Antwerp and Vice Mayor, City of Antwerp Mr. Shantanu Bhadkamkar & Mr. Sarfaraz Khan presenting Memento to Mr Luc Arnouts , Commercial Director , Port of Antwerp Smt Jagjit Pavadia, Chief Commissioner of C.Excise & Customs, Nagpur being presented FFFAI handbook by Mr Prakash Khemka, President Nagpur CHA Assn. Mr. Sudhir Agarwal and Mr. Ulhas Mohile Mr. Shantanu Bhadkamkar & Mr. Shankar Shinde presenting FFFAI Handbook to Mr Eddy Bruyninckx Shri C. S. Prasad Chief Commisioner of Customs Mumbai Zone II Mr Ashutosh Baranwal Commissioner of Customs Mumbai Zone 1 Mr.Monoj Krishna, Commissioner Customs Nhava Sheva, Exports 28 FFFAI NEWS  VOL. 1  ISSUE 3 EMPOWERING THE FREIGHT FORWARDER
  • 31. sion tables, Weights and Measures. We have also included for the information of members History of FFFAI, Vision and Mission of FFFAI and pictures of various events and conventions, right from the inception of FFFAI. This book will be presented to all members of FFAI, Union Ministries, Government Bodies, National & International Trade Associations, Embassies & Consulates, Department of Customs & Port Trust and other bodies. We shall also supplement this handbook with CD, with a search option, which will be provided to all members in due course. We trust that members will appreciate this hand book as much as we enjoyed compiling it. Ms Praveen Mahajan , Chairperson, CBEC being presented FFFAI Handbook by Mr. Shantanu Bhadkamkar,Chairman, and Mr. Shankar Shinde, Treasurer FFFAI Sailesh Bhatia Convenor-Members Directory Sub-Committee Smt. Shobha L. Chary, Member (Personnel & Vigilance) Mr. P.K. Sinha , Secretary Shipping being presented by Mr Amit Kamat ,Hon Secretary and Mr. Sailesh Bhatia Shri K.C.Gupta - Commissioner Of Customs ( Appeals) Mumbai Zone–II Mr. Yogendra Garg, Commissioner of Customs, Mumbai, Exports EMPOWERING THE FREIGHT FORWARDER Smt.Sandhya Baliga, Member, (Customs, Legal & Judicial) Ms Seema Arora, Commissioner of Customs (Appeals) Mumbai Mr. A.K. Pandey , Comissioner of Customs and C.Excise , Nashik being presented by Mr. Shankar Shinde , President of Nasik CHA Assn. FFFAI NEWS  VOL. 1  ISSUE 3 29
  • 32. FEATURE IIFF INUAGUR ATED IIFF- FIATA DIPLOMA COURSE INUAGURATED Mr. C.S. Prasad – Chief Commissioner of Customs Mumbai Zone II was the chief guest. “EXIM trade is of global international character, your services have to be of global standards as such need to enhance knowledge and skill . Remember that a fish is not judged by its ability to climb the tree, so never compare yourself with other profession, the CHA’s role is no longer of just filing documents and have to get in deep study for compliance of Customs Laws and procedures from International Perspective as large number of laws have been implemented.” said Mr. C.S. Prasad - Chief Commissioner of Customs, zone II, JNCH while inaugurating the IIFF-FIATA diploma course. The Inaugural Function of Indian Institute of Freight Forwarders (IIFF) – An education wing of Federation of Freight Forwarders Association In India ( FFFAI) was launched on 12th January 2013, by hands of Mr C. S. Prasad – Chief Commissioner of Customs, Mumbai Zone II, as Chief Guest , Mr. Naresh Parekh, Managing Director of Parekh Group, was the Guest of Honour , and was well attended and honoured with presence of Mr. Anil Sonawane – GM CONCOR , Mr. Keyur Gandhi, President of Freight Brokers Association , Mr. Nambiar , Capt. Ram Iyer, representative from Haropa- Le Havre port, and Members of FFFAI and the students. “Mr. Mayur contractor created the syllabus and reading material for this course. We have FIATA accreditation. This course has been upgraded”. It is with the FFFAI Members, Industry support through which we could achieve to start the course. Shankar Shinde and Pankaj Shah should be given the credits for restarting it . Success is in the number of students joining the course and IIFF has achieved it. 5 Member Associations of FFFAI have entered into a MoU, i.e. Mumbai, Ahmedabad , Chennai Mr. Shankar Shinde – President Of Iiff Is Addressing The House 30 FFFAI NEWS  VOL. 1  ISSUE 3 , Cochin , MET – Nasik with IIFF as a Centre of Education (CoE) . We urge all 24 CHA members associations of FFFAI to start this course.” Said Mr. Shantanu Bhadkamkar,- Chairman, Federation of Freight Forwarders Association In India and Indian Institute of Freight Forwarders. “Our aim is to proliferate and impart knowledge, education in Logistics , we will move to various cities and rural place on Pan India to have the tie up and sign memorandum with various education colleges and Institute to introduce this courses.” added the chairman FFFAI. “When my colleagues called me today, I couldn’t resist the cause. This course will help you to realize the implications of your actions in this business even before you take the action.” expressed Shri Naresh Parekh, Managing Director, Parekh Group. He further stated that he will always like to promote the education in Industry which will produce quality results. “IIFF was started by Late. Shri Mayur Contractor. It was his dream, and successfully conducted 4 courses. Every person in FFFAI needs to know