17
2375 Available online through - http://ijifr.com/searchjournal.aspx www.ijifr.com Published On: March 22, 2016 International Journal of Informative & Futuristic Research ISSN: 2347-1697 Volume 3 Issue 7 March 2016 Original Paper Abstract The Indian shipping industry plays a crucial role in Indian economy. As 90% of the Nation’s trade by volume is done via sea and earn a foreign exchange. India has been the largest merchant shipping fleet among the developing nations. The Indian Shipping Industry supports transportation of national and international cargoes and also provides various other facilities such as ship building, ship repairing, lighthouse facilities, freight forwarding, etc., Indian Shipping Industry with emergence of globalization and liberalization is firmly ready to acquire new dimensions in terms of demand and infrastructural development. So, we analyze the customs house agent’s performance, factors and satisfaction about the documents and related procedure needed in executing the business. 1. INTRODUCTION The Indian shipping industry plays a crucial role in Indian economy. As 90% of the Nation’s trade by volume is done via sea and earn a foreign exchange. India has been the largest merchant shipping fleet among the developing nations. The Indian Shipping Industry supports transportation of national and international cargoes and also provides various other facilities such as ship building, ship repairing, lighthouse facilities, freight forwarding, etc., Indian Shipping Industry with emergence of globalization and liberalization is firmly ready to acquire new dimensions in terms of demand and infrastructural development. Role Of Customs House Agents In Tuticorin Paper ID IJIFR/ V3/ E7/ 045 Page No. 2375-2391 Subject Area Commerce Keywords Indian Shipping Industry, Import / Export Goods, Sea Transport Companies, Customs Services, Shipping Agencies Performance, Sampling Techniques, Non-Probability Features, Interview Schedule 1 st K. Kasirajan M.Phil. Scholar Department of Commerce V.O.Chidambaram College, Tuticorin-Tamilnadu 2 nd V.Sornaganesh Assistant Professor Department of Commerce V.O.Chidambaram College, Tuticorin-Tamilnadu

Role Of Customs House Agents In Tuticorin

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2375

Available online through - http://ijifr.com/searchjournal.aspx

www.ijifr.com

Published On: March 22, 2016

International Journal of Informative & Futuristic Research ISSN: 2347-1697

Volume 3 Issue 7 March 2016 Original Paper

Abstract

The Indian shipping industry plays a crucial role in Indian economy. As 90% of the Nation’s trade by volume is done via sea and earn a foreign exchange. India has been the largest merchant shipping fleet among the developing nations. The Indian Shipping Industry supports transportation of national and international cargoes and also provides various other facilities such as ship building, ship repairing, lighthouse facilities, freight forwarding, etc., Indian Shipping Industry with emergence of globalization and liberalization is firmly ready to acquire new dimensions in terms of demand and infrastructural development. So, we analyze the customs house agent’s performance, factors and satisfaction about the documents and related procedure needed in executing the business.

1. INTRODUCTION

The Indian shipping industry plays a crucial role in Indian economy. As 90% of

the Nation’s trade by volume is done via sea and earn a foreign exchange. India has been

the largest merchant shipping fleet among the developing nations. The Indian Shipping

Industry supports transportation of national and international cargoes and also provides

various other facilities such as ship building, ship repairing, lighthouse facilities, freight

forwarding, etc., Indian Shipping Industry with emergence of globalization and

liberalization is firmly ready to acquire new dimensions in terms of demand and

infrastructural development.

Role Of Customs House Agents In Tuticorin Paper ID IJIFR/ V3/ E7/ 045 Page No. 2375-2391 Subject Area Commerce

Keywords Indian Shipping Industry, Import / Export Goods, Sea Transport Companies,

Customs Services, Shipping Agencies Performance, Sampling Techniques,

Non-Probability Features, Interview Schedule

1st K. Kasirajan

M.Phil. Scholar

Department of Commerce

V.O.Chidambaram College, Tuticorin-Tamilnadu

2nd V.Sornaganesh

Assistant Professor

Department of Commerce

V.O.Chidambaram College, Tuticorin-Tamilnadu

2376

ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

2. STATEMENT OF THE PROBLEM

This particular topic is chosen because the study helps to understand the Role of

Customs House Agent and their attitude towards Import and Export of goods in Tuticorin.

