ECC grants one-time waiver of demurrage on Afghan cargo

The Economic Co-ordination Committee of the Cabinet (ECC) has approved one-time waiver of storage/demurrage charges of Rs 1.133 billion and further demurrage that may accrue on the same cargo till the date of clearance along with 60 day grace period from the date of sanction of waiver to lift the Afghan cargo, it was leant.
The Ministry of Ports and Shipping in a summary submitted to the ECC said that 628 containers and 373 loose consignments were lying un-cleared and total demurrage payable against the consignment was Rs 1.133 billion. The ECC was further informed that un-cleared/un-claimed cargo occupies vital space in the port and hampers trade activities.
It was also proposed that keeping in view the sensitivity of the issue and its importance for bilateral relations between the two countries, the ECC may allow one time waiver of storage / demurrage charges. The issue of demurrage charges on Afghan Transit goods was also raised by the Afghan government during the visit of the Prime Minister Syed Yousuf Raza Gilani to Kabul in December, 2010. These goods have been lying at Karachi ports due to non-availability of transport facilities during the period of floods in Pakistan in 2010. Subsequent to this visit a meeting of the Afghan Pakistan Transit Trade Agreement Co-ordination Authority (APTTCA) was held in February, 2011 at Islamabad and the matter was discussed in detail.
During the course of discussions it transpired that there were two categories of Afghan Transit goods which were pending clearance at Karachi ports: the old cargo in the shape of 373 loose consignments stuck at Karachi Port Trust (KPT) since 1971; and the second category related to the cargo which was reportedly delayed on account of the blockade of roads during the floods last summer.
The Afghan side has demanded a complete refund of demurrages charged on the first category. It was mutually agreed that the Afghan side would send an official request to the Government of Pakistan providing detailed information in this regard which would be considered in consultation with relevant departments. No such information or formal request has been received so far.
The Prime Minister of Pakistan on a request the Ministry of Ports and Shipping directed the Ministry to place a summary before the ECC for consideration of waiver of demurrage charges of Afghan Transit Cargo lying at Karachi Ports.
As per procedure, the consignee has to complete customs formalities and obtain a clearance certificate for removal of goods from the port. Thereafter they have to arrange transport for lifting the consignment for intended destinations. Obviously till customs clearance, consignments can not be considered awaiting transportation. During the year 2002, the then Chief Executive of Pakistan allowed release of 371 consignments of Afghan transit goods by granting a waiver of demurrage charges to the tune of Rs 1266 million. A period of 60 days as cutoff date was fixed for clearing the port.