(Published in Part – III Section 4 of the Gazette of India, Extraordinary)

Tariff Authority for Major Ports  

NOTIFICATION

                        In exercise of the powers conferred by Section 48 of the Major Port Trusts Act 1963 (38 of 1963), the Tariff Authority for Major Ports hereby amends the existing Scale of Rates of the Cochin Port Trust, as in the Order appended hereto. 

( S. Sathyam )

Chairman   

Case No. TAMP/99/2000-COPT

The Cochin Port Trust (COPT)             …            Applicant

O R D E R

(Passed on this 5th day of January 2001)

                        This case relates to a proposal from the Cochin Port Trust (COPT) for an amendment in its Scale of Rates with respect to stuffing / destuffing charges of part containers.  

2.1.                  The COPT in its proposal has stated that the Central Board of Excise and Customs (CBEC) recently granted permission to the Shipping Lines/ Agents/ MTOS/ NVOCCS/ Freight forwarders/ consolidator for networking of Less Container Load (LCL) boxes in Gateway ports.  As a result, there will be requested to stuff or destuff half-a-container or to discharge part cargo from a container to top up the container. 

2.2.                  The present Scale of Rates of the Port does not specify charges for stuffing/destuffing half-a-container.  Therefore, the COPT has proposed to levy half of the stuffing/destuffing charges of full containers for stuffing/destuffing half containers.  This proposal was approved by the COPT Board on 30 August 2000. 

2.3.                  The COPT has proposed insertion of the following rates and conditions in its Scale of Rates: 

Stuffing/Destuffing half-of 20’ containers             -            Rs.1150/-

Stuffing/Destuffing half-of 40’ containers                 -            Rs.1875/- 

Note :  For the purpose of stuffing/destuffing a part container any portion of a container 50% or less than 50% will be treated as half-a-container.  However, if a container is to be topped up or stuffed/destuffed more than 50%, it shall be treated as a full container for the purpose of levying stuffing/destuffing charges.  

3.                     A copy of the proposal was circulated to the concerned representative bodies of port users for their comments.  The comments received from the Shipping Corporation of India (SCI) and Cochin Custom House Agents’ Association (CCHAA) are summarised below: 

The Shipping Corporation of India (SCI)  

They applaud the proactive approach of the COPT and agree with the proposal. 

The Cochin Custom House Agent’s Association (CCHAA)  

They fully support the recommendation and state that the fixing of reduced charges for stuffing/destuffing part containers would go a long way in augmenting the export/import trade through the Cochin port. 

4.                     A joint hearing in this case was held on 19 December 2000 in Cochin.  During the joint hearing, the representatives of the SCI, INSA, CSAA, CSLA and CCHAA endorsed the proposal whole-heartedly. 

5.1.                  The COPT deserves appreciation for immediately coming up with a proposal to introduce a new rate with reference to the new arrangement for stuffing/destuffing of containers at Gateway Ports approved by the CBCE.  It is also one of the few cases in which users have whole-heartedly endorsed the proposal of a Port Trust. 

5.2.                  The COPT has proposed 50% of the charges for stuffing/destuffing of full containers for a similar service to half containers.  This approach is found to be reasonable. 

5.3.                  Since the CBCE circular is commonly applicable to all the Ports, the Authority may have to introduce a similar tariff arrangement for stuffing/destuffing part containers at all the major ports.  

6.                     In the result, and the reasons given above, and based on a collective application of mind, the Authority approves the proposal of the COPT and amends the existing Scale of Rates of the COPT to insert the following rates and conditions under the heading ‘ Rates of container handling operations’ :“                                   20’                   40’      

            Stuffing/destuffing half-a-container            Rs.1150.00     Rs.1875.00    

Note :  For the purpose of stuffing/destuffing a part container, 50% or less than 50% of a container will be treated as half-a-container.  If a container is, however, to be topped up or stuffed/destuffed more than 50%, it shall be treated as a full container for the purpose of levying stuffing/destuffing charges.”  

( S. Sathyam )

Chairman