Trade bodies seek removal of circulars: Consolidators
By Our Staff Reporter
KARACHI, July 28: Seven leading trade bodies representing exporters have asked the State Bank of Pakistan (SBP) to immediately withdraw circular No. 23 of 1992 and the subsequent circular No. 19 to check the illegal activities of freight forwarders. In a joint press conference held at the PHMA House on Thursday, the leaders of these associations were unanimous in their view that the country’s external trade was being badly damaged by illegal activities of freight forwarders who with the connivance of shipping companies resort to malpractices.
The heads of seven leading associations representing exporters belonging to Pakistan Cloth Merchants’ Association, Pakistan Cotton Fashion Apparel Association, All Pakistan Paper Merchants Association, Readymade Garments Association, Pakistan Hosiery Manufacturers Association, Towel Manufacturers Association and representatives of Karachi Chamber of Commerce and Industry were present there.
They said that on the advent of containerized shipments the government accommodated freight forwarders (consolidators) to take care of LCL (Less than Container Load) cargo for stuffing into containers. Therefore, the State Bank also relaxed rules to accommodate them in the process of containerization.
However, in due course the consolidators misused the facility by issuing House Bill of Lading and shipping goods in their own name under carrier’s Master Bill of Lading thereby transferring title and ownership of goods to themselves and extorting huge charges for handing over delivery order or carriers’ Bill of Lading to actual importer.
They were unanimous in their demand that circular nos. 23 and 19 should be immediately withdrawn. Instructions for direct issuance of FCL and LCL shipment bill of lading by the shipping lines be ensured to exporters as per State Bank rules for making and delivery of B/L under Chapter XII Rule-2.
There should be strict compliance, monitoring, penalizing under foreign exchange act through SBP should be made on the activities of freight forwarders. They also demand monitoring of export documents and bill of lading should be immediately started. The DG Ports and Shipping should be involved for security, safety of export cargo till the delivery point.
