Finagle’s Law,
a popular version of Murphy’s Law, which says that “Anything that can go
wrong, will”, is probably the best way to explain the importance and
necessity of freight and cargo insurance. A few recent examples
of accidents or incidents which resulted in huge cargo or marine claims are:<ul><li>The&nbsp;<a href="https://en.wikipedia.org/wiki/2015_Tianjin_explosions" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Tanjin Port explosion</a>&nbsp;(2015) caused due to hazardous cargo could result in a loss of USD 6
billion. </li><li><a href="https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-causes-turmoil-in-global-sea-freight" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Bankruptcy declaration of Hanjin Shipping</a> in September 2016 resulted in
huge cargo claims. </li></ul>Natural
calamities like earthquakes, floods, and hurricanes also form a major
part of marine claims.While all
transportation and allied service providers aim to provide safe transport of
goods from one place to another, the possibility of damage, loss, or delay
still remains. Damage or loss to cargo can be either due to natural causes or due to
breakdown of or accidents on the transportation vehicle (train, truck,
airplane, ship).A good cargo
insurance, to an extent, helps protect the shipper against all the things that
can possibly go wrong during transportation. It helps minimise risks and losses due to accidents, natural calamities, and damages during transportation.
It works as a shipper's lifeline till the goods reach the designated destination
and are handed over to the specified recipient as per the Bill of Lading.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>Of course, this
protection comes at a cost and only if the shippers have acted in good faith and
have been prudent!However,
choosing a marine insurance cover is easier said than done. There are quite a
few combinations to choose from and too much fine print to read and understand. But, if a shipper keeps the following points in mind, then it becomes slightly
easier to choose a good cargo insurance policy.Sale
Agreement:&nbsp;The sale agreement plays a major part in deciding which party to the
sale is in charge of getting the cargo insured. In sale agreements where the
seller is responsible only for paying for the cost and freight (C&amp;F) or if he is responsible only for transporting the
cargo till the port of loading (FOB), then the onus of getting the cargo insured lies
with the importer/buyer. In cases where the sale agreement is cost, insurance,
and freight (CIF), then the responsibility of getting the marine
insurance cover rests with the exporter/seller.This point is
important as it determines which party to the transaction will be responsible for
arranging the insurance cover and how the claim process will be handled in case
of any damage or loss. Risks
Covered:&nbsp;The kind of risks and the extent of coverage is the one of the most
important points to consider when selecting a cargo insurance policy. The shipper should gauge the kind of risks that he may have to deal with and then
accordingly purchase an insurance policy that will help cover those risks. Frequency of
Trade:&nbsp;This is another aspect that can influence the choice of marine insurance
cover selected. If it is a one-time consignment, then the shipper can consider a
policy for that specific shipment only. If he has regular shipments, then he
can go for an open policy or an open cover.Arrangement
with Freight Forwarder:&nbsp;Though shippers are always advised to take
a policy for their own shipments, they can also check with their freight forwarder
for insurance cover options. Here, the coverage might be lower than what they would get if they bought their own cargo insurance policy, and
hence may not be sufficient to cover the losses in case a claim arises.Multi-modal
Transportation and Storage:&nbsp;If the transit requires multi-modal transportation,
then while choosing a cargo insurance policy, the shipper must also confirm and
check that the goods will be covered in all modes of transportation – rail, road,
air, and sea and while in storage during the transit time period.Assess Add-ons
Required:&nbsp;There are certain risks that may not form a part of the insurance policy
and may need to be covered separately. The party in charge of arranging for the
insurance cover must assess all the possible risks involved during transit and
the time in between with respect to location, transhipments, storage, and
political conditions of the countries involved in the trade. For example, if
one of the countries involved in the trade is going through riots or strikes
and the region falls on the route of the transportation – then it would be
prudent to get a cover against this specific problem. It may increase the
premium payable, but it will ensure that if the cargo suffers any damage due to
an unstable environment, the losses will be covered.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">Once there is
clarity on the above points, and the shipper has all the required information,
he can select from one of the following policies (most common types of cargo
insurance available in India) to insure his cargo. Specific Voyage
Policy: This
policy covers only one specific shipment. It is applicable only till the time
the shipment reaches the specified destination. As mentioned earlier, it is
ideal for shippers who do not export/import goods regularly.Open
Cover:&nbsp;Generally, a yearly cover is offered by the insurer to the shipper with
an understanding that the insurer will provide marine insurance (separate
policies) to both import and export shipments. Under this cover, a separate policy
for each consignment is created and a premium is collected for that specific
shipment.Open
Policy:&nbsp;This insurance policy is not applicable for international
transportation. It can only be taken by shippers who are transporting goods
within the country. It is generally an annual policy and covers movement of
cargo declared during the policy period.Annual
Policy:&nbsp;This type of policy is applicable only for goods being stored or shipped
from a specific place and where the title of goods belongs to the shipper (exporter/importer) who has taken the policy.While insurance
provides a safety net for the shipment, it comes with a set of rules that need
to be followed. If there is any instance of negligence from the insured, then
the insurance policy can be declared to be void.Shippers need to keep the following points in mind to get maximum benefit from their
insurance policies:<ul><li>Provide the correct details of the shipment with respect
to weight (net and gross), number of packages, nature (perishable, hazardous or
dangerous cargo). </li><li>Provide the correct details of the final destination and
the end recipient of the cargo. </li><li>Insure that the packaging of the cargo has been done
keeping trade guidelines and safety of the product in mind. </li><li>Insure that all the required labels and markings have
been put on the package. </li><li>Insure that all additional handling instructions have
been provided to the carrier and its agents. </li><li>Any other information that may have an effect on the
insurer’s decision to insure the cargo and give the insurer’s ability to
understand the kind of and extent of risk they are undertaking by insuring the
cargo. </li></ul>It is important to note that all
marine insurance claims are verified with the information provided at the time
of taking the cargo insurance.