In today’s competitive world various companies are available with different

facilities. As for as Tuticorin is concerned these companies are the major source of

employment to the people of this town. These companies transport bulk volume of cargo

to various global destinations. It is said that a shipping Industry is an economic indicator

of a nation because it can perform well only when the country witness good export and

import performance. Any problem affecting the performance of shipping Industries will

affect the well-being of the people of the locality in specific and the nation in general.

Therefore, this research has been under taken by the researcher. This study aims to

analyze the Role of Customs House Agents at Tuticorin.

Roles of a Customs House Agent

A Customs House Agent acts as an agent for an importer or an exporter in

conducting Customs business on their behalf. A Customs House Agent can either be a

private individual or a company. In order to be a Customs Broker one must be licensed by

the Customs Service, Indian Department of the Treasury. Specifically, a Customs House

Agent prepares and files the necessary Customs entries, arranges for the payment of duties

found due, takes steps to affect the release of the goods in Customs custody, and

represents their clients in custody matters. A Customs House Agent must have an

excellent understanding of trade requirements and procedures and customs and tariff

regulations. Furthermore, the Customs House Agent will assist the client with advice on

transportation options, types of carriers, and shipping routes. The Agent will also assist the

client with exchange rates, appraisals, and proper classifications and duties. In dealing

with Customs, the broker must be aware of any potential problem involving every entry

item represented, including cargo handling. This includes all factors affecting

appraisement, exchange rates and the many regulations concerning calculation of duties.

3. OBJECTIVES OF THE STUDY

The objectives of the study are as under:-

To analyze the export and import performance of shipping agencies in Tuticorin;

To identify the general factors responsible for the performance of shipping

agencies;

To know satisfaction about the documents and related procedure needed in

executing an export order;

To analyze the problems encountered by these agencies;

To give offer and suggestion for improve the customs house agent services.

4. RESEARCH PROCEDURE

I. Scope of the study: - The study is both descriptive and analytical in nature. The

study was limited to Customs House Agencies in Tuticorin city only.

II. Methodology: - The study is an empirical study based on survey method. A

technique called sampling method was applied. Regarding sampling techniques

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ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

55% 39%

6%

Export

Import

Others

non-probability features were applied. The data were further processed through

tabulation and graphical representation. Further statistical tools were applied for

analyzing data.

III. Sampling: - The researcher has gone in convenience sampling technique for

accumulating primary data. Due to non-availability of complete list of population

and resources non-probability was applied. For the present study a sample of 120

respondents were selected and interviewed. They were interviewed with the help

of interview schedule in tabular forms.

IV. Tools for collection of data:-For the present study an interview schedule is

prepared. Form the gathered information a master table was prepared to record all

the data from the Master table, classification tables were prepared. The

classification of tables has been taken as a tool for analysis. For analyzing the data,

simple percentage analysis was made.

V. Collection of Data:-Both primary and secondary data were used for the analysis.

The secondary data were collected from the published and unpublished records.

They were collected from the Customs House Agencies. The primary data were

collected from the Customs House Agencies of the sample CHA on interview

schedule.

VI. Period of study: - The study was conducted for a period of 4 month from January

to April 2015 during which primary data was collected.

VII. Limitation of the study:-This study is limited up to Tuticorin only.

5. ANALYSIS AND INTERPRETATION OF THE STUDY

This part deals with the shipping agencies attitude towards import and export in

customs house agents in Thoothukudi town. Data are collected and tabulated for easy

understanding and good presentation. Tables, diagrams and graphs assist us to analysis the

data efficiency. The profile of the respondents in terms age, gender, education, income,

occupation, and the like were discussed in order to study the impact of these variables on

the shipping agencies attitude towards import and export in customs house agents. Further

analysis were made in respect of the shipping agencies attitude towards varies companies

which include customs law, logistics management and other liners in this field.

