Exporters Race to Beat Port Charges Amid Global Unrest

Exporters are increasingly withdrawing their cargo from port and airport terminals to circumvent demurrage charges, a situation exacerbated by ongoing international conflicts impacting West Asian nations and causing supply chain disruptions. The 'Back-to-Town' (BTT) process allows exporters to reclaim their goods from customs areas. Normally, this withdrawal incurs a ₹1,000 levy. However, in response to the current extraordinary situation, Customs authorities have begun waiving these charges. Public notices have been issued by customs houses in Mundra, Kandla, and Nhava Sheva, with Kolkata Custom House expected to follow suit. This waiver aims to alleviate financial burdens on exporters and ease congestion at trade terminals. Customs has clarified that this relaxation applies to BTT movements for stranded export containers or shipping bills where the Export General Manifest (EGM) has not yet been filed. The government is actively engaging with trade representatives to address these and related issues concerning stranded cargo. While many exporters welcome the waiver, there are discussions regarding its retrospective application for shipments stranded since earlier in the week. Trade bodies are advocating for a clear public notice confirming the charge waiver due to force majeure, noting a significant number of pending withdrawal requests.