KARACHI, Aug 4: State Bank Governor Dr Ishrat Husain on Thursday assured exporters of resolving the issue of ‘House Bill of Lading’ being illegally issued by freight forwarders, resulting in change of title and ownership of export consignments.

“Necessary amendments in the law will be effected in collaboration with the ministry of commerce and the office of Director General Ports and Shipping,” the SBP governor assured the exporters. In a meeting with the representatives of seven leading exporters’ bodies held at the State Bank, Dr Ishrat has expressed his full support to resolve the matter at the earliest.

Sources privy to the meeting told Dawn that the SBP governor agreed with the exporters that the freight forwarders could not issue ‘House Bill of Lading’ against full container load (FCL) and if they were doing so it was in violation of circular 23 of 1992 and subsequent circular 19 of 2002.

Dr Ishrat also endorsed the views of exporters that in case ‘House Bill of Lading’ was issued it should not be negotiable and only ‘Master Bill of Lading’ should prevail so that title and ownership of export consignments stay on the name of original exporter, the sources added.

However, the SBP governor categorically said that freight forwarders’ business should not be affected in any way and the consolidation of loose container load (LCL) should remain normal for which the law was originally made under a circular 23 and 19, along with other parameters.

He said that the shipping lines should issue the bill of lading in the name of original exporter and no house bill of lading should be issued for FCL cargo, otherwise it would be in violation of the circular 23 and subsequent circular 19, the sources said.

The SBP governor assured the exporters’ representatives that irregularities and violations in issuing ‘House Bill of Lading’ for FCL would be checked. Dr Ishrat Husain was assisted by the SBP deputy governor and directors, while exporters were represented by Zubair Parakh, Mohammad Shafi, Naqi Bari, Asif Riaz Tata and Javed Bilwani.

The exporters also raised the issue of six per cent research and development (R/D) being given on exports of garments to the United States and the European Union, but not on exports to Canada. Dr Ishrat agreed to give R/D on exports to Canada and said that all applications forwarded for this purpose would be entertained without any delay. He said necessary amendments in the relevant SRO would be issued in due course.

A participant informed the SBP governor that the ‘House Bill of Lading’ was damaging the export trade. He said that once he asked his client to ship goods directly and not through a freight forwarder. When the goods reached the buyer, he asked for concession on freight because in the past he was getting it. He agreed to meet his demand. But to his surprise the buyer made another demand, seeking credit for the entire shipment.

He said that this showed how the freight forwarders had been operating. This practice, he said, robbed the country of billions of dollars.