Local shipping rates

everal letters appeared in Business Recorder but the shipping companies/agents and freight forwarders failed to explain or rebut whether or not the allegations are well founded.
Meantime, in the Finding/Recommendation dated 16.01.10, the Federal Tax Ombudsman observed, excerpt of which I quote: "The department representative, however, admitted that customs authorities, being the licensing authority for shipping agents, could take cognisance in case of violation of any provision of the Customs Law and Customs Rules 2001.
In rebuttal thereof, Noor Mohammed, AR, stated that it was not correct that only terminal operators charged terminal handling charges. The shipping agents were also collecting terminal handling charges. According to him, neither the terminal operators were entitled to collect terminal handling charges nor the shipping agents provided any service to the importers after discharge of the goods except issuing delivery orders, which was in fact their contractual obligation.
The complaint has been considered in the FTO Secretariat in the light of oral and written submissions of the parties. The issue proper is whether or not the licensing authority (Collector Customs) is empowered under the law to take cognisance of allegation of misconduct involved in over-charging, excessive charging, and extortion of unlawful charges from the business community by his licensees namely shipping agents.
In the finding the Federal Tax Ombudsman stated: "The foregoing facts reveal that the problem of overcharging, double charging and unlawful charging has, over time, assumed alarming proportions. The complaints of extortion is mounting. The problem cannot be left unattended because of its serious implications in terms of cost of doing import and export business.
The Collector of Customs (Preventive), being the licensing authority, is the appropriate forum for dealing with conduct-related complaints against customs licensees, ie the shipping agents for which he has been empowered in the law and the rules. He needs to exercise his jurisdiction effectively to redress these complaints efficiently. Omission to discharge such responsibilities constitute maladministration as defined under Section 2(3)(i) of the FTO Ordinance, 2001."
Based on the foregoing facts and findings, it is recommended that in eight identical complaints, the Federal Board of Revenue to direct, among others, (i) Collector of Customs (Preventive) being the licensing authority to effectively regulate and control the conduct and discipline related complaints of individual businessmen against the shipping agents for which the collector has been duly empowered under the law and rules, The FBR may also actively consider proposing effective remedial measures in the Finance Bill, 2010-11. Hope that this resolves the problem once for all.