Amid the border standoff between India and China in Eastern Ladakh, drug firms alleged that the airports authority are charging heavy demurrage on consignments from China that are stuck for no fault of theirs.
Demurrage is a charge levied on the importer when cargo exceeds the time allotted for it to be at the terminal.
While taking with media, the pharma industry representatives said that the customs department has been clearing containers of some drugs from China, consignments containing key starting material, active pharmaceutical ingredients (APIs) of vitamins, blood thinners and some critical drugs, etc., are still not cleared.
Besides, port authorities are demanding demurrage charges.
In case of air consignments, authorities start charging demurrage 24 hours after the cargo has reached the terminal.
Dinesh Dua, chairman of Pharmaceutical Export Promotion Council (Pharmexcil), said several pharma companies have paid demurrage charges for their air consignments. The demurrage charged varies from ₹14 to ₹22 per kilo per day.
According to Dua, 200 tonnes of raw material was stuck and the industry has paid about ₹2 crore in demurrage charges till now.
“We appreciate the reasons for the hold-up at the airports, but demurrage charges are exceptionally high, which is additional stress on the working capital of the pharma companies. On an average, it has taken 6-10 days from day one of the air consignments, leading to an additional 2 crores for the industry in terms of demurrages for no fault of the industry,” he said.
Dua said in view of the challenges brought on by the viral pandemic, demurrage charges beyond one day should be refunded to the pharma companies.
Considerable delays, their demurrage depends on the terms of reference of the companies with the shipping lines and clearing agents,” he said, adding that airports, on the other hand, are charging demurrage.
According to Dua, the problem started on June 23 but the first clearance happened only on July 4. “At the airports in Delhi and Mumbai, tonnes of material are still stuck,” he said.
An executive from the pharma industry said on condition of anonymity, “They are unnecessary checking 100% consignments coming from China. This is resulting in delay and would soon result in shortages in the country.”
In place of random inspection, customs officials are said to be checking all cargoes coming from China, causing delays. Drug ingredients and Covid-19-related medical devices as well as diagnostics that are stuck, especially at Jawaharlal Nehru Port and New Delhi airport, have left importers worried.
