Business drivers are external or internal influences that significantly impact and/or set direction for your business. Thus a business driver can be any thing that 'drives' or propels a business forward. However, we are interested only in such business drivers that have significant impact. One of them is 'Regulation'. but what is regulation ?
Regulation is the collection of laws, rules, regulations, standard and authorized procedures that the government agencies impose on a particular business segment. Telecom business , Insurance or banking for example have tight regulations controlling the services that can be offered, the charges that can be imposed, and the geographic locations in which the business can be conducted. The regulations exist because of the critical nature of the business in question.
Shipping and Foreign Trade too is a very critical business for a nation's economic well being as well as it's security. This Shipping business is a highly regulated business. The following are some of the laws that govern and control this business:
1. The Customs Act
2. The Carriage of Goods by Sea Act (CoGSA)
3. The Merchant Shipping Act
4. Indian Ports act
5. The Foreign Exchange Management Act
6. The Income Tax Act
....... and many more.
The impact of regulation is that if any of the above laws change and consequently their rules and regulations change, then your shipping or Foreign Trade is going to be affected in some way.
