COLLEGE OF BUSINESS EDUCATION

(CBE)
COURSE

DIPLOMA IN PROCUREMENT AND SUPPLY (DPSI).

LECTURE

MR, IGOGO.

SUBJECT

INTRODUCTION TO CLEARING AND FORWARDING.

TASK

GROUP ASSIGNMENT.

STREAM

SUBMISSION DATE

29/ 02/2016.

MEMBERS
1.

JEREMIA JOEL.

2.
3.
4.
5.
6.
7.
8.
9.
10.

OTHMAN MOHAMED.
NEEMA MESTALLAH.
DORIS STANSLAUS FAUSTINE.
RASHIDI M MFAUME.
ASHIRINA MAMBALI.
THRESIA JULIUS.
NAIMA H JUMA.
STEPHEN .M. MALIMA.
JOSEPHAT MOYO.

REG NO
02.1818.01.01.2015
02.1762.01.01.2015
02.13.97.01.01.2015
02.25.93.01.01.2015
02.1754.01.01.2015
02.1712.01.01.2015
02.1748.01.01.2015
02.1753.01.01.2015
02.1423.01.01.2015
02.1462.01.01.2015

QUESTIONS:
(a) Describe the meaning and types of port charges.
(b) Explain the port charges and penalties.

Page 1 of 5

Port charges-: these taxes and surcharge which apply to a ship and /or the cargo on a board
the ship once it has reached port. The rise in these charges may reduce the price of goods arriving
at that port or otherwise impact the price of doing business. Or port charges-: as the cost of
providing various services, including piloting, docking, supplying water, handling freight, and
arranging services through agencies. Also a port charges may be collected by state or local
authorities. State charges are collected under fixed conditions and at fixed rates in all ports of a
state. For example, Great Britains lighthouse due and fin lands ice due. While local charge may
be established by municipalities port authorities, navigation offices, or private companies. And
also port charges payable by ship owners may be compulsory or non compulsory. Compulsory
charges are collected whenever a vessel enters a port, regardless of whether the ship has ordered
any services or not. Non compulsory charges are collected only when specific services are
rendered to the vessel.
The following are types of port charges which are.
Conservancy dues.
Wharfage charge.
Berth dues or dock dues.
Transit storage.
Pilot age.
Towage.
Mooring.
Stevedorage.
Ware housing.
Tonnage dues.
Waste fee.
Utilities charge.

Page 2 of 5

Wharf age charge: is the cost on all goods that are loaded unloaded or Trans shipped
within the authoritys property by a means of transportation. Wharf age is one of the costs of
transport goods within the distribution system used by business to bring its goods to market.
Example cargo or merchandises, vessel stores and fuel;
Transit storage: amount of cost to store goods in transit at the point of origin, destination
and ports of entry during the transport. Storage charges are also assessed by companies who are
in the business of renting storage space.
Towage: Are the costs that increase with the size of the tugboat used and the time of uses.
So the act or service of towing ships and vessels usually by means of a small steamer called a
tug that which is giving for towing ships in rivers. Also common practice is to charge a towage
per hour and to differentiate based on the size of the tug boat used.
Pilot age: is the use of fixed visual reference on the ground or sea by means of sight or
radar to guide on self to a distinctive sometimes with the help of map or mutical chart. People
use pilot age for activities such as, guiding vessel and aircraft. Pilot age may be based on the
vessel or charge per ship. And also in many instances the pilot service is compulsory.
Mooring: refer to any permanent structure to which a vessel may be secured. Example
includes quays, wharfs, jetties, piers and mooring buoys. A ship is secured to a mooring to
forestall fee movement of ship on the water. Or cost that simply by vessel movement used by
ships for discharging and /or loading cargo.
Conservancy dues: charges payable on vessels and on cargo using the port and set out in
these regulations. And also charges are payable monthly by the lessees and tenant of the housing
and development board.
Stevedorage charges: incurred for unloading the goods from ship hold to wharf. These
charges are treated as forming part of the freight and are to be added to the value for the purpose
of charging duty on imported goods.

Page 3 of 5

Tonnage dues: area tax levied upon vessels entering a port and passing through some
canal. The charge is calculated based upon the registered net tonnage of the vessel.
Waste fee: is the fee imposed by government on new purchases of electronic products.
The fees are used to pay for the future recycling of these products. As many contain hazardous
materials;
Utilities charges: expensive is the cost consumed in a reporting period related to the
following types of expenditures; electricity, heat (gas), sewer and water during the period
indicated.
Dock dues or berth dues: money that a shipping company must pay for the use of a port.
In respect of vessel that is secured to occupy there is fast to alongside any other vessel occupying
a berth. Side wharf age dues levied on a vessel loading grain in bulk And also used in the port
and harbors for a designed location where a vessel may be moored, usually for the purposes of
loading and unloading.
Penalties-: Is punishment that someone is given for doing something which is against a
law or rule. In case of penalties; include that port authority will impose a penalty if declarations/
notice are submitted late or not at all in the event of breach of the duty to notify applicable to
watercraft that operate in the port area and wrong statements.
The following are the penalties of the port charges which are?
If port users who are obligated to submit a port fee declaration do not submit it in full or
not at all within the time limit set (one week upon leaving the port area).
If port users who are obligated to submit to the port authority notice of arrival and /or
notice of departure, if do not submit it /them in full or not at all within the time limit set
(24hoursupon entering / leaving ) the port area.
If port users , whose water crafts predominantly operate or are stationed in the port, so if
do not contact the fees offices in charge of in land and port shipping within two working
days after watercraft first called at the port and associated payment obligation apply.

Page 4 of 5

 If port users, who have not meet their duty to co-operate are liable to pay to the port
authority a penalty in accordance with the schedule of fees and charges unless they are
not responsible for breach of duty to co-operate.
If port users submit wrong data to calculate the port fees and charges unless they are not
responsible for the submission of the wrong information may also give a penalty in
accordance with the schedule of port fees and charges.

Therefore; if the port user does not comply with the duty to submit the port fee declaration, the
duty to submit the notice of arrival and notice of departure or the duty to notify the fees office in
charge of in land port shipping within the time limit set in the letter or if port user does not
amend the wrong data submitted, the port authority will calculate the port fees and charge for
seagoing vessels and watercrafts deployed in maritime shipping on the basis of the highest tariff
of the price category. So port users will be requested to submit in full within the time limit set in
the letter the declaration they are obligated to submit or- with regard to the duty to notify- to
promptly contact the fees office in charge of inland and port shipping.

REFERENCE:
GOOGLE WEB SITE

Page 5 of 5