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Inhouse Newsletter - FFFAI NEWS

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  • 1. PRE - G O LDE N JUBI LE E ISSUE VOL. 1 ● ISSUE 2 Honouring The Past - Celebrating The Present - Welcoming The Future
  • 2. Indian Institute of Freight Forwarders An Education and Training wing of Federation of Freight Forwarders’ Association in India (FFFAI) Conducting IIFF-FIATA Diploma in Freight Forwarding and various other training courses in Logistics The programme is validated by FIATA & is conducted by Indian Institute of Freight Forwarders, The premium logistics institute is promoted by Federation of Freight Forwarders Association in India. This Diploma Course is designed to conduct for the benefit of Senior Executives of Logistics fraternity and freshers seeking carrer in Logistics Industry . The course covers wide spectrum of subjects with case study and onsite training. The Diploma programme has witnessed huge response from the industry and experiencing a full classroom participation. IIFF also offer Internship and Placement Assistance for successful candidates Certification INDIAN INSTITUTE OF FREIGHT FORWARDERS Office No. 311, 3rd Floor, Mahinder Chambers, Opp.Dukes Factory, W.T.Patil Marg, Chembur, Mumbai – 400 071. Tel.: 67107495/96 Email: info@iiff.in website: www.iiff.in . www.fffai.org 2 fffai news  VOL. 1  ISSUE 2 Certificates will be awarded by FIATA, Zurich, Switzerland Empowering The Freight Forwarder
  • 3. CONTENTS - Vol.1 - No.2 DEC. 2012 message from chairman 2 Launching FFFAI News inaugural issue 9 FFFAI News FFFAI In-House Magazine & Ezine India As An Aviation Hub – ‘Time For Collaboration’ -Vipin Vohra Publisher Shantanu Bhadkamkar 25 FFFAI Launches ‘Women Wing’ A platform for Women empowerment 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. Sankalpa Bhattacharjya, 14 KPMGa- well researched... made 10 Navratna PSE Navratna CMD... Shri Sabyasachi Hajara, CMD, SCI GOLDEN JUBILEE ISSUE VOL. 1 ● ISSUE 2 Honouring The Past - Respecting The Present - Welcoming The Future ordinary members offers 24 IIFF - FIATAFreightCourses in Logistics & Forwarding 27 FFFAI delegation meets DG Shipping 28 Ifcba Presents Views On Smes and the Wco Economic.... Empowering The Freight Forwarder 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 Clearing Agents Association fffai news  VOL. 1  ISSUE 2 1
  • 4. message from chairman A Dream is not what you see during the sleep, it’s the thing which doesn’t let You sleep” Dear Members, The much awaited In-house Newsletter of FFFAI, FFFAI NEWS, launched in September was well received not just by members but also by all other stakeholders, including the international community. The response has been really awe-inspiring; within a month of launch, we came out with the second print of the first edition due to the great demand we had for the copies; 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 Golden Jubilee Edition of the FFFAI News. We will be happy if we were able to achieve higher heights with a degree of completeness by active participation of everyone. On 2nd December 1962, the then Union Finance Minister, Morarji Desai inaugurated the `Federation of Freight Forwarders Associations’ in India` in presence of a notable gathering. Shantanu Bhadkamkar The Federation brings together Customs House Agents’ Associations and their members Chairman, FFFAI under one umbrella. The Golden Jubilee of FFFAI coincides with 50 years of the Customs Act’62. Golden Jubilee is a great time to look back and celebrate what one has achieved. On behalf of all the Executive Committee Members of FFFAI, I extend my greetings to all the Members of FFFAI & also to all the stakeholders in the International Trade, who are our partners in this inspiring journey. This anniversary is for us an occasion to acknowledge with gratitude the loyalty and support which we have received from all the members since the foundation in 1962. It is especially an opportunity to thank all those of you, who helped others for past 50 years, fellow brethren Customs House Agents leadership in your customs station, who by their voluntary service have served not just the members but also have been a link and an integral part of FFFAI. Fellow Executive Committee Members and Managing Committee Members of the Member Associations, I would like to think that your work will be particularly recognised during this Jubilee year. I send my warmest good wishes to all the member associations for the support, particularly to the founder members for the five long decades, of contributing towards emergence of extremely competent Customs House Agents with High Standards of professionalism and ethics to the world of international trade. We wish to thank all the people who were behind this Newsletter, particularly those giving us the opportunity to interview them, to all those who have contributed articles the newsletter. We extend a warm thanks to the Secretarial Staff lead by the Honorary Secretary, Mr Amit Kamat for facilitating the research which went behind this newsletter; as also the Honorary Treasurer, Mr Shankar Shinde who in addition holds the responsibility of the Editor for taking pains in making this newsletter possible. I hope also that this time of celebration across the membership will not simply be an occasion to be nostalgic about the past. I believe that, young or old, we have as much to look forward to with confidence and hope as we have to look back on with pride. It is but natural that , the entire fraternity of Customs House Agents looks forward to celebrate this grand occasion in befitting manner by not just organising various events but also by taking new initiatives. While we share them from time to time, I am pleased to enlist some: • The Golden Jubilee year had a scintillating start with the blessing of the President of India • With our submissions being appreciated by the Secretary General Of the World Customs Organisation (WCO) during the Meeting with WCO SG at New Delhi, we now play a greater role in Global Trade Policy. This meeting was followed by another meeting in WCO Hq at Brussels and a Presentation to WCO Permanent Technical Committee on Economic Competitiveness Package. We had the unique honour to make the very first presentation by the private sector to the world body. The WCO represents 179 Customs administrations across the globe that collectively process approximately 98% of world trade. • We launched ‘Golden Jubilee Celebrations Mini Seminar Series’, inviting eminent experts to address the Executive Committee Members. • During the Golden Jubilee Celebrations we also launched the CSR initiatives: o Initiatives included, honouring Sport persons, Gallantry Award decorated Armed Force Personnel, Police Personnel and other members of the Society. It was a great experience being with the achievers who not just represented INDIA in the international events but also left their mark in world of sports. Throughout the year, we will continue to honour the people who have contributed to the nation building at each location. 2 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 5. o In a significant step Launch of Women’s’ Wing & Youth Wing, empowering both Women and Youth to take play a greater role in the industry, including in leadership responsibility • We also spread our wings wider by launching the CFS Wing, extending our platform to important stakeholders in our Industry. We will continue to widen our base further. • The proposed FFFAI Convention in the mid next year will be an international event. The proposed activities during the convention include o Hosting of IFCBA meeting in India for the first time o Half Day IFCBA Seminar to expose members to Customs Practices all over the world o For the first time we will have International Networking Meetings facilitating greater national and international participation o A Mini Tradefair, followed by a major Tradefair by the end of next year is also on cards • FFFAI will be ISO Certified by the time you get this Newsletter • On this happy occasion, I take pleasure in presenting to the members, ‘FFFAI Handbook’; I hope it will adorn your table. • With an equally determined initiative, FFFAI will launch SBI – FFFAI Co-Branded Imprest Card, which has numerous features of advantage to the members, and are for the first time ever available in India. Our fellow Executive Committee Members, Mr Sarfaraz Khan & Mr Sailesh Bhatia, deserve a big thank from everyone for making this possible. • On knowledge front we have a joint initiative with KPMG on coming out with the State Of Industry Report. We are also discussing cooperating on Thought Leadership initiatives; the world looks towards India, not just as an emerging market but also as a powerhouse of knowledge and thought leadership. ...the list is big, as the confidence posed by everyone is so overwhelming that my team, a highly motivated group of leaders, puts more demands as we continue to achieve one goal after another. The Newsletter and email alerts will continue to update you on it. With various events lined up and promising initiatives such as the extending the training programs of IIFF to various cities, the golden jubilee year promises to be amongst most important milestone in the era of our federation. It is imperative that we all hear the call of national apex body, do our bit to contribute actively and use this occasion to relive those days of nostalgia and everlasting memories, and aim higher for the future. Our mission and goals have shown us the way, the perspicacity of vision of the founders & the correctness of execution of those who succeeded; together, FFFAI & Member Associations, we have made the Custom House Agents, an institution of service excellence, an uncompromising engine of progress and a catalyst of growth of international trade. 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. There has never been a better time to get involved with the fellow Customs House Agents & International Freight Forwarders in shaping the future of our Industry. 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 – it’s easy, costs you nothing and provides an avenue for direct involvement in the largest network of Logistics Professionals. We live in interesting times to say the least and there is lot to be done. I hope you’ll join us in advancing our ever-evolving initiatives! Let us all interact, come together and act to make the upcoming events the biggest and the most remembered. 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. I will like to conclude by words of John F. Kennedy “Change is the law of life. And those who look only to the past or present are certain to miss the future.” ... AND ADVANCE WISHES TO ALL FOR A HAPPY AND PROSPEROUS NEW YEAR! Thanks again With Warm regards Shantanu Bhadkamkar, Chairman, Federation of Freight Forwarders’ Associations In India (FFFAI) Honouring The Past - Celebrating The Present - Welcoming The Future Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 3
  • 6. editorial Shankar Shinde Editor FFFAI News Untapped sectors Looking towards opportunities for CHAs and Freight Forwarders It is pleasure to be the part of Federation of Freight forwarders Association In India (FFFAI) during the Golden Jubilee celebration, it is with our FFFAI ChairmanMr. Shantanu Bhadkamkar ‘s vision with dream encouraged us to drive our agenda to have FFFAI News which has been a good opportunity and learning experience to lead the FFFAI news . Its time to look back and take the stock and asses the present to be proactive for future at par with International practices to align with our Golden Jubilee theme - Honouring the past, celebrating the present , and to welcome the future. FFFAI news will strive to work hard to protect and promote its members and empower them to be proactive to compete for future. FFFAI news shall be our fraternity mouthpiece to communicate, educate and impart knowledge with our members .Our team will strive to work and focus on empowering the freight forwarder to compete national and International and this will help our members to build confidence and update to co-op up with the changing challenging scenario’s. FFFAI news will help our members to address their difficulties and reach to the concern persons at various trade and Government bodies as this will be an quarterly release issue with specific themes covering various modes of Transport Sea, Air, Land, Coastal Shipping , Inland waterways, and Intermodal transport in National and International Level along with Government issues related to development of trade. This would further look for creating opportunities for members with innovative technique and entering untapped sectors. We would cover major aspect effecting our industry and the solutions to the issues by consulting to the experienced and knowledgeable personalities. There will be a continuity flow of themes so that every issue becomes important for members and other trade bodies to relate. I would request all members to participate and use this media to address the relevant issues related to our industry and forward the articles , news , photographs to keep our members updated about their regions. This in-house magazine will also be an opportunity for our Members to promote their organisation through advertising and providing details of their services. I would also like to appeal all Customs House Agents to be the part of our FFFAI by enrolling into the membership of FFFAI, and other logistics service provider to be the allied Member, and carry pride to be the Member of National Association. Shankar Shinde Editor FFFAI News shankar.shinde@globalbm.com 4 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 7. feature custom house agents Wake up Call for CHA’s It’s just the fear of loosing customers, the CHA’s carry in the market which would lead to killing each other and it would be too late for players to wake up later, by the time the business are at stake and vanished. L ooking up for a meaning in dictionary we could read the above definition, however what could be the wake up call for us at present? is really what we all need to look for and also be prepared for the challenges and take precautions to sustain our business and protect ourselves which is the major concern for our CHA Industry . Stop giving credit or Perish, it’s time now where CHA’s and Logistics players have to look into their business models to sustain and grow else they would perish, Customers are just using CHA’s and Logistics players to finance their business , and use as many CHA’s as possible to extend the credits and twist the arms , when it comes to payments they just want to raise the debit notes and set off the account is being feared by the CHA industry and in fear to not lose a customer they just carry on with the huge liabilities of providing credits without understanding their way ahead is nothing but perishing . On the other hand the CHA’s pay advances to their vendors (shipping line / CFS’s etc..) and CHA fraternity fails to understand whether did shipping lines have lost their customer for collecting D/D. and advance payments from CHA or Logistics players then how could CHA lose their customers, it’s just the fear the players carry in the market which would lead to killing each other and it would be too late for players to wake up later by the time the business are at stake and vanished. There is an need for the training of financial control in CHA, as they need to understand the business they are into, the proportionate of margin to forego towards financial burdens of interest and the risk of payments deduction by customers would just lead to negative yields rather than doing their businesses, It would yield more by investing in bank saving account. The CHA’s further due to financial crunch add on the liability of borrowing funds at higher interest without considering the margins on the business the invest their high cost funds for customers at lower margins, the low yields and high cost of business administration and infrastructure are further killing the businesses. Other than above we continue to face issues on operations: 1. CHALR’s regulation – powers to suspension 2. KYC norms – limitation 3. Onus on CHA for failure of Agencies to control frauds and smugglings 4. CHA ‘s are procecuted and imprisoned for no fault 5. Red Sanders Smuggling Cautions – Government systems not equipped to control 6. Low cost operators are hamster running on a treadmill, you are not going anywhere. As such their is a need to analyse what else are the wake up call for our industry from every members perspective , which can be highlighted and corrective actions can be taken. Welcome reader inputs at shankar.shinde@globalbm.com What next Financial crises: how to make money work? Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 5
