The waiver will apply to boxes gated in between April 1 and 15
Container freight station (CFS) operators will consider a waiver of as much as 50 per cent in ground rent charges to importers who have not taken delivery of containers that arrived in their CFSs between April 1 and 15.
The move follows six guidance letters issued by the Jawaharlal Nehru Custom House (which regulates CFSs) since March 27, asking CFSs to comply with the Shipping Ministry directive to waive charges for delay in evacuation of cargo by importers due to reasons attributable to the lockdown.
The last letter was written by JNCH Commissioner Sanjay Mahendru, on May 8 in which he “once again guided (CFSs) to make full and strict compliance of the said directions.”
“It would also avoid prolonging CFS congestion as room for delay from client repeatedly approaching to CFS shall be curtailed. Moreover, repeat physical visits by importers would not be required,” Mahendru wrote in the letter. Following the Shipping Ministry directions, CFSs had granted ten days waiver of ground charges from March 22 to 31 to deal with the impact of the pandemic on export-import (EXIM) trade.
Since then, the CFSs have resisted requests from importers/trade bodies and associations to consider further waiver after the lockdown period was extended, due to rising operational costs. The Customs Department has pointed out that CFSs is part of the layout and business plan of the individual ports/terminals at Jawaharlal Nehru Port Trust (JNPT). Citing a circular issued in 1995, Customs said that a CFS is to be taken as an extended arm of the port and as a dock.
The waiver of 50 per cent on ground rent charges would apply to containers that arrived in their CFSs between April 1 and 15 and which are (to be) cleared by the importers before May 20, CFSAI secretary-general Umesh Grover wrote in a May 11 letter to members.
“The handling, transportation and other CFS charges would be as per respective CFSs published tariffs,” Grover wrote in the advisory, adding that the advisory will not apply to containers already cleared by importers from CFSs on mutually agreed terms.
