Why demurrage/detention waiver period is required at destination for import

 

The information provided here is part of Export Import Online Tutorial


Why is demurrage/detention waiver period required at destination for import?

 

 

Do importers require more time to complete import customs clearance procedures at destination customs location? Can an importer/consignee avail demurrage/detention free period at port of destination?

 

Demurrage means charges against goods and detention means charges against equipments.

 

An importer has to pay demurrage and detention, if he could not complete importo clearance procedures in time at importing country. The importer is well known, he can not complete import clearance procedures in time due to various reasons. Let us find some of the reasons behind importer requires demurrage/detention waiver at import destination port.

 

There may have different reasons, however let me explain major three of them.

 

For any imports or exports, the duty of customs department of the country is to make sure that the goods imported or exported is the same goods what the importer or exporter declared in the documents as per the mentioned specifications. Also it is the duty of customs to confirm that the value of goods imported or exported is the same as per declared.

 

As I have explained in my previous article, import procedures under some of the products takes more time compared to the goods under green channel. The officials of customs department can not be trained about the quality specification, local market price of the same etc. of each product of import, as the volume of information required for each of them is very high. So in order to solve this problem, various government agencies are appointed for each of the products or group of products separately to ascertain the quality. As well as there are sources of ascertaining value of local market on the said product.

 

The common products importing, will be cleared very fast, some cases, under green channel without any restrictions. However, the department may require further study on quality specification and value under the imported goods of some consignments. Here, the customs department draws ‘test sample’ from the random check of goods imported, and send the sample for test with the quality inspection agencies. This process may take some time to get ‘test report’.

 

The time duration for the said process may be more, compared to the import clearance of other normal goods. Here, the importer may know about the said delay in import customs clearance formalities well in advance. So he advises supplier to get permission to waive of demurrage, detention charges or both from the carrier of goods for a specific period of time – say 15 days, 10 days etc.

 

In some cases, the distance between the port of clearance and the factory of importer may be higher, so as to enable them to return the empty container.

   

The importer may require more time to de-stuff specific cargo, where in he can not deliver the container as normal imported one.

 

I hope, you came to know the reasons behind request of waiver of demurrage and detention on import goods at destination port. Do you wish to add more information about the demurrage waiver or detention waiver at destination port? Would you like to share your experience in waiver of detention or waiver of demurrage at destination port in importing country?

 

Share your thoughts about this article - Why is demurrage/detention waiver period required at destination for import?


 

 

 

The above information is a part of Import Export Training online


Other details on how to import export 

 

Difference between Demurrage and Detention in import
What happens, if cargo not cleared by importer
What is said to contain in Bill of Lading.
Difference between Vessel arriving and Vessel birthing in export import trade
Difference between Pro forma Invoice and Commercial Invoice in Export Import Trade. Do pro- forma invoice accepts for import customs clearance?
Know the term Port of Discharge and Place of Delivery
How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Foreign Trade Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation

   

Registration procedures and formalities to obtain GSTIN

How many digits in GSTIN under Goods and Service Tax registration

Would multiple registration be allowed under Goods and Service Tax (GSTIN)?

Procedure for obtaining Registration number of GSTIN

Procedures to get GST Registration number for IT exempted proprietorship firms.

Process of application for registration under GST Act to obtain GSTIN

Different application Forms for registration under Goods and Service Tax Act (GSTIN)

Application for registration under GST Act to obtain GSTIN

GST registration and returns filing procedures for PSUs and Government entities

Re-registration of GST, Goods and Service Tax.

 

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

Service Tariff Code for GST

Registration procedures and formalities to obtain GSTIN

How many digits in GSTIN under Goods and Service Tax registration

Would multiple registration be allowed under Goods and Service Tax (GSTIN)?

 Procedure for obtaining Registration number of GSTIN

Procedures to get GST Registration number for IT exempted proprietorship firms.

 


Comments


R. Jagadish kumar: Our is Tyre Manufacturing Industries situated at MYSORE. Further, we have to payable Demurrage and Retention Charges to our Agent, which is claiming towards our Imported Machinerieries and structural etc (used / fresh etc) shifted from NewZeland to Mysore through Chennai Sea Port.We requested our Agents to furnish the percentages of Demurrage and Retention charges "Waived off Benefits amount". However, the same was not furnished to us. Therefore, we request you to kindly enlighten us the procedures to know whether our Agent availed OR not Availed the "Waived Off Benefits of Demurrage and Retention Charges under Carriage of Goods by Sea Act, 1925 and Customs Act 1962" etc. We look forward your response, to move further in consultation with you.

Anoop Kumar bansal: Hello, I have import goods in india at Bombay port from Saudi Arabia and goods reached there. I deposited all the custom duties required. But now I required original b/L for releaseing goods which is not sent by the exporter for unknown reason. All the payments are already cleared. So please suggest me that what are the options to release goods at the earliest as dammaruge will be start soon. Thanks

EXIM WORLD TRADE: Mr. Bansal, Your given declaration is not enough to understand the issue. Require all details regarding import like is it LCL or FCL cargo? What was payment and delivery terms? Kindly send details regarding where you have paid duties? Your supplier must send BL copy with endorsement by him and shipping line. so kindly provide us complete information regarding your issue. you can also co ordinate with Shipping line for copy of BL. Ashwin Mistri www.eximworldtrade.in India

Justine_Rains: is it possible to negociation with the shipping company to extend detention period, while containers are already carried out?

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers