Finance Ministry simplifies GST refund claim process, India Unveil Shipping Portal & more shipping insights from Shipwaves.
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India Market Watch
- JNPT port workers are on go slow operation since last one week. Container movement has been badly hit due to this slow down. Port authorities have decided to take only one ship at berth instead of two/three vessel at any time. Shipping lines are either bypassing or changing their terminal to accommodate their ships.
Shipwaves would like to advise all customers to plan their export shipments from those shipping lines operating from other terminals. For import shipments, please keep a check with shipping line for the arrival of your container.
- It is expected that Sugar export for this season starting from October will be highest due to various favourable global factors and record sugar production of about 35 million tonnes. Cargo has already started flowing at various ports/ ICDs.
Shortage of available storage space for sugar leading to damage of cargo and non-availability of containers have pushed the freight rates. Shipwaves would like to advise all customers to plan their shipments from major ports like JNPT only. Please contact Shipwaves for most competitive freight rates for sugar export from any major port.
- In a very bold move, Concor has substantially increased free time at all their facilities for the export-import container to 45 days for laden containers and 90 days for empty boxes. That’s up from the previous staggered scale that averaged five to seven days.
While it looks very good offer for the EXIM industry, however, the rates from the 46th day are starting at Rs. 2000/- per day which is way high to the market rates. It is expected that customers will keep containers at ICD for a much longer time. ICds like Tuklakabad, struggle for space with 4–5 days free time and with 45 days free &90 for an empty container, space is going to be a big challenge at such facilities. Shipwaves would like to advise our customers to check these factors before opting for such proposals.
Container Freight Pulse
- Finance Ministry simplifies GST refund claim process for businesses
Easing compliance burden for businesses, the Finance Ministry has said GST refunds can be claimed by simply submitting a printout of ‘GSTR-2A’ form to tax authorities instead of giving all purchase invoices of a month. GSTR-2A is a purchase return auto-generated by the system based on the transaction between a business and its supplier. The proper officer shall rely upon form GSTR-2A as an evidence of the account of the supply by the corresponding supplier in relation to which the input tax credit has been availed by the claimant.”…There may be situations in which Form GSTR-2A may not contain the details of all the invoices relating to the input tax credit availed, possibly because the supplier’s Form GSTR-1 was delayed or not filed.” In such situations, the proper officer may call for the hard copies of such invoices if he deems it necessary for the examination of the claim for refund,” the Ministry said in a clarification.
- Government notifies sugar export quota to EU at concessional rates
The government has fixed an export quota of 10,000 tonnes of white/raw sugar to the European Union (EU) under a provision for a 12-month period beginning October. The Director General of Foreign Trade has said it has allocated “a quantity of 10,000 tonnes of raw and/or white sugar under CXL concessions to the EU for the period October 2018 to September 2019”.As per a provision of EU regulation, the release of sugar under this concession is subject to the presentation of a Certificate of Origin issued by the competent authority.
Container Shipping Sailing
- India Unveils Shipping Portal
The Indian government is to launch a customer-centric, secure, globally accessible e-governance platform named ‘Shipping Portal’ that will ensure transparency and efficiency in end-to-end solutions. The Shipping Portal will function as a method of issuing certificates and approvals, while only requiring minimal manual intervention, according to the Indian government.
- Avana Logistek initiates coastal container service at Kakinada Port
A new regular service has been launched by Avana Logistek Ltd, formerly known as Shreyas Relay Systems Ltd, a Transworld Group company. The company’s first coastal container service was initiated at Kakinada Port with the arrival of SSL Mumbai on August 21, 2018. The deployment of the vessel has been done under the existing East Coast and will have the following port rotation with the 10-day routine: Krishnapatnam-Haldia-Paradip-Kakinada-Krishnapatnam. It will cater to the East Godavari area which is known as the rice bowl of India. Mr. Muraleedharan, Business Head, Avana Logistek, said Avana is looking at opportunities to increase its portfolio of coastal shipping services by being the first company to launch coastal container shipping services from the port of Kakinada, thereby embarking on providing weekly seamless connectivity between the east and west coast of India. It has also started booking cargo from Gujarat and West Bengal to Kakinada, which shall enable all private rice millers to send the rice from Kakinada to Cochin in a cost-effective manner.
