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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
2377
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
2378
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
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
2379
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
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%
2380
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
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%
2381
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
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
2382
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
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
2383
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
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%
2384
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
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%
2385
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
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.
2386
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
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
2387
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
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
2388
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
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%
2389
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.
2391
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.