PSAA told to clarify allegations: shipping companies blackmailing traders, customs agents

Directorate General of Trade Organisations (DGTO) has summoned Pakistan Ship Agents Association (PSAA) to clarify the allegations levelled on shipping companies for blackmailing traders and customs agents. According to the letter No 13(02)/2010-TO issued on January 3, 2012, PSAA had directed to submit its comments over the said allegation within five days.
The action was taken on the complaint of All Pakistan Customs Agents Association (APCAA). The complaint letter, which was exclusively available to Daily Business Recorder, revealed that the shipping industry is running without any regulation that attracts the freight forwarders, shipping agents and other unregistered companies to have associated with the industry for maximum gains.
Several foreign freight forwarders are presently operating without having registration in tax department or not even authorised to run business in the territory. These foreign freight forwarders are reportedly involved in collecting cargos from shippers at nominal freight and then charge high bill of ladings from importers.
Therefore, the association has recommended to the authority concerned that the shippers should be restricted to deliver consignments only to authorised shipping agents and the requirement of customs shipping licence should be declared mandatory for all companies, handling bill of ladings and its other course.
This recommendation will not only help the authority to regulate the shipping industry but also pave the way for tax department to explore new venues for revenue generation.
In absence of regulatory body, there is no consistency in tariff structure, creating immense difficulties for the stakeholders. Therefore the letter also recommended the authority to constitute a committee comprising representatives of chambers, federation, shipping associations, freight forwarders association, customs agents association and others to define uniform tariffs for all.
The issuance of 'deliver order' and 'container gate-pass', should be made electronically two days before the arrival of the ship and the shipping companies should not be allowed to make cash transaction except pay orders and security deposits issued directly from the bank accounts of the importers or customs agents to root out malpractices on account of container deposits.
Moreover, the letter said although the shipping companies are liable to repay pay orders and security deposits on the return of containers, the same is not practised as the shipping companies are reportedly using the container deposits for other revenue purposes, creating financial constraints for trade.
Keeping the problems in view, the APCAA has strongly urged the authority to revoke existing container deposit policy and enforce insurance policy to provide maximum relief to the stakeholders.