On the one hand, Civil Aviation Authority (CAA) is wasting precious cargo storage space on petty issues with Customs Department at Air Freight Unit, Lahore. On the other hand, in connivance with ground handlers, it is fleecing domestic trade and industry by charging higher throughput charges on pretext of speedy release of good, Profit learnt on Friday.
Customs agents disclosed that historically, airlines’ cargo handling arms (ground handlers) were offering free of cost cargo storage at AFUs for five days, but these free days were reduced to two when Federal Board of Revenue (FBR) Customs Department introduced round the clock customs clearance facility at AFU two three-years ago. Business community was happy with this initiative as their consignments were being cleared swiftly, they added. However, due to various reasons Customs Department could not continue 24-hour operations even for a couple of months and started observing the normal eight working hours. But ground handlers did not increase free working days. Mismanagement on the part of ground handlers and CAA, being aviation regulator and custodian of AFU, was causing heavy losses to domestic trade and industry, but nobody was willing to address their grievance, customs agents stressed. Speaking to Profit, an unnamed customs clearing agent pointed out that in practical terms, importers were getting only one free day for customs clearance. “On various occasions, shipments land at AFU after working hours, which means that customs agent, or importer, has to wait for the next day for customs clearance.” It is akin to a ‘between the devil and the deep blue sea’ situation for the business community as if somehow customs agent manages to complete the cumbersome customs clearance process on the same day, CAA asked him to deposit an addition three per cent throughput charges on the pretext of expedite clearance. On the other hand, if consignment gets delay importer had to pay additional storage charges, he lamented.
Both importers and customs agents further indicated that CAA and ground handlers always tried to conceal agreements between them. They did not display tariffs, just to mint money from business community. Customs agents termed these agreements as dubious, which were providing local and foreign operators and ground handlers an opportunity to fleece domestic trade and industry. Cost of doing business was already high in the country, such malpractices were further aggravating the situation, they maintained.
Customs Additional Collector Dr Asif Mahmood Jah accepted that trade and industry had genuine grievance, but it was beyond the scope of FBR or Customs department. He underlined that customs officials were making all out efforts to expedite and facilitate the domestic trade and industry. Customs department had constituted a special Immediate Clearance Group (ICG), which was providing 24-hour customs clearance facility for perishable commodities, live animals or any other priority clearance items. On various occasions, customs formalities were completed even after clearance of goods to maximum facilitate trade and industry, he added. Another customs official at AFU Lahore disclosed that millions of rupees worth of confiscated goods had been wasted in cargo sheds at AFU because of petty disputes between customs and CAA. He further pointed out that in some cases storage charges were even higher from the price of merchandise. Citing the example of some wastepaper shipment, he indicated that CAA was demanding Rs47 per kilogram as storage charges whereas market value of scrap paper would be around Rs20-25 per kilogram. Giving another example he disclosed that Customs Department confiscated some religious books as the importer was not willing to pay duty and taxes leviable under the law. Later, some senior customs officials decided to donate these books to some religious organisation, but CAA asked the department to pay throughput charges despite knowing the circumstance. The case had been forwarded to CAA headquarters for weaver, which might take a couple of days to get approval, he maintained.
To confirm the allegations of customs agent, CAA Senior Manager Cargo at AFU, Khurram Adnan Usmani, was asked by the scribe to provide a copy of tariff or agreement. But he put down the request by stating that it was a confidential document, which could not be made available to public. He said all such agreements belonged to headquarters in Karachi. A member of Lahore Customs Agents Group (LCAG) suggested that CAA should renegotiate its agreements with ground handlers and asked them to display tariff at prominent place. He said issue of free storage should also be reviewed in consultation with stakeholders, to make domestic manufacturing more competitive.