6000 MSME Recycling survival at risk due to Shipping Cos and ICDs

28th April 2020 Material Recycling Association of India (MRAI) along with its members and all partner associations From Metals and Paper Recycling have been relentlessly working with the Government on providing relief towards container detention, demurrage & port/CFS ground rent to the importers, more than 2.5 lakh number of cargoes have got stuck for clearances at Indian ports on account of complete lock down since entire Country is under strict lockdown. Plants are not operational, cash flow crunch in the market, employees cannot reach office to perform necessary work related to imports, Banks are working with less manpower.

Hence, it is taking more than 4-5 days for getting documents, courier services are not resumed and due to various other reasons the process of clearing the containers is very slow and time consuming.

As a result, subsequently, following notice/order/circulars were issued by different Ministries :-

1. Ministry of Shipping (Order No PD-14033/4/2020-PD VII dated 21st April 2020.
2. Directorate General of Shipping (Order No. 11 of 2020 dated 22nd April 2020).
3. CBIC issued a Facility Notice 394/46/2020-cus(AS) dated 23.04.2020
4. Also, many Customs Houses have issued the circular binding CFS/ ICDs to abide by the Shipping Ministry Guidelines.

Subsequently, Container Freight Stations Association of India (CFSAI) issued a letter denying to give any waiver on demurrage charges, citing in their letter that CFS are governed under Handling of Cargo in Custom Area Regulation 2009 and none of the above orders are mentioning about the HCCAR Rules. Similarly, foreign shipping companies are also denying for such waiver.

Consequently, JNCH Customs at Nhava-Sheva Port has issued a revised guidance to all the CFS/ICDs Citing HCCAR Rules, so that their orders are abided.

Such indifference and unsympathetic attitude of the shipping lines and CFSs across India, who are not ready to heed to or implement the guidelines issues by the Ministry of Shipping, Government of India for waiving off the unjustified levies that the charge on import cargo.

The containers containing imported scrap worth several lakhs are stranded, making the industry miserable and weaker section of the society in form of scrap sorters & laborers. About 30% of our work force is women, who are engaged in segregation of scraps, before melting. We also indirectly support livelihood of rag pickers & smaller scrap aggregators.

If these orders are not strictly implemented by shipping lines and CFSs/ICDs, Indian Importers will lose more than Rs.80,000 Crores in detention/demurrage and ground rent charges to shipping lines which are foreign entities.

Whereas, 6000 MSME Recycling units from Metal and Paper are adhering government order to Giving salaries to their employees which are mainly from weaker section of the society but foreign Shipping lines and ICDs are not adhering Ministry of Shipping guidelines which is a great concern for the government.

Hence, MSME Recycling industry is urge the government to intervene for the survival of 6000 MSME Units and their employee with the following painstaking requirements are as :

 To get the waiver of Detention by Shipping Line and Demurrage by Container Freight Station, Issue taken up with Shipping Ministry.

 Recycling Activities to be declared as “Essential Services” taken with PMO Office.

 Additional working capital required on over all working Capital Limits, issue taken up with Ministry of Finance.

 Waiver on Interest on late payment of Customs Duty, Issue taken up with Ministry of Finance.

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