the laws of business. Federation is doing this to provide knowledge about it throughout the country. I wish FFFAI grows. All the Customs House Agents and we are here because we have passion to serve the community. He urge students to take advantage of this passion.” said Mr. R. Radhakrishnan, an advisor of FFFAI. He further added that it was an important moment to see that the institute establish is functioning and will look forward to achieve the objectives. “ It’s need of an hour to educate and impart knowledge an training in logistics , He stated we observe 80% cargo movement by rail in developed countries whereas (L To R ): Capt. Ram, Mr. Sailesh Bhatia, Mr. Panka Shah, Mr.Shankar Shinde, Mr. Naresh Parikh, Mr.R.Radhakrishnan, Mr. C.S.Prasad, Mr. Shantanu Bhadkamkar, Mr. Tej M. Contractor, Mr.Anil Sonawane, Mr. Omprakash Agrawal, Mr.Nailesh Gandhi, Mr. Sarfaraz Khan EMPOWERING THE FREIGHT FORWARDER
  • 33. in India we have only 20% cargo moving by rail which need more concentration to improve logistics dwell time and transaction cost, said Mr. Anil Sonawane - General Manager, CONCOR ,Indian Railway being Guest Faculty of the course. He also addressed a lecture on Multimodal Transport. The Indian Institute of Freight Forwarders (IIFF) was established in the year 2005 by the Federation of Freight Forwarders’ Associations in India (FFFAI) with an objective to fulfil skill gap in the industry need for trained and ready to work professionals. It aims to develop skills-sets of aspiring students to match global standards in the India freight forwarding industry. IIFF has set its goal to vocationalize the available talent pool and channel them to the industry. IIFF- FIATA International Diploma program is a highly sought after Vocational Training program accredited by FIATA,. Globally 72 countries have validated their Vocational Training programmes. Informed Mr. Shankar Shinde- President of Indian institute of Freight Forwarders. IIFF will strive to have such Logistics programmes proliferated on Pan India Basis. This Institute aims to reach various cities and rural education institutes to create importance and impart knowledge on logistics to fill the required talent pool as there is the demand of employments from logistics. We are committed to provide quality training programme with the experienced faculty members from Industry and academic background. The institute have scientifically designed the IIFF- FIATA Diploma Course to cover every aspect of logistics which would provide thorough education and training to our students to co-op up for future challenge. After the function Chief Commissioner of Customs Zone II and Mr. Naresh Parekh held personal interaction and guidance to students. Mr. Pankaj Shah – Hon Secretary proposed vote of thanks to all the dignitaries on dais and the participants.  GUEST AND STUDENTS DURING THE LAUNCH OF IIFF-FIATA DIPLOMA COURSE MR. C.S.PRASAD, CHIEF COMMISSIONER, NHAVA SHEVA ADDRESSING THE STUDENTS MR. SHANTANU BHADKAMKAR PRESENTING MEMENTO TO MR. C.S.PRASAD, CHIEF COMMISSIONER OF CUSTOMS, NHAVA SHEVA EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 31
  • 34. FEATURE INTERVIEW Interview with Mr.Kartik Pancholi – President Ahmedabad Customs House Agents Association (ACHAA) How do you feel while leading the ACHAA Association in its Silver Jubilee? It is really a great opportunity for me to lead as a President of ACHAA in this milestone achievement year when ACHAA is celebrating “Silver Jubilee Year”, I am thankful to all ACHAA members and entire fraternity of EXIM TRADE for extending me such an opportunity as well as keeping faith in me. I also congratulate and extend my heartiest greetings to all my members. What are the achievement of ACHAA? We at ACHAA have represented and earned goodwill with Customs and Government Regulatory Departments and also Private bodies. We have been able to take the core issues on behalf of our fraternity and have represented them at the right forum. We have trained our field staff through conducting various seminars for imparting knowledge to enhance their skills and have also seen that they are respected and recognised at all levels of CHA business. Therefore, we dedicate our Silver Jubilee Year for them and we have focused and performed all our programmes and activities keeping them in front to their individual growth and benefit. What is the message you would like to give to our CHA fraternity? After investing 2 decades in the CHA industry, I personally believe that it is high time for all of us to get united.  