TARRIF AUTHORITY FOR MAJOR PORTS

NOTIFICATION

New Delhi, the 18th March, 2002

No. TAMP/115/2001-NMPT.—In exercise of the powers coiifeired by Section 48 of the Major Port Trusts Act,

1%3 (38 of 1963), the Tariff Authority for Major Ports approves theproposal of the New Mangalore Port Trust for fixation

of wharfage charges for Ball Clay/Sand/Clay of any class as in the Order appended hereto.

SCHEDULE

Ca»e NO.TAMP/11S/2001-MBPT

The Now Mangalore Port Trust (NMPT)

Applicant

p^ ^f

(Passed on this 11 day of March 2002.)

This case relates to a proposal received from the New Mangalore Port Trust (NMPT) for fixation

of wharfage charges for Ball Clay/Sand/Clay of any class.

THE GAZETTE OF INDIA .EXTRAORDINARY

[PART III—SEC. 4]

The NMPT has made the following points In Its proposal:

(1).

The NMPT is handling clay since 1999. In the absence of a specific wharfage rate In the Scale of

Rates In force, Clay was classified under unremunerated Bulk Item; and, a wharfage charge of

Rs, 65/- per MT was being collected.

(II).

M/s, Murudeshwar Ceramics Limited, regular Importers of this cargo, have sought a reasonable

reduction in the wharfage charges for Clay on the ground that Clay is a low valued cargo; and,

wharfage of Rs. 65/- per MT appeare to be high. It has alBo stated that the wharfage for the same

cargo Is Rs. 24/- per MT at the Mumbal Port Trust.

(Ili).

The Board of Trustees of the NMPT considered the proposal for reduction of wharfage rate for

Clay in its meeting held in September. 2000 and decided to give a 65% remission over the

wharfage charge of Rs. 65/- per MT for future shipments of Ball Clay/Sand/Clay of any class on a

case-to-case basiB till a reduction in the rate Is approved by the TAMP. The Board has alBo

resolved to recommend a wharfage rate of Rs. 20/- per MT for Clay.

(Iv).

In the last general revision of Scale of Rates of NMPT (notified on 19 September 2001) the

wharfage for Clay could not be included due to oversight.

3-t-

In accordance with the procedure prescribed, the proposal of the NMPT was sent to the Kanara

Chamber of Commerce and Industry, M/s. Murudeshwar Ceramics Limited and the Mangalore Custom House

Agents Association for comments. The comments received from them are summarised below:

Mang^lpre Custom Howe Agents Association

The proposal sent by the New Mangalore Port Trust is quite encouraging to the Trade. The Authority

may, therefore, consider the recommendation of the NMPT to fix wharfage charges at Rs. 20/- per MT.

fCa.nara Chambr of Cornrnarcq and Indt^atry

(i).

This cargo had not been classified earlier; Bentonite IB being charged Rs. 20/- per tonne and as

Ball Clay / Sand/Clay of any class are in the same category these shall also be charged Rs. 20/-

per tonne.

(ii).

Mumbal Port is charging Rs. 24/- per tonne.

(ill).

It is a low value cargo and reduction of wharfage will encourage local small-scale industry.

(Iv).

With more cargo coming to the Port, the levy on the RCH will come down.

M/i. Murudwhwar Ceramics limited

(I).

It is regularly importing Clay; and, clearing the same at the NMPT. Wharfage charged was at

very high rates as compared to other Ports in respect of consignments cleared from the NMPT.

(il).

It had made a representation to the NMPT earlier to reduce the wharfage charge from Rs. 65/-

per tonne to Rs. 20/- per tonne.

(lii).

The Instant proposal of the NMPT to fix the wharfage rate for Ball Clay / Sand / Clay of any class

at Rs. 20/- per MT may be considered favoruably.

3.2.

A copy each of the comments received from the above port users / representative bodies of port

users was Bent to the NMPT as feedback information.

