In the current shipping practice, the carrier is obliged to verify the condition of the cargo in the container and record the name, weight, quantity and other cargo information on the bill of lading in accordance with the shipper’s declaration. However, many cargoes have operational challenges due to incorrect declarations, and it is neither safe nor feasible to load and transport cargo.
In order to further combat wrong declaration of goods, if the actual goods are different from the declaration details, shipping companies will generally charge wrong declaration fees.
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MSC implements wrong declaration fee (CMD)
In the following cases, MSC will implement an error declaration fee (CMD):
• After the MSC confirms the reservation, if the rate level is lower than the original reservation level, any changes to the named account.
• Discover any abuse of the contract (different from the commodity, port of loading and/or account for which the rate was originally submitted)
Misdeclaration fee (CMD) will be charged USD 1,000/container for all cargo from Cambodia, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Myanmar, Philippines, Singapore, Taiwan, Thailand and Vietnam to the following destination ports :
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• To any destination other than the United States: From March 22, 2021 (the date of bill of lading), until further notice.
• To the United States: From April 20, 2021 (the date of bill of lading), further notice.
From July 1 of last year, the implementation applies to all misdeclared goods worldwide. A fee of US$500 is charged for out-of-gauge goods and special goods.
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Globally, about 20% of cargo changes in size from booking to shipment, and 6% of cargo will “be unsafe or unfeasible in shipping operations due to false alarms”.
"In addition, the fee itself is not counted as a fine, but to compensate for the additional administrative costs caused by the wrong declaration, including requotes, final checks on feasibility and costs, and document revisions."
This is the latest in a series of actions taken by the carrier to curb the misdeclaration of goods. Although the total mass (VGM) regulations verified by the IMO have been implemented, there are still a large number of incidents showing that the declared weight of the container is less than the actual weight.
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