CFSAI Advisory to Members

CFSAI Advisory to Members

By our last Advisory on 24th March 2020, the Association had requested all members to consider 10days waiver of ground rent from 22nd March 2020 to 31st March 2020 due to the impact of the outbreak of pandemic COVID-19 on EXIM Trade. The association and most of its members have again been approached by several importers/ trade bodies and Associations to consider an additional waiver as the lockdown was further extended.

Whereas as part of partial relaxation even during the Lockdown, the Government of India permitted essential services including Ports and Terminals and Customs Houses to operate as essential services to ensure that the supply chain is not disrupted. As part of these essential services, all members CFSs despite operational constraints & challenges kept their respective facilities open and remained functional albeit with reduced staff as per the directives of the Government, notwithstanding that the members did incur huge extra cost in mobilizing TTs, labour, surveyors, staff and other resources.

Whereas in this hour of crisis, it was with tremendous proactive facilitation measures initiated by Shipping Ministry, Special Secretary (Logistics), JNPT, JNCH & other Customs Houses, Nhava Sheva Police, District Collector Raigad, Gram Panchayat and several other Governmental agencies, that import deliveries commenced significantly by the first week of April and got normalized to a large extent by 15th April 2020. Our members played a significant role in this process.

Whereas the Association has been invited by the Government of India through different ministries/ agencies/ authorities and based on the interactions and discussions held, the Association has shared Government advisories and sensitized all members from time to time. Most of the member CFSs recognizing the difficulties faced by the trade has been considerate and on their own accord, when approached by the importers/ shipping lines/ CHAs have been extending substantial waivers either in form of the additional number of days or in percentage reduction at mutually agreed terms with Importers/ Shipping lines/ CHAs.

At the same time, the members are also concerned about their rising and additional costs including payment to employees, loaders and other workers and service providers, besides rent, taxes, bank liabilities, etc. and the livelihood of about 25,000 workers and their families depend directly on our members, apart from Lakhs of others who are indirectly gainfully dependent.

As suggested by a few members, the association has also obtained legal advice

In view of the aforesaid, and with a view to balancing the cash flow and fund management of the members, in deference to the Government and to support the Government in its fight against the unprecedented pandemic, several Members CFSs have further expressed willingness to consider further concessions in the following manner:

• That over and above the ground rent waiver already accorded between 22nd March (10 days) members will consider a further waiver on the ground rent of up to 50%, prospectively, to the customers who have not taken delivery for the containers that have arrived in their CFSs between 1st April and 15th April 2020.
• This advisory will have no bearing on the containers already cleared by Importers from the respective CFSs on mutually agreed terms prior to issuance of this Advisory.
• The provisions of this advisory would be applicable to containers mentioned above that are cleared by Importers on or before 20th May 2020. The handling, transportation, and other CFS charges would be as per respective CFSs published tariffs.

In view of the above concessions proposed by several Members of CFSAI, it is requested that Importers/ CHAs and other customers be directed to come forward and take deliveries of Import laden containers from CFSs expeditiously. It may be please to noted that CFSs are functional and Documentation/ delivery/ payment counters are open throughout the day.

The trade may also be sensitized that CFSs have taken utmost care and initiated several Safety and Health-related precautionary measures keeping in mind the health of their staff and also for the persons visiting CFSs for clearance of goods to contain the spread of pandemic COVID-19.

This Advisory is not a directive but is issued so as to assist Members to take an informed decision.

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