Shipping rates

News appeared in a section of press of the meeting held at KPT, chaired by the Commerce Secretary to discuss rationalising of shipping charges. Interested quarters appear again out to confuse and mislead, for1legally, importers don't have to pay any charge for delivery order, delivery of goods as is explicit under (i) the Hague Rules (ii) Rule under Customs Act (iii) Schedule of charges under the KPT Act. What is to be rationalised?
The shipping companies pay to terminal operators US $39.5 (Rs 3,300) per TEU under schedule of charges, and extort from importers, unwarranted, at Rs 8,760 per TEU (Rs 17.5 billion a year on 1,992,953 TEU) as terminal handling charges alone. Hidden charges are additional. For terminal handling charges liability is of shipping companies under the KPT Act, not of importers.
And, terminal operators also extort from importers US $45 per TEU as "delivery" or "R&D" (US $90m a year) not provided in the "schedule of charges", hidden charges are additional; and recover US $39.5 from the shipping companies as "terminal handling charges" provided in the schedule.
Freight forwarders are greater exploiters, plunderers as explained by a writer in Business Recorder earlier. The President has now rejected the appeal submitted by the Pakistan International Freight Forwarders Association against the Federal Tax Ombudsman's decision with regard to change of ownership and title of shipments.
Contrary to what is stated in the news, proper mechanism is in place Need is exercise of the jurisdiction efficiently by the Customs and KPT authorities. The Collector of Customs, being the licensing authority, is empowered under the Customs Act/rules to redress complaints efficiently.
And, the KPT is bound to ensure adherence to implementation agreement under the KPT Act signed by the terminal operators. There is no issue as such. Interested quarters made non-issue an issue and confounded confusion to obviate solution for reason not difficult to understand.
Contention of Captain Rashid Abro, Chairman of the PSAA that not more than 10% of the shipping agents are involved in "overcharging" is a myth. Illegal recovery, by all, is rampant, blatant. Merciful offer for "refund" of security deposit within seven days is deception to side-track, delay implementation of finding recommendation of the FTO.
Proposal to collect "details of charges" is exercise in futility. The issue is being discussed since over 12 years at various forums as the Secretary admits that since middle nineties the problem cropped up. Shirking responsibilities to exercise jurisdiction amounts to aid, abet and promote loot and plunder by shipping companies, Terminal Operators and Freight Forwarders and frustrate, nullify the Finding/Recommendation made by the FTO.