Importers urge FBR to clear cargo backlog at ports

The Karachi Chamber of Commerce and Industry (KCCI) and commercial importers have asked the Federal Board of Revenue (FBR) to resolve the crisis of pending clearances at the ports.

Pakistan Chemicals & Dyes Merchants Association (PCDMA) President Salim Valimohammad urged FBR Chairman Rashid Mahmood Langrial to address the delay in customs clearance and take immediate steps to remove the delays, which could cause loss to importers in the form of suppression and detention fees.

The PCDMA chairman also asked the FBR chief to monitor the status of imported consignments on a daily basis. “Timely clearance measures should be ensured to clear the arrears as soon as possible,” he said.

Valimohammad commented that while the faceless customs clearance assessment system was much better, the staff concerned must be fully trained before its implementation from December 15 onwards to avoid increasing backlog of containers.

Currently, thousands of containers are stuck in ports. Until they are cleared, the routes should continue on Saturdays and Sundays, he stressed.

He acknowledged the benefits of the faceless customs clearance system, but stressed that proper administrative preparations should have been made before its implementation to ensure efficient and timely clearance of consignments.

Valimohammad was concerned about the significant backlog of consignments, caused by the lack of adequate administrative capacity under the faceless clearance assessment system, introduced as part of the FBR Transformation Plan.

He pointed out that due to the lack of preparation, large volumes of imported goods had piled up at the ports, threatening serious financial losses to importers.

“If timely clearance of consignments, especially those containing imported raw materials, is not ensured, it could seriously disrupt the supply chain for industries. This will not only delay the delivery of export orders but will also have a negative impact on its overall exports country’s performance,” he warned.

Timely clearance will facilitate uninterrupted supply of raw materials to industries, enabling them to continue their productive activities and contribute to the country’s exports and economic growth.

Furthermore, KCCI President Muhammad Jawed Bilwani, while expressing deep concern over the huge backlog of consignments at the ports, urged the authorities to expedite the consignment clearance process to mitigate the potential losses faced by the business community.

It recommended the creation of separate processing queues for manufacturers and exporters, general industries and commercial importers. By running these queues simultaneously, the clearing process can be streamlined, ensuring timely processing for each category and minimizing disruption to business operations. This will put an end to discrimination.

He underlined the need to speedily process manufactured goods that are currently traded at the same level as regular commercial imports.

“The emerging situation at the ports calls for a war-based strategy to clear outstanding shipments, keeping all types of clearance-related activities, including banks and customs, fully operational on Saturdays and Sundays until port congestion is fully addressed and port operations return to normal,” he said.

Bilwani added that the proposal to keep clearance-related services operational on Saturday and Sunday should be implemented with immediate effect. Otherwise, the backlog could seriously disrupt industrial, export and commercial activities across Pakistan.

“Priority actions should include providing a level playing field for manufacturers and exporters, general industries and commercial importers, resolving resource shortfalls to reduce bottlenecks and enhancing accountability and transparency in customs operations, as well as reducing the cost of doing business activity”, he commented.