  • 8. 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 Vinod K. Chowdhry Shri N.T.Rama Rao Shri Kurien Mathew Shri Rafeeq Iqbal Shri P.S.Krishnan 6 Shri Naval H. Mehta Shri M.G.Sachdeva Shri Ram Sharma Chunduru Mr. R. Radhakrishnan fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 9. Executive Committee 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. K. Suresh Kumar Mr. K.S. Desikan Mr.Sarfaraz A. Khan Mr.Omprakash Agrawal Mr. Raghu Jairam Mr. Alan Jose Mr.Shashidhar V.Hebbar Mr. Debashis Dutta Mr. Devendra Thakker Mr. Puttaraju Mr. Ravi Joshi MR. GEORGE JOSEPH Mr.Shankar Prasad Verma Mr. Debashis Modak Mr. S. Natraja Mr. R.Rajesh Kumar Mr.Dilieep T. Abraham Mr.G.A.Kalyana Moorthy Mr. C.S.Narendar Mr.Mohd. Nayeemuddin Mr. Adil Khan Mr.Shailendra Jain Mr. Kailash Gupta Mr. Amit Kumar Jain Mr. Arun Sharma Mr. SUDHIR KUMAR JAIN Mr. Pramod Soneta Mr. Rajesh Verma Mr. Madhusudan Kumra Mr. Manoj H. Kotak Mr. Manish Mishra Mr. Shareef. M. Mr. M. Shekhar Pujari Mr.Prakash Khemka Mr. Sudhir Agarwal Mr. S. Y. Ranade Mr.K.V.Krishna Kumar Mr. P.V. Jagannath Mr. Parmanand Chand Mr.Rajender Kumar Goyal Mr. S. Ramakrishna Mr. J.A. D’Souza Mr.Anurag Vijayvargiya Mr. Jagvir SinghJain Mr.Suresh Kumar Sharma Mr. A.V. Ranga Rao Mr. Ramesh Bansal Mr. T. V. Sujan Capt. Ashish Samarth Empowering The Freight Forwarder Mr.J.P.Joe Villavarayar Mr.C.Karthikeya Prabu fffai news  VOL. 1  ISSUE 2 7
  • 10. Nominee of Associate Members Mr. Dilip Bhat Mrs.Philomena Pereira 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 List of Councils and sub-committees (2011-13) Name of council Sea Freight Council Mr. Sailesh Bhatia - Convener Mr. Alan Jose Mr. A.V.Vijaykumar Mr. Debhasis Dutta 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 IT/ EDI Council Mr. Nailesh Gandhi - Convener Mr. K.Suresh Kumar Mr. S. B. Salian 8 Sub-Committees 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 Port based CFS Council Mr. A.V.Vijaykumar - Convener Mr. Georg Joseph Mr. C.Karthikeya Prabhu Sub-Committees Banking Mr. Sarfaraz Khan - Convener Mr. Sudip Dey 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 fffai news  VOL. 1  ISSUE 2 Government Relations Mr. Ashish Pednekar Direct Tax Mr.A.Ramaraj - Convener Mr.George Joseph Mr.Sudhir Agarwal International Network Mr.Shantanu Bhadkamkar Convener Mr.Sailesh Bhatia Mr. V.S.Pradeep KYC Mr. Rajesh Verma - Convener Mr.Debhashis Modak Mr. S.Nataraja Brochure Mr. Sailesh Bhatia Website Mr. Nailesh Gandhi - Convener Mr. Amit Kamat Mr.Shankar Shinde DMIC/ DFCC Mr. Arun Sharma - Convener Mr. Ramesh Bansal Capt. Piyush Sinha CHALR Under Customs Council Mr. S.Ramakrishna - Convener Mr. J.A. D‘Souza Mr. Madhudushan Kumra Mr. Devendra Thakker Constitution Mr. Shantanu Bhadkamkar ISO 9001 Mr. Pankaj Shah Media Mr. Arun Sharma FFFAI certificate of competence Mr. Shantanu Bhadkamkar Mr.G.A.Kalyanamoorthy INDIAN institute of freight forwarder (iiff) Standard Trading Conditions Mr. Shantanu Bhadkamkar Convener Mr. George Joesph Mr.S.Ramakrishna Chairman Mr. Shantanu Bhadkamkar President Mr Shankar Shinde Hon. Secretary Mr. Pankaj Shah 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 Code of conduct (Harmonization) Mr. Phillip. C.C WINGS Registration Mr.Shankar Shinde - Convener Mr. Pankaj Shah Mr. Amit Kamat Mr. K.S.Desikan Visioning Mr. Tushar Jani Mr.Shantanu Bhadkamkar Appellate Mr. P.S.Krishnan Customs Business Process Reengineering (Self Assessment) Mr. Nailesh Gandhi Membership Mr. A.Ramaraj Infrastructure Mr. V.S.Pradeep - Convener Mr. Prakash Khemka Mr. Philip.C.C. Disciplinary Action Mr. Shantanu Bhadkamkar AEO/ MRA Mr. Samir Shah - Convener Mr. Narinder Prabhakar Mr. A.V.Vijaykumar Mr. Nailesh Gandhi News letter Mr. Shankar Shinde CHALR & Other Cases Mr. J.A.D‘Souza Women Wing MSME Mr. S.Ramakrishna Mr. O.G.Hariraj CFS Wings Youth Wing Empowering The Freight Forwarder
  • 11. FFFAI NE W S INDIA AS AN AVIATION HUB – ‘TIME FOR COLLABORATION’ -Vipin Vohra 5th Assocham International Conference, Indian Civil Aviation With Honourable Chief Guest Mr.Ajit Singh Ji and Mr.Kapil Kaul and Manoj Singh, advisor planning comVipin Vohra mission, Mr. Tushar Pandey, Yes Bank among other dignatories was held on On 2nd December 2011 Aviation Hub – Time for Collaboration Mr. Vipin Vohra – (Air Freight Committee FFFAI) was invited a penallist to represent FFFAI in a panel discussion on INDIA AS AN AVIATION HUB – TIME FOR COLLABORATION Mr. VipinVohra: In his address mentioned that the Aviation Sector is very interesting however we must start with a check on the available infrastructure for India’s Exim trade & Domestic Air Cargo Market. He further explained the requirements to emerge as Airport in the air cargo network of traffic & an ideal candidate for an alternative hub. Mr. Vipin Vohra emphasized that unlesswe take some key initiatives and implement them it would be a distant dream for India to be a Aviation Hub. He highlighted some keyissues that need to be addtressed andkey initiatives to be implemented they were●●Sufficient cargo capacity : presently the capacity available with the airlines operating out of india is not even sufficient to cater the local need of the country. No room to accommodate the transit cargo. ●●Free port policy : the main demand is free port policy something similar to SEZ & more. ●●Strategic geographic location : this is very important & should be accessable easily & scope for further growth. Require excellent connectivity &accessability. Extensive i.t.application High safety & security, emergency response system Efficient cargo ground handling operations. Not just matching world class standards but exceeding it. ●●Competitive costs (very very important) Social political harmony, including trade friendly labourpracticies. ●●Simplificationof trade regulatons Value adds such as refrigerated warehouses, heavy cargo handling facilities & infrastructure to cope with the rush of cargo. Further to sum up he said some imperative changes are needed and briefly mentioned them. Streamline customs & other regulatories authorities on single window, required change in the customs manuals. To create infrastructure for trans shipments at all airports for handling transhipment over & above the local cargo generated from india. Government should allow freighter carriers to bring in more no. Of freighters by making cost effective airports to compete with other airports in the world and to control the rates otherwise if the capacity is not created it will have negative impact on rates for indian exporters. Community system :edi in true sence Hinterland integration & efficient national connection, domestic cargo & int’l cargo coming on domestic/int’l flights or by sea International recognition, brand image & confidence of all stake holders, particularly airlines & customers. Collaboration with all the stake holders in the air cargo industry. Lastly: the govt. Should think seriously to encourage “air freight stations” to be approved outside the airport area. This will give cost effectiveness and create more infrastructure outside the airport area to decongest the airports in india. Although the airfreight stations concept has been approvedby govt. But till date no procedure has been laid down by the govt. His thoughts were well appreciated by all. FFFAI’s Values Protect Wealth Customer focused Law compliant Environmen- Simplicity Socially tally responresponsible sible Innovation Empowering The Freight Forwarder Tax efficient Secure supply chain Empowerment Integrity fffai news  VOL. 1  ISSUE 2 9
  • 12. INTERVIEW shipping corpor ation of India Navratna PSE Navratna CMD... Sabyasachi Hajara, started his career with SCI in 1973 after obtaining Post Graduate Diploma in Management from the Indian Institute of Management Calcutta. He also has a degree in Law and PG Diplomas from the Norwegian Shipping Academy in Shipping and in International Maritime Law & Marine Insurance. He has vast experience in various aspects of shipping and has been representing the Indian shipping industry at various international fora such as the ILO and IMO. Presently, he is the President of the Indian National Shipowners’ Association, a trustee of the Mumbai Port Trust and also on the Board of Governors of the World Maritime University, Sweden as well as Director on BIMCO Board. He had also been the Vice-President and Director of International Shipping Federation.. In June 2010, the prestigious. Mr.Hajara was presented the “Seatrade Outstanding Achievement Award” at the prestigious Seatrade Middle East and Indian Subcontinent Awards held in Dubai. At Sailors Today Award ceremony on 21.04.12, Mr S Hajara has been coveted with prestigious “Life-Time Achievement Award” for his outstanding contributions to the Shipping Industry. What are the benefits for you, if the government implements its plan to reserve one third of the country’s Exim cargo share for the Indian flag vessels? It immediately gives us a platform for boosting the Indian tonnage. Though India has the tonnage of barely one percent of the world, in terms of volume, India’s Exim trade is about 700 mn tones which is about 8% of the world trade. The share of Indian tonnage in India’s Exim trade is just about 8-9%. So if we have assured business of close to one third of total volume, it gives Indian shipping the tremendous platform for growth. First and foremost, India is one country which has 100% FDI in shipping. We have conveyed to the Government that we are asking to reserve 33% of Indian Exim trade for Indian flag. Whether in the containerized scenario or in tanker, or in dry bulk, if the foreign lines will find that there is an distinct advantage of being an Indian flag, it will definitely attract a lot of investment in the country and even the foreign shipping companies 10 fffai news  VOL. 1  ISSUE 2 will set up their shops in India. As regards allegations that reservation of cargo will increase freight rates I would say that, water always flows and reaches its own level. If in the international market there are certain levels of freight rates prevailing and by reservation of Indian cargo the rates go very much higher then everyone from the International market will be attracted to Indian cargo and it will automatically reduce the rates to reach the same levels as the international level. Such 100% FDI is not there, even in the liberal- Today, 8000 TEUs ized countries like Europe. gets transshipped They have lot of restriction across the coast in on FDI, even for shipping India per month. The and transport which are total numbers of Inconsidered as strategic in- dian coastal shipping frastructure for their lines are 6 and amongst us we offer country. With the reservation of a capacity of 42,000 cargo, there will be more TEUs. Empowering The Freight Forwarder
  • 13. scope for FDI. If it is found that Indian Shipping Companies do not have their own strength to cater to the entire reserved cargo then obviously the cargo would always get catered to other international lines. Today in the world scenario, particularly when you consider the shipping scenario, where the supply of tonnage is far surpassing the demand and the ships are chasing cargo everywhere, you cannot have a situation in any pocket of the world where suddenly you will find that there is cargo but no ships. If the reservation happens will you ensure that the Indian Exim community will get competitive rates freight rates and will not pay higher freight charges? Indian flag vessels more taxes. In India the outgo for taxation is high, even in the best years of shipping. Today the Indian shipping companies are incurring losses and we have the so called “tonnage tax” which is a notional tax. We are required to pay tax depending on how much fleet we own and it has nothing to do with the book profit or loss. Obviously even if SCI has incurred loss it has to pay tonnage tax. But even in good years, the Indian shipping pays tax to the extent of 8-9%, whereas at least 95% of the world tonnage is operated from the regime where the taxation level is 0-0.5%. There is a lack of level playing field. That is the sovereign’s call. If sovereign has decided to collect some tax then that should not be the factor for which you can say that because if you pay higher tax it is difficult for you to give exactly the same freight. Even for Transchart and other inquiries we are carrying cargo at the internationally competent rates. Foreign shipping lines are quoting their freights and if we have to carry, we have to match that rate. Despite the taxation, we are still offering internationally competitive rates. My point is that taxation is again something that the country is realizing for developing its soft infrastructure which is education, health etc. What will be the impact of Cabotage law? I won’t say there won’t be any direct immediate impact. They are trying it at Vallarpadam Port. They said that they will have to relax it at other ports as well if they do it for Vallarpadam? No it isn’t true. I haven’t read it in any policy statement. Cabotage is getting stringent in many countries such as Malaysia, Indonesia, etc. In USA the Cabotage is absolutely strict. If you have to carry US coastal cargo, the vessel has not only to be a US flag but also US built. The logic that has been put forward and accepted for relaxation is unfortunately all wrong. For instance, it has been said that there is lack of Indian tonnage. Today, 8000 TEUs gets transshipped across the coast in India per month. The total numbers of Indian coastal shipping lines are 6 and amongst us we offer a capacity of 42,000 Empowering The Freight Forwarder Shri Sabyasachi Hajara Chairman & Managing Director The Shipping Corporation of India Ltd TEUs. We offer five times the volume that gets shipped / transshipped today. It is said if Cabotage is relaxed, the Vallarpadam will be able to attract one million TEUs of transshipment which is transshipped through Colombo in Sri Lanka. The fact is Colombo handle total 3.8 mn TEUs out of which 2.9 mn TEUs is transshipment cargo. Out of this, altogether, the India bound cargo is 1.2 mn TEUs. The rest is for Salalah, Bangladesh. India’s volume of transshipment, routed through Colombo includes 1.2 mn TEUs which includes west and east coast cargo. To say that Vallarpadam, out of that 1.2 mn TEUs will be able to attract 1 mn TEUs beats all logic. They have pleaded and the government has relaxed Cabotage. Of course there are provisions that it is on experimental basis and it will be renewed after three years. Our point is simple, on the Indian coast we do not have a level playing field vis a vis our foreign counterparts. In our coast, for Indian cargo, you are making a situation where we are discriminated against foreign carriers who do not have the problems that we have, and they can merrily come and pick containers which we can’t. In Indonesia one of the Indian shipping lines- Varun Shipping was catering to the bulk of LPG movement on its coast. Maybe about 80% of the total movement was handled by Varun. Only a year ago, Indonesia brought strict Cabotage due to which only Indonesian flag can carry their coastal cargo. In India all that you need is a no objection from INSA. Lot of cargo is moving by foreign flag as it is. Unlike India, where we have 100% FDI, in Indonesia their flag can only be owned by an Indonesian entity and the local promoter or equity partner has to have majority stake. So immediately Varun shipping had to form a JV in Indonesia with a minority stake, outstanding majority stake was owned by an Indonesian carrier. They lost the cargo because they are only a minority stakeholder in a carrier that is carrying LPG. Why do you think the foreign vessels will invest in Indian flag vessels knowing that the tax levels are higher? fffai news  VOL. 1  ISSUE 2 11
