KARACHI: Mr. Mehmood ul Hasan Awan, General Secretary of the Karachi Customs Agents Association (KCAA), has announced that to facilitate the trade and business community, most of the shipping companies remained open on Saturday, July 20, 2024, for the issuance of Delivery Orders.
Shipping lines are licensed by Customs Enforcement, but they remain out of the regulatory control of Customs. The issue of excessive demurrage and detention charges has been an issue for traders for a long time. The payment of detention is paid is USD, which is also a huge burden on country’s reserves.
Besides, due to Customs officer doing wrong assessment and red tapism for their speed money, traders suffer demurrage and detention charges, which increased the costs. Certain cases go into litigation and even if the traders win the cases, the demurrage and detention costs go so high, they would only leave their consignment. Shipping lines only worked 5 days a week, and observed off on Saturdays and Sundays, which also increased delays and costs.
This initiative by the shipping companies as decided in a meeting with businessmen chaired by the Chairman of Karachi Port Trust, Syed Syedain Raza Zaidi, in line with the recent decision of the Prime Minister for legislation and the establishment of a Regulatory Authority for Shipping & Logistics.
The duration of this arrangement will be subject to review after one month and may be extended further depending on its impact and the business community’s needs.
The General Secretary appreciates the efforts extended by the relevant stakeholders, including FPCCI, KCCI, All Pakistan Shipping Association, Pakistan Ship’s Agents Association, Ministry of Maritime Affairs, Karachi Port Trust and All Pakistan Customs Agents Association especially Mr. Asif Sakhi (Vice President FPCCI), Mr. Khurram ljaz (Former Vice President FPCCI & Director PSW), and Mr. Amir Mansha (Acting President) Karachi Customs Agents Association for making this possible.
Asif Sakhi and Khurram Ijaz highlighted lack of communication between various actors, such as shipping lines, importers and exporters, customs and port authorities. He emphasized on the lack of a regulator, which is an international best practice.
They also mentioned issues of pre-clearance and delays with Customs such as partial pre-clearance mechanisms, non-applicability of scanners (blue channel), non-availability of customs labs within 10-20km radius of port areas and associated corruption. Working hours of shipping lines and terminal operators were also discussed.
KCAA acknowledges and appreciates the vision and positive approach of the Honorable Prime Minister for trade facilitation. KCAA also assures their support and cooperation in implementing the decisions taken.