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Ports users at Port Klang have welcomed the
initiatives of the two terminals defer the
implementation of the reduction in the free
storage period for containers.
This follows recent decision by Westports to
join Northport which had earlier agreed to
requests from users to defer the implementation
of the reduction of the free storage period
effective 1 November 2007 to June this year.
The port terminal operators, who had been given
the green light by the Ministry of Transport and
Port Klang Authority to reduce the free storage
period will now wait the outcome of the findings
by port users on the impact of the reduction.
Port users led by the Federation of Malaysian
Freight Forwarders have formed an ad hoc
committee to look into the impact of the
reduction of the free storage period from 5 to 3
days for inbound containers and from 7 to 3 days
for outbound containers.
The free storage period for transshipment
container is also reduced to 14 days from 28
days were made by Port Klang Authority, with the
approval of the Ministry of Transport recently.
Port users claimed the move to reduce the free
storage was done arbitrarily and without
consultation with the users.
PKA, the government port regulatory agency, in a
circular announced the implementation of the
changes in the free storage period would be
enforced from 1 November, 2007, a move which
caught shipping lines and port users by
surprise.
The port users’ – including the International
Shipowners’ Association and the Malaysian
Shipowners Association - were opposed to the
short notification rather than its content or
purpose, which otherwise was well intended to
reflect improvements in the delivery systems at
the port operating terminals in Port Klang.
The bone of contention by port users the
inability of the Customs Department at Port
Klang to accept the Estimated Time of Arrival
(ETA) of vessels notice and insisting on the
Actual Time of Arrival.
Port users, especially importers have pointed
out that Customs by accepting the ETA notice
they would allow early release of cargo and thus
enable the shippers to remove the containers
quickly within the free storage period.
The shippers pointed out that the acceptance of
ETA is in fact an universal practice under the
Kyto Convention on Simplification and
Harmonisation of Customs Procedures 1973).
The issue of the reduction in the free storage
period was also discussed the Malaysian
Logistics Council, headed by the Deputy Trade
and Industry Minister Ng Lip Yong which met in
Kuala Lumpur last week.
The meeting resolved that the issue would be
brought to the attention of the Ministry of
Finance to direct the Customs Department to
comply with accepted practices. |