5.1. Process handled by shipping agents

Table 1: The process handled by the shipping

companies.

Source: Primary Data

Process No. of respondents Percentage

Export 66 55

Import 47 39

Others 7 6

120 100 CHART –1: Process handled by shipping

agencies

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Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

This table 1 reveals that out of 120 respondents taken for the study. It clearly shows that

the process handled by Shipping agents are the maximum 55 percent of them handled the

export and the 39 percent of them handled the import and 6 percent of the respondents

handled the others.

5.2. Shipping Services

Freight forwarding Company provides domestic and international freight forwarding

services by air and sea, customs clearance, cargo handling services, transportation services

and door – to – door cargo delivery. The following tables highlight the type of service

rendered by shipping Agencies

Table 2: Shipping service

Type of service No. of respondents Percentage

Cargo handling 28 23

Container booking 45 38

Custom formalities 13 11

Feeder vessels 15 13

Airlines Arrangement 8 6

Cargo transports 2 2

All the above 9 7

120 100

Source: Primary data

The table 2 reveals that out of 120 respondents taken for the study. The table is

under that 38 percent of the respondents are under container booking, 23 percent of the

respondents are under cargo handling, 13 percent of the respondents are under feeder

vessels, 11 percent of the respondents are under customs formalities, 6 percent of the

respondents are under Airlines arrangement, 2 percent of the respondents are under the

cargo transport and 7 percent of the respondents are doing all the services provider. So,

more than 60 per cent of the respondents are doing container booking and handling the

cargo business.

CHART 2: Shipping service

23%

38%

11%

6%

13%

2%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

cargo

Handling

Container

Booking

customes

Formalities

Airlines

Arrangement

Feeder

Vessels

Cargo

Transport

All the Above

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Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

5.3. Place of Shipper

A shipper is a person who is entrusted with the responsibility of transportation of

goods and commodities. In the shipping industry, a shipper’s role is the very vital and something that can never be overlooked. The below table 3 Show the various place of

shipper or exporter in shipping agencies.

Table 3: Different areas covered for place of shipper or Exporter

S. No Shipper Place No. of Respondents Percentage

1. Tiruppur 40 33

2. Coimbatore 39 32

3. Chennai 14 12

4. Madurai 20 16

5. Other place 7 7

120 100

Source: Primary data

The table 3 reveals that out of 120 respondents taken for the study. This table

Shows, CHAs has booked 33 percent of shippers from Tiruppur, another 32 percent of

shippers from Coimbatore and 16 percent of shippers from Madurai, further 12percent of

shippers from Chennai.7 percent of the shippers are from other location. Hence, it is

understood that the majority (65%) of the shippers from Tiruppur and Coimbatore only.

CHART 3: Different areas covered place of shipper or Exporter

5.4. Types of container

Container units form the most integral part of the entire shipping Industry, trade, and

transport. These shipping containers are the structure that stores various kinds of products

that need to be shipped from one part of the world to another. The table No: 4 given below

the Explain the types of container used by the shipping companies.

Tripur; 33%

Coimbatore;

32%

Chennai; 12%

Madurai; 16%

Other place;

7%

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Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

Table 4: Types of container

S. No Container No. of Respondents Percentage

1. LCL 38 32

2. FCL 21 18

3. Both 61 50

120 100

Sources: Primary data

The table 4 reveals that out of 120 respondents taken for the study. It is clearly understood

from the table 4, 50 percent of the containers are used both and 32percent of the container

of low container load and remaining 18 percent of the container of full container load.

Hence, it is understood that the majority of the container used by the shipping agent is

doing both.

