ISLAMABAD: The government is likely to waive about Rs 0.4 billion demurrage charges on Afghanistan-bound containers as a special case on the request of Afghanistan's parliamentary delegation, sources in Commerce Ministry told Business Recorder.
The second meeting of the task force on Customs ( demurrage waive-off issues) of containers of the Executive Committee of Pakistan-Afghanistan Parliamentary Friendship Group was held on July 22, 2020 in the National Assembly Secretariat, Islamabad . The agenda of the meeting was " discussion with institutional stakeholders on waiving off of high port demurrage for Afghan bound containers stuck at Pakistani ports.'
During the meeting, Chairperson of the task force stated that as agreed on June 3, 2020 in the meeting held at the Ministry of Commerce, Ministry of Maritime Affairs would move a summary for the ECC for waiver of demurrage charges on Afghanistan-bound containers stuck at ports for the period March 24,2020 to July 21, 2020 incurred primarily due to Covid-19 pandemics impact at the Afghan-Pakistan border.
The sources said although there is no statutory instrument to regulate the terminal operators being private sector entities and having executed implementation agreements with GOP (through KPT and PQA), there are two legal grounds for waiver of these charges. Firstly, a strong case on grounds of force majeure and secondly, the precedent exist in the past where on three occasions waivers from demurrage had been granted.
Accordingly, Ministry of Maritime Affairs would direct the terminal operators, namely, Qasim International Container Terminal (QICT), Pakistan International Container Terminal (PICT), Karachi International Container Terminal (KICT) and South Asia Port Terminal (SAPT) through KPT and PQA.
The matter has been taken up with the port authorities and terminal operators at ports and requisite information of demurrage incurred for Afghan-bound containers shared with them.
The total number TEUs is 14,783+1,mcontainers 20 feet-7043, containers 40 feet-3860 and containers 45 feet- 9 at KPT, KICT, PICT, SAPT and QICT. The total amount of demurrages has been calculated at Rs 3.98 billion.
Keeping in view the sensitivity of the issue and its importance for bilateral relations between Pakistan and Afghanistan, Ministry of Maritime Affairs has recommended that KPT, PQT and terminal operators namely SAPTL, PICT, KICT, QICT be directed through PQA and KPT to allow one-time waiver of demurrage charges recovered / charged by the terminal operators at Bin Qasim and Karachi Port of an estimated amount of Rs 3.98 billion for a period from March 24, 2020 to July 21, 2020 or till the approval of federal cabinet including ten days of lifting the containers from the terminals/ ports.
Copyright Business Recorder, 2020
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