Sudden changes in Pakistan Customs' Green Channel parameters have brought the clearance of thousands of imported containers, including essential goods, to a halt. This disruption is causing significant financial losses for importers while shipping companies and terminal operators are reaping millions in additional revenue through demurrage and detention charges.
The delay in clearance threatens to disrupt the supply of essential items such as medicines, pulses, medical devices, and steel in the local market. In this regard, Chairman of the Customs Advisory Council at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Khurram Ijaz, stated that Customs authorities made adjustments to the Green Channel without prior notification. This has resulted in delayed clearance and a backlog of containers at the port, leaving importers in distress.
He explained that changes to the Risk Management System (RMS) without notice have drastically reduced Green Channel clearance efficiency. Previously, more than 47% of containers were cleared via this channel; now, this figure has dropped to less than 26%. Consequently, the number of containers awaiting examination and assessment has surged, overwhelming terminal operators and customs officials. Importers now face delays of up to four days for grounding containers and an additional two to three days for examination and assessment.
Khurram Ijaz emphasized that prior notice should have been given if changes were to be made to Green Channel parameters. He also suggested that the number of customs officers should have been increased to prevent delays in consignment clearance.
He pointed out that the delays have created opportunities for private terminal operators and shipping companies to unfairly charge demurrage and container rent. Importers are being forced to pay extra charges every five days, resulting in heavy financial losses and increased operational costs, directly impacting the economy.
Appealing to the Chairman of the Federal Board of Revenue (FBR) and the Chief Collector of Customs, Khurram Ijaz called for a balanced approach between enforcement and facilitation to ensure prompt clearance of legitimate trade. He highlighted that over 90% of importers comply with the laws and should not be penalized. The current strategy, he warned, is detrimental to Pakistan's economic interests and undermines efforts to promote trade and investment.
To address the issue, Khurram Ijaz recommended a review of the changes made to the RMS to increase the Green Channel clearance rate. He also suggested enhancing the capacity of examination and assessment officers, establishing a separate department for legal matters, implementing risk-based examination and clearance procedures, simplifying processes, and reducing regulatory burdens.
He urged the FBR Chairman and Chief Collector of Customs to address importers' grievances and restore a balance between enforcement and facilitation to support Pakistan's economy.
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