Normally a shipping company cannot open its branches at each and every port. So generally, a steamer agent is appointed at each and every port that will provide services on behalf of the company. The steamer agent can be any person and services may be provided directly or indirectly, the steamer agent will charge commission for the services rendered to the shipping company.
There are two types of steamer agents:
Protecting agent
Operating agent
Protecting agent looks after the ships husbandry work. A ships husband i.e. the managing owner will do everything necessary to enable ship to commence voyage and earn freight. He looks after repairs insurance, hull maintenance, equipment management and other concerns of ship.
Operating agent will look after loading, unloading of cargo stuffing of container, filing of IGM and other administrative work.
Functions of steamer agent in case of IMPORTS:
He gets the details regarding the arrival date of the ship, details of cargo, shipping stores and other details of Inward General Manifest (IGM). He prepares and submits the IGM to the customs department.
He arranges a berth for the ship on the port and also makes arrangement for loading and unloading of cargo. He arranges for cargo to be unloaded near the berth. He prepares a list of cargo unloaded and arranges a shed or place where the unloaded cargo can be stored. He gets cargo in number from the port authorities. He gets the cargo stuffed and keeps the record of the cargo. He collects charges from the customer on behalf of the shipping line and pays the port charges and taxes on behalf of the shipping line.
Functions of steamer agent in case of EXPORTS:
He receives the cargo from the customer and issues shipping bill to the customer besides he collects freight from the customer if it’s a “paid shipping bill”. He collects the port charges and other taxes from customer. He gets the cargo stuffed near the berth for loading and arranges for loading of cargo when the ship arrives on the berth.
He prepares a list of consignments which are to be exported and handovers a copy to the captain of the ship. He gets the mate receipt from the captain of the ship and gives a copy to customer.
The steamer agent books cargo for or on behalf of a shipping line. For getting more cargo he advertises, canvasses, including giving advertisement in newspapers, bulletins, magazines. The steamer agent also provides container feeder services whereby goods are transhipped from larger port to smaller ports.
Many time steamer agent make en block booking of space and make payment of that space whether or not cargo is booked or not. If the steamer agent deals directly with the shipping and retains any commission out of any amount collected by him, the same will be liable for Service Tax. However if such steamer agent deals with the agent of such shipping line, then no Service Tax is leviable on the agent making en block booking. Container handling receiving service rendered by the steamer agent is liable to Service Tax.
The service charges of a steamer agent will constitute husbandry fee as well as agency commission on import / export cargo. Other expenses incurred the steamer agent on behalf of the shipping line shall not be taken into account.
Only such sea port offices of the steamer agent should be registered for Service Tax purposes which are raising the bill to shipping lines. The offices which are just sales offices and do not raise any bills on shipping lines need not be registered. Shipping line means any person who owns the ship or charter s a ship and includes an enterprise which operates or manages the business of shipping.
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