Thousands of containers stuck at port due to rule changes

Pakistan Customs' sudden green channel changes cause delays, impacting imports and increasing costs for businesses.

KARACHI:

A sudden change in the green channel's parameters by Pakistan Customs has halted the clearance of thousands of containers of various imported commodities including essential goods, due to which importers are facing severe financial losses.

Meanwhile, shipping companies and terminal operators are earning millions of rupees in terms of additional revenue through demurrage and detention charges. The delay in clearance has raised concerns that the supply of medicines, pulses, medical devices, steel, and other essential items to the local market may be adversely affected.

In this regard, Chairman of the Customs Advisory Council of the Federation of Pakistan Chambers of Commerce and Industry, Khurram Ejaz, told The Express Tribune that Customs authorities have changed the green channel rules without prior notice, resulting in delay in the clearance of thousands of imported goods containers at the port.

Ejaz stated that the abrupt changes in the Risk Management System (RMS) have significantly reduced the green channel clearance rate from over 47% to less than 26%. This has led to a significant increase in the number of containers requiring examination and assessment, burdening terminal operators and Customs officers. Importers are now facing an unnecessary four-day delay in offloading containers and another two to three days in their examination and assessment.

Ejaz said that a prior notification should have been issued by the Customs authorities for any changes in the green channel's parameters. Apart from this, the number of officers should have been increased to tackle the extra workload and prevent clearance delays.

He pointed out that the delay in clearance of consignments has created opportunities for private terminal operators and shipping companies to collect undue demurrage charges and container rents. Importers are being forced to pay additional charges and container rents every five days, causing losses and increasing their business costs.