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Category: Ports and Shipping

  • Ship not to be allowed leaving without payment: Zaidi

    Ship not to be allowed leaving without payment: Zaidi

    ISLAMABAD: Ali Haider Zaidi, Federal Minister for Maritime Affairs on Sunday said that the standard ship in Karachi would not be allowed to leave without recovering outstanding dues and inspection expenditures.

    Speaking to media here, he said that the ship was stranded and taken off the shores of Karachi.

    This is the first ship to be stranded and taken off. It is law across the world that the company which owns the ship is responsible for its pull out.

    The captain of the ship did not make any emergency call informing that the ship was stranded, he said.

    He said that on the same day when the ship was stranded on the shores of Karachi. Also the engine, radar of ship was weak. Some 100 tons diesel was extracted from the ship.

    Pakistan on Tuesday detained a cargo ship, which was stuck up at Karachi Seaview beach on July 21, 2021.

    The government has taken the decision to detain the ship after an inspection found the vessel in defective condition.

    According to a letter issued by a department of Ministry of Maritime Affairs to the captain of the ship namely HENG TONG 77 was declared unseaworthy.

    Replying to a question, he said that the government has full faith that Election Commission of Pakistan (ECP) will discharge its duties to ensure free and fair Cantonment Election as its mandate under article 218(3) of constitution.

    However he was surprised to receive a show cause notice as he was not in the constituency since elections were announced. The minister said he has submitted his reply to the show cause notice.

    Pakistan detains ship ‘Heng Tong 77’ for unseaworthy
  • Pakistan detains ship ‘Heng Tong 77’ for unseaworthy

    Pakistan detains ship ‘Heng Tong 77’ for unseaworthy

    KARACHI: Pakistan on Tuesday detained a cargo ship, which was stuck up at Karachi Seaview beach on July 21, 2021.

    The government has taken the decision to detain the ship after an inspection found the vessel in defective condition.

    According to a letter issued by a department of Ministry of Maritime Affairs to the captain of the ship namely HENG TONG 77 was declared unseaworthy.

    “Reference to the inspection of your vessel HENG TONG 77 on July 22, 2021 by the tea of surveyors and subsequent inspections by the surveyors of this department, your ship has been declared ‘unseaworthy’ under the power conferred by section 391 of the Pakistan Merchant Ordinance, 2001,” according to the letter issued by Mercantile Marine Department, Karachi.

    It further said the ship ‘HENG TONG 77’ has been detained under the power conferred by Section 394 of Pakistan Merchant Ordinance, 2001 due to defective condition of the hull, navigational equipment and machinery, which may cause danger to human life on board ship and property.

    The authority said the ship would be released after the satisfactory report of the surveyor of the department, “therefore you are advised to stay at mooring/berth in the port or suitable shelter water after refloating and arrange repair/maintenance of the hull and equipment.”

    Panama registered M.V. Heng Tong 77 was anchored in Pakistan’s waters off Karachi for a crew change on July 21 when it lost anchors due to rough seas and drifted towards the shore.

    Container carrying 39MT sugar sinks at Karachi Port
  • Karachi Port confirms sinking of sugar cargo container

    Karachi Port confirms sinking of sugar cargo container

    KARACHI: Karachi Port Trust (KPT) has confirmed the sinking of a container laden with sugar through a statement released few moments ago.

    It is stated: “Truck loaded with sugar cargo while leaving berth number 5, East Wharf, after issuance of bilty encountered mechanical failure at around 5:20 pm today [Saturday], dated: 31.07.2021, fell in port channel.

    “Driver is safe and no casualty / injury reported. Efforts are underway to recover the truck. The incident is under investigation.”

    According to the sources, the container fell into the sea while handling by a trawler at berth No. 5 West Wharf of Karachi Port, sources said.

    It is believed that the container, which fell into the sea, had carried around 39 metric tons of sugar about 780 bags of 50 kilograms. The sugar was imported by the Trading Corporation of Pakistan (TCP) to provide the commodity at affordable prices in the country .

    The sources said that the breaks of the trawler suddenly failed and lost control. However, driver of the trawler was safe in the incident.

