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Chinese imports remain stranded at ports, products from other countries also impacted
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Chinese imports remain stranded at ports, products from other countries also impacted
Jun 28, 2020 2:35 AM

Chinese-origin imports continue to remain stranded at various ports across India as senior custom officials confirmed that a sudden red alert from the revenue intelligence agencies against Chinese imports after 100 percent inspection is being conducted on inbound packages.

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Partial clearance of consignments stopped in Chennai and Delhi late on June 26 after the 100 percent inspection diktat came in.

Highly placed sources further added that the import embargo is also leading to situation where consignments meant for central public sector undertakings, or PSUs, are held as well.

"It is not that the inspection order has given relaxations for imports of government. Hindustan Latex Limited (HLL) consignments are also held at customs, HLL had placed orders to import masks, protective goggles etc which are now getting delivered. HLL consignments are held at Delhi air cargo for the last three days," said a senior official at Delhi Customs.

Auto, chemicals, pharmaceuticals, electronics and mobile equipment industries are the worst-hit due to the import embargo which came in the wake of escalated tensions between India and China at the Ladakh border and led to the death of 20 Indian soldiers mid-June.

The delay in clearance of Chinese consignments has now started taking toll on imports from other countries, with delays being faced at various ports across the country in clearance of consignments from countries other than China.

“There is a risk alert being flagged by the revenue department post which consignments need to be checked thoroughly, which takes time,” a senior custom field officer told CNBC-TV18.

"Hundred percent inspection of shipments at certain ports has resulted in delay of clearing of consignments and consequential disruption in supply chain. It would be prudent that fast track clearance mechanism along with necessary investigation be conducted to ensure that revenue is safeguarded and the businesses also do not suffer," said Anita Rastogi, partner GST and indirect taxes at PwC.

Customs brokers associations across India wrote to their clients on delays, conveying that financial losses due delay in clearance will be borne by the importers.

Financial losses include damage, pilferage, soiling, port handling charges, demurrage cost, among others.

First Published:Jun 28, 2020 11:35 AM IST

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