  • 14. INTERVIEW shipping corpor ation of India S Hajara, Chairman, Organizing Committee, NMDC(C) and Chairman and Managing Director of Shipping Corporation of India, received the Safety Award from A P V N Sharma, I A S, secretary to the government of India, ministry of shipping, on the eve of the celebration of International Maritime day in the metro. If they don’t invest they will not get the cargo. That is why if we have reservation they will have to invest and come to India, just to cater to that cargo. Do you think Indian ship-owners can increase their market share? If we have a reservation of 33% then we can increase the market share from the current 8%. How shipping Lines particularly national and CHAs can work more closely to synergize and strengthen each other? Not only as President, INSA, I am talking now as the Chairman of SCI and we have always supported the freight forwarding association and their members, freight broking assoc. and their members, Customs House agents and their members, to the best extent possible. I must also admit that wherever our services are available they have patronized our services. Wherever we are commercially competitive they have patronized us. We should strengthen it further through dialogues and closer interactions. Have you witnessed any dip in volumes in 2012? No. How has been the cargo growth? Different segments of cargo have seen different growth but the growth is there.Unfortunately, the growth in tonnage supply has been higher than the growth in cargo demand which has resulted in the charter rates coming down. As far as cargo volumes are concerned, they have been growing and only in 2009 the actual volumes dipped. After several decades, the oil consumption and trade dipped. Even in dry bulk there was a fall in 2009 which was an exceptional year. Cargo volumes are growing now but on the other side, the supply of tonnage is growing at a faster rate than the demand for that tonnage and that is why the rates are 12 fffai news  VOL. 1  ISSUE 2 still under pressure. From Trade is growing, 2013, I think the growth shipping will grow in supply of tonnage will with the trade. I substantially slow down. have not come At one time for dry bulk across a forecast and container, the total which projects accapacity on order was tual slowdown of more than 50% of the trade or economy. fleet capacity and today it World GDP which has come down to 20%. had grown at a very In the case of tanker, it healthy rate of 5.5% was between 30-35% and came down to 4%, today it is 12%. The deliv- and then to 3% and ery of ships will definitely now it is around 3%. come down very substan- No one has predicted tially from 2013 onwards, a negative growth since from 2009 onwards despite euro zone the order-booking had crisis or some slow come down. The peak down in China. period of ships ordering was in 2007 that translated into a historic high for ship deliveries in 2010. In those years, in every established shipyard, there was choc a block, so there was a lag of about four years between placing an order and taking delivery. Thereafter from 2011, ship deliveries slightly came down and from 2013 it will come down further, so that demand and supply mismatch will be offset to a great extent. SCI has not stopped increasing capacity. It has stopped new ordering of ships. We were aggressively ordering ships upto 2008 then we put a stop because there was recession. We knew the asset prices would come down substantially. We also found that it was putting pressure on our cash flow because the margins were already under pressure. The freight rates and charter hire were coming down drastically. We almost stopped ordering from mid 2008 till 2009 end. Then again from 2010, we have ordered a few ships but not too many. In 201112, for the first time after 28 years, SCI incurred losses. So obviously, we found that on the basis of our current cash flow situation, it will not be possible for us to order too many ships. Earlier only about 20% of our total project cost used to be borne by us through equity / internal resource generation. Today, it has even gone up because the ship financiers have burned their fingers with the world shipping companies over the last few years and they are not prepared to lend more than 6065% of loan. How is the induction of new vessels proving to be beneficial? They are bunker efficient. New ships require far less maintenance for at least one year. Trade is growing, shipping will grow with the trade. I have not come across a forecast which projects actual slowdown of trade or economy. World GDP which had grown at a very healthy rate of 5.5% came down to 4%, and then to 3% and now it is around 3%. No one Empowering The Freight Forwarder
  • 15. What are the growth plans for SCI? Our primary thrust would continue to be on energy transportation. Currently we are looking at joint ownership of bulk carriers for import of both coking coal and thermal coal which are projected to increase manifold in future. We are also very keen to expand our role in LNG transportation and are primarily targeting future LNG projects in India. The company hopes to cross the mark of 6 million dwt this year. Our vision is to make SCI a truly global shipping company with a large fleet and presence in all major markets and continue to have robust internal processes based on the state–of- the-art IT system so as to increase the speed and accuracy of business transactions. Mr Khan, Mr. Hajara and Mr. Shinde has predicted a negative growth despite euro zone crisis or some slow down in China. What advice would you give to the future SCI CMD? When I took over, I took a view that India is a growing economy. All over the world shipping tonnage has grown when the economy has grown. Unfortunately, the growth in Indian tonnage has been very dismal. Compared to our Exim trade which was growing at 25% or more, the Indian shipping tonnage was growing only at 3-4%. The best year has been 2004 -2005, when the tonnage tax was introduced and in one year the Indian tonnage grew by 10-12%. But otherwise, if you work out India’s CAGR, the Indian shipping is growing at a 1.5-2% or thereabout. As a percentage, the Indian fleet to global fleet has come down. My first agenda was to increase SCI’s tonnage. When I took over it must have been a little over 4 mn DWT and now we have close to 6mn DWT. I was looking forward to leave SCI by making SCI fleet to the level of about 8 mn DWT or there above but it was not possible because of the economic downturn. I did feel that we should have a cushion because shipping is highly cyclic industry and to have the cushion we should diversify into being a logistics solution provider, having presence in the entire chain rather than just be a shipping company. At the moment, we are just concentrating on our core business. But otherwise, terminal management was one of the area where we wanted to grow and further to have involvement even in ship building, in warehousing, ICD/CFS operations as well. My advice to my successors is that as and when shipping industry improves and we would be in the position to once again diversify, then we should attempt to be a holistic logistics solution provider rather than just a shipping company. For instance NYK & Maersk have done that which has brought them in good state. Empowering The Freight Forwarder What is your policy for appointing agents? Whenever business prospects are seen at any port(s), SCI invites offers from the Shipping Agencies operating at the port(s) normally through newspaper advertisements. The offers received are opened in the presence of the representatives of applicant Agencies. The offers are initially scrutinised for professional competence and financial soundness of the applicant Agencies. The applicant Agencies which qualify in the initial scrutiny are further scrutinised for their commercial competitiveness after opening the price offers in the presence of the representatives of applicant Agencies. The most commercially competitive Agency House is awarded the Agency. What has been your best moment in the industry? Since joining the Shipping Corporation of India in 1973, there were number of moments in my life which were of great importance. However, the day I became the Chairman & Managing Director of this esteemed organization, was the proudest moment in my career. This was all the more important, as I joined this company directly after passing out from the IIM, Calcutta and continued with this company for my entire career. I would also like to mention that recognizing the performance of the company, the Government of India conferred the most coveted “Navratna” status on SCI in August, 2008. Further, I felt very proud to head this organization at the time when the Golden Jubilee year of SCI was celebrated from 2nd October 2010 to 2nd October 2011. The Chief Guest for inaugural function of the Golden Jubilee year was Her Excellency, the, then President of India and the Chief Guest for the valedictory function was the Hon’ble Prime Minister of India. What is your advice to the FFFAI community? Being part of such dynamic association, it is eminent for FFFAI members to keep themselves abreast of developments from time to time and to disseminate the information to stakeholders. Association must play a role in bringing down logistics and transactional cost thereby giving a boost to country’s Exim trade.  fffai news  VOL. 1  ISSUE 2 13
  • 16. FEATURE KPMG’s Response Opportunities & Challenges in the logistics industry The industry is a very mature one, as evidenced by the existence of 4,000+ players providing services ranging from basic documentation to end-to-end logistics services. Going forward, the industry is expected to consolidate significantly, and many sub-scale CHAs will need to think of new business models to remain relevant in a changing trade, regulatory and competitive landscape. What is the Status of Logistics in India and opportunities in logistics? India is one of 5 countries globally (the others being China, Turkey, Brazil and Mexico) which have a GDP in excess of USD 600bn, yet a logistics industry that is only moderately developed (measured by the World Bank’s Logistics Performance Index). This means that there is a significant opportunity for growth and development of the sector. In 2011, total logistics market size was estimated at USD 84billion and is expected to grow at CAGR of ~10% to reach market size of USD 112billion in 2014. During 12th Five year plan (2012-2017), Government plans to spend USD 1trillion in the infrastructure sector and expects significant contribution from private sector to meet the investment targets. Moreover, Government plans to invest USD 75billion in the improvement of road, rail, aviation and ports infrastructure and services. Factors such as rapidly growing economy, significant government investment in core infrastructure projects, increase in outsourcing of logistics activities, and steady supply side changes are expected to contribute to the growth of Transportation and Logistics sector in the fu- 14 fffai news  VOL. 1  ISSUE 2 ture. On the other hand, few challenges leading to the inefficiencies in the logistics sector are poor infrastructure, inefficient modal mix, capacity constraints, etc We expect that the industry will see the following trends over the next few years: 1. Polarization – the advent of global client groups and logistics companies in India could result in a significant market share shift to these players 2. Verticalization – logistics companies would invest in capabilities and assets to become more vertically focussed, rather than being generalists as has been the case so far 3. Standardization – cargo would get increasingly get more standardized and movement / storage would become a function of weight and speed 4. Multimodal Operations – India’s modal mix is expected to change to include more efficient and cheaper options, reducing the current overdependence on road 5. Distribution Efficiency – India will eventually move to a model of distribution which is efficient from a process and regulation standpoint Empowering The Freight Forwarder
  • 17. As mentioned earlier, unless CHAs de-commoditize their basic services, they may become irrelevant. Even from a regulatory standpoint, key changes such as the prevalence of EDI, self-declaration and RMS, AEO policy, ACP policy, stringent KYC norms, 24x7 clearance and single window services will require CHAs to radically rethink their models. With these changes, customers may eventually be technologically enabled to handle their own customs procedures, or this might become yet another ‘tick-in-the-box’ activity, which would not attract any premium. It is therefore important for CHAs to view themselves as a higher level logistics service provider. KPMG - Sankalpa Bhattacharjya, made a well researched presentation on Logistics Industry status in India Role of CHA in Logistics, and what is the industry size? What is the future growth of industry? CHAs play some important roles in the overall EXIM logistics system. They help with speedy and smooth customs clearance for cargo, ensure appropriate classification and valuation of cargo, assist in the documentation for EXIM cargo and also provide ancillary logistics services that are critical to the EXIM cargo chain. The CHA industry was estimated at USD 544mn (net revenue basis) in FY12, and is expected to grow at 1520% per annum over the next 4-5 years. In 2011, Ocean CHA contributed 63% of total CHA market and remaining 37% was contributed by Air CHA. Imports form majority of the percentage in both Ocean and Air CHA market, contributing 64% and 52% respectively. Ocean CHA market is expected to grow at CAGR of 19% and Air CHA market is expected to grow at CAGR of 16% during 2011-2016. The industry is a very mature one, as evidenced by the existence of 4,000+ players providing services ranging from basic documentation to end-to-end logistics services. Going forward, the industry is expected to consolidate significantly, and many sub-scale CHAs will need to think of new business models to remain relevant in a changing trade, regulatory and competitive landscape. Need for a CHA to diversify or add related activity Integration into other allied services The basic CHA services are commoditized to a large extent, and entry barriers in this industry are very low. This is also evidenced by the constantly declining pricing and margins for CHAs, over the years. To survive and remain profitable, CHAs need to follow some of the trends occurring in the broader logistics industry – and they also need to become integrated service providers to customers, many of whom are today seeking players to provide customs handling, freight forwarding, transportation and warehousing solutions. Demanding customers with more services and lower rates – how should CHA react – sustainability power? Empowering The Freight Forwarder Drivers for CHA growth? Mergers / Acquisition – MNC entrants in CHA industry with huge capital investment at low capital cost Perhaps the biggest driver for the CHA industry is the growth in EXIM trade itself. However, with declining pricing and regulatory pressures, there may come a point where CHA volumes continue to grow whereas the industry itself may start declining. M&A and consolidation is very much expected in this industry, but then there would also be a dearth of ‘attractive’ targets; smaller, standalone CHAs therefore need to think about either adapting or perishing. MNC will continue to establish a stronghold in India. The 2000-10 decade saw the entry of most large global logistics MNCs into India. The next decade is likely to see more competition from these players, including mid-size international companies. How can CHA face such challenges? Investments perception in our industry CHAs need to change their business models dramatically to survive in this rapidly changing environment. The following 4 questions need to be evaluated very carefully: 1. What business are you in? CHA or logistics? 2. What differentiates you from your competitors? Is it price, customer relationships or something more sustainable? 3. Have you thought about the impact that IT will have on your business? Can you envision a scenario where IT will render the EXIM chain paperless? 4. What additional services can help you stay in the game and win? Can you become an advisor instead of an implementor? Current investor perception of the CHA industry is that it is highly competitive and commoditized, and this is why there have hardly been any investments in standalone CHAs. Investors prefer more integrated players who have more sustainable business models. Necessity for Coopetition in CHA? Win – Win situation This is definitely an area that can be considered where groups of CHAs share resources and offer complementary services. However, the CHA function alone may not be sustainable, and diversification into newer areas may be required. fffai news  VOL. 1  ISSUE 2 15