CHART 4: Types of container

5.5. Container Size

The dimensions are normally 8 feet high and 8 feet width and length usually

varies in multiples of 10 feet. But not containers of size 45’, 48

’, 53

’, are also available in

other parts of the world. In India only 10 feet, 20 feet, 40 feet and 45 feet container

available. Twenty feet containers are mentioned as TWENTY EQUIALENT UNITS

(TEU’S) and similarly 40 feet containers are FORTY EQUIALENT UNITS (FEU’S) Table 5: Size of containers

S. No. Container Size No. of respondents Percentage

1. 20 feet 53 44

2. 40 feet 42 35

3. 45 feet 25 21

120 100

Source: Primary data

The table no: 5 reveal that out of 120 respondents taken for the study. Explain the fact

that 44 percent of the container of 20 feet, another 35 percent of the container of 40 feet,

and remaining 21 percent of the container of 45 feet. Hence, major portions of the

container used by the people are 20 feet.

0% 10% 20% 30% 40% 50%

LCL

FCL

Both

32%

18%

50%

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Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

CHART 5: Size of containers

5.6. Services to various Countries

Service and rate contract with major carriers like MAERSK, APL, ZIM,

CMA-CCM, NORASIS, K’LINE, PIL, YML, etc., Regular consolidation of cargo at major gateway sea & Airports, Every to Europe, U.S.A. Japan, Africa, Gulf & Malaysian

ports. The table No: 1.6 given below explain services to various countries.

Table 6: Services provided to various countries

S. No Various Countries No. of firms Percentage

1. USA 20 17

2. European Union 22 18

3. Malaysia 11 9

4. Srilanka 19 16

5. Japan 17 14

6. Africa 13 11

7. Gulf 10 8

8. Others 8 7

120 100

Source: Primary data The table 1.6 reveals that out of 120 respondents taken for the study. It is clear

from the above table 18 percent of exports done through European Union, 17 percent of

respondents export to U.S.A. Further 16 percent of respondents export to Sri Lanka, 14

percent of respondents export to Japan, 11 percent of respondents export to Africa, 9

percent of respondents export to Malaysia, 8 percent of respondents export to Gulf and

remaining 7 percent respondents export to other countries. Hence, the maximum of

respondent’s service provided to developed countries like US and Europe.

0%

20%

40%

60%

20 feet 40 feet 45 feet

44% 35%

21%

0%

10%

20%17% 18%

9%

16% 14%

11% 8% 7%

Chart 6: Services provided to various countries

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Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

Vegetabl

es; 35%

Fruits;

19%

Sea-

Foods;

38%

Other

products;

8%

Chart 7: Cargoes Transported By Refrigerated

Containers

5.7. Cargoes Transported by Refrigerated Containers

The type of cargo is utilized for refrigeration also. This table 7 highlights the

information relating to cargoes transported through Refrigerated containers.

Table – 7: Cargoes Transported by Refrigerated Containers

S. No Cargoes No. of Respondents Percentage

1. Vegetables 42 35

2. Fruits 23 19

3. Sea - foods 46 38

4. Other products 9 8

120 100

Source: Primary data

The table 7 reveals that the out

of 120 respondents taken for the study.

It is inferred that majority of the

respondent 38 percent were sent sea

foods through the refrigerated container,

35 percent of the respondents were sent

vegetables, another 19 percent of the

respondents were sent fruits and the

remaining 8 percent of the respondents

were sent products other than sea –

foods, vegetables and fruits through

refrigerated containers. The town is

basically depends on the sea foods as

major business so it is exported.

5.8. Reasons for using container for Transporting cargo

The investigation brought to sharp focus the most effective reasons for using container for

transporting cargoes. To find out the most effective reasons among five factors the

respondent were asked to give ranks on the basis of their priority. The Ranks given by the

respondents for the existing five reasons are portrayed in the table 1.8.

