The All Kerala Tiles & Sanitaryware Dealers Association (AKTISADA), a registered trade body representing the tiles and sanitaryware trade in Kerala, has raised concerns about the absence of a regulatory act governing the carriage of goods by multimodal transport for domestic cargo. AKTISADA highlights the significant challenges and legal ambiguities faced by its members due to the lack of proper legislation.
Members of AKTISADA are responsible for moving approximately 3,000 20-foot containers per month from Morbi, Gujarat, through Mundra Port to Cochin, Tuticorin, and Mangalore Ports. This extensive operation involves a combination of road and sea transport, but it is not currently regulated by any specific act.
Key Issues Highlighted by AKTISADA
The association has outlined several critical issues arising from the lack of regulation:
- Absence of proper registration of Multimodal Transport Operators (MTO)
- Absence of a Multimodal Transport Document
- Absence of Multimodal Transport Document to be regarded as a document of title.
- Absence of basis of liability of MTO
- Absence of limits of liability of MTO when the nature and value of the consignment have not been declared and the stage of transport where loss or damage occurred is not known.
- Absence of limits of liability of MTO when the nature and value of the consignment have not been declared and the stage of transport where loss or damage occurred is known.
- Absence of criteria for fixing the liability of MTO in case of delay in delivery of goods under certain circumstances.
- Absence of criteria for assessment of compensation to the consignee.
- Absence of liability limitation of MTO for total loss of goods.
- Absence of procedure for notice of loss or damage to goods
- Absence of fixation of period of responsibility.
- Absence of the right of MTO to have a lien on goods and documents.
- Absence of insurance including General Average and Salvage expenses.
- Absence of Jurisdiction for instituting action.
- Absence of Arbitration procedures and Multimodal Transport Contract made following the Act.
The lack of regulation has led to significant losses and litigation between consignors, forwarders, shipping lines, ports, road transporters, and consignees. Furthermore, the CGST Act (Rates) 2017 specifies a 12% GST rate for multimodal transport as a composite supply. However, in the absence of a specific act for multimodal transport, this rate is subject to legal scrutiny, adding another layer of complexity and potential financial liability.