Cargo Insurance: A Safety Net For Sailing

Indian
taxation system is undergoing a reform phase. With GST the government aims to
bring the country under a single tax system, simplify the rules for
implementation, payment and collection of tax, curb tax evasion, and streamline movement of goods within the country. The e-way
bill is an effort to monitor and smoothen movement of goods under the GST regime.
It is an electronic way bill required for transportation of goods worth
more than INR 50,000 (single invoice, bill, delivery challan) in the same transport
vehicle by a registered trader or transporter. The e-way bill can be generated
via the e-Way Bill Portal. Once an e-way
bill is generated, a unique e-way bill number (EBN) is created for the invoice.
The EBN is available to the seller, the buyer, and the transporter assigned to
transport the consignment.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px">Initially
planned to be rolled out in February’18, the e-way bill had to be put on hold
due to technical glitches in the system. The rules laid down for the e-way bill
had also raised some concerns in the industry and logistics sector. To address
the concerns of the trade and road transporters the Central
Board of Excise and Customs (CBEC) released amendments to the draft policy on 7th
March 2018. Some of the changes in the rules in the e-way bill notification
released on 7th March 2018 are: 1. 
An e-way bill will not be required for
transport of a consignment interstate if the value of the consignment is less
than INR 50,000.2. 
For intra-state, a transporter is not
required to generate an e-way bill if the value of an individual consignment is
less than INR 50,000 even if the overall value of all the consignments in the vehicle
is more than INR 50,000.3. 
An e-way bill will not be required for
transport of goods up to a distance of 50 Km.4. 
Validity period of the e-way bill
is set to 72 hours from generation or till goods delivered.5. 
For generation of e-way bill, only the
value of taxable goods will be taken into account.6. 
An e-way bill will not be required for transit
goods from or to Nepal and Bhutan.7. 
An e-way bill is made mandatory for the
inter-state movement of goods between job worker and principal even if the
value of goods transported is less than INR 5o,000. An e-way bill can be
generated by either party.8. 
An e-way bill is also made mandatory
for inter-state transport of handicraft goods by a trader who is exempted from
registering for GST.9. 
Transporters will require permission from
the supplier to generate Part-A of the e-way bill.