Since all the parties consulted in this caw including the main importers M/s. Murudeshwar

Ceramics Limited have agreed with the proposal of the NMPT to reduce the wharfage for the Clay, a Joint hearing

has not been considered necessary in this case.

With reference to the totality of the Information collected during the process of this case, the

fcflowing position emerges:

(i).

Levy of wharfage under residual category is to be seen as a provision In the Scale of Rates to

realise charges on cargo for which specific rates are not prescribed due to irregular nature of

traffic through the port and / or of insignificant volume. When shipments start taking place on a

regular basis, It will be appropriate to have a specific wharfage rate for such cargo by

reel ossification.

(ii).

As admitted by the NMPT, this case could not be considered alongwlth the last general revision

of the Scale of Rates of the NMPT (September 2001), as the port did not include the decision

taken by its Board of Trustees in September 2000 In its proposal for general revision which was

submitted In February 2001. Strangely, the port users, who were consulted as a part of the

proceedings relating to that case, also did not point out the omission in the NMPT proposal.

(iti).

The Board of Trustees Of the NMPT has decided to allow remission in wharfage charges for clay

since September 2000. This action tantamounts to causing a permanent change In the Scale of

Rates which IB not In line with the tariff setting arrangement envisaged In the MPT Act. The

Government had in fact directed an the port trusts, on more than one occasion, not to exercise

the powers under Section 53 of the Act to tinker with the Scale of Rates prescribed by the

competent authority. We have already commented about such actions taken In the past by the

NMPT in some other cases related to It. We reiterate the correct tariff setting arrangement

envisaged in the Statute and once again advise the NMPT to refrain from applying the provisions

under Section 53 of the MPT Act to alter its Scale of Rates prescribed by this Authority.

0v).

Since the proposal of the NMPT for a reduction In wharfage rate for clay from Rs. 65/- PMT to

Rs. 20/- PMT has been endorsed by all the concerned user organisations including the main

importer of the cargo, M/s. Murudeshwar Ceramics Limited, this Authority is inclined to approve

the proposal.

(v).

At the time of the last general revision of the Suale of Rates of the NMPT, It was found that the

cargo-handling activity was showing a revenue surplus. That being so, the proposed reduction in

wharfage charge may not have any adverse Impact on the financial position of the Port. In any

case, the reduced wharfage charge has been in operation since September 2000; and, financial

estimates furnished by the NMPT at the time of the last general revision will have reasonably

considered the reduced wharfage rate on this cargo for arriving at the revenue projections for

2001-02 and 2002-03.

(vi).

Instead of prescribing a wharfage rate for clay separately by adding a new item to the existing list

of items in the wharfage schedule, It may be appropriate to club Ball Clay/Sand/Clay of any class

with the Bentonate In the wharfage schedule since the wharfage rates for both the commodities

are the same. This Is done to simplify the wharfage schedule notwithstanding the fact that Clay

does not fall under the group 'Ores and Minerals'. The NMPT is advised to rationalise the

Schedule of Wharfage in Its Scale of Rates at the time of the next general revision.

6.1.

In the result and for the reasons given above, and batted on a collective application of mind, this

Authority approves a wharfage charge of Rs. 20/- per MT for Ball clay / Sand / Clay of any class. The existing

torn No.8 (d). In Chapter III B Schedule of Wharfage charges for Bulk cargo in the Scale of Rates of the NMPT is

delated and substituted as follows:

No.

8(d)

Bulk Cargo

Bentonate and Ball Clay/Sand/Clay of any class

Unit

Wharfage Rate

Rs.

20.00

6.2.

The NMPT Is required to introduce an amendment to its Scale of Rates accordingly.

S. SATHYAH Chairman

[ADVT m/rV7l43/Exty/20() 1]

Prinlod by the Manager, Oovt. of India Press, Ring Road, Mayapun, New Delhi-110064

and Published by the Controller of Puhlicaiionn, Delhi-110034.