AILBIEA calls for Removal of Liquid Bulk Consignments from the ambit of Faceless Assessment Scheme in view of the extreme sensitivity and criticality due to avoidable outflow of precious foreign exchange by way of Demurrage, payable in precious foreign exchange ranging from us $ 35,000/- to US $ 40,000/- per day. The delays on accruing on account of Faceless Assessments is a cause of great concern and in the overall interest of the Government, the Trade and in conserving precious foreign exchange it is imperative to remove Liquid Bulk Trade from Faceless Assessment.
AILBIEA also calls for relook at the operational constraints, removal of Stamp Duty on Transfer of Shipping Documents, Grading Importers and Exporters and ensuring strict monitoring of their business practices, Regulating Shipping Agents and CFSes, Rationalization and Systemization of Customs/GST Procedure and a complete overhaul of the available infrastructure
The All India Liquid Bulk Importers and Exporters Association (AILBIEA), an association of traders, manufacturers, importers, exporters and service providers engaged in the business of liquid bulk has called for an urgent need for various policies to be rationalized, antiquated taxes such as stamp duty to be abolished and also for the Mumbai Port to be modernized in order to make this industry a globally competitive one.
Some of the critically important liquid bulk commodities include mineral oil (crude and petroleum), edible oil; (for food purposes), industrial oils for a variety of application, and various chemicals including agro-chemicals and specialty chemicals. Liquid bulk cargoes are integral to the country’s economic development. Mineral oil products, vegetable oils, chemicals and other liquid cargoesareimported/exportedonalargescale.Corporatebusinessesdepend to a considerable extent on supplies of critical industrial inputs.
Over the next 5-10 years, India is likely to become a major importer of a wide variety of liquid bulk commodities such as crude oil, vegetable oil, industrial oil, chemicals and so on. Biofuels have caught the fancy of a number of countries. India is likely to become a key importer of biofuels likeethanoland biodiesel in the future. In such a scenario, it is imperative for our ports infrastructure to be up to date and technologically world class, and also, for the customs to change their drive into ‘Facilitation’ gear says Mr. Jayyannt Lapsiaa, President, AILBIEA, “Any country’s economic growth is intertwinedwithitsinfrastructure development. High transactions costs arising from inadequate and inefficient infrastructure, delays on account of non-clarity and interpretative issues on Customs and GST matters, delays in addressingthe burning issues etc., can prevent the economy its full growth potential regardless of progress on other fronts. Efficient supply chain adds to business competitiveness. Port connectivity is still the soft under belly of the port sector.
Efficient Infrastructure combined with quality, good governance by regulating Importers and Exporters, Shipping Agents, CFSes and expeditious clearance procedures can help reduce costs and sharpen the competitive edge.”
In addition to infrastructure development, the Association has identified few important issues which require urgent remedial attention for the Liquid Bulk industry (particularly imports and exports) to match global scales and standards. It is time that Government [at Centre and State] modifies its out- dated policies and procedures and gives the right encouragement to trade.
The foremost and significant issue, besides removal of liquid bulk from Faceless assessment scheme, is to request the Revenue Departments to introduce water tight systems for grading Importers and Exporters based on their keenness in understanding, following and implementing Customs and Board’s initiatives/schemes/notification and in appointing vendors [associated with liquid bulk trade] in an ethical and respectful manner etc., in appointing reputed and recognized vendors [Custom Brokers, Surveyors, Transporters and others connected with Exim trade], and, in adopting fair and ethical business practices; making it mandatory for all Importers and Exporters to get the AEO accreditation and in ensuring strict compliance of the norms and rules of AEO scheme.
Other issues are removal of stamp duty on import / export of cargo, stepping up of redressal mechanisms by the Customs and Board to various representations made to them seeking clarifications on notifications and clarity on other issues and in regulating the Shipping Agents and CFSes [just like the Custom Brokers] in ensuring the extortion, high-handedness and dictatorial attitude is abolished once and for all.
Ever since its inception, AILBIEA has striven to address various technical, legal, infrastructural, administrative and procedural issues of liquid bulk trade.The stakeholders include importers, exporters, clearing and forwarding agents, shipping agents, installation owners, Surveyors, Barge operators and intermediaries connected with liquid bulk trade.
The primary objective of this association continues to be that of playing a significant role of ‘Catalyst’ between various Port Authorities, Governmental and Revenue Departments and provide more solidity and clarity in ensuring smooth and fair operations.
Keeping in view the objectives of the association and also to bolster and motivate the members of AILBIEA, it was decided to confer AILBIEA stellar award on members who have excelled in EXIM trade some years ago.
Accordingly, this year the Special Award for tremendous contribution to liquid bulk trade over the years is being conferred on Mr. Nitin S. Nabar-Executive Director and President of M/s Godrej Industries Ltd.
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