The Hindu Business Line : `Every one in supply chain must play a role to cut cargo delay'

Chennai April 30 The Customs Department alone cannot be blamed for high dwell time of cargo. Others in the supply chain, including shipping agents, Custom house agents, clearing agents and transporters, are also responsible, according to Mr Devendra Dutt, Member (Customs), Central Board of Excise and Customs (CBEC).

Dwell time

In March, the dwell time in sea import (from the time a ship arrives and lands the cargo to physical clearance of the cargo) was 12.95 days. Of this, 7.31 days were taken to file import documents; 2.66 days for duty payment; 2.6 days for Customs assessment and 0.77day for examination.

In exports (from the time cargo is received to uplifting in a ship or aircraft), things are even worse.

The dwell time was 22.99 days, and this was after 20 days of Customs department giving the `let export' clearance, he said at a seminar on Facilitation in logistics, organised by the Chennai Custom House Agents Association here.

Clearance

"The Customs has always been blamed for delays in cargo clearance. However, the trade is also to be equally blamed for not filing the documents and clearing the cargo on time. "We are also conscious of the delays from our side and are taking action. Everybody in the supply chain need to work together to reduce the dwell time," he said.

Mr J.K. Batra, Director General, Safeguards and Trade Facilitation, CBEC, said the department plans to provide information on dwell time of each port/airport. This information would be available at CBEC Web site to help exporters abroad schedule their shipment and send the cargo to the right port or airport, he said.

Logistics cost

Mr M. Rafeeque Ahmed, Chairman, FICCI - TN State Council, said logistics cost in India was 13 per cent of the total product cost. Quoting a World Bank study he said each additional day in transport delay the logistics cost adds up to 0.5 per cent of cargo value of goods transported by ship/rail. "This trend will kill the trade," he said.

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