Read the
complete CBEC notification released on 7th March, 2018, <a href="https://www.cogoport.com/en-IN/blogs/amendments-to-eway-bill">here</a>.Revised dates for roll out of the e-way bill were announced in the 26th GST
Council Meet on 10th March 18. The Council has proposed rollout of
inter-state e-way bill from 1st April 2018, and 15th
April for the rollout of the intra-state e-way bill. The intra-state e-way bill
will be rolled out in phases, list of states and the e-way bill applicable
dates will be announced by the CBEC.

e-Way Bill Update: CBEC Amends e-Way Bill Rules

March was a busy month
at work. Financial year-ends usually are. Although I do try to keep abreast of
all important news and critical events in the industry, sometimes the schedule
doesn’t permit it. 



The news about the
fire on Maersk Honam is one such
missed incident. I came to know about the case whilst going through the industry
updates of the past month.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>

As I understand from the media reports, it took almost 5 days to bring the fire under control. The
firefighting efforts are still in progress. This explosion resulted in the
death of 5 crew members, destroyed cargo worth millions, and caused heavy
damage to a new (2017 built) vessel. For the shippers who had cargo on board,
the nightmare has just begun. It may take months for them to get their cargo
back (if it has been salvaged) that too after paying a huge sum of money as the
Danish Liner has declared general average.


Why do we need to talk about this
incident?



Even though fire on
ships is not a frequent occurrence, it is a serious one. Thus, when such
incidents occur, we must not brush them away as accidents. They signal an anomaly
in the system or processes that are being followed.



Instead of stopping at mere reportage, these cases should be rigorously investigated for cause. And, we must collectively –
shipping lines, regulatory authorities, NVOCCs, and traders – work to
find solutions to mitigate such incidents. 



To spark off the discussion, I am sharing a
few questions that occurred to me as I read the media reports on the Maersk Honam Fire mishap.

Considering that the vessel was new, it
raises a question regarding the construction plan of the ship/quality of the
construction. One is compelled to ask if the ship’s construction plan was approved
by the American Bureau of Shipping? Or was safety compromised in anyway to
optimize design and reduce costs?<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">



<ul><li>How did the ship’s document of
compliance allow such dangerous cargo to be loaded near the crew’s accommodation?
Did the stowage plan of the vessel comply with the document of compliance? Were
the rules and regulations mentioned in the SOLAS Convention followed? </li><li>Was the cargo correctly approved in
line with the International Maritime Dangerous Goods (IMDG) Code by the
shipping line that accepted it? Here, along with Maersk, the responsibility for the mishap&nbsp; lies
equally with its 2M Alliance Partner - MSC and slot sharing partner - HMM. Since,
the cargo manifest is not made available to the vessel operator, it is
important to know if the
Line that accepted the cargo carried out due diligence?</li><li>Finally, did the shipper correctly
declare the nature of the cargo? One of the major reasons for such incidents is
misleading/incorrect information provided by the shipper or his staff due to
unawareness of the rules or inexperience of dealing with such hazardous cargo. As
an industry, we must take measures to educate shippers of the rules and
regulations, processes to be followed when dealing with hazardous cargo.</li></ul>

In addition to finding answers
to the above questions, we also need to understand where we are lacking in our
efforts to ensure ship safety: 

<ul><li>Are we providing the latest equipment
on the ships to deal with such mishaps?&nbsp; </li><li>Is our crew equipped with the knowledge
and training to manage any operational issues or accidents or fires?&nbsp;Training of
the staff on board must be of top priority because if even one member of the
crew is slightly unsure of what to do in such a situation, we are putting the
life of 25-30 other people at risk.</li></ul>

While investigations will
reveal the cause of the blast on Maersk
Honam, till the time the report is released, we must engage in healthy
debate on how to curb such incidents. As an industry, we must also work on educating
ourselves, our teams, and our customers to make due diligence and safety first an
integral part of our work. We owe it to the 5 sailors who lost their lives in
the incident. Image Source:&nbsp;@IndiaCoastGuard

Maersk Honam Fire: Ignorance as Cause?

According to a press release dated July
5, 2018, French container shipping giant, CMA CGM is set to overhaul
its Asia-Middle East Services from the end of July 2018. Network optimization and improved service offering have been cited as the reasons for this change.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px">

The press release from CMA CGM is appended below
for your reference and use:

CMA CGM is pleased to announce the reshuffling of its Middle East
services from the end of July 2018.



