JavaScript is disabled in your web browser or browser is too old to support JavaScript. Today almost all web pages contain JavaScript, a scripting programming language that runs on visitor's web browser. It makes web pages functional for specific purposes and if disabled for some reason, the content or the functionality of the web page can be limited or unavailable.

Sunday, March 9, 2025

Importers face mounting costs as Customs container stations remain closed

by

Asha Javeed
35 days ago
20250202

Se­nior In­ves­tiga­tive Re­porter

shal­iza.has­sanali@guardian.co.tt

Busi­ness­es across T&T are feel­ing the pinch as the clo­sure of crit­i­cal Cus­toms and Ex­cise Di­vi­sion (CED) con­tain­er ex­am­i­na­tion sta­tions (CES) at the Port-of-Spain and Point Lisas ports con­tin­ues to cause ma­jor de­lays in clear­ing goods.

Busi­ness own­ers have been left grap­pling with sig­nif­i­cant de­lays, es­ca­lat­ing stor­age rent, and de­mur­rage fees while they strug­gle to main­tain op­er­a­tions. Mean­while, there is no word on when the vi­tal in­spec­tion sta­tions will re­open.

On Sep­tem­ber 2, 2024, the Cus­toms and Ex­cise Di­vi­sion (CED) closed its con­tain­er ex­am­i­na­tion sta­tion (CES) at the Port-of-Spain port due to a ro­dent in­fes­ta­tion. Ex­act­ly 142 days lat­er, on Jan­u­ary 21, 2025, Cus­toms was forced to shut down its sec­ond CES at the Port in Point Lisas due to struc­tur­al is­sues.

This de­ci­sion was made af­ter con­cerns were raised about the sta­bil­i­ty of the struc­ture, and Point Lisas In­dus­tri­al De­vel­op­ment Cor­po­ra­tion Ltd (Plipde­co) con­firmed the shut­down.

The struc­tur­al is­sue stemmed from an over­head steel beam that had col­lapsed in the CES area, mak­ing it un­safe for cus­toms of­fi­cers to car­ry out their du­ties, a cus­toms clerk told the Sun­day Guardian.

With both fa­cil­i­ties out of op­er­a­tion, im­porters have been fac­ing de­lays in the cus­toms process­es. As a re­sult, they have been pay­ing over­time to cus­toms of­fi­cers to have their con­tain­ers ex­am­ined di­rect­ly on their premis­es, by­pass­ing the nor­mal in­spec­tion pro­ce­dure at the CES fa­cil­i­ties.

How­ev­er, the Comp­trol­ler of Cus­toms and Ex­cise Ri­ad Ju­man said on Thurs­day that “the di­vi­sion con­tin­ues to work to min­imise any de­lays and block­ages as far as the de­liv­ery of car­go and con­tain­ers is con­cerned. The di­vi­sion is work­ing to ad­dress the is­sue.”

He could not say when the CES would be re­opened. Ju­man al­so de­nied that the port has been fac­ing chal­lenges and ad­vised that all ques­tions be di­rect­ed to the Min­istry of Fi­nance.

A press re­lease is­sued on Fri­day by CED stat­ed that the di­vi­sion had tem­porar­i­ly sus­pend­ed op­er­a­tions at the CES at both ports to fa­cil­i­tate on­go­ing in­fra­struc­tur­al works, as­sur­ing that mea­sures have been im­ple­ment­ed to main­tain the through­put of con­tain­ers and the pace of con­tain­er ex­am­i­na­tion, as well as sup­port for the busi­ness com­mu­ni­ty, en­sur­ing they will not be af­fect­ed.

The Sun­day Guardian ob­tained doc­u­ments that showed the staff were in­formed via an email on Sep­tem­ber 2, 2024, that the Port-of-Spain CES had to close “with im­me­di­ate ef­fect” due to a “ro­dent in­fes­ta­tion.”

Cus­toms of­fi­cers were ad­vised to ex­am­ine con­tain­ers on the im­porters’ premis­es be­tween 8 am and 4 pm, as the clo­sure of the CES would con­tin­ue un­til Oc­to­ber 31, 2024.

The fa­cil­i­ty was ex­pect­ed to re­sume op­er­a­tions on No­vem­ber 1. How­ev­er, an in­ter­nal memo dat­ed No­vem­ber 19 in­formed staff that there was a de­lay in get­ting the CES op­er­a­tional and that all re­pairs would be ex­e­cut­ed to fa­cil­i­tate the re­sump­tion of op­er­a­tions on Jan­u­ary 2, 2025. That did not hap­pen.

Busi­ness­men frus­trat­ed

On Thurs­day, two im­porters, who spoke anony­mous­ly, said they are grow­ing frus­trat­ed with the on­go­ing de­lays in clear­ing their con­tain­ers and pay­ing rent, de­mur­rage, and over­time. One busi­ness­man said the de­lay has been af­fect­ing his op­er­a­tions and cut­ting in­to his prof­it mar­gins. "Some­times it takes more than two weeks to clear a con­tain­er. Right now we have two con­tain­ers in the Port of Spain port that came in on Jan­u­ary 18. We don't know what is hap­pen­ing."

The last ship­ment cost the busi­ness­man $2,000 in stor­age fees. An im­porter pays the port a stor­age fee af­ter an al­lot­ted sev­en free days of stor­age run out.