  • 18. INITIATIVE YOUTH wing uth ing yo w Dear Members, It is with our Chairman’s vision and Executive Committee Members support to have an youth wing Launched on 2nd December 2012 on eve of Golden Jubilee Celebration of FFFAI . Our Federation Committee Members have initiated the task to create a platform for dynamic youth’s of future leaders in our industry ,Federations has been playing an important role to have this youth wing launched by inviting nomination , thanks to the Members for enthusiastic response by nominating the youth. I will be happy to lead this initiative to make it a great success. Mr. Samir Shah and Mr. Tej Contractor have agreed to be Mentor for the Youth Wing. We are happy to have such personalities to develop and shape future leader in our Industry. -To enable and empower future Business Leaders in Leading the Association to Greater Heights -To encourage support FFFAI at the Local, Regional, National and International Level The Objective of youth Wing: - To provide an opportunity to the young forwarders an insight into the functioning of FFFAI and its Members Associations by including them in the current functioning of the association. - To create a platform thereby harnessing talent within the Industry to create Future Leaders of the Association. - To lead and be the future torchbearer leader of this industry and take it to greater heights especially with respect to it’s unique positioning and role. The Future Leader will lead by an example of integrity and knowledge. Plan of Action: • To identify the Youths and create team to lead the youth wing through atleast 2 years of succession. • To guide youth’s and plan course of action. • Recommend that each member of the youth wing should be part of the committee at the local level (Ordinary Member’s - Youth Wing) • All the Ordinary Members should nominate 2 youths from each association in FFFAI e.g. Bombay, Chennai, Delhi etc. 16 fffai news  VOL. 1  ISSUE 2 • The members would be selected to each sub-committee to participate and contribute for the functioning of each committee. • Youth Members have to participate in different subcommittee and should not hold on in a single committee for more than 2 years , thereby providing them an overview of the complete Federation functioning. • We will encourage Youth participation in events, Seminars and conferences and expect youth’s contribution. Background The need for Youth wing • Interest and Aggressive to learn / good hand on theory study. • Opportunities to participate and get familiar to Members in National forum with early Introduction. • Invite new talents with changing scenario’s . • Transforming Theory Logistics into Practice ,Prepare good case study. • Early Exposure to International forum. • Encourages to Participate for The Young International Freight Forwarder of the Year Award. • Participate in FFFAI Young Freight Forwarder Award. • Will create good DATA of Young forwarders for nomination to any other forums of youth wing • Finally pride to FFFAI and India for creating Young Entrepreneurs Who can register for youth Wing • Any youth person below 30 years (Nomination through Members only) • Members can nominate their Partners / Directors / Relative or Managers in Organisation. • Members related youth, studying of seeking career in logistics. • Youths could be studying in India or abroad - (International youth - This will help to understand International perspective in our industry) Members registered before 2nd December would be the Founder Member of Youth Wing. Shankar Shinde, Hon., Treasurer - FFFAI Empowering The Freight Forwarder
  • 19. ACTIVIT Y REPORT FFFAI in action PRE-gOLDEN jUBILEE MEETING AT FFFAI OFFICE ●● Women’s Wing was launched on 14th September, 2012 at Pune. Smt. Anjali Bhagwat, the Arjuna of India, the Gold Medalist and shooter. ●● FFFAI supported 5th ASSOCHAM International Conference on Civil Aviation held on 21st September, 2012 at New Delhi. The conference was attended by Mr. Vipin Vohra – Co-Convener of Airfreight Council wherein he was the speaker at the event. ●● hairman Mr. Shantanu Bhadkamkar was speaker at C East Coast Maritime Business Summit held on 21-22nd September, 2012 at Visakhapatnam ●● FFFAI supported Gujarat Junction 2012 held on 6th & 7th November, 2012 at Ahmedabad and was allotted stall at the event ●● FFFAI supported Intermodal India 2012 held from 2527th September, 2012 at Mumbai. Mr. Shankar Shinde – Honorary Treasurer delivered speech on Intermodal Transport. ●● aritime Forum held on 28th September, 2012 was M attended by Chairman Mr. Shantanu Bhadkamkar ●● FFFAI was facilitated during MALA 2012. The event was attended by Chairman Mr. Shantanu Bhadkamkar. ●● Mr. Shankar Shinde – Honorary Treasurer , Mr. George Joseph, Mr. Nailesh Gandin,Mr. Sailesh Bhatia had a meeting on Indian road infrastructure and opportunities for Investments for Indian Freight Forwerders with Japan Freight Forwarding Organization with the representatives of Mizuho Corporate Bank, Singapore on 12th October, 2012 at Mumbai. ●● Mr. Shankar Shinde – Honorary Treasurer attended Annual gathering of Maharashtra Heavy Vehicle & Interstate Container Operator’s Association held on 10th October, 2012 at Mumbai. ●● FIATA World Congress 2012 at Los Angele was attended by Mr. Amit Kamat and Mr. Tej Contractor.Mr. Alan Jose , Mr. C.S. Narendra and Mr. N.T. Rama Rao. ●● hairman Mr. Shantanu Bhadkamkar and Mr. Shankar C Shinde – Honorary Treasurer attended the Interactive Empowering The Freight Forwarder Women’s Wing MEET AT FFFAI OFFICE session of network and short presentation on the Port of Amsterdam on 12th October, 2012 at The Trident Hotel, Mumbai. ●● Chairman Mr. Shantanu Bhadkamkar attended the Gujarat Star Award held on 13th October 2012 at Ahmedbad. ●● r. Shankar Shinde – Honorary Treasurer, Mr. Pankaj M Shah and Mrs. Philomena Pereira attended the meeting held in the Office of the Commissioner of Customs (Export), Nhava Sheva on 17.10.2012 regarding illegal export of Red Sandar. ●● omen’s Wing meeting was held on 30th October, W 2012 at FFFAI office. ●● Chairman attended IFCBA meeting at Brussels and gave presentation on SMEs and the WCO Economic Competitiveness Package ●● Meeting was held on 3rd November, 2012 at FFFAI office to discuss the preparation of Golden Jubilee Celebration on 2nd December and various other issues ●● Chairman Mr. Shantanu Bhadkamkar along with other members of FFFAI met Mr. Gautam Chatterjee DG of Director General of Shipping on 5th November, 2012 ●● Mr. Amit Kamat – Honorary Secretary and Mr. Sarfaraz Khan met Honorable Minister of Shipping Mr. Milind Deora on 12th November, 2012 at Mumbai ●●FFFAI alongwith BCHAA organised a knowledge seminar with Yes Bank on on “New Opportunities in the Logistics Sector” for the Members of BCHAA and FFFAI Upcoming Events Conquest 2013 is scheduled to be held on 13th February, 2013 at New Delhi FFFAI supported Hazmat 2013 scheduled to be held on 26-27th April 2013 at Mumbai FFFAI’s Chairman invited by Gateway Media Private Limited, to be Jury Member of the Gateway Awards of Excellence 2013 fffai news  VOL. 1  ISSUE 2 17
  • 20. ACTIVIT Y FELICITATION AND HONOURS 49th AGM of the `Federation of Freight Forwarders’ Associations in India` (FFFAI) T he 49th AGM Of the `Federation of Freight Forwarders’ Associations in India` (FFFAI) was held on Friday, 14th Sept 2012 at Marriot Hotel & Convention Centre, Pune. Coinciding with the AGM, from 13th Sept 2012 to 15th Sept 2012, FFFAI held the Executive Committee Meeting; the `Pune Customs House Agents Association` hosted the meeting. The Golden Jubilee Celebration Mini Seminar, a series instituted during the term followed the AGM. The meetings were attended by the Executive Committee Members from all over India. Numerous issues of importance to CHAs in particular and trade in general were discussed. Amongst the issues discussed pertained to infrastructure, capacity building including training, opening of training centres of Indian Institute Of Freight Forwarding, 24 x 7 Customs operations etc. Shri Vasa Seshagiri Rao, Commissioner of Customs – Pune while being felicitated, appreciated the new initiatives taken up by FFFAI & acknowledged that Customs house Agents play an very important role in the EXIM trade of the country. The highlights of the evening event held on Friday, 14th Sept 2012 at Marriot Hotel & Convention Centre were: ● Launch of the `FFFAI Women’s Wing`, by the ace shooter, Smt. Anjali Bhagwat, the former world number one & one of the greatest Indian women athletes of all time. Women Forwarders, members of `FFFAI Women’s Wing` representing FFFAI Member locations participated in an elegant launch. Smt. Anjali Bhagwat, while launching this new initiative encouraged the women to participate in the National and International events. Giving the background for launch of this wing, Chairman Shri Shantanu Bhadkamkar explained that not only as a responsible national body, women’s empowerment needs to be an integral part of our agenda but if we need increased parThe new wing will ticipation of women in help women from the industry to bridge the the second generaskill gap. He also shared tion work wide pride that in South East Asia in this industry; it and Far East, women in will also open opporfact dominated certain tunities to fresh infunctional segments of cumbents to be part the Freight Forwarding of this industry, Industry. With FFFAI’s which is an impornew initiative for Brand tant segment of the Building, surely more Logistics Industry women will be attracted to this field, he felt. Smt. Philomena Pereira, the Convenor of the Women’s Wing, stated that empowering women engaged in International Freight Forwarding was a need of the hour and the women were confident of taking the challenge & the newly launched wing will take new initiatives for women’s empowerment in this field, she thanked Mr. Shantanu Bhadkamkar, Chairman of FFFAI for his encouragement & vision of initiating such an important well thought out initiative for the industry, which is largely men dominated. The new wing will help women from the second generation work wide pride in this industry; it will also open opportunities to fresh incumbents to be part of this industry, which is an important segment of the Logistics Industry. Shantanu Bhadkamkar, CHAIRMAN, FFFAI 18 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 21. Smt. Jyoti BhadkamNumerous issues of kar, while thanking Smt importance to CHAs Bhagwat, informed in particular and foundation of this wing trade in general was blessed by the then were discussed. President of India, H.E. Amongst the issues Smt. Pratibhatai Patil. discussed pertained During the audience to infrastructure, granted by the former capacity building President, Her Excellency including training, was very pleased to note opening of training about launch of the centres of Indian Inwomen’s wing, shared stitute Of Freight very encouraging words. Forwarding, 24 x 7 ●FFFAI also felicitated Customs operations and honoured the FFFAI Board of Advisors and presented them a Plaque, ‘In Appreciation Of Outstanding Contribution To The Fraternity Of Custom House Agents’. ● xecutive Committee Member & Former Vice ChairE man, Shri Ashish Pednekar was felicitated, and presented a Plaque ‘In Appreciation Of Outstanding Contribution To The Fraternity Of Custom House Agents’, in appreciation of his important role in the finalisation of CHALR 2004. The highlight also included FFFAI CSR initiative of acknowledging the contribution of sports personnel & Armed Forces to the nation. The following personalities were honoured by presentation of FFFAI Plaque of Honour ‘In Appreciation of Outstanding Contributions to Sports in the Country & for Service to the Nation’: Smt. Anjali Bhagwat, professional shooter: She has won 31 Gold, 23 Silver and 7 Bronze medals. She has set 13 new records in International competitions and has won 55 Gold, 35 Silver and 16 Bronze medals, with Anjali Bhagwat being felicitated Subhedar Major Vijay Kumar Shri. Chandrakant Borde Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 19
  • 22. ACTIVIT Y FELICITATION AND HONOURS Shri Surendra Chavan 8 new records in national competitions in India. She is recipient of Rajiv Gandhi Khel Ratna & Arjuna Award. Subhedar Major Vijay Kumar, Sport Shooter: Silver medallist in London Olympics. Winner of 3 gold medals and a silver medal in the 2010 Commonwealth Games & 2 gold medals at the 2006 Commonwealth Games. Padma Bhushan Shri Chandrakant Borde, former Cricketer: Member of the Indian team between 1958 and 1970; he captained the Indian team in the First Test against Australia at the Adelaide Oval in December 1967; cricket administrator, serving as the Chairman of national selectors. He is a recipient of Arjuna Award & Padma Shri Award. 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. It was a proud and an emotional moment for all when FFFAI Plaque of Honour was presented to War Veterans, ‘In Appreciation of Extraordinary Gallantry beyond Call of Duty & for Service to the Nation’. Col. Sadanand B. Salunke, Vir Chakra (VrC): Major Sadanand B. Salunke was commanding a company of Maratha Light Infantry in Shakargarh Sector. On 10 December 1971, he was ordered to attack certain enemy positions. Major Salunke led his men and captured three enemy posts. Finding the enemy in the process of readjusting his defences, he rallied his men and launched an attack with speed and captured the objective, inflicting heavy casualties on the enemy. Col. Gautam Khot, Vir Chakra (VrC): Col. Gautam Khot was the first pilot of the Army Aviation to have landed at Tololing, the first victory of the Indian Army in the Kargil conflict of 1999. For his act of bravery that involved flying for over 100 hours saving the lives of his comrades and delivering ammunition and essential Shri. Raj Khalid Col. Sadanand B. Salunke 20 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 23. In Appreciation of Extraordinary Gallantry beyond Call of Duty & for Service to the Nation loads despite heavy enemy shelling to the troops engaged, Col Khot was awarded Vir Chakra by the President in November 2000. While acknowledging the felicitation, Col Salunke announced that it was great to be recognised for the duty executed toward the nation and we really feel proud when we are recognised for our work. The Golden Jubilee Mini Seminar included presentations by: ● hri Anand Deshpande, M.D. Persistent Systems Ltd, S who shared his success story and entrepreneurial vision, explaining how in each phase of growth, the entrepreneurs should change their business and themselves. He also explained that business grows in quantum leaps. ● hri Sankalp Bhattacharya of KPMG, made a presenS tation on the State of the Industry highlighting key findings. ●Shri S. D. Chand, Dy. Commissioner of Customs, President Gold Medallist and the only WCO Accredited Trainer in India made an excellent presentation on Valuation, citing several cases. In course of deliberations, it was decided to study and address the issue of DDP/DDU/DAP shipments for ascertaining the assessable value. FFFAI also proudly launched it’s in-house magazine, ‘FFFAI News’, a quarterly. Smartly brought out inaugural issue has raised great expectations from the next issue, which will be a Golden Jubilee issue. All the participants complemented, Capt Samarth and his team from Pune Customs House Agents Association for excellent organisation and wonderful hospitality. ● Shri. Anand Deshpande Shri Sankalpa Bhattacharya Shri. S. D. Chand Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 21