Weighted Average Analysis Table –8: Reasons for using containers for transporting cargo

S. No User No. of

respondents

(X1)

WEIGHTS WX1 Mean

Score

1. Transportation of Heavy

cargoes

12 5 60

2. Suitable to bulk cargoes 25 4 100

3. Safe Transportation 30 3 90 2.63

4. Easy & Effective Handling 13 2 26

5. Less Expensive 40 1 40

Total 120 316

Source Primary Data

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Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

WEIGHTED AVERAGE X1 = € WX/€X1 = 316

/120 =2.63 (or) 3

From the analysis it is observed that the most of the respondents are

needed transportation safety for retaining the business with the clients.

5.9. Export Products The table No 9 given below explains the products are exporting to other countries.

Table – 9: Export Products

S. No Export Product No. of Respondents Percentage

1. Garments 40 33

2. Matches 32 27

3. Leather 20 17

4. Hardware 18 15

5. Others 10 8

120 100

Source: Primary data The table No: 1.9 reveal that out of 120 respondents taken for the study. The table

shows that major proportion 33 percent of the respondents maximum export products of

garments. 27 percent of the respondents export product of matches, 17 percent of the

respondents export product of leather 15 percent of the respondents export product of

hardware and remaining 8 percent of the respondents export of other products.

Chart 9: Export Products

10. Imported Products:-

The table No: 1.10 given below explains the products are Importing from other countries. Table –10: Import Products

S. No Import No. of Respondents Percentage

1. Machinery 23 19

2. Paper 15 13

3. Wheat 20 16

4. Raw Cotton 27 23

5. Others 35 29

120 100

Source: Primary Data

0%

5%

10%

15%

20%

25%

30%

35%

Garments Matches Leather Hardware Others

33%

27% 17% 15% 8%

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Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

The table No. 10 reveals that out of 120 respondents taken for the study. The table shows

that major proportion 29 percent of the respondents maximum Import of other products.

23percent of the respondents Imports the product of raw cotton. 19 percent of respondents

Import of machinery and 16 percent of Import Product of Wheat and remaining 13 percent

of import of paper.

Chart 10: Imported Products

5.11. Rating the lead time of Documentation by Customs houses

Documentation and procedures are integral part of international marketing operations

though it is the complex and cumbersome. They are needed in compliance with either the

requirements of compliance with either the requirements of contract concluded between

exporters and importers, or the requirements of exporting or importing countries. The

table No. 11 given below explains rating the lead time of Documentation by customs

houses.

Table 11: Rating the lead time of Documentation of CHA’S

S. No Response No. of Respondents Percentage

1. Excellent 32 27

2. Good 37 31

3. Average 17 14

4. Bad 22 18

5. Very Bad 12 10

Total 120 100

Source: primary data

This Table reveals that out of 120 respondents taken for study. Above data shows that, 31

percent of them said good in lead time for documentation. 27 percent of them said are

“EXCELLENT” in lead time documentation. 18 percent of respondents said are bad in

lead time in documentation. 14 percent respondents said CHA’S are “AVERAGE” in lead

time in documentation, and remaining 10 percent of respondents said CHA’S is “VERY

BAD” in lead time in documentation. So, majority of them said there is good reputation by

customs houses.

0%

5%

10%

15%

20%

25%

30%

Machinery Paper Wheat Raw Cotton Others

19%

13%

16%

23%

29%

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Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

Excellent;

27%

Good; 31%

Average;

14%

Bad; 18%

Very Bad;

10%

Chart 11: Rating the lead time of Documentation of CHA’S

5.12. Opinion about the services provided Tuticorin port trust Authority regarding

CHAs

Tuticorin Port has limited facilities to handle export and import cargo. The table

No. 1.12 given below explains about the provision of services by the “TUTICORIN PORT

TRUST AUTHORITY”

