KARACHI: Pakistan Ship Agents Association (PSAA) prayed to Sindh High Court making parties Model Customs Collectorate (Preventive), Federal Board of Revenue (FBR) and secretary (L and P) FBR to maintain the subject petition and declared ultra vires and void of the insertion of sub rules (q) and (r) of Rule 603 and sub rules (p) and (q) of Rule 604 in Customs Rules 2001.
In the petition PSAA submitted that respondents in question remained threat to the petitioner to regulate prices of the members of petitioner. It prayed that members of the petitioner have always worked proactively to resolve any dispute that may exist as between the members of petitioner with the members of business community of Pakistan.
It alleged one particular class including Pakistan Paper Merchants Association (PPMA) resorted to endless litigation as against the members of petitioner.
PPMA sent a malicious communication to Competition Commission of Pakistan (CCP) that petitioner might be involved in collusive practices regarding determination of ancillary charges pertaining to shipping services imposed by various ship agents.
A team of CCP conducted search and inspection of the offices of PSAA in Karachi and impounded documents of Association’s alleged involvement in anti competitive decision making.
CCP had taken notice of the active role being played by PSAA in recommending rates/tariffs to its member undertakings in prima facie violation of Section 4 of Competition Act, 2010.
Petitioner prayed that all actions that have been alleged to have been made by the petitioner were in a period to the promulgation of CCP Act.
Petitioner prayed that penalty of Rs one million under section 38 of the CCP Act was illegal. It prayed that respondent should be directed not taking any punitive action as against members of petitioner and petitioner prayed sub rules in question into the Customs Rules 2001 please be declared illegal and void.
Petitioner prayed to SHC that such Rules were in excess of the powers conferred on respondent under provision of Section 219 of Customs Act 1969 as same could only be regulated under Section 79 A of Pakistan Merchants Shipping Ordinance 2001.
PSAA said that the Association was involved in revolving credit to exporters that was estimated to Rs 20 billion annually and work of petitioner was of crucial importance in terms of release of cargo from ports in Pakistan and without services provided by the members of petitioner nearly all the trade of Pakistan would stop.