  • 24. PICTORIAL ALBUM FFFAI - FELICITATION AND HONOURS Shri. Vasa Seshagiri Rao - Commissioner of Customs Shri. Naval Mehta Shri. Vinod Chowdhary Shri. Rafeeq Iqbal Shri. P. S. Krishnan Shri. Ram Sharma Chanduru Shri. Radhakrishnan Shri. Ashish Pednekar 22 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 25. Shri. Prahlad Tanwar EC Meet AGM Meet AGM Meet Award Ceremony Award Ceremony FFFAI Office Bearer Meeting FFFAI News release by Vinod Chaudhary and Naval Mehta Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 23
  • 26. initiative IIFF educ ation wing of fffai IIFF - FIATA offers Courses in Logistics & Freight Forwarding I ndian Institute of Freight Forwarders (IIFF), the education wing of Federation of Freight Forwarders’ Associations in India (FFFAI) has been conducting Vocational Training since 2005. FFFAI is the apex body of Custom House Agents (CHAs) in India and formed IIFF to institutionalize their training programmes. 24 CHA Associations from all over India and more than 3500 individual companies are FFFAI members. Incorporated in 1962, the 50 year old organization FFFAI is celebrating its Golden Jubilee year in 2012. Individual members of FFFAI, who are majorly CHAs are multifaceted. They are CHAs, Air Cargo Agents, Multimodal Transporters, CFS operators, 3PL Service Providers, Shipping Agents, Ocean carriers, Truckers, Consolidators, NVOCCs, International transport operators and are involved all aspects of Cargo Freight logistics. These members together provide employment to more than 100,000 persons all over India. To induct talent and value amongst its personnels, FFFAI has embarked on its vocational Training Programmes through IIFF. Twin Diploma programme is IIFF’s initiative to provide National & International Diploma in Logistics and Freight Forwarding to both the professionals and freshers interested in building a career in Logistics & Freight Forwarding industry. This course will first commence in 1st week of June 2012 at Mumbai. IIFF International Diploma is a highly sought after Vocational Training programme and is accredited by FIATA, the International Apex body of Freight Forwarders. FFFAI is a member of FIATA for the last 4 decades. The FIATA Diploma course is managed by Advisory Body Vocational Training (ABVT), the education arm of FIATA. ABVT approves and validates the course material periodically and gives accreditation to the Institutes run by their Member associations to conduct the FIATA Diploma course. Globally 52 countries have validated their Vocational Training programmes through FIATA and students all over the world take benefit from these FIATA Diploma course year after year. In India, IIFF is the only institute accredited by FIATA to conduct their diploma course. FFFAI in their Golden Jubilee year have an ambitious plan to expand their education and training programme through IIFF Education Centres, in all the 24 locations of their Member Association by December, 2013. Mr. Pankaj Shah, Hon. Secretary of IIFF mentioned, IIFF is committed to provide quality education to enhance the professionalism in Freight Forwarding industry and hence we are very cautiously selecting our Faculty and 24 fffai news  VOL. 1  ISSUE 2 the teaching methodology. IIFF have a regular assessment programme for both students and faculty, to ensure the training course is matching with international quality and standards. Mr. R. Radhakrishnan, President of IIFF mentioned, we are planning to provide placement for their students at the end of the course and will be also affiliating with similar foreign Institutes for student exchange programme. The Twin Diploma course will provide for an optional tour to a similar foreign institute to study the Freight Forwarding process in a foreign land. Mr. Shantanu Bhadkamkar, Chairman of IIFF mentioned, we have a short supply of qualified professionals in Logistics & Freight Forwarding sector and IIFF is endeavoring to bridge this gap by their Vocational training programme through Twin Diploma course. In the Golden Jubilee year, FFFAI has committed to focus on education and training and we will be commissioning IIFF Centre of Education in many locations in India to promote our courses. Mr. Bhadkamkar added, I am very confident, shortly IIFF will be emerge as the Top class institute in this Logistics & Freight Forwarding sector providing for quality vocational training. The admissions for IIFF Twin Diploma Course are open and details are available at FFFAI. Further details can be obtained through email info@fffai.org or Telephone +91 22 67107495/96. Empowering The Freight Forwarder
  • 27. INITIATIVE Womens wing Fffai Women’s Wing officially launched by Mrs. Anjali Bhagwat, Arjuna Awardee in 2000 and Rajiv Gandhi Khel Ratna in 2002. FFFAI Launches ‘Women Wing’ A platform for Women empowerment F FFAI, a National Body is an important Forum for the establishment of Women in Freight Forwarding Industry. Women’s Wing exist to promote the full participation and empowerment of women engaged in International Freight Forwarding Industry in particular. It will encourage more women, particularly young women to join the industry and make it a top choice of occupation right from education stage. Greater opportunities to those already in the business for both career opportunities and for representation in the industry leadership. There are women in this industry by family lineage, but few; we need to encourage more women. Women’s Wing is constitued of women engaged in International Freight Forwarding & Custom Clearance and will chapter at 24 member locations of FFFAI with a national secretariat based in Mumbai. The main goal of the women’s wing is to empower its members to be productive and contribute positively to society in general and International Freight Forwarding industry in particular. This will help the women from the second generation to take pride in this industry and also open up opportunities to fresh incumbents. Women’s Wing was launched in Pune during the during the Golden Jubilee Celebrations and FFFAI Executive Committee Meeting at the hands of Ms.Anjali Bhagwat, the Gold Medalist and Champion of Champions in Shooting on 14th September, 2012. Ms. Anjali Bhagwat encouraged the women to take part in national and international events. Infact, women’s wing was also fortunate to brief the former President Smt. Pratibha Patil about the launch of women’s wing for the Freight Forwarding Industry and she very much appreciated the venture. FFFAI Chairman, Mr. Shantanu Bhadkamkar firmly supports that women empowerment needs to be integral Empowering The Freight Forwarder Former President-India Smt. Pratibha Patil part of the agenda to facilitate the increased participation of women in the industry to bridge the skill gap. In South East Asia and Far East, women dominated certain functional segments of the freight forwarding industry. Ms. Jyoti Bhadkamkar, the Chairperson of Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA), Entrepreneur- women’s wing- also contributes to the growth of this wing. This wing is also supported by all the Presidents and Executive Committee Members at 24 member locations. The objectives To mobilize women engaged in International Freight Forwarding & Custom Clearance, To assist women engaged in International Freight Forwarding & Custom Clearance, To raise awareness of the industry amongst women and encourage women in International Freight Forwarding & Custom Clearance, To empower women engaged in International Freight Forwarding and Custom Clearance through education, job placement, skills and training, To assist in the provision of welfare services for women engaged in International Freight Forwarding and Custom Clearance, To net-work with organisastions with similar objectives. fffai news  VOL. 1  ISSUE 2 25
  • 28. FFFAI NE W S Milind Deora takes charge as MOS in Shipping Ministry Milind Deora, Minister of State for Shipping N ewly appointed junior shipping minister Milind Deora today said his top most priority, along with inviting private participation in the sector, would be to utilise the country’s massive coastline by creating economic opportunities. “Sea is an untapped resource, specially from recreation point of view and my priority will be to utilise our massive coastline, in terms of employment and investment opportunities in the sector,” Deora told reporters after taking charge as Minister of State for Shipping. Deora, the Minister of State for Telecom and IT, has been given the additional portfolio of the Shipping Ministry. “We aim to use the coastline in a way that allows economic opportunities,” he said adding that he is greatful to his leadership for bestowing him with this respon- sibility. “This (Shipping) industry is a barometer of what we can expect from the global economy. In the area of shipping there is a lot of opportunities like in ship building for Indian companies,” Deora said, adding his ministry would look at investment proposals from private companies in the sector. Another area that the newly appointed Minister aims to focus, is the safety of sailors or seafarers. “Other issues of concern are protection of seafearers, how do we protect them and also people who have invested in the shipping sector,” Deora stated. Ministry of Shipping has set a target of awarding 42 projects during the current financial year (2012-13) including two new major port projects. The total capacity addition would be 245 million tonnes involving 42 projects at an investment of about Rs 14,000 crore. “We have received in-principle approval for two new major ports, we have already floated a new note, we hope by November we should be able to get Cabinet approval,” he said. The government has selected two sites - Sagar island (West Bengal) and Ramyapatnam (Andhra Pradesh) -- for constructing two new major ports in the country. There are 12 major ports - Kandla, Mumbai, Jawaharlal Nehru Port, Marmagao, New Mangalore, Kochi, Tuticorin, Chennai, Ennore, Vishakhapatnam, Paradip and Kolkata-Haldia - in India. Intermodal transport Operations There is an huge opportunity to integrate the logistics systems in EXIM trade , Government initiatives to go green , control pollutions , and develop ports , Coastal shipping and Inland waterways systems will provide further scope an opportunity to the Custom House Agents ( CHA’s) and freight forwarders to change their perspective of working in National and International Logistics , there is a demand for coastal shipping and Inland waterways , however the Freight forwarding fraternity has neglected this area of operation due to lack of development in infrastructure and Government support. The Inland Waterways Authority of India (IWAI) ,came into existence on 27th October 1986 by an Act of Parliament, has been entrusted the task of development and regulation of inland waterways for shipping and navigation. The Authority primarily undertakes projects for development and maintenance of IWT infrastructure on national waterways through grant received from Ministry of Shipping. India has about 14,500 km of navigable wa- 26 fffai news  VOL. 1  ISSUE 2 terways which comprise of rivers, canals, backwaters, creeks, etc. About 55 million tones of cargo is being moved annually by Inland Water Transport (IWT), a fuel - efficient and environment -friendly mode. Its operations are currently restricted to a few stretches in the Ganga-Bhagirathi-Hooghly rivers , the Brahmaputra, the Barak river, the rivers in Goa, the backwaters in Kerala, inland waters in Mumbai and the deltaic regions of the Godavari Krishna rivers. Besides these organized operations by mechanized vessels, country boats of various capacities also operate in various rivers and canals. and substantial quantum of cargo and passengers are transported in this unorganized sector as well. NW I – 1986 ,Haldia – Allahabad stretch of the GangaBhagirathi-Hooghly river system between Haldia (Sagar) & Allahabad (1620 kms) was declared as National Waterway No. 1(NW-1) during October 1986. NW2 -1988 , Sadiya - Dhubri stretch of the river Brahmaputra having a length of 891 Km between Bangladesh Border to Sadiya was declared as National Waterway no. 2 (Nationsl Waterway-2) on 1st September, 1988. Empowering The Freight Forwarder
  • 29. FFFAI delegation meets DG Shipping India Eases Cabotage Laws at Port of Cochin Gautam Chatterjee-Director General of Shipping, Directorate General of Shipping FFFAI Chairman with a members delegation meets Mr.GautamChatterjee -Director General of Shipping, Directorate General of Shipping Mr. Shantanu Bhadkamkar.Mr. AmitKamat,,Mr. Shankar Shinde, Mr. Sailesh Bhatia SarfarazKhan, Salian, Pankaj Shah, Philomenna Pereira, Rajendra Garach, Mr.Gautam Chatterjee-D.G. Shipping was happy to meet the Chairman along with the member delegation of FFFAI and understand the important role played by them in the EXIM trade.Mr.ShantanuBhadkamkar – Chairman of FFAI appraised him of the activities of the Federation and highlighted the need for developing Coastal Shipping and IWT as an integral part of EXIM trade. He also mentioned the studies that FFFAI conducted with KPMG and Delloite and offered to share the feedback and also said that FFFAI would be happy to carry a study on coastal development through one of the consulting agencies for the development of trade. FFFAI – Chairman requested for the appointment of a nodal officer for better guidance and communication in developing the coastal shipping. NW3 – 1993 ,Kollam - Kottapuram stretch of West Coastal Canal ( 410 Kms)alongwith Champakara canal and Udyogmandal canal (205 km ) declared as National Waterway-3in 1993 NW4 – 2008 , Bhadrachalam – Rajamundry stretch of river Godavari and Wazirabad Vijaywada stretch of River Krishna along with Kakinada Canal , Eluru canal, Commamur canal, Buckingham canal and Kalucelley tank upto Puducherry ( 1095)) km declared a National Waterway-4 in 2008 NW5- 2008, Talcher Dhamra stretch of Brahamani Kharsua – Dhamra river system along with Geonkhali Vharbatti stretch of east coast canal & portions of Matai River and Mahanadi delta river system between Mangalgadi and Paradip (623km)declared as National Waterway- 5 in 2008 Indian Logistics players need to adventure into opportunities in transportation and movements through coastal and IWT systems to make the trade competitive. The Governments future initiatives shall be into Carbon credit basis transportation modes utilisation for movement of cargo rather than by land, Developing every segment of transportation Sea, Air , Land , Rail to integrate and perform through seamless operation will lead to futuristic boom of operations in EXIM trade. Empowering The Freight Forwarder Officials said the easing of the regulation, which came amid protest from domestic ocean carriers, would be subject to review after three years. “The primary objective of relaxation in the cabotage policy for VICTT is to attract cargoes destined for Indian ports, which are presently being transshipped at Colombo (Sri Lanka) and other foreign ports. This initiative is expected to promote transshipment of Indian cargo from VICTT and reduce dependence on nearby foreign ports,” the official release said. Officials said cabotage restrictions had been a major deterrent to many mainline carriers wishing to offer regular calls at the Vallarpadam terminal, a DP World facility. “The Indian container trade has seen a steady growth over the years. Despite this, more than half of Indian containers are being transshipped at ports outside India, mainly at Colombo, Singapore, Salalah and Jebel Ali,” officials said. VICTT, which began commercial operations in February last year, has been struggling to turn around its throughput volumes. Traffic from April through July declined to 45,000 20-footequivalent units from 56,000 TEUs a year earlier. The $600 million terminal is the first stage in DP World’s three-phase development at Vallarpadam, offering an annual capacity of 1 million TEUs in the initial phase and 4 million TEUs when fully built out. fffai news  VOL. 1  ISSUE 2 27
