The information provided here is part of Import Export online Training
Importance of cargo tracking
Some general questions related to this subject are: What are the consequences on import cargo, if not taken delivery? Expenses involved on late pick up of imported goods? What happens if buyer not known on arrival of exported goods? What
happens if carrier of goods not intimated about arrival of goods?
If the overseas buyer (importer) does not follow up with the carriers on arrival of each shipment, the cargo arrives at destination lefts un cleared. Although cargo arrival notice has to be sent by carrier of goods, the shipping carrier or freight forwarder neither send CAN in time nor sends at all. In many cases, the overseas buyer may not receive Cargo Arrival Notice from the carrier.
Once cargo arrived at port of final destination, the cargo is moved to nearest container freight station (for sea shipments) or airport authority handling point near airport. Remember, there may have demurrage and detention falls under the said shipment if not cleared. The customs department may provide approval to auction the cargo, if not taken delivery within a stipulated period.
Firstly, the warehousing demurrage charges at the container freight station or airport handling location. As you know, the area pertaining to handle international cargo is very expensive. The handling authorities provide free days to take delivery for a very limited day or days only. At most of the handling places provide two or three days. Once after expiry of free days allowed taking delivery of imported goods, airport or seaport handling authorities charge demurrage. This demurrage accumulates very high, if the number of days increases.
Secondly, in sea exports, if full container loads (FCL) cargo, the detention charges of shipping line is also applicable. This also accumulates in to higher amount when the number of days increases.
Apart from both of the above, the major issue is the threat of auctioning cargo . If Bill of Entry is not filed within a stipulated period of time, customs can permit to auction the un cleared cargo as per government rules. Bill of entry is the document filing with customs department to clear the import cargo. If bill of entry not filed within the allowed period, the cargo can be auctioned by the customs. However, proper intimation to be effected to importer with reminders before the said procedures is taken place.
Because of improper tracking of goods, many cases have been being continued resulting a huge amount of loss in demurrage and detention.
I request all importers to have a proper tracking of their import goods to avoid exorbitant demurrage and detention charges at destination port. I also underline, the dispatch of Cargo Arrival Notice – CAN – is not mandatory by carrier of goods.
In this article, I tried to enlighten the trade about the importance of tracking of import goods. I hope you have satisfied with this article about the consequences of improper handling of import. Do you wish to add more information about the importance of tracking of importing goods?
The above information is a part of Export Import Training course online
Share below your experience in proper/improper tracking of importing goods. Comment below your thoughts about this subject - Importance of cargo tracking.
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