KARACHI: Shipping companies are cruelly on a looting spree and the Model Customs Collectorate (Preventive), the lawful custodian of shipping companies, is taking a siesta, paper importers said.
“An importer became victim of loot and plunder by a shipping line and its local agent, who unlawfully grabbed payments in the name of delivery order charges,” they added.
According to details, one of the Karachi-based paper importers filed complaint with The Collector of Customs (Preventive), the legitimate superintendent of shipping companies, that the local agent of a shipping line, illegally extorted hefty sum of Rs 121,545/- for single container on account of delivery order charges.
Another importer also suffered at the hands of so-called local agent who extorted Rs 204,440/- on account of delivery order charges for two (2) containers. When importers approached alleged local agent of the shipping line for illegal collection, they deceitfully and cunningly replied that it’s general practice in Pakistan to collect (illegal charges) to cover the cost of local agent. They argued and emphasized that their specific declared tariff charges are lawful.
“As per the contract (Bill of Lading), the carrier contracted and undertook to perform whole of the operations and services and deliver the consignments at Karachi Port CY in consideration of freight, prepaid which the carrier fully earned on receipt of the goods at the port of loading. Freight includes all charges payable in accordance with the applicable tariff and the Bill of Lading, defined under the Hague Rules. No local charges are lawfully applicable or payable besides the Bills of Lading. The carrier shall issue delivery order to importers against the Bill of Lading as has been filed by them whereas terminal operators shall only honour those delivery orders as are issued by the carrier that manifested the cargo to customs authorities.”
Therefore, under the Contract Act, shipping lines used or employed by the carrier in connection with the performance of carrier’s obligations under the Bills of Lading were bound to issue delivery orders and deliver the consignments, paper importers said.
“But, the local agent of the shipping line refused to issue delivery orders in exchange for the negotiable Bills of Lading, coerced importers to pay and extorted charges illegally then issued delivery orders for delivery of the consignments,” they added.
They said the local agents of the shipping lines did not specify for what alleged service they provide to importers at port and collected the amounts. The contract (Bill of Lading), Customs SRO 450(1)/200, The Hague Rules and the Hamburg Rules clearly state that no local charges are lawfully applicable or payable.
The paper importers said the Pakistan Ship Agent Association is also caretaker of shipping lines, who can regulate shipping laws among their members, but in contrast PSAA is totally inactive with regard to controlling their members instead it is found suggesting tariffs to its member undertakings, in prima facie violation of Section 4 of the Competition Act, 2010.
In 2011, the CCP raided the PSAA office, documentary evidence was produced before the commission in the form of letters and minutes of meetings. It prima facie raised suspicion as to the activities and role of the PSAA with regard to shipping agency services tariff.
The commission observed that the tariffs recommended by Pakistan Shipping Agents Association prima facie suggest to its member undertakings a target range of minimum and maximum prices they can charge to their customers.
Importers accused that Collector MCC (Preventive) is totally inactive and has completely failed to act against shipping companies and unwilling to listen to importers’ plea or to how to deal with SRO 450(1)/2001, SRO 1220(1)2015, Contract Act and other international shipping laws.
Copyright Business Recorder, 2023
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