    The monetary loss due to the incident was not ascertained at the time of filing this report but sources said that a ship MV Unity brought 33,000 metric tons of sugar from Dubai on July 27, 2021.

    It was second incident within the jurisdiction of Karachi Port in ten days.

    During Eid holidays a cargo ship was stuck up at sea view Karachi. This ship has not been rescued so far.

  • Container carrying 39MT sugar sinks at Karachi Port

    Container carrying 39MT sugar sinks at Karachi Port

    KARACHI: A container carrying around 39 metric tons (MT) of refined sugar fell into the sea from a ship berthed at the Karachi Port on Saturday evening.

    The container fell into the sea while handling by a trawler at berth No. 5 West Wharf of Karachi Port, sources said.

    It is believed that the container, which fell into the sea, had carried around 39 metric tons of sugar about 780 bags of 50 kilograms. The sugar was imported by the Trading Corporation of Pakistan (TCP) to provide the commodity at affordable prices in the country .

    The sources said that the breaks of the trawler suddenly failed and lost control. However, driver of the trawler was safe in the incident.

    The monetary loss due to the incident was not ascertained at the time of filing this report but sources said that a ship MV Unity brought 33,000 metric tons of sugar from Dubai on July 27, 2021.

    It was second incident within the jurisdiction of Karachi Port in ten days.

    During Eid holidays a cargo ship was stuck up at sea view Karachi. This ship has not been rescued so far.

  • Banks may accept container detention, demurrage charges

    Banks may accept container detention, demurrage charges

    KARACHI: The State Bank of Pakistan (SBP) has issued draft amendment to Foreign Exchange Manual under which banks may be allowed to accept container detention charges and demurrage charges in order to facilitate trade in payments.

    The SBP issued the draft amendments and invite stakeholders’ comments before finalizing the foreign exchange manual.

    According to the draft amendments made to 14 chapter:

    4A –Remittances of Container Detention Charges by Foreign Shipping Companies

    i. Authorized Dealers may accept container detention charges (CDC) directly from the customers of shipping companies/ agents (having valid shipping/agency license as stated under Para 1 (iv) ibid and valid agency agreement) in a separate PKR account opened for this purpose only. No other deposits whatsoever shall be made in such accounts by ADs.

    ii. Authorized Dealers may allow monthly remittance of CDC (net of disbursements, refunds, and income tax paid/payable) of up to USD 50,000/- on Form-M to foreign principals of those foreign shipping companies/agents which are collected in the above mentioned accounts on submission of application along with the following documents: –

    a. Applicable Tariff Rate Sheet;

    b. Summary of Detention Charges along with copy of invoices

    c. F.P Shipment & Breakdown of Disbursement

    d. Copiesy of Tax payment Rreceipt, agency agreement, valid customs shipping agent license.

    e. Auditors’ certificate from QCR rated audit firm confirming payment of income tax, genuineness of transactions and no duplication of payments (only for remittance beyond foreign exchange equivalent to PKR 1 Million or equivalent/-)

    f. Any CDC invoice involving detention charges above 100 days will require valid justification along with documentary evidence.

    g. An undertaking to repatriate back to Pakistan, the amount found by the State Bank, on post-facto checking, to have been remitted in excess of the entitlement.

    h. In case of Transit Trade, PRC evidencing receipt of equivalent PKR from the final destination country.

    Applications for monthly remittances beyond USD 50,000/- shall be forwarded to FEOD as per prescribed format along with relevant documents for approval.

    4B – Remittances of Demurrage Charges

    Authorized Dealers may allow monthly remittance of demurrage charges (net of allowed lay time and other deductions-if any, and income tax paid/payable) upto USD 50,0000 on Form-M to the Owner/Operator/Commercial Operator of vessels/ships/tankers on submission of application along with the following documents: –

    a. Valid charter party agreement (if applicable),

    b. Copy of the Invoice/ debit note

    c. Lay time calculation time sheet verified from third party

    d. Port statement of fact

    e. Copy of B/L, GD, Bill of Entry.

    f. Proceeds Realization Certificate (PRC) for port disbursement charges

    g. F.P Shipment & Breakdown of Disbursement

    h. An undertaking to repatriate back to Pakistan, the amount found by the State Bank, on post-facto checking, to have been remitted in excess of the entitlement.

