The Federal Board of Revenue (FBR) has urged terminal operators to provide an additional 15-day free period for imported cargo at the port area, exempting it from demurrage and detention charges, in response to the ongoing coronavirus lockdown.
The FBR’s request follows an appeal from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), which highlighted the issue of numerous containers stuck at the port awaiting customs clearance due to the lockdown measures aimed at controlling the spread of COVID-19.
Pakistan is currently grappling with significant challenges in managing the COVID-19 outbreak. The lockdown and movement restrictions have led to delays in the clearance and lifting of cargo from ports, surpassing the usual free time allotted to importers under normal business conditions.
“In light of the current situation and to facilitate trade, it is requested that demurrage and detention charges may not be charged from the importers for a period of 15 days in addition to the free time already allowed by the port authorities,” the FBR stated.
This measure is intended to alleviate the financial burden on importers and ensure a smoother flow of goods during this period of restricted movement. The FBR’s intervention aims to support businesses that are struggling with logistical challenges caused by the pandemic and the resultant lockdown.
The FPCCI had sought the FBR’s help to address the mounting issue of delayed customs clearance, which has led to a backlog of containers at the port. By extending the free period, the FBR hopes to expedite the clearance process and prevent additional costs for importers already impacted by the pandemic.
As Pakistan continues to navigate the difficulties posed by COVID-19, such measures are crucial in maintaining trade flow and supporting the economy. The FBR’s request to terminal operators underscores the importance of collaborative efforts to mitigate the adverse effects of the pandemic on businesses and the broader economy.
In summary, the FBR’s call for an extended 15-day free period for imported cargo at ports, exempting it from demurrage and detention charges, is a vital step towards facilitating trade and easing the financial strain on importers during the ongoing COVID-19 lockdown.
