How to Renew Your MTO License: A Simple Guide - Legal Babu

How to Renew Your MTO License: A Simple Guide

mto license renewal

MTO license renewal is a critical process for any company involved in multimodal transportation. Renewing your Multimodal Transport Operator (MTO) license on time ensures that your business remains compliant with regulatory standards and continues to operate smoothly across multiple modes of transport, including road, rail, sea, and air.

MTO license is issued for 3 years, you are required to renew it before the expiry of the license.

At LegalBabu.com, we specialize in helping companies with their Multimodal Transport Operator (MTO) license renewal from DG shipping. If your MTO license is about to expire or has already expired, renewing it is crucial for continuing your business operations smoothly. Here’s a straightforward guide to help you through the renewal process.

What is the MTO license?

The Multimodal Transport Operator (MTO) License is issued by the director general of shipping, MTO License is quired for companies that operate as Multimodal Transport Operators, which is a type of transportation company that offers to transport goods using various modes of transport, such as road, rail, sea, and air.

How to Renew Your MTO License?

  1. Start Early

    Begin the renewal process at least 2 months before your current license expires. This gives you enough time to complete all the required steps without rushing.

  2. Gather Your Documents
    You’ll need to collect several documents for the renewal
  3. Insurance Proof: Provide a copy of your current insurance cover, showing that it covers all liabilities.
  4. Financial Documents: Submit a certified balance sheet and a certificate from your Chartered Accountant.
  5. Authorized Signatories: A list of people who are authorized to issue Multimodal Transport Documents (MTD).
  6. Agent Agreements: Copies of agreements with two agents abroad, including their confirmation.
  7. Undertaking: A letter on your company’s letterhead, confirming your commitment to issue MTDs.
  8. Address Change Proof: If your company address has changed, include the application for this change filed with the Registrar of Companies.
  9. Directors List: A list of directors and their contact details.
    Submit Your Application Online
  10. Log into the DG shipping portal and complete your application there., Confirm that all the information you provide online is accurate and matches your documents.
  11. Pay Fee: Pay the renewal fee online.
  12. Wait for Processing
    Processing Time: The renewal application will be reviewed by the authorities. This might take some time, so be patient.
  13. Approval: You will get a notification of approval through email 
  14. Receive Your New License
    License Issuance: Once approved, you will receive your renewed MTO license. Keep it safe and in good condition.

Tips for a Smooth Renewal

  • Double-Check Everything: Make sure all forms and documents are correct and complete before you submit them.
  • Meet Deadlines: Submit everything on time to avoid any disruptions.
  • Keep Records: Keep copies of all documents and communications related to your application.

What are the documents required for MTO renewal?

Documents Required for MTO License Renewal

  1. MTD: Need copies of MTD issued during the validity of license.
  2. Insurance Cover: A copy of your current insurance policy that covers all liabilities as an MTO, with detailed terms and conditions.
  3. Balance Sheet: A certified copy of your company’s balance sheet.
    Certificate from Chartered Accountant: A certificate from a Chartered Accountant verifying the financial status of the company.
  4. List of Signatories: A list of individuals authorized to issue Multimodal Transport Documents (MTD) on behalf of your company.
  5. Copies of Agreements: agreements with at least two agents abroad, including confirmation from these agents.
  6. Address proof: If there have been changes to the registered office address or the company name, provide a copy of the application filed with the Registrar of Companies.
  7. Directors List: A current list of directors along with their contact details.

What are the terms and conditions for Multimodal Transport Operator (MTO) registration?

Following are the terms and conditions for Multimodal Transport Operator (MTO) registration, as outlined in the Multimodal Transportation of Goods Act, 1993, and other relevant regulations:

  1. Agreement with Handling Agents:
    You must not issue a transport document for export unless you have an agreement with the person handling the consignment on your behalf in the importing country.
  2. Preservation of Certificate:
    The registration certificate should be preserved in good condition (preferably laminated). It must be surrendered to the Directorate General of Shipping (D.G. Shipping) when not in use, when expired, or at the time of renewal. It must not be used by any other person or company to issue documents.
  3. Compliance with Legal Provisions:
    The MTD (Multimodal Transport Document) issued must not contain any endorsements contrary to the Multimodal Transportation of Goods Act, 1993, or any other applicable law.
  4. Quotation of Registration Number:
    The registration number must be quoted in all bills, invoices, correspondences, etc., related to MTDs issued.
  5. Adherence to Registration Validity:
    The registration validity must be strictly adhered to. An application for renewal must be submitted at least 2 months before the expiry of the current registration. Renewal should not be presumed merely by submitting an application.
  6. Notification of Non-Compliance:
    The Competent Authority must be informed immediately if any of the prescribed requirements under MTO rules are not met during the validity of the registration.
  7. Cancellation of Registration:
    The registration is liable for cancellation if you become ineligible due to non-compliance with the requirements outlined in MTO rules.
  8. Production of Registration Certificate:
    The registration certificate must be produced upon request by the Competent Authority or any other government authority during official duties.
  9. Compliance with Foreign Operations:
    Transactions must comply with rules/guidelines governing branch offices, representatives, or agents abroad, including foreign exchange regulations.
  10. Provision of Transportation Details:
    Relevant details of transportation under the Multimodal Transport Contract must be made available to the Competent Authority for official purposes.
  11. Insurance Requirements:
    The registration is valid only while the liability insurance is in force. The insurance cover must be effective at all times during the registration period. If the insurance expires, it must be revalidated immediately, and proof of revalidation should be provided to the Directorate General of Shipping.

These conditions ensure that the operations of the MTO are conducted in compliance with legal standards and maintain the integrity of multimodal transportation practices.

We have an MTO license that expired 5 months ago. Can we renew this existing license, or will we need to apply for a new one?

Renewing an expired MTO license is not possible if the expiration date has passed by more than 60 days. Since your license expired 5 months ago, you will need to submit a new application for a fresh license. The renewal application is only accepted within a maximum of 60 days after the expiration, and even then, it requires a reasonable justification for the delay in renewal.

What is MTO in shipping terms?

In shipping terms, a Multimodal Transport Operator (MTO) is a carrier responsible for the entire carriage of goods under a single contract, even if the transportation involves multiple modes of transport (such as road, rail, sea, and air). The MTO assumes responsibility for the entire journey of the cargo from the point of origin to the final destination, handling all logistics, documentation, and potential issues along the way.

Need Help?

Renewing an MTO license can seem complex, but you don’t have to do it alone. At LegalBabu.com, we can assist you with every step of the process—from filling out forms to following up with officials. Contact us today for expert help and ensure your MTO license remains valid without any hassle.

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