    Applications for remittances beyond USD 50,000/- shall be forwarded to FEOD as per prescribed format along with relevant documents for approval.

    4C – Remittances of Surplus Port Disbursement Funds by Foreign Shipping Companies

    Authorized Dealer may allow remittance of surplus amount of port disbursement funds held by local offices of shipping companies/ agents back to their principals on Form-M, subject to valid Agency agreement/authorization letter and shipping license, after the payment of port dues/charges and duly reported on the F.P. Statement upon submission of application along with the following documents: –

    a. Customs & Port Charges Clearance with invoices

    b. Proceed Realization Certificate in Original

    c. Copy of Swift Message

    d. Copy of Schedule J/O-3

    e. F.P Shipment & Breakdown of Disbursement

    4D – Disbursement of Cash to Master of Ship arriving at Pakistani Ports

    Authorized Dealer may disburse cash to master of ship arriving in Pakistan out of remittance received by them from owner of the ship/ shipping lined abroad on submission of application along with the following documents: –

    a. Copy of Passport of the Master of the Vessel

    b. Copy of Crew List containing their names, passport numbers, country etc.

    c. Proceed Realization Certificate in Original

    d. Copy of Swift Message for amount realized

    Authorized Dealers will retain all the documents mentioned in Para 4 and its subparagraphs along with Form ‘M’ submitted by foreign shipping companies/ agents. The original Form ‘M’ shall be submitted as usual through schedule E-4 while reporting the transaction in the monthly Foreign Exchange Returns

    Any irregularity detected and advised by the State Bank shall be rectified by the concerned shipping company/agent within ninety days or the amount under objection will be repatriated or adjusted from subsequent remittance, as applicable.

    Authorized Dealers shall also ensure proper due diligence of the above mentioned remittances from AML/CFT and foreign exchange risk perspective through Compliance or Risk Management Department including but not limited to particulars of remitter/ beneficiary and shall determine the ultimate beneficial ownership/ relationship between entities.

  • Customs Rules tightened for International Transshipment

    Customs Rules tightened for International Transshipment

    ISLAMABAD: Federal Board of Revenue (FBR) has tightened the monitoring of international transshipment of imported cargo from gateway port to a foreign port.

    The FBR issued SRO 03(I)/2021 to amend Customs Rules, 2001.

    The FBR amend Rule 510A regarding transshipment of imported cargo from gateway port to a foreign port and made it mandatory the weight, seal number and container number for  international transshipment cargo.

    The following procedure has been prescribed for the movement of the International Transshipment cargo other than LCL cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM or carrier declaration uploaded electronically in the Customs Computerized System by the shipping line (VOCCs/NVOCCs) having valid shipping agent licenses. Such manifest shall necessarily include the following information, namely:

    (a) Port of loading;

    (b) Via port (name of the transshipment port of Pakistan);

    (c) Port of destination (final port of discharge at foreign destination);

    (d) Bill of lading (B/L) No.;

    (e) Name of foreign exporter;

    (f) Name of foreign importer;

    (g) Weight;

    (h) Seal No.; and

    (i) Container No.

    The FBR made amendment to rule 510B and stated that the Terminal Operator (TO) after unloading shall store International Transshipment containers at a place earmarked for them in the notified premises of a seaport. Further, a complete trail of IT containers including the time, location where they are placed and subsequent movements shall be electronically reported and updated in the Customs Computerized System by the Terminal Operator so that the location of the said containers is traceable at any given point in time.

    Further, the terminal operator shall deploy enough manpower to verify the shipper seals against the manifested seals and in case, a container is found without seal or with a different seal or any broken seal, such container shall be re-sealed and immediately released with the Customs seal in the presence of the custodian and same shall be recorded. The new seal number will be entered into the system before stacking of the container.

