Karachi, January 31, 2024 – The Karachi Customs Agents Association (KCAA) has vehemently denied the recent allegations made by Asim Siddiqui, Chairman of the All Pakistan Shipping Association (APSA).
In an interview published on January 31, 2024, Siddiqui accused customs agents of financial irregularities, a claim strongly condemned by the KCAA.
The KCAA, representing the Customs Agents Community, asserts that all financial transactions, including Container Security Deposit and Delivery Order Charges, are meticulously processed through Pay Orders. Shipping companies strictly adhere to these requirements, refusing any payments lacking proper documentation.
Contrary to APSA’s accusations, the KCAA has uncovered practices by shipping companies that adversely impact trade, burdening traders financially. The lack of comprehensive legislation has granted shipping companies undue liberty in their operations, allowing them to impose detention and other charges, subsequently remitting substantial amounts to their foreign principals. In contrast, Customs Agents significantly contribute to the economy by facilitating revenue collections.
Drawing attention to Terminal Handling Charges (THC), the KCAA points out that these charges are levied twice – once by shipping companies and once by terminal operators. This double charging imposes a considerable financial burden on traders. Numerous complaints have been received about the highhandedness of shipping companies, demanding undue payments for dirty, oily, and damage charges, despite these charges being covered by insurance amounts, which are already included in the delivery order charges.
The KCAA urges the competent authorities at the Federal Board of Revenue and Pakistan Customs to take immediate and decisive action on this matter. Emphasizing the need for the implementation of rules outlined in Chapter XXVI of Shipping Agents Rules, as per SRO.450(I)/2001, the association also advocates for the appointment of a regulatory body to monitor the activities of all shipping companies and lines. This, they believe, will ensure transparency and fairness in their operations.
Committing to the welfare of its members and the promotion of ethical practices within the shipping and customs sectors, the KCAA demands that APSA substantiate their allegations with evidence. Failing to provide proof, the association insists on a public apology for what they consider an unethical act.
The KCAA stands firm in its denial of the allegations and calls for regulatory intervention to bring accountability and transparency to the shipping industry. The association asserts its dedication to ethical practices and the well-being of its members while demanding the same from other stakeholders in the shipping and customs sectors.
