Malaysia - Abandoned Cargo Advice

What are the main reasons for abandonments in a certain country? Do the reasons differ for certain ports?

  • No proper import permits
  • Wrong declaration (fraud cases)
  • Cargo shelf life overdue and not fit for consumption (perishable cargo)
  • Trade dispute between consignee and shipper

Do the local authorities interfere? If so, why and after how many days?

  • Local authorities will interfere after shipping line advise the abandoned containers after 120 days
  • Authorities involved are: Free Zone Authority (PKA), Customs Preventive, Malaysia Quarantine and Inspection (MAQIS), Department of Health (DOH), Department of Environment (DOE) and Terminal/port opeartor.
  • FZA - as Free Zone Authority.
  • Customs / Preventive - any taxable declarations, import permits & mis-declared
  • MAQIS - mainly involved for food items, import duties.
  • DOE - authority for DG permits and scheduled wastes cargo.
  • DOH - import permits and perishable shelf life for meats and similar products

What are the options to get the cargo released once it is ceased by the local authorities?

  • Based on local regulations and the relevant Authority involved and as per their advice, either to salvage, dispose or return to port of origin.
  • By monitoring and constant follow up with the Authorities for faster release of cargo and containers.

Can the cargo be auctioned and/or disposed?

  • Cargo can be auctioned or disposed of -
  • Based on condition of the cargo with approval from relevant Authorities - can be salvaged / auctioned with proper documentation or declaration (to be borne by the new buyer) or disposed off.
  • Local regulations - either dispose off locally or return to port of origin

What are the requirements?

  • We need to inform FZA and Other Government Agencies (OGA) for inspection with Terminal representation.
  • Based on inspection of cargo, OGA to advice next course of action. to either allow for salvage or if non-salvageable condition, to be disposed
  • All documentation required are furnished, and payment of Custom Duties/Government Charges, Port Charges and other costs are settled

How long does this process take?

  • This process will take at least 4 to 8 weeks. or more based on the Authorities advice

Are the ports willed to waive the storage / electricity costs once the issue has been resolved, at least partially?

  • For Salvage cargo - all storage will be borne by the new buyer of the cargo.
  • For disposal - Westports - Only storage charges is partially waived.
  • Northport - No waiver given, but a small discount (partial) if requested in writing
  • For reefer cargo, no waiver at all for electricity on the Reefer Monitoring Charges

Source of Information

Spica Services

Staff Author

UK P&I

Date01/02/2018

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