The cost to store a 20-foot con­tain­er for one day at the Point Lisas port is $152.55 VAT in­clu­sive. A week of stor­age fees would amount to $1,067.85. These rates would be dou­bled if the im­porter had a 40-foot con­tain­er in stor­age.

In Point Lisas, the im­porter is giv­en sev­en days of free rent. Stor­age fees in Port-of-Spain are slight­ly low­er. It costs an im­porter $107.10 a day to keep a 20-foot con­tain­er in stor­age, while a 40-foot con­tain­er would cost $214.20.

The im­porter said re­cent­ly he had to pay near­ly $2,000 in over­time fees to a cus­toms of­fi­cer for in­spect­ing a 40-foot con­tain­er at his premis­es, even though the in­spec­tion took less than two hours.

He said im­porters would al­so be charged de­mur­rage costs for us­ing con­tain­ers by the ship­per.

"The de­mur­rage charges are far high­er than the stor­age fees be­cause the ship­ping agents would ask for pay­ments in US dol­lars. Some im­porters are al­lowed to pay in TT cur­ren­cy. But their ex­change rate is al­most TT$8 to one US dol­lar. You must pay these fees be­fore the con­tain­er is re­moved from the port. It could be US $100 or more per day. It all de­pends on the ship­ping line," he added.

An­oth­er busi­ness­man who im­ports pipe and pipe fit­tings said he has been pay­ing through his nose "and the de­lays are get­ting longer and longer." He said two of his con­tain­ers were de­layed by cus­toms on De­cem­ber 31 last year, which led to him pay­ing $7,000 in de­mur­rage. The pay­ment was a hard blow to him. "I had not paid de­mur­rage in six years, so you could imag­ine how I felt. The sys­tems at the ports have been break­ing down," the im­porter said.

Fyz­abad Cham­ber of Com­merce

An­ge­nie Jairam, pres­i­dent of the Fyz­abad Cham­ber of Com­merce, said its 70 mem­bers are fed up with the slow pace of con­tain­ers be­ing cleared. "It feels as though we can't turn to any­body to get any­thing re­solved. A lot of our mem­bers have lost busi­ness dur­ing the Christ­mas sea­son with this con­tin­u­ous de­lay. We have no oth­er choice but to shoul­der the cost and wait in frus­tra­tion."

Jairam, who im­ports med­ical equip­ment and am­bu­la­to­ry sup­plies, said a con­tain­er with goods ar­rived at the port in Point Lisas the first week in No­vem­ber last year. She had dif­fi­cul­ty get­ting a CES ap­point­ment date for the con­tain­ers to be un­stuffed. When things are held up, Jairam said pay­ing sup­pli­ers be­comes an is­sue.

Greater San Fer­nan­do Cham­ber

Pres­i­dent of the Greater San Fer­nan­do Cham­ber of Com­merce Ki­ran Singh said when im­porters pay ad­di­tion­al fees, the cost of goods in­creas­es. "Apart from the de­mur­rage, rent, and over­time, we al­so have to pay trans­port to get the con­tain­ers to the im­porters' ware­house or premis­es so it can be in­spect­ed." Singh said he has been re­ceiv­ing com­plaints from its mem­bers. "We keep plead­ing that Cus­toms has to be­come more ef­fi­cient in ex­e­cut­ing their du­ties. We keep ask­ing that the ports be opened for longer hours."

Cou­va/Point Lisas Cham­ber

Cou­va/Point Lisas Cham­ber of Com­merce De­o­raj Ma­hase said the clo­sure of the CES "is not hav­ing any sig­nif­i­cant ef­fects on pro­cess­ing, re­lease and ap­point­ments" for con­tain­ers to be ex­am­ined on the im­porters' premis­es. How­ev­er, he said there are some chal­lenges with busi­ness­es not re­ceiv­ing con­tain­ers dur­ing nor­mal work­ing hours and for ex­am­i­na­tions to be done at their premis­es. Ma­hase said he hoped the Point Lisas CES would re­open soon.

Con­fed­er­a­tion of Re­gion­al Busi­ness Cham­ber

Con­fed­er­a­tion of Re­gion­al Busi­ness Cham­ber chair­man Vivek Char­ran said when a con­tain­er has mul­ti­ple items, it's safer to have it ex­am­ined on the im­porters' premis­es or in a ware­house.

"While I com­plete­ly un­der­stand that there is a cost at­tached for the con­tain­er to be ex­am­ined on the im­porter's premis­es, the ben­e­fit is...it is much faster for it to be done out­side than on the port. Al­so, the cus­toms of­fi­cer can do a more thor­ough check." He said the im­porter would have to wait for the con­tain­er to be in­spect­ed at the ports. Char­ran agreed the ports' op­er­a­tions were in­ef­fi­cient.

Pres­i­dent of T&T Man­u­fac­tur­ers As­so­ci­a­tion Roger Roach did not re­spond to a What­sApp mes­sage re­gard­ing com­plaints by man­u­fac­tur­ers pay­ing high­er fees and over­time charges.

An email was sent to Plipde­co's su­per­vi­sor of cor­po­rate com­mu­ni­ca­tions, Gizelle Crooks-Matthew, on Thurs­day ask­ing when the Point Lisas CES would be re­opened for busi­ness, but there was no re­sponse.

Chair­man of the Port Au­thor­i­ty of T&T Lyle Alexan­der said he was un­aware of a ro­dent in­fes­ta­tion on the port and the CES is­sue was out of his re­mit.


Related articles

Sponsored

Weather

PORT OF SPAIN WEATHER

Sponsored