  • 30. FFFAI international nEWS IFCBA MEETS WITH MR. KUNIO MIKURIYA, SECRETARY GENERAL OF THE WORLD CUSTOMS ORGANIZATION IFCBA PRESENTS VIEWS ON SMEs AND THE WCO ECONOMIC COMPETITIVENESS PACKAGE IFCBA Managing Directors recently met in Brussels, Belgium to discuss a number of issues of importance to IFCBA members worldwide. IFCBA Chairman George Zografos from Greece was joined by Immediate Past Chairman Jaime King of Mexico, Past Chairman Federico Zuniga of the United States and Directors Shantanu Bhadkamkar from India, Pedro Beqangue from Angola, Vito Totorizzo from Italy and Michel Vallée from Canada. On the morning of 9 November, 2012, IFCBA representatives met with Mr. Kunio Mikuriya, Secretary General of the World Customs Organization to discuss areas of shared interest and concern. Discussions focused on the role played by customs brokers in facilitating international trade for small and medium sized enterprises (SME) and Mr. Mikuriya thanked IFCBA Managing Director, Mr. Shantanu Bhadkamkar and IFCBA Secretary, Ms. Carol West for their presentations during the previous day’s Permanent Technical Committee’s session on Economic Competitiveness and SME. Ms. West confirmed that the IFCBA would share with WCO officials a small business lens checklist that supports WCO efforts to ensure that SME are considered when laws, policies and procedures are drafted. During the meeting, Mr. Mikuriya reiterated his belief that the customs broker is a critical piece in compliance and that active collaboration between the WCO and the IFCBA is to the advantage of both. IFCBA initiatives related to education and training, current and potential partnerships were discussed in the context of trade facilitation, compliance, capacity building and economic competitiveness. The meeting closed with a discussion of current economic conditions in IFCBA member countries and with a statement of appreciation by IFCBA Chair, Mr. George Zografos regarding WCO support of the 2012 IFCBA World Conference in Athens , in particular the active participation of Mr. Zhu Gaozhang. Meeting with Pro Vice Chancellor of University Of Mumbai for IIFF 28 fffai news  VOL. 1  ISSUE 2 T he IFCBA was requested to present its views on Small and Medium Enterprises (SMEs) and the WCO Economic Competitiveness Package at the meeting of the Permanent Technical Committee on 8 November, 2012. IFCBA Managing Director Shantanu Bhadkamkar and IFCBA Secretary Carol West together raised awareness of the critical role of customs brokers for the SME sector, underlining the fact that customs brokers’ knowledge base and commitment to compliance are factors which directly contribute to trade facilitation and economic competitiveness. How borders work directly influences investment decisions by business and there is a high cost to inefficient customs procedures. The presentation pointed out that there are challenges defining and identifying SMEs - there is no global agreement on what this sector is and there is a transitory nature of SMEs, that is, businesses may grow into and out of the sector. Nevertheless, then percentage contribution of SMEs to GDP ranges from about 15% in low-income countries to about 40% in middle-income countries and about 50% in high-income countries, according to World Bank data. In addition, it is fair to state that many customs brokers themselves are SMEs, whose core business is facilitating the movement of goods across borders. Trade facilitation today extends beyond the traditional role of customs to other government agencies which regulating the movement of goods across borders, and any strategy for economic competitiveness must recognize the importance of coordinated border management and single window. The WCO Economic Competitiveness Package and action plan supports the extended implementation of WCO instruments, especially the Revised Kyoto Convention (RKC), and the IFCBA sees the effective implementation of the RKC as a benefit for SMEs as well as large business. The IFCBA presentation was well received by the Customs delegates to the PTC meeting, with several questions from the audience and in the margins of the meeting, and the IFCBA appreciated the opportunity to share its views on such an important subject. Empowering The Freight Forwarder
  • 31. WCO report on Meeting with FFFAI National Associations in the Shipping & Logistics fraternity forms India’s preparedness for the WCO Economic Competitiveness Package T AT the invitation of the Chairman of the Indian Central Board of Excise & Customs (CBEC), S.K. Goel, the Secretary General of the WCO, Kunio Mikuriya, visited New Delhi, India on 9 July 2012 for a working session on India’s progress regarding WCO initiatives. Indian Customs has examined its situation in relation to the Economic Competitiveness Package (ECP) conceptual chart and supporting tools presented to the WCO Council during its recent sessions in Brussels. Viewing the CBEC as a comprehensive package for streamlining Customs activities through various tools, India has already identified areas where further progress may be required. In addition, they will contribute to sharing best practices to promote the ECP at the regional level and consider major elements of the ECP in future bilateral discussions. Indian Customs also informed the Secretary General of their completion of their AEO pilot project and their role out of a full-fledged AEO programme as the next step. In line with the Guidelines for Post Clearance Audit (PCA) included in the WCO Revenue Package, India implemented onsite PCA in 2011 and introduced self-assessment at the same time, which has benefited trusted traders for facilitation purposes and also improved their compliance. CBEC is also interested in research on the informal sector which the WCO intends to undertake. The Secretary General appreciated the work done by Indian Customs in adapting and incorporating WCO initiatives at the national level, in order to enhance the value of these initiatives. He also thanked CBEC for their willingness to share their experience and lessons learned with other WCO Members, thereby promoting connectivity and the spirit of cooperation. Whilst in New Delhi, the Secretary General also took the opportunity to meet senior representatives of the Federation of Freight Forwarders’ Association in India which celebrates its 50th anniversary this year, coinciding with the 50th anniversary of the Indian Customs Act of 1962. The Federation is keen to strengthen its partnership with Customs and enhance the professionalism of Customs brokers in the fast-evolving environment in which Customs and business operate. Empowering The Freight Forwarder ‘The Maritime Forum of India’ Mr.Shantanu Bhadkamkar, Chairman, FFFAI to lead and chair the forum. his platform is conceived and constituted in order to create a unified constituency for the stakeholders in the Maritime industry in India. All the Bodies have been highlighting and taking up different issues relating to their respective area of activities with various Agencies. It was unanimously felt that a unified approach in addressing such issues will be beneficial to all the stakeholders as well as to the Government functionaries, instead of having a fractured approach. An idea to formulate unified platform was initially conceived by some of the very senior and well meaning Government functionaries in the past. The Forum aims at developing the idea further to a practical and functioning level. Time and again, some of the associations and bodies mentioned above have been taking up issues relating to the Maritime industry like infrastructure, legal & statutory matters, administrative hurdles. Maritime Forum of India, would like to address such issues in a focused, cohesive and coordinated manner for the benefit of all concerned..To make India’s international trade more competitive the Forum would also like to focus on specific initiatives such as development of coastal shipping, waterways, green logistics and reduction in transaction cost etcThe coming together of different National Trade Bodies within the Shipping and Logistics field would certainly promote National Maritime interest in general and the related segmental issues in particular. Informatively, the Maritime Forum has already held two meetings, 6th July 2012 and 14th Aug. 2012. During these meetings, it was unanimously felt that the Maritime industry in India needs more attention from the Government Ministries and also from the Planning Commission. In this regard, the groupis of the view that the Maritime Industry should solicit specific support from the Shipping Ministry, as a Sponsoring Authority in addressing many related issues where other Ministries are involved. As a matter of fact, it is only natural that the Ministry of Shipping and the Directorate General of Shipping extend its support as a Sponsoring Authority for Maritime Industry so that many related issues falling in the realm of other Ministries such as Commerce, Civil Aviation, Finance, Agriculture, etc. could be effectively represented and resolved. Such axis-oriented representation will certainly get better attention from the respective Authorities / Ministries. The following associations are the creators of this unified initiative: INSA - Indian National Ship-owners’ Association, FEDSAI - The Federation of Ship Agents Association of India, CAI - Consolidators Association of India, AMTOI - Association of Multimodal Transport Operators of India, FFFAI - Federation of Freight Forwarders’ Associations in India, and CSLA - Container Shipping Lines Association. The local and regional trade associations, constituents of the national apex bodies, such as MANSA ((Mumbai And Nhava-Sheva Ship Agents Association), BCHAA (Bombay Custom House Agents Association) and other stakeholders would be Associate Member and would play an active role as chapters. Chapters would be progressively launched at different locations with involvement of respective trade bodies. fffai news  VOL. 1  ISSUE 2 29
  • 32. FFFAI NE W S FFFAI Chairman alongwith trade bodies with CM Navigator- coffee table book launched by Times Group at the 3rd edition of the Southern Region Shipping Conclave, organised by SICCI and CCHAA From left to right: G Raghu Sankar, Chairman, SICCI Shipping Committee, Jawahar Vadivelu, President SICCI, G K Vasan, Union Minister for Shipping, Government of India, NinanThariyan, Vice President, The Times Group and A V Vijayakumar, President, CCHAA release Navigators, a coffee table book on India’s shipping and maritime industry. (LtoR): Hon. Prithviraj ji Chavan, Mr. Ashish Pednekar, Mr. Santosh Mandlecha, Mr. Atul Kulkarni, Mr. Pramod Joshi, Mr. Shantanu Bhadkamkar FFFAI Chairman alongwith Maharashtra Chamber of Commerce, Industry & Agriculture; Dombivali Vyapari Mahamandal and Maharashtra Vyapari Mahasangh had organized a Felicitation Function on 23rd October, 2012 to acknowledge the commendable efforts of Hon. Prithviraj ji Chavan, Chief Minister, Maharashtra State, in implementing the LBT. Mr. Ashish Pednekar, President, MACCIA; Mr. Hemant Rathi, Former President, MACCIA; Mr. Santosh Mandlecha, Vice President, MACCIA and Mr. Amit Kamat, Vice President, MACCIA were present during the function. Mr. Ashish Pednekar, President, MACCIA expressed gratitude towards Hon. CM for his exemplary efforts to abolish Octroi from 13 districts in the state. This shall certainly encourage positive change in the minds of traders all over the state. On this occasion, a film was showcased displaying a decade long agitation movement of MACCIA for abolition of Octroi. CM also acknowledged MACCIA’s efforts in furthering the growth and development of trade community. All Trade Associations submitted their representations to CM. MACCIA requested CM to subsume LBT during the implantation of GST. Six Truths About Time First: Nobody can manage time. But you can manage those things that take up your time. Second: Time is expensive. As a matter of fact, 80 percent of our day is spent on those things or those people that only bring us two percent of our results. Third: Time is perishable. It cannot be saved for later use. Fourth: Time is measurable. Everybody has the same amount of time...pauper or king. It is not how much time you have; it is how much you use. Fifth: Time is irreplaceable.We never make back time once it is gone. Sixth: Time is a priority. You have enough time for anything in the world, so long as it ranks high enough among your priorities. 30 fffai news  VOL. 1  ISSUE 2 T he Southern India Chamber of Commerce and Industry (SICCI) and Chennai Custom House Agents’ Association (CCHAA) organised the third edition of the Southern Region Shipping Conclave in Chennai on Saturday, on the theme ‘Conceive, Create and Configure.’ Welcoming the audience, Jawahar Vadivelu, President, SICCI, said that the ports have played a sterling role in the economic development of the nation by supporting 90 percent of volume and 70 percent of value of the country’s international trade. Striking a note of optimism, G Raghu Sankar, Chairman, SICCI Shipping Committee said that private capital and FDI will bring in good fortunes to this sector. Ninan Thariyan, Vice President, The Times Group, presented the idea behind Navigators, the coffee table book on the major drivers of India’s shipping and maritime industry. “With globalisation, there is a need to update the infrastructure and develop the shipping industry further. This calls for rapid transformation,” said Ninan, while relating the gist of the book to the participants. The book was launched by G K Vasan, Union Minister for Shipping, Government of India. The coffee table book profiles the major players in the maritime industry like Jawaharlal Nehru Port Trust, India Cements Limited, SICCI, CCHAA, Allcargo Logistics Limited, Cochin Shipyard, Chennai Port Trust, Kolkata Port Trust, Paradip Port Trust, New Mangalore Port trust, V O Chidambaranar Port Trust and Ennore Port limited. The book has been supported by Sical Coffee Day, ITC, Om Sakthy Builders, Gem Granites and the Murugappa Group. Terming the launch of the book well-timed, Vasan expressed hope that the book would persuade many youngsters to build a career it eh shipping industry and called for the book’s availability across corporate houses and Indian embassies globally. The book was dedicated to V O Chidambaram, whose efforts marked the beginning of the maritime industry in India. Later, he honoured various players from the maritime industry. The book launch was followed by three business sessions, where the participants did a mid-way reality check of the maritime industry, while discussing the different issues affecting the industry. Empowering The Freight Forwarder
