A spat between importers and maritime logistics companies over the waiver of charges during the extended lockdown period has spilled out into the open after ports, shipping lines and container freight stations struck a defiant posture on a Shipping Ministry direction to forego the levies and blamed importers for slow evacuation of cargo.

“Importers are trying their best to clear cargo, but could not do so on account of…many drivers went to their native places and thus transportation is still a challenge,” TS Ahluwalia, President, Northern India Shippers Association, wrote in a letter to Commerce and Industries Minister Piyush Goyal.

“Many States including Delhi have not given permission (for opening of factories and warehouses) keeping in view the prevailing situation in their respective States. So, the bigger question arises that even if clearing of cargo is managed, where will such cargo be evacuated,” Ahluwalia wrote in the letter, which was also copied to Road Transport Minister Nitin Gadkari and Shipping Minister Mansukh Mandaviya.

Further, due to the discontinuance of courier services, documents are either not reaching the banks or remain uncleared due to restrictions on opening of businesses, he stated.

The Northern India Shippers Association has urged the ministers to issue an advisory to ports, shipping lines and CFS to extend their cooperation (waiver from charges) till May 3.

“As the impact is global, shipping lines may (also) be advised to consider extending free days (2 weeks) for buyers in foreign countries to clear cargo. CONCOR has already issued waiver for the same, and we are advising importers to use CONCOR/rail services to take cargo to the nearest inland container depot,” he added.

MRAI writes to Union Minister Mandaviya

With the CFSs and shipping lines ignoring the Shipping Ministry directions given on April 21 to waive various charges such as ground rent and demurrage for EXIM trade, the Material Recycling Association of India has urged Shipping Minister Mandaviya in a letter to ensure that his Ministry’s orders are implemented by the maritime logistics stakeholders.

The Association estimates that more than 2,00,000 containers of recyclable scrap are stuck at ports across India due to the lockdown, as various industries using the scrap were non-operational, entailing huge demurrage.

The Association President Sanjay Mehta even suggested that the government set up a regulatory agency to oversee shipping lines working in India.

With the Customs Department flooded with grievances from importers, the Jawaharlal Nehru Custom House (JNCH) in Nhava Sheva, issued a guidance to the CFSs on Friday, the second in as many days, referring to the Handling of Cargo in Customs Area Regulation, 2009 (HCCAR), under which these freight stations operate.

The guidance was issued by the Customs after the CFS operators pointed out that none of the advisories on waiver of charges were issued under the HCCAR and none of the directions can be classified as ‘regulations’ issued by the Customs Department under HCCAR.

“The result of the present lockdown situation presents the specific occasion for you to sensitively view the above situation in perspective and as akin to when goods detained per HCCAR, 2009…. it is the understanding that you are, and would be, acting reasonably in the matter of devising, deciding and issuing the waivers in terms of government advisories,” Sanjay Mahendru, Commissioner of Customs, JNCH, wrote in the April 24 guidance to CFSs.

CFS operators’ dilemma

The CFS operators said that the unlimited waiver of charges are turning to be “counterproductive” as only a small number of importers came forward to evacuate cargo.

“When 25-30 per cent of the importers with full facilitation for EXIM movement across the country can clear their imported containers, why not the others? Almost 70 per cent of the importers work with CFSs on bilateral contracts and enjoy huge discounts way below the printed tariff. In almost all the cases, they also enjoy additional 10-15 days free time,” said a CFS executive.

“But, authorities consistently pressurizing CFSs to offer waivers despite huge increase in costs is putting them in a dilemma,” he added.

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