Dear Members,
The O/o Directorate General of Shipping (DGS), Mumbai has issued circular vide DGS Circular No. 26/ 2021 dated 14th Sept 2021 regarding Advisory for bringing in transparency in transaction costs in EXIM trade — reg.
We understand that it has been brought to the notice of the DGS that some shipping lines are charging Inland Hauling Charges (IHG) and Special Priority Charges for providing out of turn containers to the shippers.
In this regard, reference is drawn to earlier DGS Circular No. 1 of 2016 dated 07.09.2016 and subsequent clarification dated 26.12.2016 which were issued to bring transparency in the transaction costs relating to container movement. The DGS Circular No. 1 of 2016 dated 07.09.2016 was issued after detailed consultation with shipping lines and other stakeholders, which clearly mentions that shipping lines should not charge export rail freights Charges [except in certain circumstances specified in the clarification]. The clarification to DGS Circular No. 1 of 2016 also stipulates that no new charges would be levied by the shipping lines or the charges held as non leviable in the Advisory shall not be re-introduced with a different nomenclature.
However, it is apparent that the levy of export rail freights without giving option to the shippers to make direct payment and levy of Special Priority Charges by some shipping lines and freight forwarders / NVOCCs / MTOs / CHAs is in violation of the Advisory dated 07.09.2016.
In this regard, the matter has been discussed with the shipping lines who agree that the exporters and importers should have a choice to make payments directly to the railways authority for export rail freights of containers. They have also agreed that imposition of `special priority charges' is not being imposed by majority of the shipping lines.
Therefore, it is reiterated that the shipping lines freight forwarders / NVOCCs /MTOs / CHAs operating in India shall,
(a) Allow the EXIM trade to make direct payments to the appropriate railway authorities for export rail freights of Containers; and
(b) Not levy any special priority charges for according any priority to the containers.
Members are requested to take note of this DGS advisory and do the needful accordingly. For full details, please refer to the said DGS Circular available on below link-
https://www.dgshipping.gov.in/WriteReadData/News/202109140907125183498DGSCircular26of2021.pdf
Feed-backs if any may be sent to the council on e-mail id’s: dg@chemexcil.in and pw@chemexcil.in for records/ further deliberations if needed.
Thanking you.
Yours faithfully
Deepak Gupta
Acting Executive Director
CHEMEXCIL
