KARACHI: A recent abrupt change in the Green Channel parameters by the Pakistan Customs Department has thrown the nation’s import system into disarray, leaving thousands of containers stranded at ports and causing severe financial repercussions for importers.
The new enforcement-driven approach has resulted in significant delays in the clearance of legitimate goods, with potential disruptions in the supply of essential items, including medicines, medical devices, steel, and pulses.
The business community has raised serious concerns over the Customs Department’s decision to tighten regulations and shift focus towards enforcement, which has led to an unprecedented drop in Green Channel clearance rates.
Previously, over 47% of containers were cleared through the Green Channel, but this rate has now plummeted to less than 26%. As a result, an overwhelming number of containers are being marked for examination and further assessment, overwhelming terminal operators and customs officers.
This has significantly increased the processing time, with legitimate imports now facing delays of up to four days just for grounding containers, followed by an additional two to three days for the examination and clearance process.
This delay in clearance has sparked a cascade of consequences, with importers incurring extra costs. The most significant of these is the exorbitant demurrage fees charged by private terminal operators and shipping companies. Importers are forced to pay additional charges every five days in addition to the container rents. These costs continue to accumulate, leading to serious financial losses for businesses already facing the challenges of a difficult economic climate. This increase in operational expenses not only strains the importers but also affects the larger economy, as the cost of doing business rises across the board
