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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 import
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?
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