Indonesia - Abandoned Cargo Advice

What are some of the reasons why cargo is abandoned in Indonesia?

1. Trade fail. This is a situation whereby the consignee is usually a local trader failed to secure local buyers. At time of container arrival at destination stayed at port for a period of time until consignee consider to abandon the cargo because the cost for clearing and port charges (storage) have exceeded the cargo value and no more economical. This applies to any kind of cargo. 
2. Customs clearance fail. For certain commodities such as scrap metal imports in containers are usually directed to a so call ‘red lane’ and is required for a physical inspection. During the inspection eventually found a toxic waste mixing within the scrap metal. This would definitely not pass for clearance and the consignee would have to re-export back to origin country. At most cases, consignee will end up abandoning the cargo rather than proceeding to arrange a costly re-export.
3. False importation document declaration. This is a case whereby consignee is falsifying the description of goods in the manifest. Caught during physical inspection and considered criminal case. The cargo in container is apprehended and a court proceeds. Encountering this circumstance, it is likely become abandon cargo.

After which time is a container officially abandoned in Indonesia?

As far as we understand there is no regulation that regulates the specific time frame for the abandonment of cargo. However, we trust, after the cargo interest has provided/issued a Letter of Abandonment the cargo of the container is officially abandoned.

Does the Member need an official written letter from the customer that he abandons the cargo?

Yes. Member would need a Letter of Abandonment (LoA) from the cargo interest which is usually from Shipper and Consignee which basically states that they have agreed to abandon the cargo.

Is it possible for the Member to survey, sell, auction or destroy the cargo in this jurisdiction?

Yes, it is. However, firstly member must obtain approval from the cargo interest to conduct such actions. Member also need to liaise with the related authority such as customs and terminal.

Does the Member need to obtain a court/customs order to have authority to dispose the cargo?

Yes, it does. As already mentioned above, member also need to liaise with the related authority such as customs and terminal.

With regard obtaining court order, we are of the view that as long as member has already obtained a LoA from the cargo interest, therefore member does not need to obtain a court order.

Will the container and cargo be blocked by customs?

The customs may block the container and the cargo if there is customs cost or duty that have not paid.

Source of Information

Spica