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India's JNPT port productivity rises with new customs' clearance service
CUSTOMS clearance time at India's Jawaharlal Nehru Port Trust (JNPT) has been shortened for import cargo thanks to the implementation of direct port delivery (DPD) services.
Nhava Sheva Customs' estimates that with quicker clearance, logistics costs per container at JNPT have decreased to INR12,000 (US$190), down from INR50,000 previously. The overall average dwell time in fiscal year ending in March 2017 has also been reduced to 2.54 days, down from 3.06 days in the prior year.
In May, DPD volume totalled 42,157 TEU out of the 129,480 TEU over-the-road import shipments, according to new data collected by JOC.com, reported IHS Media.
"We are on target to achieve the government's goal of 40 per cent (in DPD volume) in the current fiscal year," a customs official was quoted as saying.
DPD imports are delivered directly to pre-approved clients within 48 hours of arriving at the port, obviating the need for shippers to transfer those boxes to an off-site container freight station (CFS) for customs clearance, which can result in long delays and extra costs.
Given the profits at stake in moving away from the typical CFS delivery model, terminals, shipping lines, and warehouse services providers have been somewhat reluctant to follow guidelines set by customs on DPD handling.
"We continue to receive numerous complaints from trade associations that shippers are being charged extra for DPD shipments. We will act sternly against anyone trying to disrupt the progress of DPD, which is a vital part of government efforts to cut logistics costs," a customs official was cited as saying.
Nhava Sheva Customs' estimates that with quicker clearance, logistics costs per container at JNPT have decreased to INR12,000 (US$190), down from INR50,000 previously. The overall average dwell time in fiscal year ending in March 2017 has also been reduced to 2.54 days, down from 3.06 days in the prior year.
In May, DPD volume totalled 42,157 TEU out of the 129,480 TEU over-the-road import shipments, according to new data collected by JOC.com, reported IHS Media.
"We are on target to achieve the government's goal of 40 per cent (in DPD volume) in the current fiscal year," a customs official was quoted as saying.
DPD imports are delivered directly to pre-approved clients within 48 hours of arriving at the port, obviating the need for shippers to transfer those boxes to an off-site container freight station (CFS) for customs clearance, which can result in long delays and extra costs.
Given the profits at stake in moving away from the typical CFS delivery model, terminals, shipping lines, and warehouse services providers have been somewhat reluctant to follow guidelines set by customs on DPD handling.
"We continue to receive numerous complaints from trade associations that shippers are being charged extra for DPD shipments. We will act sternly against anyone trying to disrupt the progress of DPD, which is a vital part of government efforts to cut logistics costs," a customs official was cited as saying.
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