Wednesday, 05  March 2003  
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Shippers oppose data declaration charge on US shipments

By Channa Kasturisinghe

Shippers have expressed dismay over the decision by certain shipping lines to charge a data declaration charge for their shipments to the United States.

Shipping lines said that due to the increased cost and resource requirements arising from the US Customs cargo manifesting rule, they are compelled to recover a data declaration charge of US$ 25 per bill of lading from shippers from March 15. This charge will be in addition to the local Bill of Lading fee of US$ 20 payable by the shippers at present.

The US Customs introduced this regulation as a security measure to prevent possible threats from terrorists who would use containers entering the US ports to smuggle weapons of mass destruction. According to the new regulation shippers should manifest information to the US Customs 24 hours prior to loading their shipments to the US.

The local agents for Maersk Sealand have already apprised its customers that the US$ 25 charge will be imposed on all shipments to the USA. "In the event of the carrier having to correct a cargo declaration previously submitted to the Customs Service due to an error or omission on the part of a shipper or its agent, the shipper will be required to pay an amendment fee of US$40 for each amendment," the shipping line has informed the shippers.

Several other shipping lines are planning to impose a data declaration charge from March 15. Meanwhile, the shippers complain that the data declaration charge would be an additional burden to the export trade which has been affected by unrealistic charges such as War Risk Surcharge and the Terminal Handling charge.

The immediate past President of the Sri Lanka Shippers' Council Rohan Masakorala said that it was unreasonable to pass on administrative costs to the shippers.

"Our export trade is still trying to recover from a crisis. Shipping lines should not try to make use of the security measures taken by the US Government to earn an additional income," he said. The Shippers Council President Ravi Ratnapala said that the Council has not been officially informed about the imposing of a data declaration charge by any shipping line. "However, we will strongly oppose any such attempt by shipping lines," he said.

A shipping expert told the Daily News that shipping lines have been able to dictate terms to the trade as Sri Lanka does not have a national fleet.

"It is timely that the government considers forming our own shipping line. We can make use of the Shipping Development Fund in this regard," he said.

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