After getting relief on penalty levied by shipping companies, importers are now knocking the government doors against container freight service (CFS) and inland container depot (ICD) operators for not adhering to Shipping Ministry notification on waiver of demurrage and other charges due to Covid lockdown.

On receipt of several complaints against the operators, the Office of Commissioner of Customs, Jawaharlal Nehru Port had issued a fresh direction to CFS and ICD last Friday on waiver of charges.

Over 6,000 micro, small and medium enterprises in the recycling industry are staring at charges of ₹4,200 crore which is increasing every passing day.

The CFS charges works out to about ₹20,000 per day for 40-feet container and if it has to be calculated for over 45 days of lockdown period then the charges would be more than the value of goods lying in the container, said an importer.

One of the Kutch-based metal recycling companies plans to file a writ petition in the Ahmedabad High Court against the penalty being levied on imported consignments despite government order.

Sanjay Mehta, President, Material recycling Association of India, said over 1.5 lakh containers with metallic scrap and waste papers are held up at ports as ICDs and CFS across country are not honouring the government directive on waiver of charges during the lockdown period.

Even worse, he added that the foreign shipping companies will also start levying demurrage and penalty from May 17 when the third leg of lockdown ends officially.

Given the current crisis, the industry would be able to clear only 30-40 per cent of containers piled up at the ports before the lockdown ends on May 17, said the MRAI.

Fee waiver extension

Hence, it said the government should direct the shipping lines to extend the fee waiver till May 30.

Despite the government approval to restart economic activity in green zones, the confidence of the trade and industry is impacted by banks reluctance to lower lending rates and provide working capital as most of MSMEs have already exhausted their borrowing limits.

Besides this, labour shortage due to migrant workers exodus, high logistics cost and unsustainable levy on imported raw materials has exerted pressure on manufacturing companies.

Meanwhile, the Container Freight Stations Association of India has issued advisory to its members to provide 50 per cent concession on the rent charged on the container that have arrived between April 1-15.

Mehta said despite government directive CFS and ICDs are imposing hefty penalty for not clearing the cargo despite extension of lockdown till May 17 and it may be further extend in some cities.

Private ICDs and CFS need to follow the government direction on waiver for complete lockdown period and mandatory 14 days of free time, he added.

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