Table 12: Opinion about the services of Tuticorin port trust Authority

S. No Services Excellent Very

Good Good Fair Poor

Total

Score

Average

Score Rank

1 Infrastructural

Facilities 300 (60) 48(12) 36(12) 60(30) 6(6) 450 3.8 I

2 Transport

Facilities 270(54) 72(18) 45(15) 48(24) 9(9) 444 3.7 Ii

3 Container

Handling 150(30) 120(30) 27(9) 90(45) 6(6) 393 3.3 Iv

4 Adequate Berth

Facilities 90(18) 168(42) 54(18) 66(33) 9(9) 387 3.2 V

5 Freight

Determination 165(33) 132(33) 63(21) 54(27) 12(12) 426 3.6 Iii

6 Free Shipment

Formalities 90(18) 84(21) 72(24) 96(48) 9(9) 351 2.9 Vii

7 Logistics

Maintenance 120(24) 120(24) 27(9) 84 (42) 21(21) 372 3.1 Vi

Source: Primary data

Shipping agencies are asked to give opinion regarding the statement, seven

statement five points scales have been applied for ‘Excellent’ four have been allotted, for ‘Very Good’ three have been allotted, for ‘Good’ two have been assigned for ‘Fair’ one have been allotted for ‘Poor’ is Zero. Infrastructure facilities has got the 1st

rank, transport

facilities has got 2nd

rank. Hence, they are considered to be opinion about the services of

Tuticorin Port Trust Authority them others.

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International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

5.13. Important problems faced by shipping agencies The following Table No.1.13 highlights the important problem faced by the all

shipping companies. Table 13: Important problems in shipping agencies

S. No Types of problem No. of respondents Percentage

1 Financial constraints 23 19

2 Official delay 35 29

3 Transport bottle rest 18 15

4 Cumbers some customs formalities 40 34

5 Any other 4 3

Total 120 100

Source: Primary data

This table reveals that out of 120 respondents taken for the study. The majority of

34 percentage said that the cumbers some customs formalities, 29 percentage of them are

official delay, 19 percentage of them feels that financial constraint, 15 percentage of them

feels that transport of bottle rest and 3 percentage of them feels that any other problems.

5.14. Performance towards Bill of lading

Bill of lading is a documents issued by the shipping company or its agent

acknowledge the receipt of goods on board the vessel, and undertaking to deliver the

goods in the like order and condition as received, to the consignee or his order, provided

the freight and other charges as specified in the bill have been duly paid. It is also the

document of title to the goods and as such, is freely Transferable by endorsement and

delivery. The following table No: 1.14 Explain performances towards bill of lading by

CHA’S

Table 14: Performance towards Bill of lading

Source: Primary data

The Table No: 1.14 reveals that out of 120respondents taken for study. Above data

show, that 48 percent of respondents are highly satisfied with CHA’s payment mode. 17 percent of respondents are fairly satisfied with CHA’s payment mode. 13 percent of respondents are low satisfied with CHA’s payment mode.11 percent of respondents are

very highly satisfied with CHA payment mode.

S. No Response No. of Respondents Percentage

1. Very Highly Satisfied 13 11

2. Highly Satisfied 58 48

3. Fairly Satisfied 21 17

4. Low Satisfaction 15 13

5. Very low satisfaction 13 11

Total 120 100

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K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

5.15. Satisfaction of movement of finance

The following Table No. 15 explains performance of payment in CHA’s. Table –15: Satisfaction of finance movement

S. No Response No. of Respondents Percentage

1. Very highly satisfied 26 22

2. Highly satisfied 45 38

3. Fairly satisfied 17 14

4. Low satisfaction 19 16

5. Very low satisfaction 13 10

Total 120 100

Source: Primary data

This table shows that, 38 percent of respondents are highly satisfied with CHA’S payment mode. 14 percent of respondents are fairly satisfied with CHA’S payment mode. 16 percent of respondents are low satisfied with CHA’S payment made and remaining 10 percent of respondents are very low satisfied with CHA’S payment mode. Majority of

them is satisfied with movement of finance (that is working capital).

