FBR and Ports Ministry to set up 'Local Shipping Rates Advisory Committee'

The Federal Board of Revenue (FBR) and the Ministry of Port and Shipping have decided to constitute a 'Local Shipping Rates Advisory Committee' to resolve the issues of seaport charges, containers guarantees and terminal handling charges of shipping lines, shipping agents association, freight forwarders and port terminal operators.
Sources told Business Recorder here on Wednesday that the FBR has agreed with a proposal of the Ports and Shipping Ministry to replace the committee of 'Shipping Rates Advisory Board' with the 'Local Shipping Rates Advisory Committee' during the last meeting of the Task Force on National Trade Corridor Improvement Program.
The committee would be headed by Chief Collector of Customs (South), Karachi, and members would be Collector Model Customs Collectorate (MCC), Preventive Karachi, DG, Ports & Shipping, representative of KPT/Port Qasim authorities, Deputy Secretary, Ministry of Commerce, President Shipping Agents Association, President Freight Forwarders Association, President Multi Modal Transport Committee, President Customs Clearance Agents Association and representatives of Terminal Operators.
According to FBR, the issues/problems raised by the trade regarding seaport charges, shipping lines free day, containers guarantees, D O charges, B/L issues and terminal handling charges pertains to shipping line, shipping agents association, freight forwarders and Port Terminal Operators and need to be addressed by the Ports & Shipping Ministry in consultation with relevant departments/organisations, including FBR.
The FBR was of the view that the question whether the tariff rates charged by the service providers fell within the regulatory function of any government department needed clarification.
Sources said that traders have been constantly forwarding complaints against shipping agents, shipping lines, terminal operators, freight forwarders regarding terminal handling charges, container handling charges, private sector port charges, transfer of title by issuing House B/L etc, to FBR. These issues have been discussed during the last meeting of the Task Force on National Trade Corridor Improvement Program.
The Working Group (WG) of National Trade Corridor Task Force observed that all ancillary charges levied by the operators should be endorsed in the bill of lading. Thereafter, no additional charges should be imposed on the sums declared on the traders by the operators.
There was reluctance on this proposal by some stakeholders, as the sums declared on B/L would become the revenue of the carriers, and the local operators would not receive payment for the service they would provide locally. The WG further said that there was lot of mistrust among the stakeholders.
This affects the quality of service and disrupts adoption of standard practice by international transporters. Therefore, the Chambers and Trade Associations should create a body which should guide their members on the best international practices in sea transport. The chamber, trade associations and their members should adopt the procedures which are globally acceptable.
A few companies, which are earning bad reputation among the traders, were also identified. These lines/agencies need to be warned by the controlling authorities without further delay. If these firms were checked, most of the problems would be resolved, the WG said.
Since Pakistan Customs has constituted a group of stakeholders to deal with complaints. It would be more appropriate to wait and see the results. All freight forwarders must be registered as a company; their performance in accordance with the certification, Rules and Code of Conduct approved by Department be kept under check in accordance with the procedure determined by the Ministry of Commerce and the foreign exchange remittance by them should be reported to the SBP, WG of the National Trade Corridor Task Force added.