Round-the-clock cargo clearance

The Central Board of Revenue (CBR) has decided to launch from February 1, 2007 a 24-hour cargo clearance service at all airports and seaports of the country. According to a Recorder Report, the new cargo service will not only save time but will also considerably reduce the cost of doing business in Pakistan, generally believed to be one of the major reasons for inadequate flow of FDI.
CBR and National Bank of Pakistan officials at a meeting held at Karachi have worked out arrangements for the NBP branches at all airports and seaports to remain open 24 hours a day, seven days a week to facilitate cargo clearance. Earlier, the decision to operate round-the-clock customs clearance service was to be applicable only to Karachi Port and Port Qasim, which has now been extended to all airports as well.
This is a highly commendable move. As things stand today, although seaports in Pakistan do not observe a weekly off, the delivery orders are not issued on Sundays, nor is labour available for handling consignments. Further, as neither bank staff nor Customs officials are available on Sunday, the day is observed as a weekly holiday for all practical purposes.
This has served as a major impediment to the expansion in maritime and air cargo services in the country. It is said that excessive cargo handling charges and low labour productivity not only at Karachi Port and Port Qasim but also at some of the airports have adversely impacted the quantum of our imports and exports.
As Karachi Port and Port Qasim serve as conduits for 95 percent of the country's international trade, these premier maritime outlets are believed to be responsible for an annual loss of Rs 15 billion to the national exchequer, because of Sunday closure.
As we have earlier argued in this space, despite a six percent increase in maritime trading over the past few years, there has been no matching expansion in the two seaports' cargo handling capacity, which has been a result partly of there being no clearance of goods on Sundays.
Karachi Port, which serves as the country's main maritime trade facility, has 30 dry and three liquid product berths, aside from a dedicated container terminal. Although it handled 28.6 million tonnes of cargo in 2004-05, restricted clearance of consignments due to the absence of bank and customs officials as well as labourers on Sundays has blocked realisation of the facility's full potential.
If labourers are asked to work on Sundays, they charge too high cargo handling fees. Meanwhile, KPT has already launched a number of projects to facilitate the import and export trade. Likewise, Port Qasim is reported to have drawn up a plan to upgrade its facilities in order to optimise its cargo-handling potential. Among other major projects being implemented is the night navigation facility, which was introduced at Port Qasim in 2002 to serve myriad maritime purposes and to facilitate international trading.
According to available data, during FY2004-05, 21.3 million tonnes of cargo was handled at the port, as compared to 15.6 million tonnes in 2003-04. Regardless of its self-congratulatory tone, the data quoted above not only shows a consistent upward trend in the two ports' cargo handling capacity, it also shows the vast potential for growth that will hopefully be tapped when round-the-clock customs clearance and cargo-handling is introduced at the two ports.
Likewise, under the arrangement worked out by CBR and NBP, the air freight services too will hopefully witness rapid expansion and facilitation that will help increase our air freight volume.
The government's decision to start round-the-clock cargo clearance at all seaports and airports of the country is a step in the right direction that will surely revitalise our exports and imports sector.
While the CBR-NBP arrangement to keep NBP branches at seaports and airports open round the clock seven days a week, the CBR should also explore the possibility of making similar arrangements with other leading national and foreign banks, which will further facilitate the country's foreign trade.