The Ocean Alliance Day Two
Product will offer in total 4 loops between Far East and Middle East ports with
competitive transit time. CIMEX 1 and CIMEX 3 will be merged into one loop
covering most of ports previously offered. 



The coverage includes the ports in China Mainland/Hong
Kong/Taiwan/Pusan/Southeast Asia and the major callings in Middle East region
such as Jebel Ali, Abu Dhabi, Dammam, Sohar, Hamad, Bahrain, Jubail, etc. 



The New CIMEX 1 rotation
becomes: 

Tianjin - Busan - Qingdao - Shanghai - Shekou - Singapore - Sohar -
Jebel Ali – Hamad – Dammam - Jubail - Singapore - Tianjin &nbsp;<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/09887e45a0720e9d89dc713600effb0d/CIMEX%20LOOP%201%20WEB.gif" alt="New CIMEX 1 Service Loop" class="center" width=""> 

 With this reshuffle, CMA CGM will be able to optimize the network and
enhance the reliability of products to our customers. 

Source:&nbsp;CMA CGM

Ocean Alliance – CMA CGM to Reshuffle Routes

Another busy week in Rotterdam. Looking at my full schedule I was thinking about how digitalising my life has helped me save so much time. I order my groceries online and they get delivered right to my kitchen, which saves a hours a week. Same goes for getting somebody a present (not for Christmas yet). My favorite e-tailer has an app for that. A few clicks and everything is arranged. And at work I’m trying to do the same for importers and exporters all over Europe. Letting them book container shipments with just a few clicks.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>Talking about saving time: let’s go straight to the logistics news highlights for this week<h3>Sustainability</h3>The attention for sustainability issues is still on the rise, which is a good thing. We only have one planet, so we should use it wisely. Both ports and shipping companies have their eye on the green ball, but not all measures taken are favorable for shippers. I do however fully agree with the first concrete action of the World Ports Climate Action Program mentioned in the first article below. Increasing the efficiency of using digital tools is just what we are doing here at Cogoport.“It is important to note that Los Angeles/Long Beach joined six other international ocean cargo gateways in the initiative called the World Ports Climate Action Program. This represents the creation of In their release today, the seven ports have agreed to focus on five concrete actions: 1. Increase efficiency of supply chains using digital tools. 2. …”→<a href="https://www.supplychain247.com/article/international_ports_inspiring_deeper_commitment_in_support_of_the_paris_agr">International ports inspiring deeper commitment in support of the Paris Agreement</a>“The International Maritime Organization, the United Nations agency that regulates global shipping, will require that ships in international waters emit no more than 0.5% sulfur by 2020.The mandate is poised to disrupt the maritime industry, which has long relied on cheap high-sulfur bunker fuel with sulfur content around 3.5%. The major lines are now facing hard decisions on how to meet the mandate.”→<a href="https://www.freightwaves.com/news/k-line-msc-2020">Major shipping companies outline plans for meeting the IMO's 2020 low-sulfur mandate</a>This does have an effect on shippers, as carriers are adjusting fuel surcharge, for example<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a><h3>Carrier Rates and Surcharges</h3>“Carriers impose [fuel surcharges] unilaterally without any negotiation with shippers and ignore a market approach to the global problem.The future of higher-cost low-sulphur is a multi-billion, complex issue in international maritime transport and it can only be addressed and understood by shippers if carriers provide cost transparency on their fuel spend and the cost impact of the new IMO low-sulphur regulation”→<a href="https://www.supplychain247.com/article/new_ocean_cargo_carrier_surcharges_in_january_have_supply_chain_managers_co">New ocean cargo carrier surcharges in January have supply chain managers concerned</a>“The containership industry may finally end a lost decade of investment returns as demand accelerates and ocean carriers keep a lid on supply, according to one market expert.&nbsp;With the exception of 2010, operating profit margins have averaged between 3% and 4% over that period. But the benchmark is an operating margin of 10%, which is closer to the industry’s capital cost... The spread between what liner operators earned and what it cost them to deploy ships accrued to the customers who received a service at a rate below what it cost to provide...”→<a href="https://www.freightwaves.com/news/containership-rates-outlook">Customers to pay up as container lines seek better returns, warns shipping expert</a><img src="https://app.cogoport.com/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" alt="" width="300px"><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a><h3>Christmas is Coming</h3>Preparations for Christmas are in full swing though for a lot of people working in logistics. One of the two articles I read about the upcoming holiday period talks about how major logistics providers have started hiring additional staff already. It also gives tips on how companies can prepare their supply chains for the holiday season. Most of these can be solved right on the Cogoport platform: “Give customers visibility to their orders” and “Prepare to use the spot market to make up for excess demand not covered by carriers” and “Get more rates by connecting with more carriers”. Just saying… ;-)“The time for holiday hiring has arrived, with three of the biggest households in the freight transportation and logistics sectors-UPS, FedEx, and XPO Logistics, each making announcements to that effect over the last few days.”→<a href="https://www.supplychain247.com/article/its_almost_october_and_holiday_hiring_has_arrived">It’s Almost October and the Holiday Hiring Has Arrived for the Transportation &amp; Logistics Sector</a>“A container supply chain would commonly require around a week for a box to be moved from arrival port to an inland distribution centre where it is unstuffed and the goods forwarded. Given the four-to-five week sailing time from Asia to North Europe, the last boat from China is effectively the end of October.”→When should importers start shopping for Christmas shopping?<h3>Seagulls</h3>Last week I wrote about&nbsp;<a href="https://www.cogoport.com/blogs/ocean-freight-roundup">autonomous container ships</a>, and the article below made me think of that immediately. I’m guessing there is a good chance autonomous ships are designed with seagulls in mind…“Birds, too, can confound computers. In Boston, NuTonomy had to reprogram its cars to disperse stubborn seagulls. ”For the local breed of unflappable seagulls—which can stop autonomous cars by simply standing on the street, unbothered by NuTonomy’s quiet electric cars—engineers programmed the machines to creep forward slightly to startle the birds,” reports Bloomberg.”→<a href="https://qz.com/1397504/all-the-things-that-still-baffle-self-driving-cars-starting-with-seagulls">All the things that still baffle self-driving cars, starting with seagul</a>l

