ALIBIEA calls for improvement in port infrastructure, customs facilitation and taxation policies

AILBIEA calls for Removal of operational constraints, Stamp Duty on Transfer of Shipping Documents, Cess on edible oil transactions, Rationalization and Systemization of Customs/Excise 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 taxes and policies to be rationalized as 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 cargoes are imported / exported on a large scale. Corporate businesses depend 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 like ethanol and 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. Jayant Lapsia, President, AILBIEA, “Any country’s economic growth is intertwined with its infrastructure development. High transactions costs arising from inadequate and inefficient infrastructure, and, delays and raising of hurdles by the Customs, Excise and other revenue departments [due to lack of knowledge and conviction] 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 underbelly of the port sector. Efficient infrastructure combined with quality and expeditious clearance procedures can help reduce costs and sharpen the competitive edge.”

In addition to infrastructure development, the Association has identified 3 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.

Octroi levy, sales tax, stamp duty on import / export of cargo and facilitation to trade by revenue departments are a few issues which have to be addressed immediately.

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.

Source : Equity Bulls

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