India attempts to ease clogged port financial concerns

Nation’s government issues circular regarding bonding of delayed shipments.

A circular issued by India’s government April 3 may offer some relief to secondary commodity exporters and importers conducting business in that nation, according to the Brussels-based Bureau of International Recycling (BIR).

BIR says the “aim of this measure is to expedite Customs clearance of goods and for maintaining balance between customs control and facilitation of trade.”

The circular was issued by the Central Board of Indirect Taxes & Customs agency of the Department of Revenue of India’s Ministry of Finance (MoF).

The document starts by acknowledging the “difficulty being faced by importers/exporters and their authorized customs brokers, during the ongoing lockdown period announced by the government to prevent the spread of COVID-19 pandemic in the country, in obtaining notarized stamp papers for furnishing bonds required by customs in certain situations during the assessment and clearance of goods.”

The circular continues, “In light of the unprecedented situation caused due to [the] COVID-19 pandemic, the board [has] approved relaxation of the requirement to submit bonds prescribed under section 18, section 59 and section 143.” The agency says the relation period will last until at least April 30. The severe lockdown in India is currently scheduled to remain in place through April 14.

The document seems to tie into a message from the Washington-based Institute of Scrap Recycling Industries (ISRI) April 1 that India's Ministry of Shipping had ordered all ports to “ensure that no penalties, demurrage, charges, fee [sic], rentals are charged” through April 14.

According to ISRI, the ministry's Director General of Shipping extended by one week – until April 14 – an earlier order to shipping lines not to charge demurrage fees.

The text of the April 3 circular can be found on this web page.

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