Sustainability, Carrier Rates, and Seagulls

In
the two years since opening the <a href="https://www.cogoport.com/en-IN/blogs/direct-port-delivery">DPD</a> import clearance process at JNPT port for
all registered members of Custom’s ACP program, the share of DPD has shown an
increasing trend. According to the update on the port’s website, in February’18 37.15% import containers were cleared via DPD at JNPort and 38.25% at JNPCT.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>



In
order to further increase adaptability of the model and smoothen the
process, port authorities have been trying to streamline the DPD clearance
process. A notification (Public Notice - 38/2018)“Operationalization
of “one time default intimation” to Shipping Lines by DPD importers at JNCH –Reg”
published on 9th March, 2018,
seems to be a step in that direction. 



In
the later part of the month, Customs released the process that the
importers are to follow for “one time default intimation”. The notification for
the same is cited below for your use and reference.<pclass="msonormal">OFFICE OF
THE COMMISSIONER OF CUSTOMS, NS-III</pclass="msonormal">MUMBAI CUSTOMS ZONE-IIJAWAHARLAL NEHRU CUSTOM
HOUSE, NHAVA SHEVA,TAL:- URAN, DIST : RAIGAD.
PIN – 400 707.F. No.
S/22-Gen-402/2017-18/AM (I)/JNCH

