What happens if proper tracking of goods not effected in export import business?


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 

What happens if proper tracking of goods not effected in export import businesshappens 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.


Other details on how to import export  

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

 How to know the quality, quantity or contents of goods before import customs clearance

 Difference between first check appraisement and second check appraisement in imports

 Consignee “To Order” in Bill of Lading

 Import customs clearance procedures

 Cargo arrived destination crossed 30 days

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Ranjit Kumar: Its very good to learn about customs clearance.

Sanket Patel: I want to know about sales tax exemption in India.I am an importer from Australia.I am buying goods from Indian suppliers.payment will be done by my brother and father who are living in India with Indian currency. They are asking for some documents like Certificates for Excise and Sales Tax exemption.I don't have any clue about this kind of documents.Can we provide them letter from our company saying that we are importing this good from this supplier and my father is going to lane me some money for this payment?

Admin: Sanket Patel, Payment against import can not be made through friends and relatives personally. The amount under import or export of goods should be done through proper channel for which you may approach your banker to know more procedures and formalities of exports and imports.

Dilip Deshmukh : I require your advice on below issue. We have dispatched the goods to Germany from Mumbai by Air through fedex transport. Customer refused the shipment due to space problem and sent material back to Mumbai. After negotiation customer agreed to receive the material. Now material is at Mumbai airport. We have to dispatch this material again, So what is the procedure and documents will need for this shipment. Is import customs clearance necessary in India? What about drawback if we again dispatch the goods? Is required reexport documentation? Thanking you and awaiting your reply

Rohan: It is not the responsibility of importer, if any delay happened. Tracking information has to be intimated to consignee time to time by shipping service provider

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