Though we being a very crucial link of Logistic Industry we are listed last to get credit, honour and recognition this situation needs to be improved. CHA’s always act as a bridge between Importer or Exporter by way of providing them assistance related to work with Shipping/Airlines, Customs , DGFT , Bank , Insurance , Transportation , Packaging etc.. which non of the stake holders in the Logistic Industry can perform, though we being a very crucial link of Logistic Industry we are ignored and listed last to get credit, honour and recognition this situation needs to be improved. It is high time now that we should get united and we should strive for a common objective to improve our fraternity recognition and get a respectable status like other status holders in service industry like Chartered Accountants, Lawyers. Let’s give respect and take respect. This can be done with organised effort and co-operation of our parent organisation FFFAI. How do you foresee the future of Customs House Agents? Analysing the  present situation of logistic industry and also taking into consideration approach and attitude of some Trade authorities, I personally feel that the future of CHA Fraternity looks to be very dark  and difficult. Unless, unity stands up and we mark our presence and improve our  importance with continual training and up-gradation of knowledge pertaining to Law and Rights and thereby to achieve error free performance and establish feasible and ethical working code of conduct and Practices. How do you think that the Leaders in Association can play an important role and responsibility towards Members? As we all know that “ Association “ is a place where like minded people gather to satisfy their common needs and 32 FFFAI NEWS  VOL. 1  ISSUE 3 KARTIK PANCHOLI – PRESIDENT, AHMEDABAD CUSTOMS HOUSE AGENTS ASSOCIATION interest and when a person is appointed as a leader of any such Association then it is by default a duty and responsibility of that person to satisfy the common needs and interest of members of that Association. Let us remember that trade will follow the foot prints of a Leader so Leader has a big responsibility on his shoulder, for the development and growth of the fraternity which he represents. How would you like to contribute towards service to your Members , and what are your achievements? As a volunteer of Association I would always prefer to be in touch with my members to know about any difficulty in day to day work for clearance in customs as well as with custodian and airlines, shipping lines and for that matter we started monthly meetings with all stake holders including Customs on regular basis so that we can address all possible issues to make workings more smooth for our members. Ahmedabad being one of the leading ICD in volume handling how would you expect and advise other ICD ‘s to grow , what are the issues for ICD growths. It is required for all Authorities to understand that time Is changing. Now as a service provider the important challenge for them is to achieve customer satisfaction ensuring timely commitment of service to trade and make available all services at a very reasonable cost matrix this ingredients helps in making a successful Organisation. Approach and Attitude  towards all segments, points covering ICD users requirements and how they can accept their suggestions, how good they can address and reform the same with an acceptance of reality will help them to sustain and make them further Grow and Prosper. What help do you seek from government towards development of ICD’s  It is required to introduce accountability towards growth of that region with time frame in all Government departments related to Logistic Industry will help to get boost in growth.  EMPOWERING THE FREIGHT FORWARDER
  • 35. FEATURE UNION BUDGET 2013-2014 DEEPAK PARIKH - WALCHAND LECTURE SERIES MACCIA UNION BUDGET 2013-2014 Greetings! We are pleased to inform you that we had organised a Pre & Post Budget analysis of the Union Budget 201314 at Chambers Babasaheb Dahanukar Sabhagriha on 28th February, 2013 under the convernorship of Mr. Ashish Pednekar, President & Mr. Pravin Karia, Chairman Taxation Committee. On this occasion, experts like Mr. Tarun Ghia, Partner, TMG & Associates  gave his opinion on Direct Tax, Mr. Ashit Shah, Partner, Shah & Savla shared his views on Indirect Tax & Mr. Vijay Mantri, MD & CEO, Pramerica Asset Manager Pvt Ltd analyzed the effects on Capital Market. On this occasion, Mr. Shantanu Bhadkamkar, Vice President also expressed his Pre Budget Expectations & Post Budget reactions along with the delegates. We are also glad to inform you that, this year the event was telecasted live on IBN Lokmat channel, wherein the above experts gave their pre & post budget reactions. This was a maiden initiative taken by chamber with respect to electronic media. We would like to give special thanks to Mr. Nikhil Wagle, Editor-in-Chief, Mr. Ashish EMPOWERING THE FREIGHT FORWARDER Jadhav, Principal Correspondent & the whole team of IBN Lokmat for their support. Dignitaries representing various sectors of Industry graced the occasion with their august presence. Mr. Jayant Shaligram, Director, Cosmos Bank, Mr. Chintamani Nadkarni, MD, NKGSB, Mr. Pravin Lunkad, CEO, Pranav Agro Industries, Mr. Ramesh Joshi - Member, Planning Commission of India, Mr. Ajit Manjure, Investor Awareness Cell, Central Depository Services (India) Limited were some of the dignitaries who presented their views on the Budget presented yesterday. On this occasion around 100 delegates were in attendance. We are glad to inform you that, we have received an overwhelming response from all the delegates present during the event. Enclosed herewith are the photographs & Budget highlights for your ready reference. Ashish Pednekar- President Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA), FFFAI NEWS  VOL. 1  ISSUE 3 33
