PESHAWAR: The provincial government of Khyber Pakhtunkhwa has introduced a piece of legislation to ensure a stable supply and availability of goods, smooth function of the market, and address the menace of profiteering and hoarding in the province.
The bill is presented in the backdrop of the 'Provincial Commerce and Trade Strategy of Khyber Pakhtunkhwa, 2019-23 for promotion of commerce and trade in the province. One of the objectives of the strategy was to develop a commercial governance framework for different sectors of commerce and trade of whom storage and warehouse is one of their important sectors.
Currently there is no legal framework for regulation/registration/licensing of godowns and the goods stored in the godowns in the province. This regulatory deficit promotes unfair commercial practices such as profiteering and hoarding as evident from the recent sugar crisis.
This Act may be called the KP Registration of Godowns Act, 2021 and shall extended to the whole province of Khyber Pakhtunkhwa and apply to all forms of godowns used for storing of goods. After the promulgation of the Act, no person shall establish or operate godowns unless he has a valid license granted by the Licensing Authority. Under procedure for grant of license, any person, who intends to establish a godown, shall apply to the Licensing Authority, for grant of license in the prescribed manner:
Provided that a person who is already operating a godown without a license shall within thirty days from the commencement of the Act file an application to the Licensing Authority for the grant of license and in case of non-compliance, such person shall be dealt in a manner as provided in Section 11 of the Act. If any person has establish or intending to establish or is operating a godown without compliance with the relevant laws or is found causing health hazard, the licensing authority or authorized officer, as the case may be, may pass and order directing such person to stop the violation or remove the deficiencies and may also seal the godown.
The licensee will be responsible for cleanliness of the premises of the godown and also provide for spittoons, safety equipment, latrines & urinals and maintaining of temperature and environment conducive for storage of goods. Similarly, the licensee may also be responsible for observance of sanitary and phytosanitary measures and other measures necessary for sake storage of goods, observance of other laws relevant to the goods stored in the godown; maintain and produce record of books, accounts and record relating to the goods stored in or removed from the godown and to furnish such information relating to thereto as and when required by the Licensing Authority.
Furthermore, the licensee will also be responsible for compulsory vaccination and inculcation and health certificate of workers, water and solid waste management, maintenance of proper infrastructure, fencing and fire safety equipment; and security for stored goods. The licensing authority or authorized officer, as the case may be, may inspect any godown to ensure whether the provisions of the Act and rules are complied or otherwise. If, during inspection, a licensee is found to be violating the provisions of the Act and the rules, the licensing authority or authorized officer shall impose fine, which may extend to Rs.0.5million or seal the godown or both.
Furthermore, if during inspection and subsequent enquiry, it is established that the goods are being stored for hoarding and profiteering, the licensing authority or authorized officer shall confiscate the goods and refer the case along with confiscated goods to the Deputy Commissioner, in case of hoarding, and to the Director Industries and Commerce, Khyber Pakhtunkhwa, in case of profiteering, for further proceedings under the laws relating to prevention of hoarding and profiteering for the time being in force.
If any person is involved in the operation of godown without license, the licensing authority or authorized officer may either pass an order directing such person to stop operation of such godown or seal the godown, as the case may be and any person who contravenes any such order passed shall be punished with imprisonment for a term which may extend to one year or with a fine which may extend to Rs.0.5million.
Copyright Business Recorder, 2021