Terminals Operators (KICTL and PTCL) indulge in huge unlawful collection in suspicious heads of accounts, which are not specified in KICTL/PICTL tariff, KPT Act-Schedule of charges, giving huge losses to trade and industry, exporters and trade leaders said. They blamed that the shipping companies and terminal operators are working as mafia and hauling up excessive unlawful charges.
The trade and industry representatives have pointed out various illegalities at terminals and requested higher authorities to implement applicable laws under KPT Act/Implementation Agreement-Schedule of Charges. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is also struggling and protesting against illegitimate/fraudulent charges of shipping companies and terminal operators. The factual position is all charges up to Karachi Port Container Yard prepaid at port of loading. Shipping agents collect huge list of unwarranted hidden charges in advance and issue delivery order and then terminal as well illegitimately in the name of Terminal Handling Charges (THC) collect 11 unusual deceitful charges.
For a mere single container, shipping lines, agents and terminals besides other charges collects terminal handling charges three times one by one and according to trade leaders it is cheating, looting, plundering in the name of charges. Shipping lines/carriers bound to deliver goods at container yard as stipulated in bill of lading, Contract Act define "Freight" includes all charges payable to the carrier in accordance with the applicable tariff and this bill of lading". Customs Rules SRO (450(1)2001 dated 18-06-2001 Sub Rule 419 specify "The carrier shall issue delivery orders to the importers against the bill of lading as have been filed by them where against the terminal operators shall only honour those delivery orders as are issued by the carrier that manifested the cargo to customs authorities." Implementation Agreement-Schedule of Charges clearly write down terminal charges 'payable by line/carriers/operators' and not importers.
Previously, outgoing Minister of Port and Shipping Kamran Michael in meeting at the FPCCI, heard traders and industry grievousness about illegal charges but shockingly constituted a committee opposed to related laws. Recently, the KICTL yet again unlawfully added two more charges in the long list of charges ie port handling charges (PHC) at $72 per 20 ft container and stevedoring at $30, importer plea is that they not handle port as the same handled by shipping lines and carry on collecting conflicting dubious charges from importers.
KICTL/PICTL tariff is identical, containing charges not allowed or excessive than allowed in schedule of charges. Schedule of charges allowed them to collect charges specified therein. The law is 'no charges not specified', or charges in excess could be recovered. The KICT tariff is not in agreement and disputed as (i) Terminal Services Charges: not specified in the schedule, under part A, $39.50 for 20" and 59.25 for 40" collectable from the carrier not from the consignee, for freight prepaid mode B/L. (ii) Storage: 10 free days allowable from the date of landing as specified in the schedule of charges. Fuel differential: not specified in the schedule of charges. What criteria for its fixing. If payable, it is payable by the carrier, not by the consignee. (iii) Scan Infrastructure: Not specified in the schedule of charges. It is not collectable without scanning the containers. (iv) Port Handling Charges (PHC) at $72: Port handling charges not provided in schedule of charges/payable by carrier. (v) Stevedoring Charges of SOC container $30, shipping own container payable by carrier. (vi) Data Processing/Documents: Not provided for in the schedule of charges and cannot be collected, THC covers. (vii) Weighment: Chargeable only if the supplier/consignee request for it and certificate is issued. Not otherwise as is the KICTL practice. (viii) Survey ((ix) Examination by Customs (x) Port Demurrages (xi) Truck Entry.
The KICTL and PICTL handle approximately 0.8 million containers TEU annually, if roughly calculate charges all together collected by shipping agents, terminals and stevedores' it comes unchecked extortion of over Rs 50 billion a year, plus hidden charges, siphons out of country.
The State Bank of Pakistan is a regulatory authority, monitor the credit system of Pakistan must initiate investigation of huge remittance involving violation of foreign exchange act and robbery from trade and industry, the ministry of ports and shipping is competent authority to look into and to enforce applicable laws under KPT Act, Implementation Agreement Schedule of Charges and save trade and industry from colossal losses and clap down pilferage of foreign exchange.