  • 36. FEATURE WOMEN WING REPORT Field visit of Womens Wing T he FFFAI Women’s Wing launched on September 15th 2012 is aimed at promoting the participation and empowerment of women engaged in the International Freight Forwarding Industry. In an industry which has been primarily male dominated, the conception of this Wing is an excellent initiative. A remarkable feature of the Wing is - the target audience, which is not only aimed at inclusion of women who are in the industry with a family lineage, but also those women who hold careers in the industry. As a first step towards fulfilment of the objective, the Wing organised an excursion to the Jawaharlal Nehru Port (JNPT), The Transindia Logistics Park and The Central Warehousing Corporation- Container Freight Station (CFS) on December 1st 2012. The underlying objective behind this initiative was to give women get a Live exposure into the operations at the Port and the important role played by CFSs in facilitating cargo storage and its movement. 20 women from the Women’s Wing participated in this excursion with travel arrangements made by a few of these women, which involved travelling in personal cars. This fostered a spirit of oneness among the women. The excursion also included participants from Ahmedabad, Chennai and Ludhiana. JNPT: India’s Gateway to Trade The women were welcomed at the JNPT guesthouse by Mr. Rajendra Kadam and his team with a sumptuous breakfast. The serene silence, the beautiful greenery in the surrounding area, excellent facilities at the wellplanned guesthouse was a perfect way to kick start the day. The excursion began with Mr. Rajendra Kadam playing a good host by accompanying the women to the port and disseminating information critical to the knowledge of freight forwarders and custom house agents. With JNPT being the Greenest Port in India, sprawling over 2,584 hectares, holding the 24th rank globally and handling 60% of the country’s total containerised cargo, the women were educated about the important role played by JNPT with respect to India’s trade. They witnessed the operations of the Rail Mounted Quay Cranes (RMQCs), Rail Mounted Gantry Cranes (RMGCs) and Rubber Tyre Gantry Cranes (RTGCs) at the 4 Terminal facilities in the port: • The JNPT Container Terminal operated by JNPT. • The Nhava Sheva International Container Terminal (NSICT) which is leased to a consortium led by P & O, now a part of DP World. • The Gateway Terminal (GTI) which is leased to a consortium of APM Terminals and the Container Corporation of India. 34 FFFAI NEWS  VOL. 1  ISSUE 3 • The BPCL Terminal which is leased to a joint-venture between Bharat Petroleum and Indian Oil. This terminal is exclusive to crude imports and refined petroleum products exports. Each of the above 3 facilities (excluding the BPCL terminal) have an average container turnaround of approximately 60-70 containers (TEU, FEU) per hour. This Live experience in turn has enriched the knowledge of women, which up to that day was confined only to words and imagination of these terms. Subsequent to this visit, most women expressed empowerment to be better equipped in handling their clients. Transindia Logistics Park – Transcending the perspective of CFSs The trip to JNPT was followed by a visit to the Transindia Logistics Park Pvt. Ltd. – Avashya Group. The Logistics Park is a brainchild of Mr. Shashi Kiran Shetty and is the first of its kind equipped with a state-of-the-art container cargo facility. Spread over 36,000 sq. metre of open area along with 34,000 sq. metre of developed area, this facility handles 4,000 TEUs on a continuous basis. It is the latest venture of the Avashya Group with Allcargo Movers Pvt. Ltd. being the groups’ first initiative. The Women were welcomed by Mr. Alok Roy the Vice President of the CFS and his team. They were exposed to the highly modernised equipment and facilities at the CFS which is the key differentiator relative to others in the industry. They were given a tour of the entire CFS with highlights on the uniqueness of this facility, the EMPOWERING THE FREIGHT FORWARDER
  • 37. attention to detail and the forward thinking involved in the planning of the CFS. The tour included the view of the entire warehouse, the section of the CFS which is dedicated to Reefer containers and, the working of the RFID system - which the women collectively affirmed has provided a great relief to agents across the industry in locating their respective containers. The women were also provided with the opportunity of viewing operations Live from the RTGC present at the CFS. Mr. Roy and his team ushered the women with utmost care up to the RTGC and enabled them to view the operation of the machine Live. The administration building too is built with a lot of attention to detail and utmost emphasis is laid towards safety and security systems. With times to come, Transindia Logistics Park will prove to be a benchmark for CFSs across