Zeeqaad 3, 1428

November 14, 2007

Inordinate delay in clearance of consignments at CARe

“Owing to scarce storage facility and inept handling of cargoes at Karachi International Containers Terminals (KICT) imported consignments are being cleared with a delay of 2 to 3 weeks instead of 24 hours”. This was stated by Mr. Mohammad Haroon Agar, Vice President, Karachi Chamber of Commerce and Industry in a Press statement issued today.

Mr. Agar said that due to the delay in clearance of consignments, cost of importing various imported raw materials used in textile and other sectors, edible items etc is continuously on the rise. He further said that for the ease of importers, government had permitted and given access to Private Containers Terminals to use the two Ports for cargo handling. However, due to delay tactics and inefficient administrative matters of Containers terminals these terminals are becoming source of trouble for importers.

 “Private shipping companies and Private containers terminals are earning billions of rupees from the cargo handling facility at the two seaports of Karachi. Due to incentives bestowed to Private shipping companies by KICT, a large number of shipping companies have diverted and started clearance of their imported cargo handling through  KICT resulting in increase in cargo rush at KICT to manifold. While at the same time, due to delay in clearance and examination of imported consignments importers are facing demurrages and detention charges”. Mr. Agar pointed out.

He said that annually 1.8 million import containers arrive at these two seaports on which Containers Terminals and Shipping Companies pay Rs.580 million rupees’ expenses. While they earn approximately 02 billion and 920 million rupees as profit against these container handling. He further added that shipping companies and Containers terminals incur a meager amount of only RS 3200 per container as handling cost while they charge a hefty amount of RS 18,000 per container from importer.

Mr. Agar also pointed out that unnecessary delay in clearance of consignments of major imports at CARe, whose values are predetermined and fixed. He said that despite the predetermined values of major importable items the consignments are not cleared deliberately by the officials of MCC on the pretext of assessing their values and mostly they give enhanced values of the item(s) which results in inordinate delay in clearance of consignments of and accumulation of heavy demurrages and detention charges with no fault of the importer.

He apprised that KICT officials had told him during their visit at KCCI about the fact that previously 5% examination was carried out by KICT which has gone up to 30%, which is another bottleneck in timely clearance of consignments under CARe.

Mr. Agar lamented that despite the heavy handling charges recovered and received by KICT neither it has increased its cargo handling capacity nor paid any attention to expand the cargo storage facility.