ACT, 1993 & MULTIMODAL TRANSPORT DOCUMENT (MTD) AND HIS IMPLEMENTATION IN INDIA
Multimodal Transportation.
1. The Multimodal Transportation of Goods Act, 1993 (MMTG) provides for the regulation of Multimodal Transportation of Goods from any place in India
to any place outside India involving two or more modes of Transport on the basis of a single Multimodal Transport Contract. This act came into force
from 2.4.1993 and it provides for Registration of a person a Multimodal Transport operator and Multimodal Transportation can be carried out only
by persons registered as MTO under MMTG Act, 1993. The Director General of Shipping has been notified as the competent authority to perform
functions under the Act including registration of MTOs. The MTO registration is valid for period of 1 year and may be renewed for further
period of one year from time to time. The Director General of Shipping has, after obtaining the prior approval of Ministry of Surface Transport,
prescribed the Multimodal Transport Document under Rule 3 of Multimodal Transport Document Rules, 1994.
2. The Multimodal Transportation of Goods Act, 1993 was introduced to facilitate the exporters and give them a sense of security in transporting their goods. The concept of door to door delivery, which is MULTIMODAL Transportation is all about, is catching up fast in international trade. Reduction of logistics costs is one of the important aspects of Multimodal Transportation, thereby reducing the overall cost to the exporter and making his products more competitive in the international market. It is in this context that the Government of India thought it necessary to codify the rules and regulations governing Multimodal Transportation and enacted the Multimodal Transportation of Goods Act, 1993 based on the UNCTAD/ICC rules which have gained widespread acceptance. The Multimodal Transportation Act lays down the standard terms and conditions governing this activity. Under the provision of the Act only those companies who are registered by the competent authority which has been notified to be the Director General of Shipping, can carry out Multimodal Transportation. This requirement of registration has been imposed by the government to ensure that only such companies which have the necessary expertise infrastructure and financial capability are allowed to undertake Multimodal Transportation so that the interests of shippers are fully protected.
3. As per the MMTG Act three categories of companies are eligible to be registered as MTO's. They are (1) shipping Companies (2) Freight Forwarding Companies (3) Companies which do not fall in either of the above two categories. In the case of Shipping Companies (which own and operate vessels) as well as Freight Forwarding Companies the turnover of the last three years should bed Rs. 50 lakhs or more to make them eligible for registration as MTO.
