KARACHI: A sudden change in Green Channel parameters by the Customs Department has left thousands of import containers stranded, forcing importers to face serious financial losses while shipping companies and terminal operators benefit in millions of rupees. If delays in the clearance of consignments continue, the supply of medicines, including medical devices, steel, and pulses, is at risk of being affected.
The business community has expressed deep concerns over the recent shift in Pakistan Customs’ focus towards enforcement, resulting in significant delays and inefficiencies in the clearance of legitimate imports. Changes to the Risk Management System (RMS) criteria have led to a drastic decrease in Green Channel clearance rates, from over 47% to less than 26%. This has caused an unprecedented increase in the number of containers marked for examination and assessment, overwhelming terminal operators and assessment officers. Legitimate importers now face unnecessary delays of up to four days in grounding containers, followed by an additional two to three days for examination and assessment.
Assessment officers are already overburdened with litigation matters, leaving limited time for proper assessments. The absence of a separate litigation department exacerbates this issue. This enforcement-heavy approach inadvertently affects the majority of legitimate importers, who are critical to Pakistan’s economic growth.
Furthermore, these delays have created a lucrative opportunity for private terminal operators and shipping companies to charge exorbitant demurrage fees and container rents. Importers are forced to pay extra charges every five days in addition to container rents, resulting in significant financial losses. This not only burdens importers but also increases their cost of doing business, ultimately impacting the overall economy.
In this context, former Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Chairman of the Customs Advisory Council of FPCCI, and expert on customs affairs, Khurram Ijaz, has expressed deep concern over the change in the Green Channel without prior notice. He noted that as a result of these measures, the clearance of import containers has been delayed, leading to a backlog at the port.
He emphasized that if any changes were to be made in the Green Channel parameters, they should have been communicated in advance to facilitate the clearance of consignments. The number of officers should have been increased to enhance capacity and avoid delays.
“The delay in the clearance of consignments has resulted in undue demurrage charges for private terminal operators and shipping companies. Opportunities have arisen to collect rents for containers. Importers are forced to pay additional charges and container rents every five days, causing significant financial losses and increasing their business expenses, which ultimately negatively impacts the economy,” he pointed out.
The former FPCCI Vice President requested the Chairman of the FBR and the Chief Collector of Customs to strike a balance between implementing and facilitating measures so that legitimate trade can proceed smoothly. It is crucial to recognize that more than 90 percent of importers comply with regulations and therefore should not be penalized, as this undermines efforts to promote trade and investment.
Khurram suggested that the changes in the Risk Management System (RMS) be reviewed to increase the Green Channel clearance rate. He recommended increasing the capacity of examination and assessment officers and separating them from judicial matters. A dedicated sector should be established, with risk-based examination and clearance procedures implemented to simplify processes and reduce burdens.
He urged the Chairman of the FBR and the Chief Collector of Customs to address the complaints of importers and resolve their issues to restore a balance between enforcement and facilitation.