In a move aimed at imparting transparency, service providers or agents of Indian vessels or other vessels operating in coastal waters in relation to import, export or domestic transportation, will have to disclose upfront all the charges levied from the users, under the Merchant Shipping Bill currently being discussed in the Lok Sabha.
By making it “statutory” for service providers in the maritime sector to “disclose upfront” the charges levied from users, the government is looking to meet a long-standing demand of exporters and importers transporting cargo in containers.
“Transparency means service providers will have to disclose upfront whatever they are charging. That’s all, nothing else,” said a government official.
The official, though, made it clear that the provision in the Merchant Shipping Bill will not mean regulating freight rates charged by container shipping lines.
“We are not saying we will regulate the freight; freight will be regulated by the market but the charges which will be levied should be disclosed upfront, it should be available on the website of the service providers, which implies the customer or the user should know the charges he has to pay for using the service,” the official explained.
The Merchant Shipping Bill, which seeks to repeal and re-enact the Merchant Shipping Act, 1958, empowers the Central government to prescribe the terms and conditions for specification of charges and issuance of the Bill of Lading or any other transport document.
“The Central Government, in such circumstances as it may, by notification, specify in this behalf, require every service provider or agent in respect of any Indian vessel or other vessel operating in coastal waters in relation to import, export or domestic transportation, to specify in the Bill of Lading or any other transport document, all charges to be paid by an exporter, importer, consignor or consignee in India, subject to the terms and conditions for the specification of such charges and the issuance of the Bill of Lading or any other transport document, as may be specified in that notification,” according to the Merchant Shipping Bill.
The charges to be paid by exporter, importer, consignor or consignee shall include both fixed and conditional charges. Besides, the service provider or agent shall not levy any charges other than the charges specified in the Bill of Lading or any other transport document.
“If the service provider or agent fails to specify the charges or levies any charges other than the charges specified by him in the Bill of Lading or any other transport document, he shall be liable to a penalty which may extend to five lakh rupees,” says the Merchant Shipping Bill.
(source: ET Infra)
