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Tag: Pakistan Ship Agents Association

  • No link of toxic gas leakage with soybean cargo: Shipping agents

    No link of toxic gas leakage with soybean cargo: Shipping agents

    KARACHI: Shipping agents association has strongly condemned the linking of toxic gas leakage with soybean cargo.

    In a statement issued on Wednesday they said that the first casualty was reported hours before discharging of soybean at Karachi Port Trust.

    The statement issued by Ships Agents Association and Stevedoring Conference, stated: “We strongly condemn the rumors that are circulating targeting Soybean cargo which was being discharged partly at Karachi Port Trust at berth no. 10/11 east wharf.”

    “It may be noted that cargo was discharged only during night of Sunday February 16, 2020 (discharging commenced at 19:00 hours) and day of Monday February 17, 2020 (discharging stopped at about 22:00 hours).”

    Total of more than 600 labor worked on the ship none of them have been affected, it said.

    This cargo has been arriving at Karachi Port since the last many years and up till now not a single incident has occurred or has been reported.

    When the cargo was being discharged the wind direction was North East (NE) which means that it was towards Manora direction not towards land.

    “We wish to also point out that the first person who was hospitalized was before the ship commenced discharging,” it said.

    Ship Agents Association and Stevedoring Conference strongly advise that we should try and investigate the true nature of this incident considering the ground realities rather than getting involved in rumor mongering or speculation.

    This cargo is used to make edible oil i.e. it is a agricultural commodity and does not have chemicals in it.

    Plant Protection department visited the ship on February 18, 2020 with gas detectors to check for any harmful or toxic gases. “No gases were detected,” it said.

    “We strongly recommend that this ship should not be shifted and cargo should be discharged at Karachi Port only.

    “We confirm that we along with labor force of about 2 to 3,000 will stay at Karachi Port Trust berth during discharging operations. We must have the courage of our convictions,” according to the statement.

  • Pakistan needs to ensure direct import, exports: PSAA

    Pakistan needs to ensure direct import, exports: PSAA

    KARACHI: Pakistan exports need to maximize selling on C&F basis and imports to maximize buying on FOB basis in order to increase revenue earning along with reducing cost of doing business.

    In a letter to Adviser Commerce, Textile, Industry, production and Investment, Abdul Razzak Dawood, Chairman PSAA said that this will ensure direct exports to end users and imports direct from producers and will cut out third party intervention.

    One of the steps which is a major hurdle creating extra costs is freight tax, income tax ordinance 2001, section 7, sub-section (1), Para (a) and (b) and urged to revisit and deleted in total.

    This will result in zero tax freight in Pakistan and eradicate time wasting red tapisim.

    While giving example of export cargoes, he said that cargoes like cement clinker, rice etc, in shiploads which were being sold on C&F basis are now mostly sold on FOB basis.

    One of the reasons is freight tax which is applicable as per income tax ordinance 2001.

    Only few shipping agents /ship owners have the connections /papers work to get waiver of freight tax (Maximum freight tax is 8 percent on freight earned).

    Therefore third parties are involved which buys FOB from Pakistan exports, arrange /charter ships, get freight tax waiver and sell to end users or actual buyers on C&F basis.

    Giving example of import cargoes, he said when an imports wants to buy on FOB basis and arrange charter ship himself to save overall C&F cost then even on import cargo 8 percent freight tax on freight is attracted as per income tax ordinance 2001.

    Also State Bank of Pakistan does not permit /delays in opening FOB letters of credit.

    This again opens the door for third party intervention, they step in , receive the C&F letter of credit (thereby avoid freight tax) by FOB from suppliers, arranges /charter ships and sell C&F to Pakistani imports.

    Therefore in actual fact negligible ‘if any’ freight tax is earned but it has negative impact for both importers and exporters of cargoes in shiploads/ chartered vessels.

    As for as containerized cargoes are concerned, most of the shipping lines to get freight tax waivers as per existing bilateral trade agreements between Pakistan and other countries.

    Therefore in actual fact there is no major earning of freight tax.

  • Shipping agents demand forming task force to eliminate under/over invoicing

    Shipping agents demand forming task force to eliminate under/over invoicing

    KARACHI: Shipping agents have demanded the Federal Board of Revenue (FBR) to form taskforce / joint investigation team (JIT) to eliminate the menace of under / over invoicing, mis-declaration and smuggling in Pakistan.

    In a letter to the chairman of FBR Syed Muhammad Shabbar Zaidi, the Pakistan Ship’s Agents Association (PSAA) congratulated the chairman for his appointment as chief of the national tax collecting agency.

    The association said that the menace of smuggling was causing massive losses to the exchequer and also resulting in bad name of the country.

    “It is everybody’s knowledge that none of these nefarious activities can be carried out without facilitators/go-betweens,” the association said.

    “We believe that some of these facilitator types have FIRs already registered against them they should be fully investigated / dormant files should be revived.”

    “FBR should appoint a taskforce / JIT to address this issue on a war footing and all these culprits should be vigorously be pursued, caught and prosecuted.”

    The association said that customs intelligence, FIA, all border authorities, ministry of interior etc should all form special JIT to finish off this menace under the direct monitoring of the Prime Minister of Pakistan.

    The association further said that such types of facilitators were the enemies of the economy of the country. “We have also requested all our members from the maritime sector to keep a special watch for such facilitators and report immediately to concerned authorities.”