Departments continue to issue guidelines for EXIM relief measures

The Great Lockdown | Volume 1 | Issue 3

The pandemic led to ‘sudden economic stop’ and has resulted in rising pressure on supply chain, margins and working capital. During unprecedented times, your first priority (as individual and corporate) is to manage well-being of employees and their families followed by maintaining ‘deliberate calm’ and finally cost avoidance and cash management.

None can predict the future, but measures can be taken to optimize cash positions in short run and to guard continuity of the firm. With so much happening across the boardroom, we decided to lend some support by crowd sourcing and hand-picking key announcements and turning them into insights for your ready reference. This article provides flash report on the key provisions pertaining to port charges and potential benefit to your firm.

What’s the deal?

Free storage time to all port users during lockdown period. No storage charges to be levied.

Lessee/licensee can request for deferment of lease rentals, license fees and related charges for April-20, May-20 and June-20.

No penal, demurrage, detention and allied charges for delay in berthing, loading and unloading operations during lockdown and 30 days post lockdown.

No cost additional port space can be requested by users without additional charges up to 30th June, 2020. Space will be allocated basis availability.

The caveats….

Ministry of Shipping has not clarified on applicability of relief on the goods lying at the port currently but from dates prior to lockdown period.

Close the deal…

Coordinate with Ministry on Shipping on goods lying on port prior to lockdown period and its eligibility to relief provisions.

Finance and supply chain to work collaboratively and ensure all benefits have been availed by the firm.