What is Demurrage Charges

When we import goods trough shipping aftre the goods reach the destiny, if we didn take take immediate delivery of goods, the shipping authorities will store the goods in their warehouses till we take the delivery.

So for storing the goods , the charges collected by shipping authorities is called DEMURRAGE CHARGES

Trinath is correct

charges are applicable as per the carrying compnay

it is higher in airlines than that of shipping lines

48 hrs are free in delhi after that demurage is charged untill DO is taken

Demurrage charges are those which are charged by the customs ware house stations when the goods are stored and not cleared within the specified time i.e., these are the charges for excess period of storage of goods

these r applicable for not only import but also for export.

regards

k.ravi

I want to know the process of import of liquor

Thanks

do me add demurrage to COST OF GOOD SOLD or it is shown as different item in p &l account

Definition 1

Penalty for exceeding free time (usually 72 hours) allowed for taking delivery of a shipment from the shipping or transporting company's warehouse.

Definition 2

Penalty assessed against a consignor, consignee, or other such party responsible for delay in loading or unloading of a shipping vessel or for undue detention (usually over 48 hours) of the transportation equipment. Also called detention charge.

Respected All,

I want to know treatment of demurrage, can we add in inventory and take is as COGS for we have to show in Profit and loss account

regards

juzar para

Demurrage is not a regular charges its a type of penalty. You can charge the whole amount from your customer if the customer is defaulter. It should be shown seperately in P & L account and not to be added in cost of good.