Material Recycling Association of India asks government to waive demurrage and rental charges

The Material Recycling Association of India (MRAI) has asked the government to waive the detention demurrage charges by shipping lines and container freight stations apart from being provided with additional working capital. It also wants waiver on the interest on late payment of customs duty. “The 6000 odd MSME units […]

The Material Recycling Association of India (MRAI) has asked the government to waive the detention demurrage charges by shipping lines and container freight stations apart from being provided with additional working capital.

It also wants waiver on the interest on late payment of customs duty.

“The 6000 odd MSME units in the recycling segment from metal and paper are adhering government order to giving salaries to their employees. However, foreign shipping lines and their associates are not listening to the Ministry of Shipping guidelines, for waiving off the unjustified levies that they charge on import cargo,” said Sanjay Mehta, president, MRAI.

This has led to containers containing imported scrap worth several lakhs getting stranded, making it challenging for the sector to start operations, said Mehta.

If these orders are not strictly implemented by shipping lines, Inland Container Depots (ICDs) and Container Freight Stations (CFSs) , Indian importers will lose more than Rs.80,000 crores in detention/demurrage charges to the foreign liners, said the industry.

According to MRAI, more than 2.5 lakh containers have got stuck for clearances at Indian ports on account of the complete lockdown.

“Plants are not operational, there is cash flow crunch in the market,employees are unable to reach office to perform necessary works related to imports and banks are working with less manpower,” said MRAI is a statement.

According to the industry, the Container Freight Stations Association of India (CFSAI) has issued a letter denying to give any waiver on demurrage charges, citing that they are governed under Handling of Cargo in Customs Area Regulations( HCCAR) , 2009 , whereas none of the ministerial and departmental orders have mentioned about the HCCAR Rules. Similarly, foreign shipping companies have refused to adhere to guideline orders.

Consequently, The Jawaharlal Nehru Custom House at Nhava-Sheva Port has issued a revised guidance to all the CFS/ICDs citing HCCAR Rules, so that the government orders are abided.

Source Article

Lois C. Ferrara

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