The cement importers in India were in quandary when they discovered that the cement imported from Pakistan on the day the Indian government hiked duty on all imported goods from the neighbouring country were damaged at the integrated check post (ICP), Attari.
Worsening their woes, the Central Warehouse Corporation (CWC) has imposed demurrage charge, which is even almost double the cost of the cement, for not timely clearance of their consignments.
On February 16, the Union government had hiked duty from 5% to 200% on all goods which were being imported from Pakistan in the aftermath of Pulwama terror attack. The trade between India and Pakistan has been at standstill after the latter suspended it in the wake of New Delhi’s decision of abrogating the Article 370.
As many as 80,000 bags of cement worth ₹2.40 crore along with other goods—6,000 bags of dry dates, 500 metric tonnes of limestone, gypsum and inorganic chemicals and drugs—had piled up at the ICP as the Indian importers had refused to pay the hiked duty.
On August 26, the Punjab and Haryana high court had ordered to release the stocked goods at the ICP on old duty rates. The traders had filled a case in the court saying the goods were imported on February 16 before 5 pm and the notification of increased duty was issued at 8:45 pm, thus nullifying the hiked duty.
{{/usCountry}}On August 26, the Punjab and Haryana high court had ordered to release the stocked goods at the ICP on old duty rates. The traders had filled a case in the court saying the goods were imported on February 16 before 5 pm and the notification of increased duty was issued at 8:45 pm, thus nullifying the hiked duty.
{{/usCountry}}Besides hardening of the cement, the traders were more concerned about the demurrage charge imposed by the CWC.
“After the court ordered to release the stuck items at the ICP on old duty rates, we had sent our men to check cement on Friday. We have 80,000 bags of it stored with the CWC warehouse. Our men found that 90% of the total imported cement had hardened duo to improper upkeep of the authorities concerned,” said MPS Chatha, All India Cement Importers Association president.
“The price of one cement bag is ₹300 and the total cement imported on February 16 cost us ₹2.40 crore. The loss is being incurred by the Indian importers as the payment to Pakistani exporters had already been made. This is not end of it, usually the CWC imposes ₹3 on a cement bag per day once the trader fails to clear the consignment on the fixed time. There has been around six months and the demurrage charge must be more than ₹4 crore, which is more than the cost of the total cement,” he adds.
Federation of Karyana and Dry Fruit Commercial Association president Anil Mehra said, “As many as 15 trucks of dry dates were imported on February 16. Earlier, the duty on a truckload of dry date, which was ₹2.22 lakh, was hiked to ₹32 lakh. Now the court has ordered to release the items on old duty prices, but the problem is demurrage charge. We have written to the authorities of the CWC to exempt the charge. If the CWC does not agree to our demand, we will move court again.”
The manager of Land Port Authority of India (LPAI), which is the overall management authority of the ICP, Sukhdev Singh said, “We have been in talk with the CWC for the waiver of demurrage charge.”
On damaged cement, Sukhdev said, “Our men took proper care of cement bags. It was not lying in open rather it was stored in a godown. 90% cement can not be damaged.”