New norms at Tuticorin port to up costs

Industry feels the process will delay in supply consignments

A recent public notice by Tuticorin Customs giving more responsibilities to the operators of 13-odd container freight stations (CFS) at the port has caused concern among traders. Stakeholders say it would make the operating procedure more complex and take away the advantages the export-import trade currently enjoys here.

The Tuticorin Customs Brokers Association said the new measures would result in additional costs of  $100-125 a container for freight operations (FOB), which include additional lift off/lift and transportation costs.

At present, a factory-stuffed container under central excise supervision arrives at a CFS (container freight station) where a customs broker completes the let export formalities. The container in the same truck proceeds to the port gate where again the broker completes the allowed for shipment formalities and gets gated in the port or terminal.

Similarly, for a cargo, the empty container is moved to the CFS, stuffed on the truck itself. The let-export formalities is completed and the truck proceeds to the port gate for allowed-for shipment formalities and gets gated-in.

However, in the new procedure, in the case of house- stuffed container, the laden container has to be landed inside the CFS. The CFS operator then moves the laden box in another truck, after which it is allowed-for shipment, and then gated in by the CFS operator.

In the case of a CFS-stuffed container, the empty container is to be moved to the CFS where the cargo is stuffed after a customs broker completes the let-export order. The CFS operator then moves the laden box in their truck and completes the allowed-for shipment and gets it gated in.

As the responsibility of the truck movement from CFS to port is to be entirely shouldered by the 13-odd CFS’, there are possibilities of delays, resulting in missing the targeted feeder vessel, mother vessel and also delayed arrival of cargo.

Besides, as the documents that were handled by Customs brokers would now be handed over to CFS operators, critical commercial information like buyers address, invoice value etc can be exposed, he added.

"The transport operators are worried that there is a large possibility of cartelisation by the CFS operators. They feel that the market forces will not determine the rates ans the fleet operators have to depend on the 13 CFS instead of depending on the 300-odd Customs brokers," he said in a statement.