Containers caught at ports: ECC seeks report on waiver of storage costs

ISLAMABAD: The Financial Coordination Committee (ECC) of the Cupboard has directed Ministry of Maritime Affairs (MOMA) to submit an in depth report on waiver of storage costs on containers caught at ports, effectively knowledgeable sources advised Enterprise Recorder.

Sharing the element, sources mentioned, on March 1, 2023, Ministry of Maritime Affairs knowledgeable the ECC {that a} assembly was held in Karachi Port Belief (KPT) Head workplace, co-chaired by Federal Minister for Maritime Affairs, Faisal Subzwari and Federal Minister for Commerce and Textile, Syed Naveed Qamar on resolving issues arising out of the scenario of containers held-up on the ports resulting from non-discharge of Letter of Credit L/Cs) and remittances of international change.

Through the assembly, it was determined, inter alia, that KPT/ PQA shall waive off all the costs of demurrages on the stuck-up containers/ cargo of their space of operations, because of the non-discharge of L/Cs and remittances of international change.

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In keeping with sources, the matter was taken up with Karachi Port Belief. KPT famous that its Board by its Decision B.R. No. 381 of January 31, 2023 accredited to waive off all the costs of storage as per SRO No. 1(KE)/2003 of July 1, 2003 on the stuck-up landed containers/cargo held up at Karachi Port on account of non-retirement of Letter of Credit and remittance of international change.

KPT had additional requested the Ministry of Maritime Affairs to acquire sanction of the Federal Authorities underneath Part 44 of KPT Act, 1886.

As per Part 44 of the KPT Act 1886, in particular circumstances, with the earlier sanction of the federal authorities, tolls and costs may be remitted. The ability of KPT Board to waive off tolls and costs has been mounted at Rs 5 million.

Any waiver of costs above 5 million requires sanction of the federal authorities as per ibid Part. After detailed dialogue the proposal of Ministry of Maritime Affairs to waive of demurrage costs of above Rs. 5 million circumstances the place demurrage has accrued resulting from non-clearance of LCs on foundation of certificates by state Financial institution of Pakistan be allowed was finalized.

The ECC, presided over by Finance Minister Ishaq Dar additional directed Ministry of Maritime Affairs to submit an in depth report on waiver of storage costs on containers/ cargo caught up at ports resulting from non-retirement of L/Cs on month-to-month foundation to the ECC for consideration.

Copyright Enterprise Recorder, 2023