Dated 26.03.2018Subject:&nbsp;Procedure
to be followed for “one time default intimation” to Shipping Lines by DPD
importers at JNCH – Reg.<pclass="msonormal" style="line-height:10.2pt;mso-line-height-rule:exactly">PUBLIC
NOTICE NO. 49/2018&nbsp; Attention
of the Importers, Exporters, General Trade, Port Terminal Operator, Shipping
Lines / Shipping Agents, CFSs coming under the jurisdiction of Jawaharlal Nehru
Customs House (JNCH), Nhava Sheva and all other stakeholders is invited to the
Public Notice No 36/2018 dated 09.03.2018 regarding operationalization of “one
time default intimation” to Shipping Lines by DPD importers at JNCH. </pclass="msonormal">2. 
In order to relax the norms for advance
intimation for “DPD imports” it was decided that instead of requirement to
submit such intimation each time before arrival of the vessel, “one time default intimation” may be obtained from DPD importers and
submitted to shipping&nbsp;lines through
CSLA [csla@bombaychamber.com] so that default stacking code indicated in the
said “intimation” can be treated as default stacking code by shipping lines.
Accordingly, all the DPD importers of JNCH are advised to submit “one time default intimation” in the
format as annexed to the Public Notice No. 36/2018 in the manner as prescribed
in the format itself.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">3. 
As per the said Public Notice it was
required to endorse a copy of such “one time intimation” to DPD Cell at&nbsp;dpd.amijnch@gmail.com. However, it is being noticed that in
pursuance of Public Notice 36/2018 dated 09.03.2018, importers are either
sending hard copies of such intimation to CSLA/DPD Cell or sending e-mail
intimation only to CSLA without endorsing e-mail copy to DPD Cell.4.It is being reiterated that DPD importers are required to send “one time default intimation” tocsla@bombaychamber.com&nbsp;endorsing&nbsp;a copy to DPD Cell atdpd.amijnch@gmail.com.&nbsp;It is again
being informed that such “one time
default intimation”submitted
either with incomplete information or submitted without following the procedure
as provided under Public Notice No 36/2018 dated 09.03.2018 will not be approved
by Customs.5. On
receipt of the copy of such “one-time default intimation” by DPD Cell, should
check whether the requisite details are furnished and if found to be in order,
will communicate to CSLA (with copy sent to importer / Customs Broker to the
same email address) for compliance. Immediately on receipt of such
communication from Customs, CSLA will inform to all the shipping lines to take
action as provided under Public Notice No 36/2018 dated 09.03.2018 .6. 
In case of any difficulty, the specific
issue may be brought to the notice of Additional Commissioner in charge of ‘DPD
Cell’, NS-III (email address: dpd.amijnch@gmail.com).Sd/- (SUBHASH
AGRAWAL)Commissioner of Customs (NS-III)

DPD Update: Intimation Method for JNCH Importers

Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinars look at some of the answers.&nbsp;
Trade finance can make or break the success of your business. What can you do to prevent finance risks affecting your export business? Our upcoming webinar looks at some of the answers.&nbsp;
As the world becomes more and more connected, and with advances in technology, trading around the world has become easier. From the biggest corporations to the smallest firms exporting and importing can be managed simply at the click of a mouse.
Platforms like Cogoport&rsquo;s marketplace community help ease the logistical challenges of doing business globally.&nbsp;
&nbsp;However, many businesses face several challenges, including managing trade finance. Getting it wrong can be costly to your business.&nbsp;
<h3>So what risks do exporters have to bear in mind when thinking about their trade?</h3>
<h3>1. The trading environment</h3>
Not everywhere may be as stable as your home market. Consignments can get lost or held up, payments can be delayed or complicated or communications difficult. Before taking on a transaction overseas, an exporter does well to think about and plan for: the ease of doing business due to the efficiency of local systems covering customs, banking and transportation communications reliability in terms of telecoms and shared understanding the stability and transparency of the regulatory environment whether any major players control aspects of the market already.
Solution: As well as conducting due diligence, consider working with an agent or partner who understands the market which you are entering.&nbsp;
<h3>2. Fluctuating finance risks</h3>
Currency volatility has always been a concern for exporters, especially when consignments have to travel a long way or run the risk of delays in port or customs. With high-value shipments, variations of just a few percentage points can represent a significant risk to an exporter.
Solution: Investigate a hedging strategy with your bank or finance partner. You can also attempt to negotiate terms with your consignees that share some of the exposure.
<h3>3. Borrowing Risks</h3>
Borrowing risks, also known as credit risks, are derived from the possibility of financial loss. This is due to failure to repay borrowed funds or meeting contractual obligations. Even if you do eventually get paid, the delay in your cash flow can be a nightmare when you have staff and suppliers to pay!
Solution: Have a solid understanding of whom you are dealing with and their ability to pay on time. Assess their creditworthiness, gather informal intelligence among your contacts to see what reputation your consignee has and price your goods accordingly. Our webinar will also touch on strategies to manage these risks.&nbsp;
Assessing trade finance risks is essential for successful business growth and development. Want to know more in detail about international trade finance and its risks to protect your export business? Join our webinar to get the best information from experts in the market!
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3 Trade Finance Risks Exporters Should Beware of

