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demurrage charges

Rakshitha (cs) (191 Points)

08 February 2018

hi,

can I tell me what is demurrage charges as per custom Act 1965?

and

that charges are included in transaction value r in assessable value??

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14 Replies

Rakshitha (cs) (191 Points)
Replied 08 February 2018

sorry this was wrongly texted

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sunny garg (student) (167 Points)
Replied 08 February 2018

demurragd charge was a fee paid to port deptt for not removing goods from good
nd it is included in AV under custom

1 Like

Rakshitha (cs) (191 Points)
Replied 08 February 2018

so it is added to assessable value??

Rakshitha (cs) (191 Points)
Replied 08 February 2018

while calculating custom duty
right ha sir

sunny garg (student) (167 Points)
Replied 08 February 2018

yes it is added to AV while calculating custom duty.

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Rakshitha (cs) (191 Points)
Replied 08 February 2018

is there any different between demurrage charges and ship demurrage charges??

sunny garg (student) (167 Points)
Replied 08 February 2018

Demurrage

Steamship lines and airlines will charge you demurrage, a fee to compensate for the use of their shipping containers (some airlines use containers for air freight). You are granted a limited number of free days, depending on the carrier and the location. After your free time runs out, you will be charged demurrage for each additional day. These charges tend to increase per day after exceeding a certain amount of days.

Demurrage fees are in place to discourage using the provided containers for storage and to compensate for container usage. Before you pick up your international shipment, you must pay all demurrage charges in full. The fee may differ greatly from carrier to carrier and from port to port.

Here’s an example: you have 7 days of free container usage. After that, a charge of $100 per day applies for 3 days. From 4 to 10 days, the fee rises to $250 and finally to $350 for any day exceeding ten days.

Detention

The detention charge usually applies to domestic trucking. The trucking or drayage company bills you for the so-called detention of their trucker or driver in cases. This happens when the loading or unloading of your shipment or containers takes too long. Detention fees are billed at an hourly rate. You can usually expect a free time or grace period of around one to two hours for loading or unloading a container. But this will depend on whether it is a domestic shipment or destined for import or export.

A trucking company will also charge detention if their drayman/trucker has to wait until the loading/unloading of a shipment. This will happen in cases of congestion at the facility - when a port of railroad dock is busy. Demurrage charges due to extreme congestion form, unfortunately, a frustrating part of international shipments. You have to pay these fees even though the congestion is beyond your control or that of your freight forwarder.

A second definition of detention can be a storage charge. A carrier may call it detention when you leave a container shipment beyond a certain amount of free time at the terminal.

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sunny garg (student) (167 Points)
Replied 08 February 2018

i think no diff. b/w demurrage and ship demurrage charges..
ship dem. charge are for not removing ship within a limited time period ...i think

Rakshitha (cs) (191 Points)
Replied 08 February 2018

okay sir thank you

1 Like

Rakshitha (cs) (191 Points)
Replied 08 February 2018

my doubts cleared thanks alot

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CS M Pota (Company Secreatary) (3186 Points)
Replied 15 February 2018

Dear Mam

Demurrage is a charge payble to shipping line for delay in empting the vessel/space in the vessel in case of a Bulck cargo or in case of Containerised cargo delay in handing over empty container to the containerline or shipping line then the specied free period.What we pay to the port trust is called ground rent and not Demurrage.

Import demurrage charge is included in the Assessebal value for calculation of customs duty.

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Rakshitha (cs) (191 Points)
Replied 15 February 2018

thank you sir,
is there any difference between ship demurrage charges and demurrage charges

CS M Pota (Company Secreatary) (3186 Points)
Replied 01 March 2018

Dear Mam,

Demurrage is paid for the delay in handing over empty Ship/Space in ship or Container then the agrred time as i informed earlier.When the Demurrage is paid for the delay in hading over empty Ship or space in ship it is call ship demurrage and whe the demurrage is paid for the delay in handing over the empty container is is called demurrage.