Remittances by Multimodal Transport Operators (MTOs)
to their Overseas Agents

8B.3

(i)

Multi Modal Transport Operators (MTOs) are allowed to issue a single document i.e. Multi-Modal Transport Document (MTD) which is a negotiable document. For

purposes of handling the export cargo the MTOs appoint agents at the port of discharge/ trans-shipment for onward transport by ocean, rail, road and/or inland water ways. The MTOs desirous of making remittances to these agents towards the services rendered by them for on-carriage of the cargo may approach a designated branch of authorised dealer with agency agreement entered with the overseas agents togetherwith a copy of the registration certificate issued by the Director General of Shipping. The designated branch may allow the remittances towards commission and other charges payable to the overseas agents after verifying the following documents.

(a)

Agency agreement indicating the rates of various items of work to be attended by him

(b)

Full details of remittance applied for in form MTR

(c)

Non-negotiable copy of multi-modal transport documents

(d)

Invoices/debit notes from overseas agents indicating charges for the services endered,and

(e)

Undertaking/Certificate regarding payment of income-Tax (cf. paragraph 3B.10)

As a proof of on-carriage (POC), authorised dealers may call for Bill of Lading/Railway receipt/transport or lorry receipt togetherwith evidence of rates having been decided prior to shipment/ on-carriage. Authorised dealers should ensure with reference to registration certificate issued by the Director General of Shipping that the freight was collected during its validity period. In cases of freight pre-paid MTDs a declaration from exporter in form DIC may be obtained.

Note :

Change in designated branch of an authorised dealer should be advised to

Reserve Bank

(ii)

Remittance of lease rental of containers may be allowed by authorised dealers on the

basis of approval of the Director General of Shipping to take the containers on lease, Lease Agreement, invoice of rental and a Chartered Accountant's certificate stating that the containers have been taken on the books of accounts of the leasee.

(iii)

Remittances towards cost of repairs may be allowed by authorised dealers to the

overseas company which has carried out the repairs to the containers or to the overseas agents of the applicant towards reimbursement of the expenses incurred by them for carrying out the repairs after verifying the shipping documents to show that the containers have been taken abroad and an invoice from the overseas repairers.

(iv)

MTOs are sometimes required to arrange for return of empty containers from

overseas ports to India or to any other port outside India. When the containers are being returned to India they should be received on 'charges to collect ' basis. In case the empty containers are received on a foreign port, authorised dealers may allow remittances towards freight charges to overseas shipping companies or reimbursement to MTO's agents abroad, after verifying invoice from the company and service bill of lading indicating container number or copies of loading/discharge certificates from respective port authorities (please also see item 21B of Annexure III).

(v)

Authorised dealers should maintain a systematic record of the remittances allowed

and related documents thereto and make them available to the internal auditors/Reserve Bank officials as and when called for.