the country. Central Warehousing Corporation – striking a balance to CFS operations The women then proceeded to the Central Warehousing Corporation (CWC) – A Govt. of India initiative at Dronagiri, where they were welcomed by the Manager Mr. K.C. Mishra and fortunately they could meet up with Mr. S. S. Sood – the regional manager. Mr. S.S. Sood patiently heard the feed-back by the women. They also mentioned that most of them having been hearing of EMPOWERING THE FREIGHT FORWARDER Dronagiri as the King Place in Nhava Sheva for LCL consolidation and today they have the opportunity to see it. Mr. Mishra CWCs operational manager guided the ladies to the tour of the CFS through one of his colleague. The women expressed a lot of concern towards a few operational aspects at the CFS but simultaneously affirmed a sea change in the process of cargo handling by the CFS over the years. However, issues of labour management continue to remain a challenge. High intermediary cost in cargo handling, inadequate housekeeping facilities, lack of lighting and safety & security measures are still problems yet to be addressed by the CFS. Clarification with respect to fumigation charges was also sought by the women. However, despite the fact that private operators are better equipped in certain operational areas, the women jointly asserted that the presence of such Govt. facilities are essential in keeping prices competitive with private operators. With December 1st 2012 opening a new chapter in the history of Freight Forwarders Association of India (FFFAI), such an initiative marks the beginning to a more promising future. The Women’s Wing aims at value addition to trade in the industry and is thankful to the co-operation and support extended to them by the association in making this Vision a Reality.  FFFAI NEWS  VOL. 1  ISSUE 3 35
  • 38. FEATURE FFFAI AC TIVITIES FFFAI ACTIVITIES AND REPORTS DURING QUARTER FROM 2.12.2012 – 27.2.2013 AMIT KAMAT: HONORARY SECRETARY, FFFAI SCOPE Sea Meeting Mr. Amit Kamat , Hon. Secretary ,FFFAI attended 43rd Session SCOPE Shipping meeting held on 13.12.2012 at New Delhi. The meeting was chaired by Additional Secretary – Commerce, Ministry of Commerce and was attended by Director Ports, Jt. Secretary Shipping, Jt. Secretary Port, Under Secretary Customs and representatives of trade bodies such as AMTOI, BCHAA, INSA, NISA, NACFS. briefed the chair of issues sponsored by FFFAI and sought resolution of the same. FICCI Meeting of Secretaries Mr. Amit Kamat attended FICCI meeting of Secretaries of Member Bodies held on 14.12.2012 at New Delhi. Had interaction with Mr. A.Didar Singh – Secretary General – FICCI, Mrs. Dr. Arbind Prasad – Director General –FICCI Vinita Sethi – Assistant Secretary General – FICCI and Mr. Manab Majumdar – Assistant Secretary General – FICCI. Briefed them about activities and projects undertaken by FFFAI and solicited their support in our endeavours. Meeting with RajdeepSardesai: Mr. Amit Kamat, had meeting with Mr.Rajdeep Sardesai in his office at New Delhi on 14.12.2012. Briefed him about activities and projects of FFFAI. Presented to him FFFAI News letter. Invited Mr. Sardesai as a Guest of Honour for our FFFAI Convention. Also sought his support for FFFAI Awards. Mr. Rajdeep Sardesai has assured participation in our events MR. AMIT KAMAT, H. SECRETARY, VISIT LUDHIANA 36 FFFAI NEWS  VOL. 1  ISSUE 3 Co-operation with China International Professional Network (CILP) During the recent visit of Mr. Richard Tsai, President, CILP to India along with Mr. Shantanu Bhadkamkar and Mr. Shankar Shinde for expansion of the CILP network in India and for co-operation between logisitics professionals in China & India. Further organized meeting of Mr. Richard Tsai with Managing Committee Members of BCHAA to discuss co-operation for increasing membership of Asia Council of Supply Chain (ACSC) in India. Mr. Richard Tsai delivered a presentation on ASCS to the BHCAA Managing Committee Members followed by interactive discussion with them.Also organized Mr.Richard Tsai’s meeting with local freight forwarding associations in N.Delhi Haropa Road Show - Mumbai-2013 FFFAI showed their presence at HAROPA Road Show as a part of the delegation led by FFFAI Mr. Shantanu Bhadkamkar on 01.02.013. Port of Le Havre organized the road show. It was well attended by Mr. Amit Kamat, Mr. Shankar Shinde, Mr. Sailesh Bhatia. Meeting with M.E.S College A meeting was held at FFFAI office with regard to signing MOU with M.E.S College, Goa . Meeting was attended along with Mr. Shankar Shinde – President IIFF ,Mr. Pankaj Shah – Honorary Secretary –IIFF with Mrs. Lalita Joshi for co-operation between M.E.S college and IIFF for conducting IIFF-FIATA diploma course in Freight Forwarding FFFAI SEMINAR ON VALUATION AT LUDHIANA BY MR. S.D. CHAND EMPOWERING THE FREIGHT FORWARDER
