Pay Demurrage under Protest, says Material Recycling Association

Ports Violate Govt Orders Charge Demurrage in Lockdown

MRAI along with its members and all partner associations has been relentlessly working with the government on providing relief towards container detention & port/CFS ground rent to the importers, whose cargoes have got stuck for clearances at ports on account of lock down.

Subsequently, following notice/order/circulars were issued by different Ministries :-

· Ministry of Shipping (Order No PD-14033/4/2020-PD VII dated 21st April 2020.

· Directorate General of Shipping (Order No. 11 of 2020 dated 22nd April 2020).

· CBIC issued a Facility Notice 394/46/2020-cus(AS) dated 23.04.2020

Also many Customs Houses have issued the circular binding CFS/ ICDs to abide by the Shipping Ministry Guidelines.

Subsequently, CFSAI issued a letter denying to give any waiver on demurrage charges, citing in their letter that CFS are governed under Handling of Cargo in Custom Area Regulation 2009 and non of the above orders are mentioning about the HCCAR Rules.

Consequently JNCH Customs at Nhava Sheva Port has issued a revised guidance to all the CFS/ICDs Citing HCCAR Rules, so that their orders are abided.

MRAI request all it members to write a letter to CFS/ ICDs having their containers, to waive of ground rent, detention/ demurrage charges with immediate effect failing which the Jurisdictional Customs Commissionerate will be informed for strict actions against them.

As you all are aware entire Country is under strict lockdown, no curfew pass are available either applying online or directly with Police, Recycling Industry don’t fall under essential category. Due to exodus, labour is not available, factories & plants are not operational, cash flow crunch in the market, Employees cannot reach office to perform necessary work related to imports, Banks are working with less manpower hence it is taking more than 4-5 days for getting documents, courier services are not resumed and due to various other reasons the process of clearing the containers is very slow and time consuming so please plan accordingly to clear the containers.

MRAI is also exploring various mediums to reach Ministers/ Bureaucrats on phones, also trying to get their attention through media (Electronic/ News Paper) and also seeking legal opinions to make sure shipping lines and CFS adhere to government order.

Whilst MRAI continues to follow up with the Government to seek waivers on detention & ground rent, MRAI would suggest to all those members who wish to expedite clearances of their import cargoes from the ports/CFS/ICDs to pay the charges either partially or in full UNDER PROTEST, so that it can be refunded back from Shipping lines and CFS once the orders issued by ministries is properly implemented.

This advisory is in INTEREST OF TRADE, so whatever container you are clearing, please release the container by paying UNDER PROTEST ONLY. This will also help the Ports/ ICDs/ CFS to decongest which will further aid to smoothen International trade.

ONCE AGAIN WE SUGGEST IF CHARGES ARE TO BE PAID, IT SHOULD BE PAID UNDER PROTEST ONLY.