[1]The Union government has streamlined the transshipment clearance procedures, which is expected to make a big difference in the country’s first International Container Transshipment Terminal at Vallarpadam here.
The terminal has been utilizing just 33 per cent of its capacity owing mainly to lack of proper procedures and failure to relax the cabotage law that does not allow shipment by foreign flag vessels between domestic ports.
Owing to lack of clarity in the clearance norms, a vessel with 60 containers had to wait for long to get customs clearance.
The order of the revenue department of the Union finance ministry issued two days ago brings the clearance norms in accordance with international norms.
As per this, movement of foreign to foreign containers by sea and domestic to foreign by sea and foreign to domestic by sea would be under the SEZ customs while domestic to foreign by road or rail to sea and foreign to domestic by sea to road and rail will be under the revenue department customs authorities.
Earlier, there was a row over the role of the revenue department customs at the special economic zone after red sanders meant for illegal export were seized on the terminal premises.
According to top Cochin port officials, the present move would make things simple for the trade and help boost container movement from the terminal.
While the total movement of containers was just 3,37,053 TEUs during the fiscal ended March 31, it was just 33 per cent of the terminal capacity.
During the first 20 days of this month, there has been an 18 per cent drop in container movement compared to the same period last year.
“For the port which has been struggling financially, revenue through container movement via the terminal was the only solution,” an official said.
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