KARACHI, Aug 31: The Pakistan Ship's Agents Association (PSAA) has expressed its reservation over the installation of scanners at seaports with a view to screening all export containers to meet international security obligations.

The PSAA pointed out that the entire exercise was being taken in futile as such checks and screening were already being done at mother ports around the world.

In a communication to Additional Secretary, ministry of communication, K.B. Rind, PSAA Chairman Farouq H. Rahimtoola took strong exception of the instruction given by the Collectorate of Customs (Exports) to Karachi and Qasim ports as well as to terminal operators for providing space for installation of scanners.

The collector has informed the trade that the installation of scanners was part of an international obligation and mandatory under the International Ports and Ships Security (ISPS) Code and the Container Security Initiative (CSI).

It further stated that Pakistan being signatory to the WTO regime was bound to fulfil the international obligations of the ISPS Code and CSI, and in case of non-compliance it will damage country's exports to the US, the EU and Canada.

"This move has created uneasiness in the business circles as there is no such requirement under the WTO. Whilst the CSI programme was only meant for exports to the US with certain pre-requisites," Mr Rahimtoola asserted.

The PSAA chief pointed out that the CSI was launched in 2002 by the US Bureau of Customs and Border Protection (CBP), an agency of the US Department of Homeland Security, in the aftermath of the 9/11 incident.

He said that its purpose was to identify and examine high-risk maritime cargo containers for weapons of mass destruction at foreign ports before they are shipped to the US.

Mr Rahmitoola said the customs authorities' understanding about the CSI was wrong as it was only applicable for exports to the US, and that too from ports which had regular, direct and substantial container traffic to the US ports.

He further said that all export containers from Pakistan were trans-shipped to the US through mother ports or regional hub ports like Mumbai, Singapore, Hong Kong, etc., where the screening of containers under the CSI programme was being conducted in presence of US Customs and Border Protection officials already deputed at these ports.

The PASS chairman asserted that the ISPS Code, which had recently been implemented at the Karachi and Qasim ports, did not mandate screening of containers or cargo. He said that most of the ports in the region - Colombo, Salalah, Fujairah, Jabel Ali, Bandar Abbas, Aden, Chittagong, Mumbai, etc. - had neither procured nor implemented any container screening equipment.

Mr Rahimtoola said the screening charges under the CSI programme at the port of trans-shipment on all export containers from Pakistan were already being paid by Pakistani exporters as these charges were built in the freight rates (about $20 per TEU).

"As such any CSI screening in Pakistan would be a redundant exercise, making exports uncompetitive," he added. The PASS chief also questioned the authority for allowing NLC to conduct scanning of containers as the Pakistan Customs was allowing a third party monopoly to perform an examination function on its behalf.

He further said as to why this activity be restricted to one public sector concern rather than being open to all, including the private sector, thus ensuring cost competitiveness and efficiency to the trade.