    Rule 510D regarding delay in clearance of transshipment goods has been substituted. Following is the text of the substituted rule:

    (1) The International Transshipment goods shall not be subject to payment of import or export duties and taxes provided the activities are in conformity with these rules.

    (2) If the goods stores for transshipment are not transshipment within thirty days of their arrival, a notice shall be sent to the shipping line or its agent on the address given in the shipping documents for transshipment of goods from the port. An extension of up to thirty days may be granted for the storage of such goods once a written request mentioning the reasons for delay in removal of goods in submitted to the concerned assistant collector of customs and such a request is approved by him.

    (3) If goods still remain on the port after sixty days of their arrival, the shipping line shall be responsible to remove them immediately unless the delay is attributed to the port authorities. The goods shall only be allowed for auction or destruction by approval of the concerned collector of customs who shall only allow in extraordinary conditions where the shipping line shows its complete inability to ship them out. The said reasons shall be recorded in writing.

    (4) In case of any hazardous material left at the port, the concerned shipping line shall have the responsibility to take the cargo back to the port of origin.

    The Rule 510E has also be amended and substituted the following text:

    “Execution of bond by shipping line: Shipping lines engaged in the business of international transshipment of containers and bulk cargo shall execute an indemnity bond for ensuring to follow customs rules and regulations.”

  • Transit trade activity starts at Gwadar Port

    Transit trade activity starts at Gwadar Port

    ISLAMABAD: A first carrier containing 200 tons of fish from international waters arrived at Gwadar. The fish will be shipped to China in reefer containers, said Federal Board of Revenue (FBR) on Monday.

    According to the FBR statement the arrival of the container at the Gwadar Port will open a new era of prosperity and growth for the people of Baluchistan and the economy of the country.

    This has been made possible under the directions of the Prime Minister of Pakistan to kick start operations at the Gwadar Port.

    Pakistan Customs is all geared up to realize the vision of the Prime Minister Imran Khan for transforming Gwadar into an International Transit trade Hub and facilitate trade through Gwadar Port.

    FBR has already notified International Transshipment Rules vide SRO 218(I)/2020 dated 10.03.2020. A dedicated Directorate of Transit Trade has also been established at Gwadar to work closely with the stakeholders and transform Gwadar into a Transit trade hub.

    As a result of this proactive approach and support of all stakeholders, in the coming days, more vessels containing international cargo including LPG, Steel Pipes, DAP fertilizer for transit to Afghanistan is scheduled to arrive at Gwadar Port.

    This reflects the confidence of the international business community and shipping lines in the economic potential of the Port and excellent trade facilitation measures put in place by Pakistan Customs.

    Gwadar is the future of Pakistan and will help the country in earning much needed foreign exchange in the future.

    During the recent visit of a high level Pakistani delegation to Afghanistan led by Advisor on Commerce, the Afghan businessmen have shown interest in making investment for trade through Gwadar Port.

  • Pak-Qater signs deal to provide online Takaful services to HashMove clients

    Pak-Qater signs deal to provide online Takaful services to HashMove clients

    KARACHI: Pak-Qatar General Takaful (PQGTL) has signed a MoU with HashMove (a global multi-modal logistics platform) to provide online Takaful coverage for cargo (Sea/Air/Warehousing & Land) for businesses in Pakistan.

    The purpose of this agreement is to enter into a strategic collaboration, enabling marine and fire Takaful service for sea/air and land cargo and commodities trading via digital mediums allowing corporates, businesses, customers of HashMove logistic platform such as importers, of freight forwarders, customers of ground transportation, customers of warehousing companies within Pakistan.

    This is the first time a Takaful Insurance company provides the digital coverage to the logistics businesses allowing them to conduct their export and import with full coverage. The companies aim to achieve at target of issuing at least 1000+ coverage / year to begin with.

    Talking at the occasion, CEO of Pak-Qatar General Takaful, Muhammad Nasir Ali Syed said: “The need of marine coverage by Takaful through digital channel will open a new door for the businesses to grow at a much faster rate with convenience at fingertips.

