Kathmandu, March 26

The Customs House Agents (CHAs) in Kolkata have threatened Nepali traders that they will recover the demurrage and detention charges accrued during border blockade by auctioning off the recently imported cargoes and have refused to trans-ship the Nepal-bound cargoes from Kolkata Port.

The latest standoff between the CHAs and Nepali traders is due to some local businessmen refusing to clear the detention, demurrage charges of shipping liners.

There are around 40 containers of Nepal-bound cargoes that had arrived at Kolkata but have not been trans-shipped to the country since long. After weeks of haggling, the CHAs have reportedly given an ultimatum to the Nepali traders: “Either clear demurrage/detention charges to the shipping liners, or we will recover the amount by auctioning the cargoes imported by the concerned importers.”

According to Rajan Sharma, president of Nepal Freight Forwarders Association (NEFFA), goods worth around Rs 800 million have been stuck in Kolkata due to the dispute between the traders and CHAs.

Though majority of the cases related to demurrage and detention were settled during the negotiation with shipping liners on an individual basis, some traders have been refusing to pay the demurrage charges citing factors beyond their control, that is, unrest at the Nepal-India border. Now, the traders have been facing problems from Indian CHAs.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) — the largest private sector umbrella body of the country — had lobbied with Association of Shipping Interest in Calcutta (ASIC) and Container Shipping Line Association, Mumbai for the relaxation in demurrage and detention charges. However, two of the shipping liners in Kolkata had refused to give any concession and had asked the importers to take the matter up with the shippers at the place of origin.

Earlier the traders had been embroiled in dispute related to detention and demurrage on 800 containers. The current row related to the 40 containers is the result of two shipping liners at Kolkata refusing to provide any concession.

As CHAs are authorised to handle Nepal-bound cargoes, they have been exerting pressure on the traders who have not cleared demurrage charges. After the Nepal-bound cargoes arrive at Kolkata Port, shipping liners hand over the cargoes to the CHAs. The agents then clear the customs transit declaration process of Nepal-bound cargoes at the port and trans-ship them to Nepal.

Now, the affected traders are worried about how to clear their goods which have been stuck at Kolkata. As the Nepal-India Treaty of Trade has clearly defined the role of CHAs in trans-shipment of Nepal-bound cargoes, it has given the CHAs strong bargaining power in this particular case, explained Sharma.

NEFFA has said that traders have complained with Consulate General of Nepal in Kolkata, but the newly appointed consul general has been unable to approach concerned stakeholders in Kolkata to settle the case and have the cargoes released.