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BUSAN

PORT AUTHORITY Rates Circular No. 39 of 2022

GOVERNMENT OF SOUTH KOREA (GANGSEO-GU BUSAN)


MINISTRY OF CUSTOMS (INSPECTION PORT STATION)
BUSAN PORT AUTHORITY

No.BP-A/2022/201/9 Gangseo-gu Busan, Dt. .05.2022

General Managers(Commercial)
General Managers(Operating)
Busan Port Authority

Sub: Demurrage fee payment /Rules regarding charges.

Please refer to Board's letter of demurrage dated 07.5.2022 regarding advance


intimation for arrival/placement of shipping and demurrage charges. It had been inter
alia mentioned that the your consignment had been on demurrage since inception as
contained in Board's letter No.BP-A/201/72/27 dated 14.4.22 are also under review and
the same will be advised in due course.

Ministry of Customs have reviewed previous instructions regarding payment of


demurrage charges in the amount of $10,856 including Board's letter No.BP-
A/201/72/27 dated 14.4.22. In supersession of Board's earlier instructions on the
subject of payment of demurrage charges, it has been decided that the guidelines as
mentioned in this letter shall be followed while dealing with the cases of demurrage
payment charges:

1.0 Power of officers to Pay Demurrage charges for:

Sr. Designation of officer Maximum amount of Maximum


No demurrage per amount of
wagon which can wharfage per
be considered by an consignment
officer which can be
considered by
an officer

1 GM Full powers Full powers

2 CCM (Co-ordinating HOD in $472/- $472/-


Commercial Department)

3 DRM $296/- $296/-

4 CTM/Sr. DCM/ DCM working $150/- $150/-


as Branch Officer

5 DCM/DTM/Area Officer in $100/- $100/-


senior scale

1.2 Where Demurrage cases are being handled by Officers of Operating


Department, CCM/Sr.DCM etc. will mean COM/Sr.DOM etc handles demurrage fee
multiplied by numbers of days since inception x Quantity of parcel/consignment
scheduled for shipping.

Quote:
Demurrage (No. of days Quantity of
fee x since inception) x Parcel/Consignment

Calculation $472 x 23 x 1

TOTAL = $10,856
1.3 The cases for demurrage fee should not be dealt by an officer below the
level of officer competent to deal with the case as per the schedule of powers given in
the above table. Therefore, as per the code of conduct regarding your consignment
shipping with further inspection in relation with the size measurement. The CCM (Co-
ordinating HOD in Commercial Department) had been assigned to handle your
demurrage fee charges.

2.0 Consignor/Consignee

2.1 Prior Finance concurrence will be required for Demurrage charges above
$25,000/- per wagon/per consignment respectively. Cases submitted to General
Manager should be routed through the Co-ordinating HOD of the Commercial
Department and FA&CAO of the Zonal Port Authority.

2.2 A consignor/consignee can prefer an appeal to a higher authority in case


he is not satisfied with the decision of the lower authority. The Port Manager/Chief Goods
Superintendent should forward the appeal to the Divisional authorities within 3 (three)
days of the receipt of the appeal.

2.3 In all cases where a change is made by the appellate authority against the
decision taken earlier, speaking orders should be recorded by the appellate authority.

This issues with the concurrence of the Finance Directorate of Ministry of Port.

(Ki-chan Nam)
CEO and President of Busan Port Authority
Gangseo-gu Busan,(48940)

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