The Trump tariffs have shaken the international trade industry for the worse. But there is more to the story of the current unimpressive global economy.&nbsp;Following decades of globalisation-led growth, the tide has turned. The World Trade Organization (WTO) reports global GDP growth down from 2.9 per cent in 2019 to 2.6 per cent in 2019 and 2020.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>The ongoing trade war between China and the USA, the two world’s largest national economies, clearly causes pain for exporters. Tariffs and other trade barriers push import costs up, and exporters struggle to find buyers as their products become uncompetitive. Retaliatory actions between the two economic giants have escalated tensions in the past couple of years and contributed to a worldwide slowing of trade.The USA is at its most protectionist in a century, imposing almost 25 per cent tariffs on most of what it imports from China.But reduced export activity is not all because of President Trump’s trade strategy. Other factors have also had an impact on export activity.&nbsp;<h3>It's Not All Tariffs</h3>The Chinese economy is increasingly driven by domestic consumption as its middle class continues to grow and becomes more affluent. China can meet more of its needs from within and become less dependent on imports. And, as Chinese growth has slowed to its lowest for almost 30 years according to <a href="https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reports</a>, its demand for input materials and capital goods has reduced.&nbsp;<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a>Rising nationalism, often fuelled by concerns in developed markets over globalisation, tends to make some markets more insular. Uncertainty hurts trade, so the unknowns around the UK’s expected no-deal departure from the European Union are adding to the slow down.&nbsp;&nbsp;&nbsp;Global trends can be amplified by local tensions too. For example, shipments to Hong Kong, a key Chinese destination, were <a href="https://www.business-standard.com/article/markets/hong-kong-unrest-is-worrying-india-s-jewellers-shipment-down-6-6-119090400867_1.html" target="_blank" style="color: rgb(74, 110, 224); background-color: transparent;">reported</a> to be down by an additional 6 per cent year-on-year in September 2019 because of the pro-democracy demonstrations in the city.&nbsp;Other trends have a bearing too. Globally, the threat of climate change has focused many people’s minds on the distance their food (and other products) travel. A ‘conscious consumption’ movement sometimes described as ‘locavore’ has emerged and gained traction. It boosts the local production of foodstuffs and reduces imports. Food exporters are hit by the sentiment of an increasingly progressive consumer population.&nbsp;<h3>Localisation and in-country investment offer an alternative</h3>As rising wages in China have forced multinational companies to look elsewhere for lower costs, India, Vietnam, Bangladesh and the Philippines have all been winners. And, as these countries experience growth, their citizens join the ranks of the consuming middle classes. Market entry specialists are thriving by offering a bouquet of services - market research and company registrations, tax planning and legal advisory - to foreign investors.Around the world specific forces are having an impact:<ul><li>In India, the Make in India program encourages companies to establish manufacturing in the country.In the European Union, France and Germany are actively encouraging Foreign Direct Investment with policies that make it easier for overseas companies to set up.</li><li>In Africa, Kenya is positioning itself as the strategic gateway to East Africa and hunting foreign investments.</li><li>Mexico is seeking to reduce its dependency on the USA as an export market. The government of Andrés Manuel López Obrador is inviting foreign investment into the country as a staging post to Latin America.</li></ul>Across the world, the terms of trade and investment are morphing.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>Establishing bases in target markets offers a range of benefits. Manufacturers are exempt from import tariffs and may attract tax and other incentives. In-market production brings manufacturers closer to their customers and reduces logistics and other administrative costs.&nbsp;<h3>New Markets Offer New Opportunities</h3>Of course, there are alternative strategic responses to protectionist policies.&nbsp;If they look carefully, exporters may find that there are other demand hotspots, which they’ve traditionally not explored. Rising incomes in so-called emerging markets mean there are millions of affluent consumers driving demand for a host of goods and services. And for new consumers for whom choice has been limited, imported goods—from fridges and fashion to whisky and wines—often hold great appeal as a symbol of their newly-minted status.&nbsp;Across Eurasia, the Belt and Road Initiative (BRI), the largest infrastructure plan on the planet, is rapidly opening up new trade routes by sea and overland. Some are long-lost connections that formed part of the ancient silk route. Others are new networks that form a part of what author Peter Frankopan has dubbed The New Silk Roads.Exploring new markets may offer a hedge against current uncertainty without requiring a fundamental shift in the business model. Other approaches require a greater pivot.As a growth strategy, it requires a different type of business model from the traditional activities of import/export. But, for brave and ambitious exporters who find barriers to trade appearing where in the past none existed, local establishments could be the answer to their prayers.