Shipping Infrastructure Roundup
- Vizag port gets an electronic tool to track cargo bound for Nepal
The Customs authorities on Tuesday(28thAug) launched an electronic cargo tracking system (ECTS) for goods exported to Nepal from the Visakhapatnam port. The GPS-based tracking tool will cut down on the transshipment time to two weeks from 2–3 months now, and result in savings to the Nepalese trade. Cargo pilferage by tampering can also be prevented, as the containers are electronically sealed. The first rail movement to the Birgunj Inland Container Depot was flagged off from the Visakha Container Terminal a BOT operator of Visakhapatnam Port Trust by Srinivas, in the presence of VPT Deputy Chairman PL Haranadh, Divisional Railway Manager MS Mathur, CONCOR General Manager Yelvender Yadav, representatives of Maersk Line India and VCTPL Additional CEO Anil Narayanan.
- Concor disrupts container logistics market with 45-day free storage period to importers/exporters
From September 1, India’s biggest rail hauler of containers started offering 45 days free storage period to import/direct port delivery (DPD) loaded containers, export/direct port entry (DPE) loaded containers and 90 days for empty containers across its 46 EXIM terminals. After the free storage period, Concor will levy uniform terminal service charges (TSC) per day at all EXIM terminals depending upon its category. For levying TSC, Concor has re-designated its 46 EXIM terminals into four categories — six in category A, which includes its flagship Tughlakhabad inland container depot (ICD) and Dadri ICD, 11 in Category B, 9 in Category C and 20 in Category D.In Category A terminals, the TSC has been set at ₹2,000 per import loaded twenty-foot equivalent units (TEUs) per day while empty TEUs will attract ₹1,000 per day. The TSC for Category B terminals will be ₹1,500 per loaded TEU per day and ₹750 per TEU per day for empty containers. In Category C, the TSC will be ₹1,000 for a loaded TEU per day and ₹500 for an empty TEU per day. In category D, the TSC will be ₹750 for a loaded TEU and ₹375 for an empty TEU, according to a trade notice issued by Concor. BusinessLine has reviewed a copy. Concor will not levy TSC at four terminals under ‘Other category’, the notice said.
Global Market Buzz
- Global shipping industry stays on an even keel despite waves of uncertainty from US-China trade war
The US-China trade war has yet to make big waves for the world’s shippers that transport everything from soybeans to industrial machinery between the two nations. The Baltic Dry Index that measures shipping rates for vessels that carry bulk commodities, such as grain and coal, has been riding high — up nearly 80 percent since April, when trade tensions were building, ending in the first US tariffs going into effect on July 6. In fact, the index hit a 52-week high this month, as the second round of tariffs hit.
- A PREMIERE: FRANCE IS CONNECTED TO CHINA BY THE “NORTHERN ROUTE”, THE STRATEGIC NEW SHIPPING ROUTE THROUGH THE ARCTIC
This is a national event: on Thursday, September 6th, the Heavy Lift and ice-class cargo ship M/V TIAN EN, belonging to the Chinese shipowner COSCO Shipping called for the first time at a French port having sailed the ARCTIC ROUTE.“It was an icy journey to the west through the polar silk road waterway. Our M/V TIAN EN is an ice-class cargo ship of China’s COSCO Shipping Specialized Carriers Corporation. Further to its maiden voyage transporting wind power equipment from Lianyungang, China to North West Europe through the Arctic North-East Passage, it will call at the Port of Rouen, Radicatel Terminal” Mr. Yao, COSCO Shipping France President, explains.
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Shipwaves wishes you a great week ahead!