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