Govt to seek removal of demurrage charge

Kathmandu, September 13

The government is preparing to write to the Indian government for the removal of additional rental charges being levied by the Kolkata Port Trust due to the delay in evacuation of Nepal-bound cargo.

As trucks and containers are stranded at border points due to the prolonged protest in the Tarai, it takes a few more days for customs clearance of the imported goods and in this situation it is not possible to quickly evacuate cargo from Kolkata port, according to Shishir Kumar Dhungana, director general of the Department of Customs (DoC).

“The government will request its Indian counterpart to remove the additional rental and demurrage charges levied by the port and the container freight station in Kolkata, respectively, so that importers could get some relief.”

Umbrella associations of the private sector — Federation of Nepalese Chambers of Commerce and Industry and the Confederation of Nepalese Industries — have for long been requesting the government to request the Indian government to remove the demurrage charges incurred due to the protest in Tarai region, which has been ongoing since a month.

Normally, Nepali importers need to evacuate Nepal-bound cargo that are

ferried by rail within 20 days once the cargo lands at Kolkata port.

Likewise, cargo that are ferried in trucks and containers or via road needs to be released within a week from the port yard. After the grace period lapses, the port authority transfers the Nepal-bound cargo to the yard of privately owned

companies, which levy high demurrage charges.

“If government requests  Shipping Ministry and Commerce Ministry of India, the port authority may consider extending the grace period for evacuating Nepal-bound cargo,” said Rajan Sharma, president of Nepal Freight Forwarders’ Association.

Likewise, the Nepali Consulate General of Kolkata can help reduce high detention charges imposed by shipping liners when there is a delay in returning their containers. Shipping liners provide a 14-day turnaround time for Nepali importers, which means an importer must return a container to the respective shipping liner within two weeks from the date of the container being dispatched to Nepal from Kolkata port.

After the grace period is over, shipping liners charge $80 to $120 per day from importers, as per Sharma.

“In this regard, the Consulate General of Kolkata can talk to the shipping liners about the Tarai turmoil and request for an extension to the grace period temporarily to safeguard the importers.”

Likewise, on the request of the private sector, the Ministry of Finance (MoF) is going to remove the demurrage charges levied by the Inland Clearance Depot (ICD) Birgunj and Birgunj Customs’ warehouse.

Importers need to release cargo within five days from ICD Birgunj and within 60 days from the customs warehouse, as per DoC Director General Dhungana.