Effective January 6, 2014, the Democratic Socialist Republic of Sri Lanka adjusted its regulations on cargo handling charges applicable to all Shipping Agents, Freight Forwarders, Non Vessel Operating Common Carriers, and Container Operators requiring them to declare whether the goods are freight prepaid or freight collect. Zero freighting will be prohibited.

According to the ruling, “All charges applicable including charges such as Terminal Handling Charges (THC), Full Container Load (FCL) and Less than Container Load (LCL) charges, Bill of Lading (BOL) or Forwarders Cargo Receipt (FCR) charges related to transport of goods from origin to destination shall be included in all inclusive freight.”

Additional amendments include the following:

• All-inclusive freight shall be recovered only from the party who is contracted pay the freight. It is illegal to separate the charges from the freight
• Service providers are not permitted to collect any other charges other than all-inclusive freight either on freight collect or pre-paid basis for both FCL and LCL
• Service providers may charge a delivery order fee from a Sri Lankan importer which shall be levied at current rates

The ruling furthermore advises that, “Having recognized that the service provider may requires sometime to negotiate contracts existing prior to 6th January 2014, it has been permitted to levy the charges that had been so imposed on such agreement until 30th April 2014.”

Please contact your local Expeditors office for any further assistance and specific concerns.

The ruling and further information can be accessed here and here