Major Port Trusts Act, revision of its Scale of Rates under Tariff Guidelines, 2019

Mumbai, the 16th September, 2020

Visakha Container Terminal Private Limited — Applicant

QUORUM:

(ii). Shri. Rajat Sachar, Member (Economic)

This case relates to the proposal received from the Visakha Container Terminal Private Limited for General revision of its Scale of Rates under Tariff Guidelines, 2019.

2.1. The VCTPL has, vide its letter dated 01 April 2020, filed a proposal following Tariff Policy, 2019 for general revision of its SOR. The proposal dated 01 April 2020 was taken on consultation with the Visakhapatnam Port Trust (VPT) and the concerned users/ user organisations. The comments furnished by VPT and users/ user organisations were forwarded to the VCTPL as feedback information. The VCTPL has responded to the comments of VPT and users/ user organisations.

2.2. On scrutiny of the proposal, the VCTPL and VPT were requested to furnish additional information/ clarifications vide our letter dated 15 July 2020. A joint hearing in this case was held on 7 July 2020. At the joint hearing, the VCTPL, the VPT and the concerned users/ organisation bodies have made their submissions.

2.3. The VCTPL has furnished information/ clarification sought by us vide its e-mails dated 27 July 2020, 07 August 2020, 17 August 2020 and 20 August 2020.

2.4. The VPT has furnished information/ clarification sought by us vide its letter dated 20 July 2020.

3. With reference to the totality of information collected during the processing of the case, this Authority has passed a Speaking Order disposing of the proposal filed by the VCTPL for general revision of its SOR under Tariff Guidelines, 2019.

4.1. The Speaking Order passed by this Authority is in the process of notification in the Gazette of India and it is likely to take some more time for notification. Since notification of the detailed Speaking Order will take some time, this Authority notifies the revised SOR of the VCTPL which is attached as Annex.

4.2. The Speaking Order passed by this Authority will be notified separately and communicated to the VCTPL, the VPT and the relevant users/ user organisations in due course of time.

4.3. The revised SOR will come into force after expiry of 30 days from the date of notification of this Order notifying the SOR in the Gazette of India and shall be valid for a period of 3 years from the date the revised SOR comes into effect.

DEFINITIONS AND CONDITIONS

This Scale of Rates sets out the charges payable to Visakha Container Terminal Private Limited (VCTPL) from time to time for the use of services and facilities provided by Visakha Container Terminal Private Limited (VCTPL).

1. DEFINITIONS

In this Scale of Rates, unless the context otherwise requires, the following definitions shall apply:

• (i). “Container” means any freight container complying with all relevant prevailing ISO standards. Generally, it is designed to facilitate the carriage of goods by one or more modes without intermediate reloading; fitted with devices permitting ready handling and with unique identification numbers and markings.

• (ii). “Per Day” means per calendar day or part thereof.

• (iii). “Port” means the Visakhapatnam Port Trust (VPT) whereas “Terminal” means the Container Terminal, operated by Visakha Container Terminal Private Limited.

• (iv). “VCTPL”  means  Visakha  Container  Terminal  Private  Limited,  a  company  incorporated  in  India,  its successors and assigns.

• (v). “Reefer” means any Container for the purpose of the carriage of goods, which require refrigeration.

• (vi). “Transhipment Container” means container discharged from a vessel and placed in the custody of the VCTPL for the purposes of shipment on another vessel declared on a transhipment manifest and Import Advance List.

• (vii). “Coastal Vessel” means any vessel exclusively employed in trading between any port or place in India to any other port or place in India and / or having a valid coastal license issued by the Competent authority / Director General of Shipping.

• (viii).“Foreign-going Vessel” means any vessel other than a coastal vessel.

• (ix). “Hazardous container” means a Container containing hazardous goods as classified under IMO including empty container with residual content of hazardous material.

• (x).     “Out of Gauge (OOG) Container” means a Container carrying over dimensional cargo beyond the normal size of standard containers and needing special devices like slings, shackles, lifting beam, etc. Damaged Containers and Container requiring special devices for lifting is also classified as Out of Gauge Container.

• (xi). “FCL” means containers said to contain Full Container Load. (xii). “ICD” means Inland Container Depot.

• (xiii).  “LCL” means containers said to contain less than full container load (Container having cargo of more than one importer/exporter).

• (xiv). “Shut Out Container” means a container, which has entered in to the terminal for export for a vessel as indicated by VIAN and is not connected to the vessel for whatsoever reason.

• (xv).“Tonne” means one metric Tonne of 1,000 kilograms or one cubic metre. (xvi). “VIAN” means Vessel Identification Advise Number.

• (xvii). “ICD Container” means containers discharged from a vessel and placed in the custody of the VCTPL for the purposes of loading on a Train, inside the Terminal.

Also “ICD Container” means containers discharged from a Train inside Terminal and placed in the custody of the VCTPL for the purposes of shipment on a vessel.

2. GENERAL

(i) (a). System of classification of vessel for levy of Vessel Related Charges (VRC)

(i). A foreign going vessel of Indian flag having a General Trading Licence can convert to coastal run on the basis of a Customs Conversion Order. Such vessel that converts into coastal run based on the Customs Conversion Order at her first port of call in Indian Port, no further custom conversion is required, so long as it moves on the Indian Coast.

(ii). A Foreign going vessel of foreign flag can convert to coastal run on the basis of a Specified Period Licence or voyage issued by the Director General of Shipping  and a custom conversion order.

(b). Criteria for levy of Vessel Related Charges (VRC) at Concessional Coastal rate and foreign rate

(i).  In cases of such conversion, coastal rates shall be chargeable by the load port from the time the vessel starts loading coastal goods.

(ii). In cases of such conversion coastal rates shall be chargeable till the vessel completes discharging operations at the last call of Indian Port; immediately thereafter, foreign going rates shall be chargeable by the discharge ports.

(iii). For dedicated Indian coastal vessels having a Coastal licence from the Director General of Shipping, no other document will be required to be entitled to coastal rates.

(ii). Criteria for levy of Cargo Related Charges (CRC) at Concessional Coastal rate

(a). Foreign going Indian Vessel having General Trading License issued for ‘worldwide and coastal’ operation should be accorded applicable coastal rates with respect to Handling Charges (HC) i.e. ship to shore transfer and transfer from/ to quay to/ from storage yard including wharfage in the following scenario:

 (i). Converted to coastal run and carrying coastal cargo from any Indian Port and destined for any other Indian Port.

(ii). Not converted* to coastal run but carrying coastal cargo from any Indian Port and destined for any other Indian Port.

* The Central Board of Excise and Customs Circular no.15/2002-Cus. dated 25 February 2002 allows carriage of coastal cargo from one Indian port to another port in India, in Indian flag foreign going vessels without any custom conversion.

(b).  In case of a Foreign flag vessel converted to coastal run on the basis of a Specified Period License or voyage issued by the Director General of Shipping, and a Custom Conversion Order, the coastal cargo/ container loaded from any Indian Port and destined for any other Indian Port should be levied at the rate applicable for coastal cargo/ container………………… Read More.