The Hindu Business Line : For stamp duty payments — Importers urge shipping lines to reduce `administrative charges'

SHIPPING lines and importers operating through Mumbai and Jawaharlal Nehru ports are on a collision course over the issue of reduction of administrative charges for issuing delivery orders (DOs) to lift the imported cargoes from the ports.

Shipping lines and steamer agents, which collect stamp duties from importers on behalf of the Maharashtra Government, at present charge 25 per cent of the value of the stamp duty as their `administrative charges'. Despite a recent directive by the Maharashtra Government that shipping lines and steamer agents should not charge more than Rs 50 per DO, the latter continues to charge at the rate of 25 per cent, which the importers feel is "too high".

While maintaining that the Rs 50 per DO rate is unacceptable and uneconomical, shipping lines are willing to, however, consider reduction of the rate to Rs 500 per DO, informed sources told Business Line.

In the normal course of operation, importers are required to pay stamp duty to the State Government at the rate of 0.1 per cent of the value of cargo imported. The importers, after getting the value of cargo assessed by the Customs, pay the required stamp duty and the administrative charge to the shipping lines or agents.

It is estimated that cargoes worth Rs 1 lakh crore landed at the Mumbai port and JNPT last year, with the 0.1 per cent stamp duty working out to about Rs 100 crore. In other words, at the existing rate of 25 per cent of the value of stamp duty, the total administrative charge collected by shipping lines and agents from importers work out to Rs 25 crore.

As against this, if the shipping lines were to peg the administrative charge to Rs 50 per DO, the total amount that would accrue to them would come down to between Rs 12 lakh andRs 15 lakh, given the fact that about 25,000 DOs are issued every year.

Apart from the shipping lines and steamer agents, the State Government had also permitted Mumbai port to recover the stamp duty from the importers on its behalf since mid-2004. With Mumbai port also collecting stamp duties on importers through JNPT, the importers are facing a delay of two to three days. Importers feel that even JNPT should be allowed to collect stamp duties to ease the procedural delays.

"In fact, we feel that there should be a single window system for payment of stamp duties and obtaining DOs. Now the process involves first obtaining Customs valuations, then a blank DO from the lines/agents, taking it to the port terminal, effecting the stamp duty payment, getting the endorsement on the blank DO and finally again going to the lines/agents office to get the signature authorising delivery," a representative of Western India Shippers' Association said.

Another complaint of the importers is the lack adequate franking machines at the port. Problems on this score are however expected to ease shortly, with Mumbai port having decided to buy five more franking machines within a month, sources said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
For stamp duty payments — Importers urge shipping lines to reduce `administrative charges'

Transhipment terminal at Kochi cleared

FedEx plans freighter service between India, China by Sept

Infrastructure panel clears highway expansion project

Implementation of fuel emission norms may not be possible by deadline

New national highway planned