  • 39. Port of Antwerp event FFFAI showed their presence at Port of Antwerp annual event and was attended by Chairman, Mr. Shantanu Bhadkamkar, Mr. Amit Kamat, Mr. Shankar Shinde, Mr. Sarfaraz Khan, Mr. Pankaj Shah and Mr. Ashok Dhakane, where Mr. Shantanu Bhadkamkar , Chairman ,FFFAI was presented an award on its Golden Jubilee at the hands of Governor of Antwerp , FFFAI also presented its FFFAI Handbook on this occasion Meeting with Secretary Shipping Mr. Amit Kamat – Honorary Secretary and Mr. Sailesh Bhatia met Secretary (Shipping) on 11.02.2013 in New Delhi as part of FICCI delegation. Mr. Sailesh Bhatia and Mr. Amit Kamat explained to the Secretary (Shipping) the unfair practices of the shipping lines and the problems faced at ports (RtoL) MR. RAJDEEP SARDESAI, EDITORIN-CHIEF, IBN NETWORK WITH MR. AMIT KAMAT, H. SECRETARY, FFFAI FICCI one day conference “Progressive Maharashtra 2013 – Sustainable and Balanced Development” Mr. Amit Kamat – Honorary Secretary & Mr. Ashish Pednekar attended the FICCI one day conference on 18.12.2013 Mr. Amit Kamat met FICCI President Ms. Naina Lal Kidwai and briefed her about FFFAI and its activities Seminar on Valuation and Capacity Building: FFFAI organized and attended Seminar on Valuation jointly organized by FFFAI and Ludhiana Custom House Agents Association on 20.12.2013. Mr. S.D.Chand, Dy. Commissioner of Customs (DGOV) delivered elaborate presentation on Valuation under Customs Act, 1962. 50 members of LCHAA attended the 3 hour seminar following which there was an interactive session of an hour for questions and answers. HYDERABAD CHA ASSOCIATION WITH NASEN CONDUCTS WORKSHOP ON CUSTOMS EMPOWERING THE FREIGHT FORWARDER THE BCHAA WELCOME MR. RICHARD TSAI, MR. DAVID MAC,CSCP & CILP NASIK COMMISIONARATE OF CUSTOMS AND C.EXCISE CELEBRATES INTERNATIONAL CUSTOMS DAY ALONG WITH NASIK CHA MEMBERS FFFAI NEWS  VOL. 1  ISSUE 3 37
  • 40. FEATURE FFFAI MEET AT LUDHIANA FFFAI meet at Ludhiana, and Amritsar L udhiana Custom House Agents Association organized the Customs House Agents member’s meet at Hotel Fortune Klasikon – Ludhiana on dated 12.12.2012. The programme was well attended by Guest of Honor: Mr Nitin Saini, Joint Commissioner of Customs, other Customs Officials present: Mr S C Duggal Dy Commissioner , Mr. Jagdish Kalra, Mr. Lakshay Gupta , Mr Sukhchain Singh, Asst. Commissioner of Customs Mr Shantanu Bhadkamkar : Chairman, FFFAI led the delegation alongwith Mr. Shankar Shinde, Treasurer , Mr. Sailesh Bhatia: Executive Committee, FFFAI. Mr. G S Nijjer Chairman, Mr. Rajesh Verma, President, Mr. Narinder M Prabhakar: Secretary of Ludhiana CHA Association welcomed the dignitaries guest. The Ludhiana CHA association was grateful to host the trade meet seminar and welcome the dignitaries at Ludhiana. It was for the first time ,The Ludhiana CHA Association to organize such a grand event to interact between the FFFAI , Members of Ludhiana CHA Association and the Customs officials. The session was organized to create a platform for understanding and interaction with customs on some key issues of our trade facilitation. There was an overwhelming response from the members participation with 100% attendance, The presence of all the members of our association was in a way, a tribute to FFFAI’s importance in the region and was a good success achievement for Association. The Ludhiana CHA Association members were enthusiastic to interact with the Office bearer of FFFAI, to share their experiences and to hear from the guests as to how the issues are addressed for various problems at other cus- FFFAI MEETS AMRITSAR CHA ASSOCIATION PRESIDENT MR. DALIP SINGH 38 FFFAI NEWS  VOL. 1  ISSUE 3 toms stations. The exchange of information and ideas to get to know the veteran in the field was a good experience for the members in the seminar. The guest of honor – Mr. Nitin Saini, Joint of Commissioner of Customs, went on record to state how much the department appreciate if the issues are brought to them by representatives of an Association rather than by an individual. He made it clear that it is much easier and better for the officials to deal with an established association than to deal with every single CHA in the region. He insisted that it is mandatory for all CHA’s to be a part of local association and that all CHAs should enroll themselves with such body, which is recognized by the commissioner. In the end it was also unanimously acknowledged that a unique date i.e 12/12/12, indeed brought some memorable experience for all members present. The chairman Mr Shantanu Bhadkamkar, spoke about the strength of FFFAI and how this organization is able to reach out to the benefit of CHAs. He appraised the members about the in roads made by FFFAI in establishing friendly relations with many national organizations like AMTOI, ACAAI, FICCI, ASSOCHAM, FEDSAI, CAI, CSLA, INSA, NACFS, BOFBA… in addition to Government Authorities such as the CBEC and various ministries related to our trade. He also shared his thoughts on the mission of ‘Empowering The Forwarder’ & the vision of FFFAI - ‘Logistics as an occupation of First Choice’. Mr. Shankar Shinde gave a presentation on CHA and spoke at length various dynamics affecting the trade. Mr. Sailesh Bhatia in his presentation spoke about, issues with the shipping lines and the customers and their mental FFFAI VISITS LUDHIANA CFS EMPOWERING THE FREIGHT FORWARDER
