Cargo delay due to 'dwell time' hampers trade

04 May '07

2 min read

Role of shipping & customs house agents and transporters is under censure as Devendra Dutt, Member of Central Board of Excise and Customs has warded off the blame on Customs Department for high dwell time of cargo.

Dutt cleared that only customs authority is not at fault for high dwell time.

More the dwell time, higher the logistics cost, M Rafeeque Ahmed, Chairman, FICCI - TN State Council stated. According to World Bank report, he informed, delay of a single day can increase the logistics cost up to 0.5 percent of total value of goods to be transported through rail or ship.

The authority is also criticized for delays in cargo clearance. But the fact is that shipping agents take more time in filing documents and clearing the cargo on time.

Dutt stated that in March, dwell time in sea import (from the time a ship arrives and offloads the cargo to physical clearance of the same) was 12.95 days.

Of this, most of the time was consumed to file import documents (7.31 days), time for duty payment was 2.66 days, Customs assessment took 2.6 days, while examination took only 0.77 day.

In exports, the situation is more terrible. The dwell time was 22.99 days in March.

However, the department plans to give information on dwell time of each port/airport. CBEC would put the information on its website so that exporters abroad can schedule shipment and send the cargo to right port or airport.

http://www.thehindubusinessline.com/2007/05/01/stories/2007050100520700.htm

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