FBR waives surcharge on warehouses

Member Customs orders shipping companies to work on Saturday

KARACHI: The Customs Department has decided to waive surcharges on bonded warehouses and has ordered shipping companies to operate on Saturdays as well.

“Federal Board of Revenue (FBR) Member Customs (Operations) Syed Tariq Huda has agreed to a proposal submitted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for waiving fines,” said Shabbir Mansha, Chairman of the FPCCI Standing Committee, while talking to The Express Tribune.

Pakistan Customs provides warehouse facility where importers can keep their goods for six months without any charges or advance taxes. However, if businessmen do not lift their goods in the stipulated time period, they have to pay a fine.

Sometimes, the fine costs more than the actual duty. Resultantly, businessmen abandon the goods and the government has to auction them. However, the FBR offers some relaxation in the fine so that businessmen can lift their goods and the FBR can increase its revenue.

“We wanted this relaxation earlier but they, as usual, delayed the concession till the end of June,” said FPCCI President Mian Anjum Nisar.

“Surcharge should be waived on goods that are kept in warehouses for more than six months; the member Customs has agreed and a notification for implementation is expected to be issued soon,” Mansha said.

“He also agreed to minimise human interaction and make sure social distancing is maintained during the pandemic and has appointed Collector Customs East Engineer Riaz Memon as the focal person,” he added.

“To save human lives from coronavirus, contacts with banks, shipping companies, ports and other institutions can be organised online.”

Given the growing hazards of the coronavirus, he said whether at the export or import stage, the business community was at high risk, so the use of online technology to minimise human interaction and facilitate online transactions with banks, Customs, ports and shipping companies was important.

He said due to the limited working hours of shipping companies and holiday on Saturday, activities at the port were delayed. Therefore, the offices of shipping companies should remain open on Saturdays and daily working hours should also be increased.

In response, the member Customs issued orders for opening the offices of shipping companies on Saturday so that import and export matters could be dealt with promptly.

Published in The Express Tribune, June 23^rd, 2020.

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