Terminal Handling Charges to be paid by DPD clients to Port Terminals

24/Jan

Direct Port Delivery (DPD) clients now must pay Terminal Handling Charges (THC) directly to the port terminals. This decision will improve the ease of doing business according to the Central Board of Indirect Taxes & Customs (CBIC)

Currently the THC is levied on the Shipping lines for services like unloading cargo, carting ship to storage yard. The shipping lines in turn recover these charges from exporters/importers as an extra charge along with ocean freight.

The traders have alleged that the Liners have been charging higher than the actual amount payable. Hence, the move is expected to end the tussle between shipping companies and importer/exporters.

CBIC Chairman, Joseph John in his letter to all the principal chief commissioners of Customs said, “As an immediate measure, trade notice/public notice may be issued in all Custom Houses under your charge to see that DPD clients and AEO clients are permitted to pay terminal charges directly to the terminals and this should be followed in letter and spirit,”

This new initiative will require changes to be made in the Bill of Lading to make it “free-in, free-out” and excluding THC.