    “This is the need of the hour and my team is fully committed to extend cooperation and support where needed. Pak-Qatar Takaful has always maintained the position of a leader and firmly believes in offering innovative products through interesting projects and this time we are very excited to offer coverage through our business partner HashMove.”

    Sarfaraz Alam, CEO HashMove stated; “Pak-Qatar General Takaful is the leading Takaful coverage provider in Pakistan and a trustworthy name for settling claims against losses.

    “We are glad that our customers within Pakistan & South Asia will be able to avail Takaful coverage on real time basis. This is the one of the biggest milestones in the logistics industry in Pakistan and we have witnessed upward growth since last 2 years.”

  • List of companies for pre-shipment inspection under import policy

    List of companies for pre-shipment inspection under import policy

    ISLAMABAD: The ministry of commerce has issued list of companies for pre-shipment inspection as envisaged in different provisions of Import Policy Order, 2020 shall be done in the exporting country.

    The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the Import Policy Order 2020.

    Following are the name of the companies under Appendix-H of the Import Policy Order 2020:

    a. Messrs Lloyds of London;

    b. Messrs Quality Tech, LLC;

    c. Messrs ABS;

    d. Bureau Veritas;

    e. Messrs SGS; and

    f. Messrs IMTECH

    The pre-shipment inspection companies as approved by Pakistan National Accreditation Council (PNAC) for the inspection of solar equipment (including but not limited to solar PV systems, off-grids /standalone solar PV systems, solar PV kits, solar PV panels, solar PV cells, inverters, charge controllers, balance of system components for PV systems, Low-voltage switchgear and control gear assemblies, power converters for use in PV power systems, insulated cables for use in PV systems, solar pumping systems for liquids, solar water heaters with accessories, solar stoves/cookers/ranges, etc. and parts thereof).

    Through Appendix-O the ministry also issued list of pre-shipment inspection following agencies:

    1. Baltic Control Pakistan, Suite No. 419, 4th Floor, The Cotton Exchange Building, II Chandigarh Road, Karachi on behalf of Baltic Control Ltd; Aarhus, Denmark.
    2. NMCI Pakistan (Pvt.) Ltd; Suite # 105, Khurshid Fancy, Jamaluddin Afghani Road, SharfabadChowk, Karachi on behalf of NMCI, USA.
    3. Inspectorates Corporation International (Pvt.) Ltd., A-53, Plot No. 26, St. 4, Nisar Road, Lahore Cantt, Lahore on behalf of Control Union, Germany.
    4. Inspectorates Pakistan (Pvt.) Ltd., 1st Floor, Lason Square Building No. 1, Sabir Beg Shaheed Road, Karachi on behalf of Coteena Group of Companies, Switzerland.
    5. M/s Control Union Pakistan (PVT) LTD, suit no 202.A, second floor, cotton exchange building, I.I Chundregarh Road, Karachi on behalf of Control Union Group of Companies, Netherland.
  • Resident shipping companies granted final tax regime

    Resident shipping companies granted final tax regime

    ISLAMABAD: The income tax law has allowed final tax regime for Pakistani resident shipping company, which is registered after November 15, 2019.

    According to explanation to changes made to Income Tax Ordinance, 2001 through Finance Act, 2020, the FBR said that clause (c) has been added to sub-section (1) of section 7A to provide for imposition of final tax of an amount equivalent to seventy-five US cents per ton of gross registered tonnage per annum for a Pakistani resident ship owning company registered with Securities and Exchange Commissioner of Pakistan (SECP) after November 15, 2019 and having its own sea worthy vessel registered under the Pakistan flag.

    The FBR said that final tax regime for taxing gross amount received or receivable by non-resident shipping companies at fixed tax rate under section 7 did not cover shipping income of a resident person.

    A new section 7A was, therefore, inserted through Finance Act, 2015, which provides for taxing shipping of residents under final tax regime.

    Further, dates of applicability of section 7 and clause (98) of Part-IV of Second Schedule which exempts import of ships and other floating crafts including tugs, survey vessels and other specialized crafts purchased or bare-boat chartered by a Pakistani entity and flying Pakistani flag from applicability of provision of section 148, have been extended to 30-06-2030.