TRANSPORT SERVICES

What is covered under GATS as per W/120?

11. TRANSPORT SERVICES

UNCPC
A. Maritime Transport Services
a. Passenger transportation 7211
b. Freight transportation 7212
c. Rental of vessels with crew 7213
d. Maintenance and repair of vessels 8868**
e. Pushing and towing services 7214
f. Supporting services for maritime transport 745**

B. Internal Waterways Transport

a. Passenger transportation 7221
b. Freight transportation 7222
c. Rental of vessels with crew 7223
d. Maintenance and repair of vessels 8868**
e. Pushing and towing services 7224
f. Supporting services for internal waterway 745**
transport

C. Air Transport Services

a. Passenger transportation 731
b. Freight transportation 732
c. Rental of aircraft with crew 734
d. Maintenance and repair of aircraft 8868**
e. Supporting services for air transport 746

D. Space Transport 733

E. Rail Transport Services

a. Passenger transportation 7111
b. Freight transportation 7112
c. Pushing and towing services 7113
d. Maintenance and repair of rail transport equipment
e. Supporting services for rail transport services 743

F. Road Transport Services

a. Passenger transportation 7121+7122
b. Freight transportation 7123
c. Rental of commercial vehicles with operator 7124
d. Maintenance and repair of road transport 6112+8867
equipment
e. Supporting services for road transport services
 G. Pipeline Transport
a. Transportation of fuels 7131
b. Transportation of other goods 7139

H. Services auxiliary to all modes of transport

a. Cargo-handling services 741
b. Storage and warehouse services 742
c. Freight transport agency services 748
d. Other

Existing (Uruguay Round) commitments of India:

During the Uruguay round, India has not taken any commitments in any of the transport services.

MFN exemption has been scheduled on cargo sharing between bilateral partners insofar
as Bulgaria, Pakistan and the UAE are concerned and on cargo reservations for all countries in
line with UN liner code.

Maritime Transport Services :

Summary of requests made to India by the trading partners:

I International Transport:

¾ Remove MFN exemptions relating to bilateral agreements and UN liner code.

¾ Eliminate all regulations limiting market access and national treatment for international
transport of freight and passengers for Modes 1,2 and 3.
¾ Eliminate restriction on foreign capital in international shipping companies;
¾ Eliminate requirement of permission from government before charter of vessels;
¾ Eliminate monopoly of national flag vessels and companies in Liner Shipping services;
¾ Eliminate preference to Indian vessels i.e. Export CIF/ import FOB basis;
¾ Eliminate favourable treatment to national flag vessels in transport of oil & Oil products
¾ Eliminate restrictions on Government cargo (including arrangements by public transport)
¾ Take full commitments under Mode 3;
¾ Take commitments under Mode 4 for presence of senior executives, managers and ICTs
and for visits for business purposes;

II Auxiliary Services:

¾ Take market access and national treatment commitments on Maritime agency and freight
forwarding services and on Towing services;
¾ Eliminate Obligations to use public facilities in respect of cargo handling services;
¾ Take commitments on Rental and lease services without operators;
¾ Remove restrictions on storage and warehousing services and customs clearance services;
¾ Take additional commitments for access to & use of port facilities;
III. Multimodal activities

¾ On inland forwarding of cargoes, commit the ability to rent or lease or to have access to and
use of multimodal facilities;
¾ Offer binding commitments on road and rail cabotage transport of cargo where an
international sea leg is involved;
¾ Take commitments as per definitions in model schedule to allow repositioning/moving
equipment (i.e. empty containers, flatbeds) on their vessels between ports of India;
¾ Allow feedering of cargoes between main ports and way ports for multinational cargo
between ports of India through vessels of any flag;
¾ Take full market access and national treatment commitments in Modes 1,2 & 3 and
horizontal commitments in Mode 4 on maintenance & repair of vessels;