  • 33. All about Cabotage U nder Merchant Shipping Act 1958, the movement of “goods” from one Indian port to another Indian port is “controlled” by the Director General of ShipCapt. Dinesh Gautama ping (DGS). Under this Merchant Shipping Act (MSA) coastal shipping is controlled through two simple sections. These two sections are 406 and 407. Section 406 has nothing to do with foreign shipping companies. This means that Section 406 does not apply, for example to any foreign shipping company that is based abroad. For clarity, section 406 states: (1) No Indian ship and no other ship chartered by a citizen of India or a company shall be taken to sea from a port or place within or outside India except under a license granted by the Director-General under this section: Provided that the central Government, if it is of opinion that it is necessary or expedient in the public interest so to do, may, by notification in the official Gazette, exempt any class of ships chartered by a citizen of India or a company from the provisions of this sub-section. (2) A license granted under this section may be(a) a general license; (b) a license for the whole or any part of the coasting trade of India; or (c) a license for a specified period or voyage. (3) A license granted under this section shall be in such form and shall be valid for such period as may be prescribed, and shall be subject to such conditions as may be specified by the Director-General. So, this section clarifies that every ship flagged in India must have a License – be it coastal or otherwise. Now let us look at section 407 which states: 407.Licensing of ships for coasting trade.(1) No ship other than an Indian ship or a ship chartered by a citizen of India or a company which satisfies the requirements specified in clause (b) of section 21, shall engage in the coasting trade of India except under a license granted by the Director-General under this section. (2) A license granted under this section may be for a specified period or voyage and shall be subject to such conditions as may be specified by the Director-General. (3) The Central Government may, by general or special order, direct that the provisions of sub-section (1) shall not apply in respect of any part of the coasting trade of India or shall apply subject to such conditions and restrictions as may be specified in the order. It is under this section that foreign ships obtain a license and operate on the Indian coast. Section 407 (1) permits any foreign shipping company (FSC) to apply for a license and operate on the Indian coast. It is under Section 407(1) that all foreign shipping companies can apply to the DGS for a license. However, the DGS only grants a license to the foreign shipping company provided there is no Indian ship available. This availability is checked from the office of the Indian National Shipowners Association in Mumbai, The non-availability of any Indian tonnage is confirmed by INSA giving a No Objection Certificate to the foreign shipping company. Now, DGS gives 2 types of Licenses: a) SVL (Specified Voyage License) – It is a License for one voyage only. It costs Rs 40,000 b) SPL (Specified Period License) – It is a License for a period of time. Its cost is Rs 1000 per day of that period. Now what is the meaning of “relaxing cabotage”? The FSCs think it means that they can move cargoes freely from any Indian port to another Indian port. According to DGS, if cabotage is relaxed it means that “no NOC is required from INSA” and rest of the procedures remain the same. BUT THIS IS ALL WRONG. Section 407(3) states that the Govt may, by general or special order, direct that the provisions of sub-section (1) shall not apply in respect of any part of the coasting trade of India or shall apply subject to such conditions and restrictions as may be specified in the order. This means that movement of any cargo/goods/containers will be allowed between any Indian ports by ANY company (foreign or Indian) if an order giving a dispensation is issued. IT IS THIS ORDER THAT will actually relax cabotage laws. Now, there is some concern that if a foreign ship wants a License for a time period of 3 months or more than that vessel must have Indian crew. This new rule was taken out by Circular 1B of 2011. It states that if a ship is given a License for a long period then after 91 days ( till 180 days) it should have one-third Indian officers and crew. If the period exceeds 180 days, then it should be 50%. Should foreign shipping Lines worry about this portion. The answer is “No”. If the government is dispensing with Section 407(1) this will not apply. So, the important point here is that as the Govt of India has agreed to relax cabotage, DGS must issue a circular dispensing with Section 407 thereby permitting free transshipment of containers to and from any Indian port. Empowering The Freight Forwarder Ludhiana CHA Association facilitates visit of College Students Ludhiana CHA Association was approached by one of the prestigious institutions in Ludhiana to arrange a visit for their students to a CFS. The Association was more than pleased for the interest shown by an institution to part first hand knowledge of Exim Business and role of Customs authorities and also that of a Customs House Agent. A visit at CFS GRFL was arranged and some 150 Students along with teachers of Khalsa Collage for Women got a chance to have a glimpse at the working of various agencies in a CFS. Young students were divided in 3 groups and were guided by Mr Rajesh Verma – President, Mr Narinder M Prabhakar – Secretary, and Mr Madhusudan Kumra – EC member of the Local CHA Association. Students showed keen interest and had an array of intelligent questions, which were aptly answered. It was a good sign for the office bearers to see budding entrepreneurs and keen learners. The students were also briefed about FFFAI and its newly formed Women’s and Youth wings. We surely hope that such outings for the youngsters will help our industry to attract young and especially educated women in our trade. The Association thanked the CFS and Customs authorities for their valuable time. fffai news  VOL. 1  ISSUE 2 31
  • 34. FFFAI member nE W S Coimbatore CHA Association News Cochin CHA Association News Integrate inland waterways at Vallarpadam T CHAASAAC, as part of its social responsibility conducted a Blood Donation camp to coincide with Republic day  (26.01.2012) which was a grand success with more than 30 donors of which some were first time donors. The Medical officer at the BLOOD Bank said very aptly “That it was not 30 units of blood but 30 lives that we had helped to save.” Indeed a proud and moving moment in CHAASAAC, Coimbatore. This shows their commitment for social causes they have plans for many more social programs in future.  List of donors for reference: Mr.Nandakumar, Globelink WW India Pvt Ltd., Mr.Padmanaban CHAASAAC, Mr.Saifudeen Exim Shipping, Mr.Ramesh, Glo Shipping, Mr.Gururaj Glo Shipping, Mr.Rajesh Kumar, Glo Shipping, Mr.Baskaran, Glo Shipping, Mr.Sabareesh lo G Shipping, Mr.Muthu Kumar, Jeena & Company, Mr.Yasser, Sindhu Cargo, Mr.Sensuriyan, Aspinwall & Co., Mr.Gobinath, Joveens Logistics, Mr.Dileep Abraham, A.V.Thomas & Co., Mr.Ranjith Kumar, Nippon Express, Mr.Vignesh, Nippon Express, Mr.Ganesh, Sindhu Cargo Mr.Sridhar, Oriental Exim, Mr.Sathiesh Kumar, EMU Lines, Mr.Senthil Kumar, Sindhu cargo, Mr.Subramaniam, Peirce Leslie, Mr.Arivukarasu, Peirce Leslie, Mr.Lenin Stanley, Samsara Shipping, Mr.Praveen, Ahlers, Mr.Kumar, Flyjac, Mr.Murugesapandian, Nippin Express, Mr.Manikandan, Aspinwall & Co. he Cochin Customs House Agents Association has emphasised the need to integrate inland waterways and coastal shipping mode at Vallarpadam terminal to reduce costs. There is a need to encourage inland water transport for movement of containers and to V.S. Pradeep make arrangements for stacking the Customs examined containers directly to the ship to avoid unnecessary costs, says V.S. Pradeep, the newly elected President of CHA. The increased usage of waterways will not only decongest roads in Kerala but also considerably reduce transaction cost, he said. Complimenting the efforts taken by the Central and State Governments for the promotion of coastal transportation, he called for concerted efforts for a free movement of cargo in a cost-effective manner from Vallarpadam terminal for the overall benefit of the exim trade in the region. The ICTT at Vallarpadam, he said, is definitely poised for a better growth shortly with the relaxation of Cabotage Law. Likewise, the Cochin International Airport is also expected to grow manifold in the coming years in terms of cargo and passenger arrivals. Given the emerging situation both in sea and air transportation in Kerala, he said CHA has to play a proactive role to improve ways to smoothen cargo movement. CHA, he said, is in constant dialogue with several trade bodies and government agencies to mitigate the current bottlenecks in total transportation. The association suggested bringing new legislation to suit international standards to facilitate free cargo movement thereby reducing turnaround time and cost. To clear the bottlenecks in Vallarpadam terminal, house agents has been demanding for a full-fledged customs station in ICTT to facilitate at least green channel clearance from the terminal without moving the container to a CFS. Coimbatore CHA Association organises Cricket Tournament Mr. R. Rajesh Kumar and Mr. GA Kalyanamoorthy are giving awards to Winners. 32 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 35. Ahmedabad Celebrating Silver Jubilee A hmedabad Customs House Agent Association celebrated their Silver Jubilee y2ear. As a part of their silver jubilee celebrationsthey organised many events. The Managing Committee ACHAA decided to dedicate Silver Jubilee Year Celebration to all their staff members, whose, hard work and dedication had given them an opportunity to achieve their goals. Opening Ceremony was held on 21.07.2012 atJ.B. Auditorium , AMA , Ahmedabad. The event was and Inaugurated by Mayor ShriAsitVora in presence of ShriShantanuBhadkamkar - Chairman - FFFAI , Addnl. Commissioner of Customs Shri. KVS Singh , KartikPancholi - President - ACHAA , Samir J. Shah - Chairman of Board - ACHAA along with all ACHAA members. Mementos were presented to all ACHAA Members as a token of Achievement s. The celebrations continued with zeal and this activity for the health of the port staff at ICD, Khodiyar a health camp to keep them fit. It supported by the staff of CONCOR and ICD, Customs. A Drawing Competition was organised on 19.08.2011 at Lion’s Club Hall, Mithakhali, Ahmedabad. specially designed for the Kids of our staff members. It ended with a magic show and music.A scond health cam was or- Empowering The Freight Forwarder ganised at Air Cargo Complex, Ahmedabad..supported by entire staff of GSECL (Custodian), Airlines, Transporters and ACC – Customs a session on Health Awareness and preventive measures to be taken was highlighted by Assistant Commissioner of Customs, Dr.Sandeep J. Singh..The next in line was a seminar on Excellence & Success on 21.09.2012. Venue : H. D. Parikh Hall, AMA, Ahmedabad.. on how to achieve success through excellence in our work. All work and no play makes a dull person so they took off to the playground for a Cricket Tournament at Railway Stadium, Sabarmati, Ahmedabad. The staff members were taken to the playground instead of the desk to display their talents and team spirit. The response was unexpectedly great not only the CHA fraternity but for the entire logistics industry.It was a great match to watch for Shri. ShantanuBhadkamkar - Chairman - FFFAI President ASAA Shri.AmitBhatnagar, C.M - CONCOR Shri. VineetMathur, Assistant Commissioner of Customs Dr.Sandeep J. Singh, Director - GSECL Shri. Samir Mankad , Ex- Chairman of Board - ACHAA Shri. DevendraThakkerand entire fraternity of Ahmedabad CHA , Shipping Line , Surveyor, Transporter etc.. fffai news  VOL. 1  ISSUE 2 33
  • 36. FFFAI international nEWS FIATA WORLD CONGRESS 2012 - Los Angeles Chairman of FFFAI, Mr Shantanu Bhadkamkar, on behalf CII Chaired the networking reception with the Business Delegation from Mexico lead by Mr Carlos Guzmán Bofill, CEO, ProMexico & HE Mr Jaime Nualart, Ambassador, Embassy of Mexico in India Chairman – FFFAI Mr Shantanu Bhadkamkar, also Vice President of AMTOI visited Port Of Antwerp and had meeting with Mr Luc Arnouts, Chief Commercial Officer of Antwerp Port Authority, Ms Anne-Marie Van Asbroeck of Antwerp Port Authority, Mr Marc Huybrechts President, CLECLAT & Mr Olivier Schoenmaeckers Director VEA to for a meeting to discuss INDIA – NATIE Project of AMTOI. During the meeting was also discuss possibilities of cooperation between FFFAI and VEA for creating platform for interactions with members. The FIATA World Congress 2012 was hosted in the city of Los Angeles, by the United states Federation, TIA. It was a fascinating event, which was very well organized, and attended, the Congress hosts advised that almost 900 delegates attended the conference. A delegation Mr. Amit Kamat, Mr. Alan Jose, Mr. Tej Mayur Contractor, Mr. Hari Hariraj, Mr. Anil Kumar Silveri, Mr. Kamal Jain, Mr. Narendar Choutakuri, Mr. N.T Rama Rao, Mr. Prasad Ramarao, Mr. Daljit Singh & Mr. Gurkirat Singh had very meaningful interactions with FIATA Office bearers & other FIATA Congress delegates. Mr. Stanly Lim, President FIATA, along with TIA President, Mr. Robert Voltmann and TIA Chairman Mr. Alec Gizzi, opened the Conference. Mr. Thomas Sim, informed delegates that 9 Association Members validated their programs, Kazakhstan (KFFA) and Vietnam (VIFFA) were expected to offer FIATA Higher Diploma in Supply Chain Mr. Thomas Sim further informed the meeting that in the meantime 4 out of a total of 8 validated Members, up to the level of FIATA Higher Diploma, were from RAP: Singapore and Chinese Taipei, and now Kazakhstan and Vietnam, and also suggested to VIFFAS that they could explore the possibility of an Electronic Diploma at a cost of CHF 50/-. Cochin CHA Association held AGM Mr. V.S. Pradeep, President of Cochin CHA Association addressing members at AGM 34 fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 37. Quotable Quotes The Paradoxical Commandments People are illogical, unreasonable, and self-centered. Love them anyway. If you do good, people will accuse you of self ish ulterior motives. Do good anyway. If you are successful, you will win false friends and true enemies. Succeed anyway. The good you do today will be forgotten tomorrow. Do good anyway. Honesty and frankness make you vulnerable. Be honest and frank anyway. The biggest men and women with the biggest ideas can be shot down by the smallest men and women with the smallest minds. Think big anyway. People favor underdogs but follow only top dogs. Fight for a few underdogs anyway. What you spend years building may be destroyed overnight. Build anyway. People really need help but may attack you if you do help them. Help people anyway. Give the world the best you have and you’ll get kicked in the teeth. Give the world the best you have anyway.” —Kent M. Keith, Paradoxical Commandments Serenity Prayer Lord, grant me the serenity, To accept the things I cannot change, The courage to change the things I can, And the wisdom to know the difference. Living one day at a time, Enjoying one moment at a time Accepting hardship as the path to peace. Taking, as He did, This sinful world as it is, not as I would have it: Trusting that He will make all things right If I surrender to His will. That I may be reasonably happy in this life, And supremely happy With Him forever in the next. - Reinhold Niebuhr Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 35
