NEW DELHI: Companies, importing goods from China and other countries, are likely to be hit as about 700 ships are presently stranding at various seaports in India due to Coronavirus scare. The importers will bear the cost of waiting periods at seaports.
The government had last week prohibited the entry of international cargoes and ships, carrying passengers or goods with a travel history to Coronavirus-hit countries after February 1, 2020, to its major ports till March 31.
“Port Circular PHO/JNP/481-482 of March 9, 2020, by JNPT port (Mumbai) addresses specific entry restrictions – quarantining of all inward vessels for a period of 14 days. The period of 14 days commences from the date of departure from the last international port,” according to a circular by Jawaharlal Nehru Port Trust (JNPT), which is followed by all major ports.
For instance, normally a ship takes 22 days to reach Mumbai from Shanghai. If it is moving directly to Mumbai, then the quarantine period will be over during the voyage.
However, if the ship stops at a port in Bangkok, which is also in the list of virus affected areas, then the quarantine period will be counted from the day it leaves Bangkok. As a result, about 700 ships are stranded at various ports that also include cargoes. But for the shipments, waiting for the quarantine to get over, the waiting charges have to be borne by importers, which means it will lead to an increase in the price of imported goods.
According to customs officials, there are many cases where cargoes are stuck because Bills of Entry (BoE) could not be filed with the Customs Department to clear containers as the exporting countries, especially China could not submit papers due to lockdown in the country.
BoE is prepared by shippers containing information about goods inside containers and is presented to customs by the consignee for clearing them. Moreover, there is a penalty for importers if they fail to file BoE, which could run in lakhs.