  • 41. make up. The members were enthralled to note that they are part of a meaningful organization. AMRITSAR VISIT Mr. Shantanu Bhadkamkar: Chairman, Mr. Narinder M Prabhakar ,Vice Chairman, Mr. Shankar Shinde: Treasurer, Mr. Rajesh Verma, Mr. Sailesh Bhatia ,Executive Committee Member representatives of FFFAI visited Amritsar on 13/12/12 on occasion to meet the office bearers of Amritsar CHA association to introduce and invite them to be the part of FFFAI. The members drove down to Amritsar from Ludhiana and visited Wagah Border to witness the lowering of flags ceremony. The delegation visited the ICP (Integrated Check Post) at the Wagah Border. It is a newly built facility for the trade to for import / export business including custom clearance formalities. Delegation met various customs officials and understood the issues related to Pakistan trade and practices at the Land Customs Station. Mr. Shantanu Bhadkamdar, observed and showed a concern for thousands of trucks carrying export cargo lined up outside the ICP waiting clearance to cross over to Pakistan. One could appreciate the challenging situation for the local CHAs, customs officials and the exporters, when there is lack of clarity and basic infrastructure in our neighbouring country. FFFAI can take up this issue at an international level with an effective support from the Amritsar CHA Association. Mr Dalip Singh the secretary met the delegation in the late evening. Various issues of cross border trade were discussed along with contagious subject like service tax and TDS. He was much impressed by the working of FFFAI and the experience of its office bearers and was happy to extend his support and be associated with FFFAI. - Narinder M Prabhakar FFFAI VISITS LUDHIANA FFFAI VISITS LUDHIANA CFS FFFAI VISITS ATTARI CHECK POST AT WAGHA BORDER EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 39
  • 42. FEATURE “LEAST WE FORGET 1944!” I t was all because of ‘rotten fish’ - that caused one of the greatest gunpowder-dynamite explosions during World War II on 14th April, 1944 – which totally wreaked the Port of Bombay, India. The Canadian built ship s.s.Fort Stikine was a 7,142 ton Cargo Vessel carrying a dangerous payload of dismantled Spitfires to be discharged at Karachi Port enroute to Bombay (Mumbai Port) alongwith 1,390 tons of explosives which included shells, torpedoes, mines, signal rockets, magnesium flares, incendiary bombs etc. After unloading the Spitfires in Karachi Port, 8700 bales of raw cotton with hundreds of barrels of lubricating oil, scrap metal and several tons of fish manure were loaded on s.s.Fort Stikine by Captain Alexander J. Naismith - who was ordered to keep his dangerous ship at the periphery of the convoy without flying the usual red warning flag from his bridge, lest it be torpedoed and blow up her sister ships during the voyage. The foul odor of the stinking fish was terribly nauseating as it wafted upward from the Ship’s holds and hovered throughout the ship during the entire voyage from Karachi Port to Bombay. It became so intense with no ocean breeze to disperse when the ship docked, that the moment an Indian Foreman Shapoorjee Desai boarded the vessel with five stevedore gangs to unload the ship, the Chief Officer William D. Henderson told him, “If you can’t make a start on the explosives yet, we’d be glad if you could get rid of that stinking fish pretty soon. We’ve had that awful smell in the cabin for three days now.” Always obliging as they were, the Indian labourers began unloading the fish manure on April 13, 1944. They were still working the next day when they noticed some smoke drifting out of the number two hold. Knowing that the ship was packed with explosives they scrambled out shouting “Fire!” A single Squad from the Bombay Fire Brigade sprung into action and bravely climbed aboard the vessel with a solitary hose sending a stream of water into the hold. Additional men and equipment was required urgently. But the call for the same was blundered as the man sent out to make the call found a phone in a nearby Shed, but it had no dial. So without waiting for the operator to come on line he raced down the dock and broke an alarm box which meant that there was only a routine fire for a minimum crew to attend and douse. As the fire rapidly spread, the Captain of the ship ordered his crew to abandon the vessel - but the brave Indian firemen stayed on board and battled the blaze valiantly - with only a total of thirty two hoses. But when the fire continued to swell engulfing the cotton bales and causing the small arms ammunition to explode, even the firefighters had to withdraw. Captain Naismith was then left with only two choices – to scuttle his ship or to take her out into the Harbour. And while he kept debating on taking the correct decision the s.s. Fort Stikine blew up at 3.30pm. Captain Naismith’s indecision cost him his life. And the lives of more than 1,376 people, injuring more than 3,000 people and wiping out the entire harbor, after destroying 100,000 tons of Allies’ precious war material and entering into the annals of one of the worst disasters the world