Demurrage waiver rules require relief where Customs detention stems from a bona fide Import Trade Control dispute.

Where Customs detained imported goods because of a bona fide Import Trade Control dispute and issued a detention certificate, the custodian authority had to apply its waiver directives and could not refuse demurrage relief on that basis. The authority's discretion was therefore constrained by its own waiver regulations once the certificate showed detention for ITC formalities. The importers' failure to seek transfer of the goods to a public or private warehouse under the Customs Act did not defeat the claim, because the warehousing option could not override entitlement arising under the governing directives. Demurrage waiver was accordingly required, and refusal to release the goods without waiver was set aside.

---

---

Issues: (i) Whether the airport authority was bound to grant waiver of demurrage charges on the basis of the detention certificate issued by Customs on the ground of Import Trade Control formalities; (ii) Whether the importers' failure to seek transfer of the goods to a public or private warehouse under the Customs Act defeated their claim to waiver.

Issue (i): Whether the airport authority was bound to grant waiver of demurrage charges on the basis of the detention certificate issued by Customs on the ground of Import Trade Control formalities.

Analysis: The detention certificate was issued after Customs had raised a bona fide dispute as to whether the goods were covered by the Open General Licence or required a special import licence. The delay in clearance was therefore attributable to Import Trade Control formalities and not merely to routine appraisal or tariff classification. The airport authority, though competent to decide on waiver under its own regulations and directives, was bound to act in accordance with those directives where the certificate disclosed detention for ITC formalities. On that footing, waiver could not be refused.

Conclusion: The claim for waiver was upheld and the airport authority was required to waive demurrage to the extent contemplated by its directives.

Issue (ii): Whether the importers' failure to seek transfer of the goods to a public or private warehouse under the Customs Act defeated their claim to waiver.

Analysis: The availability of an alternative warehousing option did not extinguish the entitlement to waiver once the detention certificate and the underlying reason for delay brought the case within the authority's waiver directives. The statutory option under the Customs Act could not be used to deny relief otherwise due under the governing regulations.

Conclusion: The omission to invoke the warehousing option did not bar waiver of demurrage charges.

Final Conclusion: The impugned refusal to release the goods without demurrage was set aside, and the goods were directed to be released after grant of waiver in accordance with the authority's directives.

Ratio Decidendi: Where Customs detains goods for a bona fide Import Trade Control dispute and issues a detention certificate, the custodian authority must apply its waiver directives and cannot deny demurrage relief on extraneous considerations such as failure to seek alternative warehousing.

---