Chart -15: Satisfaction of finance movement

0

10

20

30

40

50

Very Highly

Satisfied

Highly

Satisfied

Fairly

Satisfied

Low

Satisfaction

Very low

satisfaction

11

48

17 13 11

Performance towards Bill of ladding

0

10

20

30

40

50

Very Highly

Satisfied

Highly

Satisfied

Fairly

Satisfied

Low

Satisfaction

Very low

satisfaction

11

48

17 13 11

Performance of payment

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K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

5.16. Experience in this service of Customs House Agent

Table No. 16 presented below carries information regarding experience in shipping

company. Table –16: Experiences in shipping field

S. No Particulars No. of Respondents Percentage

1. Less than one year 10 8

2. 1 – 5 years 15 13

3. 5 – 10 years 25 21

4. 10 – 15 years 30 25

5. More than 15 years 40 33

Total 120 100

Source: Primary data

From the above table it could be seen that 33 percentages of the respondents falls

with the experience of above 15 years, 25 percentages of the respondents have experience

up to 10 to 15years, 21 percentages of respondents have experience up to 5to10years, 13

percentage of respondents have experience up to 1to5years and the remaining respondents

8 percentages have less than the one year experience.

Chart 16: Experiences in shipping field

6. FINDING OF THE STUDY

i.) Most of them are doing Export rather than import

ii.) While 38 percent render container booking services, also 23 percent include cargo

Handling. While only 13 percent offer the feeder vessels serviced.

iii.) Through the overall analysis there is more shippers from Tiruppur compare to other

cities, because of more garment manufacturing unit is Tiruppur.

iv.) CHA’s handling maximum low container load, because of low consignment from the customers.

v.) 20’ feet size containers are used for most of the consignments.

vi.) Data shows that maximum services provided to European.

0%

10%

20%

30%

40%

Less than One year1 to 5 years

5 to 10 years

10 to 15 years

More than 15 years

8% 13% 21% 25%

33%

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ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

vii.) Majority of the refrigerated goods are sea-foods and vegetables.

viii.) It is found that the majority of the respondents felt that the container transportation is

less expensive when bulky cargoes are transported.

ix.) Maximum export goods were Garments.

x.) Maximum import of goods was raw cotton and others.

xi.) 31 percent of them said well in lead time for documentation.

xii.) Most of the respondents said port authorities provide better infrastructure and transport

facilities to them.

xiii.) All the respondents face the problem of the customs formalities and procedure are lot

of difficulties to the CHA’s. xiv.) From the analysis it is observed that the most of the respondents are fairly satisfied

with the bill of lading.

xv.) From the analysis most of the respondents are highly satisfied about the financial

facilities.

xvi.) From the analysis more than one third of the respondents are doing this business for

the 25 years.

7. SUGGESTIONS

The following suggestions will help to improve the efficiency and proper utilization of

customs abuse agents in Thoothukudi.

The government has to lift Tuticorin port related import and export restrictions.

This will lead to more inflow and outflow of goods through the port, which in turn

helps shipping agencies to prosper.

As per the analysis there are more shippers in Tiruppur compare to other cities.

This will cause low consignment from the customer. Therefore CHA should take

immediate step to improve the consignment

CHA’s low consignment from the customers also affect the container type (low

container).therefore CHA should take steps for improve their customer level.

20’ feet size containers are used for most of the consignments. This should increase up to 40’ feet size.

Data shows that maximum services provided to European. This should enlarge to

other countries.

It is found that the majority of the respondents felt that the container transportation

is less expensive when bulky cargoes are transported. This type of transportation

not suitable for all the types of cargo therefore CHA should create alternative one.

Maximum export goods were Garments and maximum import of goods was raw

cotton and others. Import and export area is major one for CHA’s transaction. Therefore CHA should attract the customer for improving the export and import

activities through good infrastructure and transport facilities.

All the respondents face the problem of the customs formalities and procedure are

lot of difficulties to the CHA’s. This should reduce in further year.

2390

ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

From the analysis it is observed that the most of the respondents are fairly satisfied

with the bill of lading. It is helpful to down the business performance therefore

CHA should improve satisfaction level for bill of lading.

