Malaysia - Abandoned Cargo Advice

What are the main reasons for abandonments in a certain country? Do the reasons differ for certain ports?

• No proper import permits
• Wrong declaration (fraud cases)
• Cargo shelf life overdue and not fit for consumption (perishable cargo)
• Trade dispute between consignee and shipper

Do the local authorities interfere? If so, why and after how many days?

• Local authorities will interfere after shipping line advise the abandoned containers after 120 days
• Authorities involved are: Free Zone Authority (PKA), Customs Preventive, Malaysia Quarantine and Inspection (MAQIS), Department of Health (DOH), Department of Environment (DOE) and Terminal/port opeartor.
• FZA - as Free Zone Authority.
• Customs / Preventive - any taxable declarations, import permits & mis-declared
• MAQIS - mainly involved for food items, import duties.
• DOE - authority for DG permits and scheduled wastes cargo.
• DOH - import permits and perishable shelf life for meats and similar products

What are the options to get the cargo released once it is ceased by the local authorities?

• Based on local regulations and the relevant Authority involved and as per their advice, either to salvage, dispose or return to port of origin.
• By monitoring and constant follow up with the Authorities for faster release of cargo and containers.

Can the cargo be auctioned and/or disposed?

• Cargo can be auctioned or disposed of -
• Based on condition of the cargo with approval from relevant Authorities - can be salvaged / auctioned with proper documentation or declaration (to be borne by the new buyer) or disposed off.
• Local regulations - either dispose off locally or return to port of origin

What are the requirements?

• We need to inform FZA and Other Government Agencies (OGA) for inspection with Terminal representation.
• Based on inspection of cargo, OGA to advice next course of action. to either allow for salvage or if non-salvageable condition, to be disposed
• All documentation required are furnished, and payment of Custom Duties/Government Charges, Port Charges and other costs are settled

How long does this process take?

• This process will take at least 4 to 8 weeks. or more based on the Authorities advice

Are the ports willed to waive the storage / electricity costs once the issue has been resolved, at least partially?

• For Salvage cargo - all storage will be borne by the new buyer of the cargo.
• For disposal - Westports - Only storage charges is partially waived.
• Northport - No waiver given, but a small discount (partial) if requested in writing
• For reefer cargo, no waiver at all for electricity on the Reefer Monitoring Charges