Prof.

Rajeev Sharma

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.

Multi modal tranporation

As per MMTG Act 1993 as amended 2000

Multi modal transportation is defined as " means carriage of goods, by

at least two different modes of transport under a multimodal transport
contract, from the place of acceptance of the goods in India to a place of
delivery of the goods outside India;';

Modes of Transport Identified

1. Road
2. Rail
3. Air
4. Water ( Sea)
5. Inland water ways
6. Pipelines
7. Rope ways
Prof. Rajeev Sharma

For this two requirements are done

1.Multimodal transport contract is done. It means a contract under

which a multimodal transport operator undertakes to perform or
procure the performance of multimodal transportation against
payment of freight.

Where multimodal transport operator (MTO) is the one

who-

(i) concludes a multimodal transport contract on his own behalf or

through another person acting on his behalf;

(ii) acts as principal, and not as an agent either of the consignor or

of the carrier participating in the multimodal transportation, and
who assumes responsibility for the performance of the said
Contract; and

(iii) is registered under sub-section (3) of section 4

Who can be a MTO

UNDER MMTGA a MTO can be an 1.applicant who is a company, firm or
proprietary concern, engaged either in the business of shipping, or freight
forwarding in India or abroad with a minimum annual turnover of fifty lakh
rupees during the immediately preceding financial year or an average annual
turnover of fifty lakh rupees during the preceding three financial years as
certified by a Chartered Accountant within the meaning of the Chartered
Accountants Act, 1949 (38 of 1949); (ii) that if the applicant is a company,
firm or proprietary concern other than a company, firm or proprietary
concern, specified in sub-clause (i), the subscribed share capital of such
company or the aggregate balance in the capital account of partners of the
firm, or the capital of the proprietor is not less than fifty lakh rupees.";
Prof. Rajeev Sharma

2. If any applicant who is not a resident of India and who is not engaged in
the business of shipping shall not be granted registration unless he has
established a place of business in India: Provided also that in respect of any
applicant who is not a resident of India, the turnover may be certified by any
authority competent to certify the accounts of a company in that country."

The certificate of registration to this effects is granted by D.G. of shipping

for a period of three years and may be renewed from time to time for a
further period of three years at a time.

An application for renewal shall be made in such form as may be prescribed

and shall be accompanied by such amount of fees as may be notified by the
Central Government: Provided that such fees shall not be less than rupees
ten thousand and shall not exceed rupees twenty thousand.

Multimodal Transport Document (MTD)

means a negotiable or non-negotiable document evidencing a multimodal

transport contract and which can be replaced by electronic data interchange
messages permitted by applicable law;

(1) "Negotiable multimodal transport documents "

means a multimodal transport document which is -

(i) made out of order or to bearer ; or

(ii) made out to order and is transferable by endorsement ; or

(iii) made out to bearer and is transferable without endorsement;

(2) "Non-negotiable multimodal transport document "

means a multimodal transport document which indicates only one

named consignee.
Prof. Rajeev Sharma

Applicability of MTD
The provision set out and referred to in this Multimodal Transport
Document shall apply, if the transport as described on the face of the
document is by two or more modes of transport from the place of
acceptance of the goods in India to a place of delivery of the goods
outside India.

What’s the use of MTD?

By the issuance of the Multimodal Transport Document the
Multimodal Transport Operator

a) undertakes to perform and /or in his own name to procure

performance* of the multimodal transport including all services which
are necessary to such transport from the time of taking the goods in
charge to the time of delivery, and accepts responsibility for such
transport and such services to the extent set out in these conditions.

(b) accepts responsibility for the acts and omissions of his agents or
servants, when such agents or servants are acting within their scope
of their employment, as if such acts and omissions were own.

(c) accepts responsibility for the acts and omissions of any other
person whose services he uses for the performance of the contract
evidenced by this "Multimodal Transport Documents.

(d) undertakes to perform or to procure performance of all acts

necessary to ensure delivery.

(e) assumes liability to the extent set out in these conditions of loss of
or damage to the goods occurring between the time of taking them
into his charge and the time of delivery, and undertakes to pay
compensation as set out in these conditions in respect of such loss or
damage.

(f) assumes liability to the extent set out in these conditions for delay
in delivery of the goods and undertakes to pay compensation as set
out in that condition.
Prof. Rajeev Sharma

Negotiability and Title to the Goods

By accepting the Multimodal Transportation Document the consignor

and his transferees agree with the Multimodal Transport Operator
that, unless it is marked "Non-negotiable:" it shall constitute title to the
goods and the holder, by endorsement of this Multimodal Transport
Document, shall be entitled to receive or to transfer the goods
mentioned in this Multimodal Transport Document.

Evidentiary effect of the Multimodal Transport Document :

(1) The Multimodal Transport Document shall be prima-facie

evidence of the taking in charge by the Multimodal Transport
Operator of the goods as described therein; and

2) Proof to the contrary by the Multimodal Transport Operator shall

not be admissible if the Multimodal Transport Document is issued in
negotiable form and has been transferred to a third party, including a
consignee, who has acted in good faith in reliance on the description
of goods therein.

Basis of liability

(1) The Multi-modal Transport Operator shall be liable for loss

resulting from loss of or damage to the goods delay in delivery and
any consequential loss or damage arising from such delay if the
occurrence which caused such loss, damage or delay in delivery,
took place while the goods were in his charge unless the Multimodal
Transport Operator proves that he, his servants or agents or any
other persons whose services be used for the performance of the
contract evidenced by this Multimodal Transport Document, took all
measures that would reasonably be required to avoid the occurrence
and its consequences.
Prof. Rajeev Sharma

(2) Where fault or neglect on the part of the Multimodal Transport

Operator, his servants or agents or any other person whose services
he uses for the performance of the contract evidenced by this
Multimodal Transport Document, combines with another cause to
produce loss or damage or delay in delivery, the Multimodal
Transport Operator shall be liable only to the extend ;that the loss,
damage or delay in delivery is attributable to such fault or neglect,
provided that the Multimodal Transport Operator proves the part of
the loss, damage or delay in delivery not attributable thereto.

(3) Delay in delivery occurs when the goods have not been delivered
within the time expressly agreed upon or in the absence of such
agreement, within reasonable time required by a diligent Multi-modal
Transport Operator, having regard to the circumstances of the case
to affect the delivery of goods.

(4) If the goods have not been delivered within ninety consecutive
days following the date of delivery expressly agreed upon, the
claimant may treat the goods as lost.