  • 38. feature CUSTOMS ACT FIFTY YEARS OF CUSTOMS ACT THE CUSTOMS ACT, 1962, is an ACT OF PARLIAMENT - ACT NO. 52 of 1962 Dated 13.12.1962, made EFFECTIVE FROM 01.02.1963. It has XVII Chapters - Chapter I to Chapter XVII. This is divided into SECTIONS. There are a total of 161 Sections - Sec. 1 to Sec. 161. The Customs Act, 1962 has REPEALED The whole of The Sea Customs Act, 1878; The whole of The Inland Bonded Warehouse Act, 1896; The whole of The Land Customs Act, 1924; & Section 16 of The Aircraft Act, 1934. We can say today that the present Customs Act is Fifty years old. But if we see the predecessor Sea Customs Act, it is 134 years old. However the term “CUSTOMS” is much much older. It was an Ancient “CUSTOM” that whenever a merchant entered a Kingdom with his merchandise, he had to make a suitable offering of gifts to the King. In course of time, the Modern State formalized this “CUSTOM” into CUSTOMS DUTY which the State collects on goods IMPORTED into or, occasionally EXPORTED out of its frontiers. Customs Duty now forms a significant source of REVENUE for all countries, more so in the case of developing countries like INDIA. India is an active member of the World Customs Organization and has adopted various International Customs and Procedures, including the Harmonized Classification System and the GATT based Valuation System. I remember my very first contact with Bombay Customs around forty years back. That was the time of Mukadams doing the work of Customs Clearance. I met a Mukadam at the Bombay Custom House, who had a Blank copy of a Bill of Entry with a copy of Invoice, Packing List & Bill of Lading attached to it and in the signature column there was a Thumb Impression. I Asked him what he would do with this kind of document. He said that he was taking the document to a Customs Officer sitting on the first floor. The Officer would fill in all the details and calculate the custom duty and tell him to pay the duty. He would then take the duty amount from the Importer and make the payment and then take the documents to the Dock. There another Customs Officer would check the Cargo and then he would be allowed to take out the consignment and deliver to the party. I thought that this was all so easy. My entire thought process took a severe beating when I became a Licenced Custom House Agent about 25 years back. We had to prepare all the documents including calculations on the Bills of Entry / Shipping Bills. Locating the proper classification of the goods and going through the Customs Tariff for applicable rate of duty. The innumerable exemption notifications with their attached conditions added to our woes and confusion. On the Export front, application of the correct drawback schedules, details and calculations; fulfilling all the require- 36 fffai news  VOL. 1  ISSUE 2 ments for the various Export Promotion Schemes etc was a real back breaking exercise. The Customs Officers would never agree with our preparation of the documents and we had continuous arguments for classification / valuation of the goods. We had to run around the various departments of the custom house to comply with all the mandatory requirements for the completion of an Import or Export Clearance. Examination of the Cargo was even more cumbersome. We had to wait for full days so that an officer could come and examine the cargo and be fully satisfied to give the ultimate clearance. What a relief it would be for us ? What a life it was? With the rapid diversification of Trade, Procedures relating to levy of Customs Duty and Customs Administration had undergone vast changes. The Customs Administration is not confined to the ENFORCEMENT of the Provisions relating to The Customs Act only. True, the basic function of Customs Administration is the Collection of Revenue, but since that Administration is in a position to control the Gateways of a Country, the Administration has been entrusted with other related Functions, such as, Enforcement of the Law relating to Import and Export Control as well as other Allied Acts. Governments around the world have realized that rapid economic growth cannot be achieved in an environment where International Trade processes are inefficient and cumbersome. Over the past two decades, serious attention has been devoted to the modernization of international trade and cross-border regulatory procedures. Countries have committed substantial resources to national projects in the areas of customs automation and Electronic Data Interchange (EDI) infrastructure. The Kyoto Convention on seamless cargo clearance system laid stress on simplified procedures for the movement of Cargo in all countries. This comprises several key governing principles: transparency and predictability of customs controls; standardization and simplification of the goods declaration and supporting documents; simplified procedures for authorized persons; maximum use of information technology; minimum necessary customs control to ensure compliance with regulations; use of risk management and audit based controls; coordinated interventions with other border agencies; and a partnership with the trade. It promotes trade facilitation and effective controls through its legal provisions that detail the application of simple yet efficient procedures and also contains new and obligatory rules for its application. India being a signatory to the Convention adopted various fast track methods through ICEGATE. The Customs Vision Document spelt out the Citizen Charter 1998 (revised 2008) which resulted in the streamlined Indian Customs Accelerated Customs Clearance Procedure. This Empowering The Freight Forwarder
  • 39. Vishnu Sippy procedure allows release of cargo on the basis of specified minimum information for certain importers of good track record of compliance - name of consignee & consignor, country of origin, total assessable value, total quantity, description and CTH/CETH. The goods would be released either with or without examination after payment of duty. The Risk Management System with the Self Assessment Scheme has become a reality. The World Customs Organization (WCO) is recognized as the voice of the global customs community. It is particularly noted for its work in areas covering the development of international conventions, instruments, and tools on topics such as commodity classification, valuation, rules of origin, collection of customs revenue, supply chain security, international trade facilitation, customs enforcement activities, combating  counterfeiting in support of Intellectual Property Rights (IPR), integrity promotion, and delivering sustainable capacity building to assist with customs reforms and modernization. The WCO maintains the international Harmonized System (HS) goods nomenclature, and administers the technical aspects of the World Trade Organization (WTO) Agreements on Customs Valuation and Rules of Origin. As the World Customs Organization prepares to celebrate its 60th anniversary this year, Electronic ‘Single Window’ services delivery is now being demanded in several countries. Based on the principle of joined-up government services, the ‘Single Window’ environment has the potential to deliver transformational advantages to business by simplifying and unifying touch-points between members of the trade and the different government departments involved in cross-border regulatory procedures. In addition, new demands on supply chain security and facilitation have emerged, leading to the establishment of the WCO SAFE Framework of Standards. The theme of a Globally Networked Customs (GNC) is an inclusive interconnected Customs-to-Customs information sharing system to support and improve the functioning of the international trading system, national economic performance, and the protection of society and fiscal management. A GNC will support the goals of the ten C21 building blocks, reduce the compliance burden for legitimate traders, and enhance enforcement through the sharing of information and intelligence. This theme is particularly relevant as the WCO prepares to commemorate its 60th anniversary in 2012. Dwelling on this theme the Indian Customs have given a slogan ‘Borders divide: Customs connect’ on the occasion of International Customs Day and 50th Year of Customs Act (1962). Empowering The Freight Forwarder I recollect that in my previous birth I was a collector during Emperor Akbar’s regime. My duty was to ensure that the people give a part of their produce to the treasury. I was very honest and hardworking and used to attend to my duties with due diligence. One fine morning I was called before the Emperor in his Durbar where a lot of the people had gathered and complained that I was taking some part of their produce directly for myself. The Emperor was very wild and he asked me for an immediate explanation. With folded hands I told the Emperor that I had done no wrong. As per my duties I had to ensure that the people give only good quality of their produce to the treasury and hence I had to take some part of the same to personally use and check if it was fit for the Emperor’s treasure. On Birbal’s advice, the Emperor transferred me immediately. I was made to sit on the beach in front of the Ocean and count the waves to make a report to the Emperor daily. After a few days I was again summoned before the Emperor and this time there were a lot of fishermen complaining against me that I am collecting a fine for myself from them. Again with folded hands, I told the Emperor that I had done no wrong. The fishermen while passing in their boats disturbed the waves and it became very difficult for me to correctly count the waves and report to Your Majesty. Akbar asked Birbal for a solution. Birbal then advised the Emperor to totally do away with the collector and ask all his subjects to directly deposit a part of their produce to the treasury. PEOPLE WERE VERY HAPPY AT THIS. HEY! IS SOMEBODY SOMEWHERE LISTENING Mr Vishnu Sippy is a Former Honorary Secretary of FFFAI and has been actively involved in education and training initiatives of the Industry. The views expressed here are his personal views, are not necessarily of FFFAI. fffai news  VOL. 1  ISSUE 2 37
  • 40. FFFAI Congratulates Bombay Custom House Agents’ Association held their election wherein the following Office Bearers were elected for the term 2012-2014. Bangalore Custom House Agents’ Association Ltd held their election wherein the following Office Bearers and Managing Committee Members were elected for the term 2012-2014. Office Bearers of Bombay Custom House Agents Association Mr. George Joseph - President Mr. Ashish Pednekar - Senior Vice President Mr. Pankaj Shah - Vice President Mr. Kiran Rambhia - Vice President Mr. Shashi Tanna - Vice President Mr. Anand Sheth - Honorary Secretary Mr. Karunakar Shetty - Honorary Treasurer Office Bearers of Bangalore Custom House Agents Association Ltd Mr. Desikan K. S. - President Mr. Adisesh K - Vice President Mr. Srinivasa Reddy B. M. - Vice President Mr. Shashidhar V. Hebbar - Honorary Secretary Mr. Puttaraju - Honorary Treasurer Managing Committee Members of Bombay Custom House Agents Association Mr. C.A. Veeramani Iyer, Mr. Dinesh L Thakker, Mr. Dushyant Mulani, Mr. Kiran Dhingra Mr. Kishore Parulekar, Mr. Milan T. Desai Mr. Paresh C Shah, Smt. Philomena V Pereira Mr. Rajesh Gosalia, Mr. Sailesh Bhatia Mr. Sarfaraz Khan, Mr. Suresh Dalvi Pune Custom House Agents’ Association held their election wherein the following Office Bearers were elected for the term 2012-2014. Office Bearers of Pune Custom House Agents Association Capt. Ashish Samarth - President Mr. Vinod Sharma - Vice President Mr. S. P. Kulkarni - Secretary Mr. Bhagwan Singh - Jot. Secretary Mr. Pradeep Kale - Treasurer Association of Multimodal Transport Operators of India Office Bearers for the Term 2012 – 2013: Mr. Shashi Tanna – President Mr. Shantanu Bhadkamkar - Vice President Mr. Vivek Kele – Hon Secretary Mr. R. K. Rubin – Hon Treasurer Sailesh Bhatia, Nailesh Gandhi, Ravindra Gandhi 38 fffai news  VOL. 1  ISSUE 2 Managing Committee Members of Bangalore Custom House Agents Association Ltd Mr. Chandrachari B. R., Mr. Girish N Mr. Muniraju S, Mr. Murali K Mr. Roopesh Kumar, Mr. Rudrappa M. N. T. Mr. Sriram K, Mr. Venkatesha M Cochin Custom House Agents’ Association held their election wherein the following Office Bearers and Managing Committee Members were elected for the term 2012-2014. Office Bearers of Cochin Custom House Agents Association Mr. V. S. Pradeep - President Mr. P. M. Muraleedharan - Vice President Mr. Bruce Thadathil - Honorary Secretary Mr. Roy George - Honorary Treasurer Managing Committee Members of Cochin Custom House Agents Association Mr. A. A. Abdul Azeez Mr. Andrew Antonio Fernandez Mr. Benny Francis Mr. George Xavier Mr. Jomy Joseph Mr. Mathew M. J Mr. Paul Abrao B Mr. Prasanth G Mr. Raghu Jairam Mr. Ranjith Kumar Mr. Deepak Kumar Shetty (Special Invitee) Express Global Logistics Pvt Ltd WINNER OF THE ‘CHA’ OF THE YEAR Empowering The Freight Forwarder
  • 41. GRIEVANCE REDRESSAL FORUM AMTOI Annual Day function at Hotel President, Mumbai Grievance Redressal Forum (GRF) was launched on the 20th August, 2010 at the AMTOI Annual Day function at Hotel President, Mumbai. The Forum comprises of the following 8 constituents: 1. Container Shipping Lines Association - CSLA 2. Mumbai & Nhava Sheva Ship-Agents’ Association / Federation of Ship Agents Association of India – MANSA / FEDSAI 3. Air Cargo Agents Association of India - ACAAI 4. Federation of Freight Forwarders Association’s in India - FFFAI 5. The Bombay Customs House Agents’ Association BCHAA 6. Consolidators Association of India - CAI 7. Association of Multimodal Transport Operators of India - AMTOI It is understood that the Forum would also seek the following additional constituents as and when and if required: 1. ndependent Lawyer I 2. An Insurance Company Primarily Covering Liability Insurance The purpose of the forum is to attend to policy and procedural issues to make the process of Shipping or receiving cargo smooth. The forum will ensure synergy among the constituents to facilitate and streamline logistics processes. The constituents of the Forum would be: 1. Convenor 2. Constituent Committee Nominated by the Constituents 3. omplaint Hearing/Resolution Panel Minimum 3 (or 5 C as ecided) Persons Nominated by the constituents D 4. onstituents of Complaint Hearing/Resolution Panel C a. Convenor b. Service Provider Member Body c. Complainant’s Member Body d. 3 Other Forum Members The Forum would hold independent separate committee meetings of all member bodies separate from the Grievance Redressal Forum meetings to deal with various issues on Empowering The Freight Forwarder the successful running of the Forum and achieve its objectives. This regular forum meeting would be held on the 4th Thursday of every month. AMTOI would function as the Secretariat of the Forum to carry out the various functions. The Forum would receive complaints/issues through Service User Associations and Chambers only e.g. CII/FIEO/IMC/FICCI etc. The functions of the AMTOI Secretariat would be as follows: 1. Receiving Complaint from Service User Associations / Chambers. 2. cknowledgement of Complaint A 3. orwarding of Complaint to Member Body F 4. ollow Up With Member Body F 5. eceiving Reply R 6. onvening of Meeting of Forum C 7. ecording of Minutes of Meeting R 8. eeping All Forum Records K 9. iving Public Information As Directed By Forum G The Convenor of the Forum in its first term is Mr. Tushar Jani of AMTOI and the nominee’s of the Grievance Redressal Forum are as follows: Sr. No. Bodies Representative Alternate 1. BCHAA Mr. Omprakash Agrawal Mr. George Joseph 2. ACCAI Mr. Keshav Tanna Mr. Hemant Bhatia 3. MANSA/ FEDSAI Mr. C. R. Nambiar Mr. Thomas Varghese 4. CSLA Capt. Ashok Malkani Capt. Dinesh Gautama 5. FFFAI Mr. Shantanu Bhadkamkar Mrs. Philomena Pereira 6. CAI Mr. Nityam Khosla Mr. Radhakrishnan Iyer 7. AMTOI Mr. Tushar Jani Mr. Anand Sheth AMTOI on behalf of the Forum is in the process of sending out details on this Forum to the various Service User Associations, Trade Bodies and Chambers. fffai news  VOL. 1  ISSUE 2 39
  • 42. FEATURE MILESTONES MILESTONES 19 6 2 FFFAI formed on 2nd December 1962 inaugurated by Shri. Morarji Desai – the Honourable Finance Minister – Govt. Of India 19 6 3 FFFAI affiliated with FIATA ( The International Federation of Freight Forwarders Association, at World Congress in Copenhegan on 9th Sept 1963. 19 7 3 Mr Arvind Parikh the first Asian to be elected as Vice President of FIATA Board 19 8 3 Mr Arvind Parikh became the first Asian President of FIATA. Late Commander R.Srinivasan – Past President & Chairman of FFFAI elected as the Chairman of SAFFA and Managing Director of IFCBA 2005 2007 2 012 FFFAI purchased own office 7th Jan 2005 – FFFAI establishes Indian Institute of Freight Forwarders (IIFF) – inaugurated by Mr. Issa Baluch – President of FIATA and Mr. P.K. Srivastava – then CMD of Shipping Corporation of India Late. Shri. Mayur Contractor Past President of FFFAI elected as senior Vice President of FIATA for the term 2007 -2009 FIATA validate FFFAI’s training material / syllabus 2 012 Mr. Shantanu Bhadkamkar elected unanimously as Managing DirectorInternational Federation of Customs Brokers Associations (IFCBA) in May 2012. 2 012 “Maritime Forum“ constituted by national apex body of maritme (cargo) interest led by Chairman of FFFAI – Mr.Shantanu Bhadkamkar 2 012 FFFAI Awarded the Maritime And Logistics Award (MALA AWARD 2012) in appreciation of its 50 years service to trade. 2 012 2 012 2 012 FFFAI lanuches ‘Women Wing’ 2 012 40 FFFAI delegation visits at Rashtrapati Bhavan to meet her excellency Presidents of India, Smt Pratibha Devi Singh Patil on 3rd July 2012. FFFAI lanuches ‘Youth Wing’ fffai news  VOL. 1  ISSUE 2 Empowering The Freight Forwarder
  • 43. EXECUTIVE COMMITTEE MEMBERS _ 2011 - 2013 Empowering The Freight Forwarder fffai news  VOL. 1  ISSUE 2 41
  • 44. CONSIGNEE SHIPPER OVERSEAS FORWARDER DATA CARRIER multi modal DOMESTIC CARRIER iwt coastal The ht Freig arder Forw E m powering INTERNATIONAL CARRIER rail road SEA WAREHOUSES air PORTS CUSTOMS REGULATORY BODIES