IV. Logistics & related services:

¾ Take liberalised commitments on Logistics and related services in the sub-sectors

identified as follows:
a) Freight transportation services; b) Cargo-handling services; c) Storage and
warehousing services; d) Custom clearances services; e) Transport agency services;
f) Container station and depot services; g) Inventory management services; h) Order
processing services; i) Production planning services and j) Production control
services;

V. Ship Broking Services:

¾ Take full commitments in (i). Ship braking services, Classification societies, General sales
agent services, (ii) Maintenance & Repair of vessels and (iii) Handling of cargo by ships and
restrictions related thereto;

Summary of India’s requests to its trading partners:

¾ Take full market access and national treatment commitments in Mode 1, 3 & 4.
¾ Remove discrimination between foreign and national flag vessels in payment of charges
access to provisions etc.
¾ Remove requirement of citizenship for operating as customs broker/agents and freight
forwarding agents.
¾ Remove reservation for national flag vessels in Government and Aid cargo.
¾ In maritime freight forwarding, remove restrictions on capital, setting up of branch
offices and of joint ventures.
¾ Allow foreign companies to set up 100% owned subsidiary companies in the maritime
agencies and customs brokers service.

Air Transport Services :

Summary of Requests made to India by its trading partners:

¾ Take full market access and national treatment commitments in Mode 2 & 3 and horizontal
commitments in Mode 4 on maintenance & repair of aircraft & parts thereof and on Ground
Handling Services;
¾ Take full market access and national treatment commitments in Mode 1, 2 & 3 and horizontal
commitments in Mode 4 on selling and marketing, computer reservation systems;
¾ Take full market access and national treatment commitments in Mode 3 and horizontal
commitments in Mode 4 on Air port Management Services ;

Rail Transport Services:

Summary of Requests made to India by its trading partners

¾ Take full market access and national treatment commitments in Mode 3 and horizontal
commitments in Mode 4;
¾ Take full market access and national treatment commitments in Modes 1,2 & 3 and
horizontal commitments in Mode 4 in Maintenance & Repair of Rail Transport Equipment;

Space Transport Services

Requests received by India from trading partners:

¾ Take commitments in the sector.

Road Transport Services:

Summary of Requests received by India from its trading partners:

¾ Take full market access and national treatment commitments in Mode 3 and horizontal
commitments in Mode 4 on Freight transport
¾ Take full market access and national treatment commitments in Mode 1,2 & 3 and horizontal
commitments in Mode 4 on Maintenance & Repair of Road Transport Equipment.

Services Auxiliary to all Modes of Transport:

Summary of Requests received by India from its trading partners:

¾ Take full market access and national treatment commitments in Modes 2 &3 and horizontal
commitments in Mode 4 in Storage & Warehouse services ;

¾ Take full market access and national treatment commitments in Modes 1,2 & 3 and
horizontal commitments in Mode 4 in freight transport agency & pre–shipment inspection,
Cargo Handling services and other auxiliary transport services;

¾ In customs clearance agent services, take commitments to be taken and eliminate nationality
and residency requirements;
India’s Revised Offer:

During the on-going mandated Services negotiations at the WTO India has submitted its
Revised Offer in August 2005. In this Services sector, under Maritime Transport Services, India
has offered for commitments in ‘freight and passengers excluding cabotage and offshore
transport ‘ for International maritime transport services. Under Maritime auxiliary services, India
has offered for commitments in the sub-sectors viz(i) maritime cargo handling services, (ii)
storage and warehousing services in ports, (iii) Customs clearance services, (iv) Container
station and Deport services, (vi)Maritime Agency services, (v) Maritime Freight Forwarding
services,(vi) International rental/charter of vessels with crew or on bareboat basis ( excluding
cabotage and Offshore transport), (vii) maintenance and repairs of sea going vessels and (viii)
ship broking services with full commitments in Mode 3 subject to certain conditions and FIPB
approval.

India has further offered in maintenance and repair of aircraft services under Air
Transport services with full commitments in Mode 1 & 2. Under Mode 3, full commitments have
also been offered subject to certain condition and FIPB approval.

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