The shipping lines their local agents and terminal operators swindle local traders to the tune of Rs 50 billion per annum through collecting various illegal charges, claimed paper merchants Thursday. Terming it an organised corruption, All Pakistan Paper Merchants Association (APPMA) blasted international shipping firms their agents and terminal operators for inflicting "huge losses" upon local traders and the country.
"The swindling is to the tune of over Rs 50 billion per annum," APPMA Chairman Muhammad Anis told Business Recorder in a letter. Deploring what he said the falsification and inaccurate representation of facts by All Pakistan Shipping Association (APSA), he revealed a "highly organised corruption" being committed by the shipping companies and terminal operators through fleecing the country's importers and exporters alike.
"Ship agents and terminal operators collect illegal charges for issue of delivery orders/delivery of the goods," he claimed saying there were over 300 cases filed in the district and sessions court against shipping companies, their agents and terminal operators.
"Till date 80 percent court decisions come in favours of complainants and shipping companies/agent repay all illegal collection," Anis said. He accused shipping companies, their agents, terminal operators and freight forwarders of extorting "unchecked" traders with over Rs 50 billion a year.
Prolonged agitation of traders, he said, culminated in the recommendation by the Federal Tax Ombudsman (FTO) for corrective measures. "With powerful tangible lobby, shipping companies and others let it down and continued fleecing, making import/export business uncompetitive, and depriving export business of their goods and country of foreign exchange," the APPMA chief claimed.
The carriers and agents, he said, were bound to deliver the goods in performance of whole of the operations and services undertaken in consideration of freight including all charges. "After receipt of freight and all charges the carriers release the original Bill of Lading to the shipper," he said. But, the paper merchant said, shipping companies, their agents and terminal operators were "fraudulently" collecting illegal charges for issuing delivery orders or giving delivery of the goods without providing any services to the consignees.
"There is no legal, moral or contractual justification for recovery of any charge by the carrier and/or by the agent and/or by terminal operators," he said. Referring to shipping regulations under the Contract Act, the Customs Act 1969, KPT Act I SCHEDULE OF CHARGES, the Hague Convention, the United Nations Convention on the Carriage of Goods by Sea, 1978, the United Nations Convention on Contracts for International and Carriage of Goods Wholly or Partly by Sea, Anis said APPMA would continue to struggle for the implementation of shipping laws and impede "extortion". "Ministry of Port and Shipping and Ministry of Finance are fully aware of (this) organised corruption... and promised FPCCI to revisit KPT Act and solve problems faced by the business community," he said.
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