AHMEDABAD: Metal Recycling Association of India (MRAI), the umbrella organisation that brings under all regional associations as well as individual companies of the Indian metal recycling industry, has requested the government to reduce and/or abolish import duty levied on radiation detection equipment to provide recyclers access the best international radiation detection equipment and to ensure protection and safety of their workers and environment.

The association, which organised an open house last week in Ahmedabad on 'Problems & Future of the Recycling Industry in India', has also called on the government to revise import duty levied on metals recycling equipment. This, the association said, will assist them to set up professionally managed scrap yards.

The one-day conference, which was hosted by the Ahmedabad Non-Ferrous Metal Exim Association (ANMA) and attended by a large number of scrap recyclers from Gujarat as well as from across the country, saw many of the issues being faced by them, a sizable portion of them being importers.

One of the most common problems being faced by a large number of Indian recyclers and importers is in dealing with the shipping companies (container lines) and their Indian agents, informed the association.

For example, according to Iqbal Nathani, president of MRAI, usually, the agreed ocean freight per container is fully pre-paid at the load port and original Bills of Lading (B/L) released. However, when the vessel arrives at discharge port, the lines refuse to give the "delivery order" to collect the boxes. They also make various demands like additional freight due to "congestion" at the discharge port. Many a times shipping lines also said to arbitrarily levy congestion surcharge and the importers get stuck paying the extra freight congestion charge.

They also take deposits up to Rs 25,000 per container in advance against any potential demurrage/container damage and very rarely are these amounts ever refunded to the importer, he said.

For containers that are bound for Inland Container Depots (ICDs), the "free days" should start counting once all the containers mentioned in the B/L reach the destination ICD. But the lines start counting the free days even if a single container has arrived at the destination and the balance arrive several days later.

Similarly, if the lines do not have an agent at an ICD, they ask the importer to reposition the empty container back to another port or ICD at his cost. The lines carry ouut without informing the importers at the time of booking containers at the load port.

More importantly, charges such as for ‘inland haulage’ from port to ICD that the lines levy vary from line to line. "The importers have no choice but to accept these charges. Depending from which country the cargo was shipped, the rate quotes received for inland haulage vary between the global offices of the same shipping line," he said.

Source: The Economic Times