Off-dock buyers' consolidation services: restriction to affect export orders: PIFFA

Restriction imposed by the Customs authorities on off-dock buyers' consolidation services, performed by freight forwarders, would drastically affect export orders from global brand customers. This is a crux of a letter sent to the Customs authorities by Pakistan International Freight Forwarders Association (PIFFA).
The letter said that PIFFA members performed Less Containers Load (LCL) consolidation and 'buyers consolidation services', using off-dock non-bonded warehouses, offering value-added containers' management services as per Standard Operating Procedure (SOP) requirements of global giants/brand customers like Levis, NIKE, IKEA, Target stores, JC Penny, etc.
Besides normal stuffing, PIFFA members are also involved in providing other value addition services including order-wise segregated stuffing, outer packing inspection, style/color-wise load plan, barcode labelling and scanning, weight and random inner quantity checking, equipment inspection and cleaning, replacement of outer packing, stuffing pictures and maximise load-ability, etc.
PIFFA further said that since the issuance of pubic notice 4/2013-Exp/HCR, the Customs department was not allowing 'buyers' consolidation' from off-dock/non-bonded facilities. On the other hand, bonded CFS like Badruddin, PMS, MI Yard at port is unable to cater the growing value addition requirement and demands of the global buyers. Moreover, it said that this decision would drastically affect export orders from global brand customers as these customers did nominate their own forwarders to carry out these specific services as per SOP.
The letter said that India and other competing countries were encouraging off-dock services to attract international buyers whereby customised value addition services were offered to export ready to store products right from their manufacturing origins. However, Customs department in Pakistan has wrongly implied the said public notice to stop LCL consideration at non-bonded facilities, it alleged. PIFFA, therefore, requested the Customs authorities to review and redress the grievances of the members.
When contacted, Customs official posted at Export Collectorate, on the condition of anonymity, said that Customs department had not restricted freight forwarders from buyers' consolidation services, but facilitated them to avoid unwanted circumstances.
He said that decision was made to streamline the clearance through Web Based One Customs (WeBOC) as prior to this decision both clearance system - WeBOC and one customs were being used for the purpose and Customs department remained unable to maintain clearance records. Besides, some unscrupulous elements had also tried to send drugs out of the country by using the said channel, he maintained.
Keeping all in view, Customs department has stopped buyers' consolidations being carried out by different forwarders outside the port area and directed them to make all such consolidations under the supervision of Customs authorities at the bonded terminal or inside the port.
For the purpose, sheds have been allocated at Pakistan International Containers Terminal and West Wharf. Moreover, he said that this decision was aimed at facilitating the stakeholders as if the risk management system raised objection on the consignment falling under LCL consideration then it would be quiet difficult for freight forwarders to offload goods from LCL container and repack it after examination.