KARACHI, May 7: Exporters have alleged that freight forwarders are indulging in fraud and unfair trade practices in shipment of export cargo by changing the title of consignments to their name on issuance of another bill of lading on one export shipment thereby causing colossal loss to exporters. It is a criminal act because by doing so the freight forwarders (consolidators) do not only strip off the exporters from the title of the shipment but they also become the owner of goods, which is in gross violation of State Bank of Pakistan Foreign Exchange Act/Rules Chapter XII, observed a leading exporter.
The Karachi Chamber of Commerce and Industry (KCCI) is receiving complaints from its members about this illegal act of consolidators. Taking the note of this, KCCI President Khalid Feroz has approached various government functionaries and also made a written representation to CBR Chairman Abdullah Yousuf, EPB Vice-Chairman Zafar Mahmood and SBP Governor Dr Ishrat Husain.
It has been pointed out that the unauthorized and illegal surrender exercise of original title document of an exporter to the shipping line or an agent by the freight forwarder is a misappropriation of the title document, which has caused uncountable losses to exporters.
A carrier of shipping company bill of lading for Full Container Load (FCL) shipment is a title document to goods is issued in the name of consolidator or freight forwarder showing him as shipper and consignee, which means making him the owner of goods in total violation of SBP Foreign Exchange Rules Chapter XII and gross misuse of circular No 23 dated 19-02-1992.
The KCCI further pointed out that not delivering the original carrier or liner bill of lading and issuance of House Bill of Lading to the exporter in collusion with shipping line or agent by the consolidators and to use House Bill of lading as a negotiable document for submission into bank to get payment and release of goods is a sheer fraud and criminal act.
Though the issue has been taken time and again with regulator bodies like State Bank of Pakistan and Collector Customs (Preventive) but so far no action has been taken and exporters continue to suffer at the hands of consolidators who mostly operate in informal sector and do not have National Tax Number (NTN) and they even do not pay taxes, the KCCI maintained.
The Collector of Customs (Preventive) is the licensing authority to the shipping line or their agents, and exporters are anxiously wanting serious and decisive action be taken to stop such illegal acts of freight forwarders.
The KCCI president further informed that importers had also complained that use of two bills of lading for one import shipment, costing them to depend on fake or deceptive title document, and effecting an additional cost of about Rs15,000 per import container having annual impact of Rs3bn is collected by the informal freight forwarders’ trade.
The KCCI has asked the government to immediately take action against these malpractices of freight forwarders by stopping them from issuance of the House and carrier bill of lading.
It also demanded that original full set carriers bill of lading must be issued and delivered to exporter against authority letter issued by the bank as per SBP rules. And each respective export shipments must also bear authorized signature duly verified by the bankers of shipping line or agent.
