KARACHI, March 27: The All Pakistan Shipping Association (APSA) has questioned the authority of the Board of Investment (BoI) to register shipping agents representing foreign companies under “Foreign Technical Personnel”.

In a representation to the chairman BoI, APSA chairman Mohammad Farrukh Qaisar has asked the BoI to disengage itself from unlawful condition laid down for shipping agencies to get themselves registered with the Board.

Presently the shipping agents representing foreign principals are required to register their agency houses with the BoI under “Foreign Technical Personnel” policy.

In case the shipping agents do not register themselves with the BoI, the State Bank of Pakistan does not allow the remittance of surplus freight unless the registration is obtained.

Qaisar pointed out that the FTP registration itself denotes “foreign technical personnel” and it has nothing to do with the demand of issuance of permission or licence by the BoI.

The Pakistan Customs, he said, is presently empowered under Section 207 of the Customs Act 1969, for registering shipping agents and a similar exercise was being carried out since 1947, under Section 202 of previous Sea Customs Act of 1878.

Despite the fact that in mid-60s the Investment Promotion Bureau (IPB), the fore-runner of BoI used to issue press notes but it never laid down a condition for the shipping agencies to get themselves registered, he asserted.

He further said that prior to the BoI the IPB had introduced the FTP which had nothing to do with the registration but simply to ensure that only technically competent and qualified foreign personnel were employed in Pakistani shipping companies and this was also aimed at encouraging early Pakistanization of foreign shipping agencies.

But now this objective, he said, had been achieved, therefore, there is no reason to continue with the FTP registration and application for permission to Pakistani firms for working as agents to foreign firms from BoI as it does not relate to revival of facilitation of any investment.

Furthermore, he said since there is no placement required for the employment of any foreign national, therefore, it is incomprehensible as to why BoI be approached for registration under FTP and seeking permission for the agency representation of non-resident foreign personnel by the shipping agencies in the country.

Qaisar said that presently the trade through sea ports is being regulated under the Customs Act 1969, which also covers the working and reporting procedures of the shipping agents who are licensed by the Pakistan Customs.

In the presence of Pakistan Customs which inter-alia notifies all other government agencies, including KPT, PQA, Mercantile Marine Department, Port Health Officer, State Bank and Income Tax Department about the licensees for necessary compliance of freight earnings under the Foreign Exchange Regulations, there is no logic for BoI’s involvement.