Pakistan asked to meet port security demand: International trade
By Our Staff Reporter
KARACHI, Nov 6: UNCTAD International Logistics Consultant, Douglas Cruickshank, who is visiting Pakistan to assess the security requirement affecting its exports, particularly to the US and Europe, has said the International Ship and Port Facility Security (ISPS) Convention is coming into force in July 2004, and each vessel will carry International Ship Security certificate issued by the flag ship.
He said he was working with the ministry of commerce, customs, ports and shipping authorities in Pakistan to assess different levels of security. He wanted to discuss with all stakeholders the future steps to meet the international security requirements.
Talking to members of the Karachi Chamber of Commerce and Industry (KCCI) on Thursday, he apprised the members of the new mandatory security requirements related to international trade introduced by the US government in the aftermath of 9/11 attacks, says a KCCI press release.
The Container Security Initiative (CSI) aims at facilitating detection of potential problems at the earliest and is designed to prevent the smuggling of terrorist weapons, radioactive materials in ocean going cargo containers. For its implementation US Customs have been entering into bilateral agreements or partnerships
with foreign governments to
pre-screen US-bound cargo before it is shipped to the United States.
Another legislation known as “24-hour Rule” requires ocean going carriers to transmit cargo manifests 24 hours in advance of loading at foreign ports providing precise description of cargo shipped to the US or six digit H.S. code.
Accompanied by Will Keenan, chief technical adviser and Irfan Naqvi, deputy chief technical adviser, UNCTAD, Mr Douglas referred to another programme viz, Customs-Trade Partnership Agreement going right through the supply chain. He said that implementation of relevant rules and regulation would ensure security throughout the entire supply chain.
KCCI senior vice-president Mohammad Saeed Shafiq expressed concern about the implications of tougher trade related security requirements, particularly of the US, which was its major trade destination with $2.6 billion exports during 2002-03.
The question of hiring international companies to implement and audit the security arrangements and procedure was discussed at length.
KCCI vice-president Hamid Nisar and representative of Karachi Customs Agent Group (KCAG) Khawaja Tahir Mahmood argued that private companies in Pakistan could undertake the task effectively at an affordable cost. It was noted that Pakistan Customs did not have enough staff for inspection and could do only random audit.
Iqbal Mangrani, vice-chairman, KCCI Export Sub-Committee, drew attention to the requirement of huge investment in expensive screening and detection equipment at the
ports, deployment of “smart” shipping containers, which include electronics seals and devices, allowing them to be tracked as well as direct costs of screening and unloading containers.
He expressed the concern that eventually the cost would be passed on to the exporters, which would substantially increase cost of doing business, especially for small and medium enterprises.
The KCCI members voiced concern about the negative impact of these logistic securities on Pakistan exports due to delays caused by time factor involved in checking, scanning of cargoes, entailing extra cost to exporters and signals sent to rest of the world on perception about Pakistan and its exports.
Mr Douglas tried to allay the apprehensions by saying that Pakistan was not being singled out for the purpose and all the countries would be required to meet international security requirements.
He noted that containers from mega ports bound for the US have CSI coverage, while second tier of international ports are being covered, and smaller ports will soon be covered.
In this context, he also mentioned that the World Customs Organization (WCO) had passed a resolution in the middle of 2002 for adopting a strategy to safeguard trade supply chain from the terrorist attacks and enhance flow of trade. The WCO called for developing programme along the US CSI model.
