Monday, October 22, 2012

Article - 114 Week 43 Mate’s Receipt – A Ghost Document

Article - 114 Week 43 
Mate's Receipt – A Ghost Document

Long long time ago, the person responsible for loading & securing  goods on board a ship was called  'mate'. He saw the goods with his own eyes. He would issue a receipt for such goods. And that was looked upon as authentic and nonpartisan. The Bill of Lading was prepared and issued by the Master on the basis of this document. These days, 'mate' is commonly known as Chief Officer. On container ships, he facilitates the loading of the sealed boxes. The boxes are filled by the shipper. The contents of the box are certified by the Customs Officials on a document known as 'Shipping Bill' in India. The box travels hundreds and at time thousands of miles under Customs seal & bond to the port. Then the box is stored inside the Port premises until the vessel arrives.  And before our Chief Officer could wink , the same is loaded on the vessel as per the plan prepared by some one sitting as far away as Timbuktu. The 'mate' has absolutely no clue as to what could be inside the mystery box – nor does he care, unless it has some nuisance value on the ship's operations or safety.

Let's follow the shipping bill. This document is made just before the cargo is stuffed inside the box. The customs watch the cargo go in as per the shipping bill. Then it is sealed. At various stages of movements the custom's officials stamp them along to authenticate progress. Then the box is loaded on the ship. The final thing is to certify that – the said box is loaded on the vessel and the vessel has left the port. This is where the catch lies. The customs need the 'Mate's Receipt' to make a notation of same on the Shipping Bill. As described above, our Chief Officer is completely clueless on what goes inside thousands of such boxes being loaded and even unsure if all the planned boxes are loaded by the Port in the first place. So nailing responsibility on Mate's Receipt (issued by the box operator's agent on behalf of the Mate) is an extremely unreliable act. The correct source of this information lies with the Port or its nominated surveyor – not a Mate who is no more to be seen on the scene after the vessel sails and glaringly innocent of such information. That authentication only leaves him or his agent as a scapegoat if things go wrong.

It's time we stop this archaic, irrelevant, and witch-hunting system of pinning responsibility on a ghost's agent and loads of meaningless duplicity. Shipping bill and EGMs are contextually one and the same thing. A few additional information and authentication by the Carrier's agent on the Shipping Bill would render it to be the  'Export Manifest'. This simplification, would make a big dent on the much talked about 'transaction costs' on exports in our country.
_______________________________________________________________________________________________________________________________________________________________________________

Brgds
Capt Rath

Monday, October 15, 2012

Article - 113 Week 42 Import Process With A Big Hole

Article - 113 Week 42
Import Process With A Big Hole

Imagine 100 containers in the middle of Mumbai. Loaded with deadly explosives. The remote trigger is in the hands of a terrorist. One click & boom! I am not talking about a Bollywood movie or sensationalising triviality. I am talking about real life situation in our industry.

A whole lot of goods are purchased by Indian entities from overseas. Millions of containers are entering as imports in a year. 'A' sells (Overseas Seller)- 'B' buys (Indian buyer)- 'C' carries (Shipping Line) – 'D' handles the imports(Agent) – 'E' declares the goods to Customs (Sub-agent or Surveyor) – 'F' moves the cargo on land (Bonded Transporter) – 'G' stores (CFS, ICD, Port) the goods in containers for delivery to 'B'. Interestingly & dangerously, 'B' is a silent sleeper until he wakes up to claim his cargo after paying the duty. He could sleep for months to years to even infinity. 'E' on behalf of 'D' declares the details of the incoming goods and identity of 'B' etc . You call it IGM. 'C' has no knowledge about the identity of 'B' – except as declared by 'A'. 'C' has extremely limited control on what 'A' puts inside his box, in a foreign land with alien laws & practices. 'B' could be a fiction or could choose to be a fiction at the time & place of his choice. Our Customs Laws are ruthlessly merciless towards 'D' for any slight. 'D' has to declare the IGM 48 Hrs (On behalf of 'C') before vessel arrival, while 'B' could be sleeping in Honolulu. Be it missing a 'comma' in the IGM or a thermonuclear bomb as cargo – 'D' shall be pulverised to shreds by the Indian Authorities.

The solution needs no rocket science. It needs plain common sense. 'B' must have a face and 'B' must declare what he is bringing, before the goods land in India. Until 'B' has a face and he is made to own up his goods before they arrive on our shores, we are just sitting ducks, praying to God almighty that this never happens.

Brgds  
(Capt Rath) Skype Gtalk MSN :  psrath
Econship
Quicker Simpler Better