Shipping cos, refund charges: FTO has ordered audit of unlawful collections: APPMA

KARACHI: Federal Tax Ombudsman (FTO) has ordered Collector of Custom Enforcement to audit unlawful collections of shipping companies and refund charges, said All Pakistan Paper Merchant Association (APPMA).

Muhammad Anis, Senior Vice Chairman APPMA in a statement termed FTO’s decision ‘judicious’ against some shipping companies, which he alleged are mercilessly involved in looting spree with business communities.

He said that ‘some’ Karachi based paper importer had filed complaint no. 7314, 7315, & 7317/KHI/CUST/2023 with FTO, holding Collector of Customs (Enforcement) responsible the legitimate licensee of shipping companies, that they clearly failed to abide applicable shipping laws, make complains that shipping companies for issuance of mandatory delivery order, manipulate authority, discard Customs SRO 450(1)/2001 & Rules 664(q), unfairly demands and collect a series of unlawful D/O and other abundant additional charges including DTHC (Destination Terminal Handling Charges) despite of fact that shipping companies not carry or transport containers from vessels to container yards.

He noted that ‘some’ shipping companies also without authorization evade Customs Rules 665(r), en-cash importers huge sum of container security deposit and returns the same after 60 to 90 days, as well also deduct from security deposit alleged container damage / washing charges etc. Legally shipping company shall return security deposit intact within 15 days. Due to shipping companies’ superfluous extortion, the cost of doing business extremely increases, he said.

Anis said that complainants submitted adequate formal submission to support their case, including Contract (bill of lading), Carriage of Goods By Sea, The Hague Rules and Hamburg Rules, United Nations Convention on the Carriage of Goods by Sea, Custom Rules SRO 450(1)/2001 Customs Rules 664 8 665 2015 etc.,

He alleged that trade and business community categorize shipping companies as mafia, clearly involved in corruption, unfair dealing, breach of trust, defraud & swindle. The carrier, contracted and undertook to perform whole of the operations and services, deliver the consignments at Karachi Port CY in consideration of freight prepaid, which the Carrier fully earned on receipt of the Goods at the POL (port of loading), nothing payable at port of destination.

Owing to widespread trade & business communities grievances and clearly shockingly swindle / defraud of over Rs75 billion by shipping companies, FTO issued hearing notice to Collector Enforcement & shipping companies.

During hearing shipping companies legally failed to justify their alleged collection of delivery order charges, additional & DTHC charges, openly admitted that shipping company “do not” transport containers from ships to CY (Containers Yards), and that they were duly employed or engaged by their overseas shipping lines to supervise lines jobs and-does not provides any direct/indirect services to importers, except to issue Mandatory Delivery Order as per SRO 450 (1) 2001.

Collector of Customs (Enforcement) too acknowledged and submitted misconduct and fraudulent collection by shipping companies confirm that “As per Customs Rules 664(q) 2015”, that The Licensee in case of any additional charges other than freight shall collect only agreed charges by shipper and shipping lines as specifically written on the bill of lading, airway bill or bill of lading, shall return security deposit within 15 days as per customs rule 665(r).

On scrutiny and examination of applicable laws, the FTO clearly ascertains illegality and corrupt practices of shipping companies and order to The Collector of Customs (Enforcement) to issue show cause notice to offending shipping agents, initiate appropriate action under Customs Rules 2001, revoke/suspend licenses: also instruct Collector (Enforcement) to conduct audit of offending shipping agents, ask Collector to ensure shipping agent return the extra/additional charges collected without delay, further direct that Shipping Agents only demand those charges which have been agreed upon and specially mentioned on the B/L and return security deposit within 15 days.

Copyright Business Recorder, 2024