Karachi Port: APPMA seeks action over GD clearance delays

KARACHI: The All Pakistan Paper Merchants Association has called for immediate action by the Federal Board of Revenue (FBR) and Customs authorities against prolonged delays in the clearance of Goods Declarations (GDs) at Karachi Port.

Repeated scanning, physical examination and laboratory testing are causing substantial and avoidable financial losses to importers, the association said in a statement on Tuesday.

APPMA said legitimate consignments were frequently taking more than 10 days to clear Customs, exposing importers to mounting demurrage, container detention, storage and other port-related charges.

It said consignments belonging to the same importer, originating from the same overseas mill and carrying identical descriptions and specifications were being repeatedly subjected to scanning, physical examination and laboratory testing despite an established import history.

Such repetitive interventions, in the absence of any specific risk, intelligence, discrepancy or other lawful justification, undermine the purpose of a risk-based Customs regime and unnecessarily burden compliant importers, it said.

Referring to Section 80B of the Customs Act-1969, the association said the law provides for a Risk Management System for Customs controls, requiring enforcement resources to be focused on consignments presenting genuine risks rather than repeatedly subjecting established and compliant importers to ‘intrusive’ procedures.

APPMA also referred to Section 81 of the Customs Act-1969, concerning provisional determination of liability where final assessment is delayed due to laboratory testing or further inquiry. It urged Customs authorities to use the provision wherever legally permissible instead of holding consignments unnecessarily until laboratory reports are received.

“Administrative delays should not be converted into a financial penalty for legitimate importers who have fulfilled their statutory and documentary obligations,” the association said.

It warned that prolonged clearance times increase demurrage, detention and storage costs, tie up working capital and contribute to port congestion. This ultimately raised the cost of imported raw materials and placed an additional burden on industry and consumers.

APPMA urged the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to take up the issue with the FBR Chairman, Member Customs and relevant Customs authorities and seek implementation of a transparent, accountable and genuinely risk-based clearance mechanism.

The association called for expedited clearance of established and compliant imports; an end to repetitive scanning, examination and laboratory testing of identical consignments unless supported by specific risk or other lawful grounds; and application of Section 81 wherever legally permissible when laboratory reports or further inquiries are pending.

It also called for fixing responsibility for avoidable administrative delays, along with effective monitoring of GDs pending beyond a reasonable period and mandatory recording of reasons for abnormal delays.

APPMA stressed that Customs enforcement and trade facilitation were not contradictory. Enforcement resources should be directed towards genuine risks while compliant businesses should be protected from unnecessary and repetitive procedures.

It urged the FBR to intervene without delay and ensure that Customs controls were exercised in a transparent, proportionate, lawful and risk-based manner, facilitating legitimate trade rather than imposing avoidable financial costs on importers.

Copyright Business Recorder, 2026