The Hindu Business Line : Plea to exempt CHA from service tax on exim trade

Kochi, Feb. 24 The Cochin Custom House Agents Association (CHA) has urged the visiting Parliamentary Sub Committee on Commerce to exempt it and other agencies such as steamer agents, terminal operators etc from the purview of service tax for the services rendered by them for the export of goods.

In a representation submitted to the Sub Committee here, the Association President, Mr C.P. Xavier, pointed out that exporters could not do away with the services of these intermediaries and connected agencies which are essential and vital pertaining to exports. The exporters are bearing these expenses in order to strictly adhere to the norms that the country should export only goods and not the taxes and duties thereon.

The Association also pointed out that exporters and importers are facing considerable difficulties to conduct the inspection of export/import consignments due to shortage of sufficient number of personnel in the Plant Quarantine and Fumigation Station in the sea port and air port.

With the Plant Quarantine Order 2003, the number of items covered has also increased. Besides, the personnel at the PQ office at Kochi had to attend to the work at Mangalore, Kollam for cashew, Palakkad and Ernakulam for rice and Thrissur for mango. The Plant Quarantine office situated at Willingdon Island is also looking after the exports/imports through Cochin International Air port. At present the exporters/ CHA’s have to take the Plant Quarantine officers from W Island to Cochin International Airport which is situated quite far away and there is always the element of the Air Cargo which is so perishable missing the scheduled flight.

The Association also highlighted the delay in getting the test results for import samples from the Regional Analytical Lab in the nearby Kakkanad, which had put the importer in considerable difficulties.

Often it takes between 10 to 15 days to get the test results resulting in heavy demurrage/detention charges for importer. In many cases, the lab is not adequate to handle the inspections as such the sample of the consignment has to be sent to the Lab at Mysore for test results.

CHA requested the Committee to take necessary steps to speed up the testing process of import cargo so that test results of import cargo are obtained at least 3 days of drawing the samples.

More Stories on : Taxation | Exports & Imports | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page