Global Economy Meltdown - More Than Just Tariffs

The way to economy’s heart is through the stomachs of consumers. Opportunities in agricultural trade exist for both the EU and India.Clove, cinnamon, and pepper once propelled global trade. These were as valuable as gold, so trade in spices was brisk, and it had great cultural and economic significance. New maritime trade routes and partnerships were forged and regional eating habits evolved. European demand was the animating force for commodities trading, and, as the world’s second-largest economy, the European Union (EU) still is.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>India’s role has been historically important. It was the largest producer of spices, and the trade routes that emerged from the 14th to 17th centuries still exist. It is still a developing economy, but one of the world’s fastest-growing and as it searches for international trade partnerships to sustain its rapid GDP growth, it sees agriproducts as a way to achieve its ambitions.Modern day India-EU food trade presents a huge opportunity for both parties, albeit that the EU market is fiercely competitive and highly regulated – particularly on food products – and India’s is complicated and less rule-bound.<h3>All Eyes on Asia</h3>Globalisation has brought the world closer, and even our palates have benefitted. Foods that were once treasured in a specific region are now being shared with the world. Avocados, Himalayan pink salt, quinoa, cashews and kale are current examples. A wave of Instagram food enthusiasts has given the taste for new foods and added stimulus as their influence spreads across continents.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>When it comes to exotic foods demand, Asia is a huge potential market. It is home to more than half the world’s population. Rising disposable incomes and growing food demand have made it a lucrative market for the EU’s food producers. India is at the forefront.The question then is to find the right opportunities.India is still largely an agricultural country. Almost half of its labour force is involved in farming, while the corresponding number in the EU is relatively tiny. The amount of arable land in Europe is declining. This will inflate its demand for food imports – an excellent opportunity for Indian exports, which include rice, jute, lentils, onions, and potatoes. Meanwhile, the EU produces an abundance of wine, barley, grapes and olive oil. Globally, demand for olive oil, a European staple, is set to increase, as awareness of its health benefits grows. While both the production and consumption of wine are expected to stabilise within the EU, appetite for it in developing countries, including India, continues to rise.Other factors contribute. Thanks to the organic food movement, India predicts growing global demand for its spices and lentils. Environmental consciousness will raise awareness of jute as an alternative fabric. The crown jewel of Indian food grains - basmati rice will be sought after as more people switch to gluten-free diets.Trade-in agriproducts between India and the EU are like pieces of a jigsaw puzzle - ready to take shape.<h3>Regional Trade Set to Boom</h3>Exporters from India who have traditionally looked at western markets realise export business opportunities with their regional counterparts. Given the proximity and blooming economies, the countries within South Asia could be trading among themselves at three times the current levels according to a recent report by the World Bank. It seems the EU is by no means the only game in town.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">India is already taking advantage of specific export opportunities in five markets which include – rice to Egypt, onions to Dubai, lily bulbs to Taiwan, sesame to Turkey, and turmeric to Japan. It is also assessing regional markets for organic products such as grapes, mangoes, pineapple, litchi, ginger, and okra. The country seeks to liberalise trade in farm products and amplify international commerce.India’s export volumes will grow even if regional focus may shift. It’s also clear that there will be a definite increase in demand for imported European goods. Indian consumers will have agriproducts such as fine wine, olive oil, and other native European produce on their shopping lists. These commodities, once considered luxuries for most Indians, are becoming more prevalent.Opportunities exist for both the EU, the largest trade bloc in the world, and India, the nation that is set to be the most populous by 2024.Spice traders were paid handsomely in past centuries. Tastes may have changed the items in the shopping baskets of consumers, but for importers and exporters of food products, there is still a thriving business to be done.&nbsp;

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