The Indian Maritime Administration, the directorate general of shipping, has made a break-through in shipping surcharge legislation, as the government demands better transparency in trade transaction costs, reported JOC.com.
Shipping lines and their agents have agreed not to levy up to 25 different hidden charges, these charges are typically not included in their bill but is collected from cargo owners all the same.
Subhash Barguzer, a Deputy Director General of Shipping, said: 'In view of the consensus among the various stakeholders such as shipping lines, EXIM associations and trade bodies, the shipping lines are hereby advised that the charges as listed should not be levied by shipping lines/carriers/agents for the transportation of EXIM goods as a good/best practice.'
Trade legislation is especially significant in India at the moment, as it has been predicted as the fastest growing economy in 2016 by the Wall Street Journal.
The Indian economy is predicted to grow by 7.7%, which is a percent over the predicted growth of China.
Barguzer concluded: “This is a very significant development because it shows the government’s commitment to bring about transparency in the transaction costs of EXIM trade.”