Business chambers, industry associations write to Shipping Minister over proposed hike in fees

• Say move to hike fees for selective services under gazette notification violates principles of market forces

Leading business chambers and industry associations have written to Ports, Shipping and Aviation Minister Nimal Siripala De Silva, pertaining to the newly introduced provisions under Extraordinary Gazette Notification No 2304/24 that violate the principles of market forces.

Extraordinary Gazette Notification 2303/24, dated October 20, 2022, amended Licensing of Shipping Agents, Freight Forwarders, Non-Vessel Operating Common Carriers and Container Operators Act No 10 of 1972. 

The amendments include a change in the existing structure of charges, with maximum delivery order fees revised upwards for full container load and less than container load import shipments. The ultimate import consignee will be charged US $ 8 per cubic metre as cost recovery fee, with washing charges, de-stuffing charges and transport cost being included in the cost recovery fee.

The main concerns detailed in the letter to the minister of these anti-competitive and non-transparent regulations were, increased costs due to intervention by the authorities in price fixing, removal of the negotiation capability of private parties as service providers and service receivers and misinterpretation relating to freight and other costs.

The letter had further pointed out that the proposed anti-competitive and non-transparent regulations adversely impact the cost of living and competitiveness of the industry overall, in terms of both imports and exports. Given that the industry is a major contributor to the country’s economy, adding impetus to managing the trade balance, the chambers and associations urged the government to consider justifiable corrective action for the newly proposed amendments to Act No 10 of 1972, which would create a regulatory environment, where competition and principles of market forces are upheld. 

The letter was authored by a collective of business chambers and associations, including the Joint Apparel Association Forum, National Chamber of Exporters, Sri Lanka Association of Manufacturers and Exporters of Rubber Products, Sri Lanka Shippers’ Council, Tea Exporters’ Association, Sugar Importers’ Association and Essential Food Commodities Importers and Traders Association.