CHAPTER-V

DEMURRAGE

5.1.1. Imports

Demurrage charges at the following rates shall be levied in respect of all goods left in the port’s transit sheds or open space after the expiry of the free days and free periods till their delivery is effected.

Notes:

1. Free days

(i). Free days prescribed below shall exclude Custom’s holidays and Port’s non-working days.

(ii). Seven working days (excluding Customs holidays and Port’s non working days) following the date of the complete discharge of the goods from the vessel on to jetties, quays or wharves shall be allowed as free period.

When goods are landed from the vessel into lighters, barges or other floating craft, the seven working days shall be calculated from the date of complete discharge of goods from the lighters, barges or other floating craft on the jetties, quays or wharves.

(iii). In the case of salvaged goods, the free days shall be reckoned from the day following the date of notification of salvage by the Receiver or wrecks in the Official Gazette of Karnataka State.

2. Free period :The following free periods shall be allowed in addition to the free days prescribed above:

(i). Periods during which the goods are detained by the Collector of Customs for examination under sub-section (3) and (4) of section 144 of the Customs Act 1962 (152 of 1962), other than the ordinary process of than appraisement and certified by the Collector of Customs to be not attributable to any fault or negligence on the part of importers, plus one working day. The Customs holidays shall also be treated as free periods in addition.

(ii). Periods during which the goods are detained by any public Health Authority whether cleared or destroyed.

3. Survey of Goods

If the goods are detained for survey, then a period not exceeding seven days excluding Customs holidays and Port’s non-working days, from the date of completion of discharge from the vessel may be excluded while calculating the demurrage charges provided the goods are removed within twenty four hours after the completion of the survey.

4. Empty or partially empty packages.

Demurrage charges shall be payable on packages landed empty or partially empty.

5. Demurrage Charges on Sunday and Port Holidays

Once demurrage charges begin to accrue, no allowance shall be made for Sundays and port holidays

6. Delivery of Goods

Goods shall not be delivered to owners or consignees unless all dues leviable thereon, including demurrage charges are paid

7. Congestion of Goods.

If at any time the Port apprehends a serious congestion in the transit area which may affect rapid transit of goods through the Port, it may direct the owners or consignees of any specified goods to remove such goods from the port premises within a specified period.

8. If the goods are not removed within a specified period, the Port may cause them to be removed and restacked in any other place within the Port premises at the expense and the sole risk of the owner or consignees. Goods so removed shall be charged demurrage charges at the rates prescribed in the Schedule of Demurrage (Imports) at (c) in Sl.No.1 or 2 whichever is applicable.

5.1.2. Exports

Demurrage at the rate of Rs.3.00 per wharfage unit and/or at Rs.3.00 per CBM per day for all cargo charged at Advalorem rate, shall be levied after the expiry of the free days.

Notes:

1. Free days

(i). Free days shall exclude the Customs holidays and Port’s non-working days.

(ii). All cargo except salvaged goods (a) Twenty one days free days (excluding Customs holiday and Port’s non-working days) from the actual date of receipt of the goods in the transit area. (b) From the date the vessel is berthed for working cargo to the date the vessel completes loading.

(iii). For salvaged goods, three days free days (excluding Customs holiday and Port’s non-working days) from the date on which the goods were actually salvaged.

2. Shut out cargo

(i). In the case of goods shut out from shipment and if removed outside, in addition to the free days mentioned in Note 1, the working day next to the date of completion of taking in of the exports by the vessel will also be allowed as a free day.

(ii). In the case of goods shut out by one vessel and subsequently shipped by another vessel, the free days shall count from the date of the first shut out, upto ten days excluding Customs holiday and Port’s non-working days. The total free period, however, shall not be more than 21days as specified in Note 1.

(iii). Cargo intended for export but not actually shipped will be allowed free days upto only seven days excluding Customs holiday and Port’s non-working days from the actual date of receipt of the goods in the transit area.

3. Free Periods

In addition to the free days, prescribed above the periods, that is periods during which goods are detained by the Collector of Customs for examinations under Sub section (3) and (4) of Section 17 and for chemical test under Section 144 of the Customs Act, 1962, other than the ordinary processes or appraisement and certified by the Collector of Customs to be not attributable to any fault or negligence on the part of the exporters, plus one working day shall also be allowed as free period. The Customs holidays shall also be treated as free periods in addition.

4. Congestion of Goods

If at any time the Port apprehends a serious congestion in the transit sheds or other spaces allotted for the goods in transit to the detriment of the rapid transit of goods through the Port, it may direct the owner or consignor or Agents of any specified goods to remove such goods from the Port premises within a specified period. If the goods are not removed within such period, Port may cause them to be removed and restacked in any other place within the Port premises at the expense and the sole risk of the owner or shipper/agents. Demurrage charges shall be levied on such goods in accordance with the rate specified for demurrage on export cargo.

5. Transhipment of Goods

The free period shall be allowed for the transhipment cargo up to 28 days excluding Customs holiday and Port’s non-working days from the date of receipt of the goods.

General Notes:

1. Demurrage charge on both import and export cargo shall not accrue for the period when the NMPT is not in a position to deliver/ship cargo when requested by the user.

2. If operational area is licenced on rental terms to users, demurrage charge on cargo stored thereat shall not be levied again.