From the analysis most of the respondents are highly satisfied about the financial

facilities.CHA should keep this level of satisfaction.

8. RECOMMENDATION

The government has to reduce tariff rates being charged by port from shipping

agencies. This will reduce the operational costs of shipping agencies, which in turn

to offer service at cheaper freight rates.

Port has to take immediate steps to avoid long waiting lands of vessels in port.

port has to develop more infrastructure facilities and separation related facilities

like grains, bulk points more space for stacking containers etc.,

Port has to increase the number of berth for handling containerized charge.

They have to improve their quality of service in terms of better documents,

communication etc.,

They should service more and more new destination.

They should increase the inventory of empty container.

Importers and exporters should come forward to utilize Tutcorin port.

Customers have to ensure speedy. Clarence of import and export consignment.

Port should attract more and more new industries to use their service apart from

textile industry by providing competitive service in terms of both speed and cost.

Customers should encourage starting up of more and more container freight

stations.

The Government has to take immediate steps to implement the sethusamuderm

canal project, which is considered to be the most welcome move for the betterment

of shipping agencies in Tuticorin.

Communication should still be improved in CHA’s

Communication given to the shippers through the telephones to update the booking

can be informed through mail also, so that there will be a record for us.

They should improve lead time of the advance cargo booking services to the

customer.

Price range should be fixed to every shipper.

The most of the company should release the bill of lading process in earlier maker

which helps to intimate the importer.

Sharing the insurance premium between shippers and buyers would increase their

trader ship.

Perfect preservation of cargoes would create a good condition of delivering

cargoes to the buyers including proper refrigeration units.

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ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -7, March 2016

Continuous 31th Edition, Page No.:2375-2391

K. Kasirajan, V.Sornaganesh:: Role Of Customs House Agents In Tuticorin

Proper transportation, preservation, maintenance and economic condition would

pay the paths to flourish the shipping field.

9. CONCLUSION

Shipping Agencies are one of the oldest and also the newest activities of business

management. It involves delivers functions and service providers who may be culturally

and objectively different. Shipping Agencies are about moving materials information and

funds form one business to another or from a business to the consumer. It is an important

part of the business economic system and is a major global economic activity.

Globally, transportation sector accounts for around 3 to 5 percent of GDP. The

demand for transportations industry is directly proportional to the growth of the economy,

mobility of population and other related factors.

Through traditionally, transportation involves physical movement of goods, however, in

the new economy area. it is largely influenced by information and communication

technologies with the focus being on knowledge of customer needs and value added

services in order to provide maximum benefits to user.

Before the shipping and logistics agents came into the picture the export import rules and

procedures were very complex, time – consuming in short difficult to understand so as to

make it easy the commission rate of customers have issued clearing and forwarding

license to the people who have proved themselves convergent with customs rules and

regulations. The shipping and logistics agents are also known by different names such as

custom house agent or clearing and forwarding or freight forwarders.

10. OUTLOOK

India’s water transportation remains largely untapped and underutilized despite its high

growth potential. However, this is likely to change as policymakers have recently shifted

their focus toward developing infrastructure for this segment. For coastal shipping to

realize its full potential, it is important that issues, such as the development of routes,

capacity addition by port operators, and shipping lines and incentives for shippers and ship

owners, are addressed. The Ministry of Shipping can foster the growth of the coastal

shipping segment by reducing port duties and developing coastal-specific non-major ports

and supporting infrastructure.

11. REFERENCES

[1] D.C. Kapoor, Export Management, Vikas publishing – 2002

[2] D.C. Ganddener, Documentury credits macmillian India, 1998.

[3] Government of Indiaa handbook of procedures.

[4] International chamber of commerce, uniform customs and practice for Documentary

credits.

[5] Paras Ram, ExportL What, Where,How, Anupam Publishers.

[6] Logistical management – Tata Mchraw 200 Edition written by Donald, Bowers ox, and

David, Closs.