has ever seen. 40 FFFAI NEWS  VOL. 1  ISSUE 3 In the first explosion, the entire forward portion of the ship from the bridge to the bow blew away and scudded across the water into the bay igniting other ships in its wake. So powerful was the blast that the 400 foot s.s. Japlanda anchored next to the Fort Stikine was reported to have blown 60 feet out of the water and was tossed onto the roof of a shed at the dockside. All the brave Indian firemen on or near s.s. Fort Stikine were either killed or horribly disfigured with missing arms or legs and had torn away upper skin. Minutes later there was another explosion, which literally blasted the entire s.s. Fort Stikine, destroyed the Bombay Docks by sinking every Vessel in the harbor and even setting part of Bombay City on fire. It was reported that just before this second explosion took place a Colonel Eric Bain sauntered up to the smoldering dock and in the typical British indignation style inquired, “Hello, what’s this?” and in the next moment was found fatally injured with his brains exposed. He died shortly thereafter. After the second explosion took place which produced a cloud 3,000 feet high, hundreds of bodies of seamen and dock workers lay floating in the sea or on the destroyed docks. So great was the explosion that a large scrap metal piece flew more than a mile away into the Bombay City striking Captain Sidney Kielly into half whilst he was returning to his Office with another Officer. The other man was unharmed. One million pounds in gold bricks that the ship was carrying alongwith the scrap metal also flew in every direction. One gold brick even flew more than a mile in the air landing on a Parsi gentleman’s house porch barely missing him by inches. The gold bar was dutifully returned by him to the Police as return of “lost property”. The blasts also tore off the tiled rooftops of hundreds of buildings and smashed/cracked almost every window in Bombay. People fell badly wounded from flying scrap metal and gold bricks. Some who dived into cars were found subsequently flattened by huge chunks of flying metal. The Victoria Docks with twenty seven ships was completely destroyed. The homes, buildings and sheds around the harbor were on fire. A seismograph in a meteorological station in Simla which is nearly a thousand miles away even recorded the blast. It took several days for the hopelessly unprepared Bombay Fire Department aided by thousands of Allied troops and even valiant Scouts and Lady Guides to subdue the fires - whom we stand to honour even today for their selfless work under perilous conditions of being surrounded by fires and constantly falling debris. It finally took more than 7,000 troops working day and night for six months to clear away the debris and restore Bombay Port to its original status as the “Gateway to India”. The cause of the fire that started on the s.s. Fort Stikine has never been determined. In mute remembrance today stands a lonesome structure in the newly constructed Victoria Docks bearing the inscription “Least We Forget 1944!” Mr. Sorab P. Engineer is the Managing Partner of Messrs S. D. Engineer & Son LLP, Freight Forwarders & Custom Agents (Established in 1908), Past President of BCHAA & is on the Board of Advisors, and is an Ex Trustee of both Mumbai Port Trust and J.N. Port Trust. EMPOWERING THE FREIGHT FORWARDER
  • 43. EMPOWERING THE FREIGHT FORWARDER FFFAI NEWS  VOL. 1  ISSUE 3 41
  • 44. FFFAI’s, 21st Biennial International Convention at New Delhi Sch ed u led : 14 t h Ju n e to 16 t h Ju n e 2013 FFFAI is celebrating its Golden Jubilee this year. Considering this, the convention promises to be an exclusive and elite event, organized and conceptualized at a grander scale with expected participation to be higher than conventions previously have witnessed. The unique features of this convention are • International Participation o Participation of members of “International Federation Custom Brokers Association” (IFCBA) from 30 countries o Participation of members of South Asia Federation of Freight Forwarders Association (SAFFA) i.e. Pakistan, Srilanka, Nepal, Bangladesh, Afghanistan and Myanmar o International Delegates • International Speakers • Mini Trade Fair & Exhibition • Three days Business Sessions • B2B business meetings Invitees and Guest of Honours Participants Freight Forwarders, Shipping Lines, Airlines, CFS Operators, Transporters, Terminal Operators, Airport Authorities from all across the globe will participate in our convention as delegates. Union Ministers, State Ministers, Senior Bureaucrats from Ministries of Finance, Commerce, Shipping, Civil Aviation and Railways, Senior Officers from Department of Customs and Ports who will grace the convention. An excellent opportunity to network with delegates and promote your Organization, as well as advertise your products & services. You will be able to reach out to an extremely wide audience of owners of organizations, engaged in logistics and supply chain from across India and the globe. SAILESH BHATIA Convenor – 21 Biennial Convention Federations of Freight Forwarders Association in India st