New scanning facilities to help improve cargo clearance

Karachi's Chief Collector of Customs, Wajid Ali, assured businesses that the Customs Department would leverage new scanning facilities to reduce physical cargo inspections, expedite clearance times, and alleviate recurring backlogs at the port's terminals. Speaking at a gathering of the Karachi Chamber of Commerce & Industry, Ali emphasized the importance of collaboration between Customs, terminal operators, and the trade community for effective trade facilitation.

He explained that the primary purpose of installing scanners was to minimize physical examinations, with Customs working alongside the Federal Board of Revenue (FBR) to avoid unnecessary physical checks where scanning capabilities are available.

Ali further detailed that the Customs Department would strengthen risk-management mechanisms to prevent cargo backlogs, especially at the Karachi International Cargo Terminal (KICT). He highlighted the significance of direct interaction with the business community to understand genuine, day-to-day challenges faced by the trade sector, as these issues might not be apparent through internal meetings or official directives.

Ali appreciated KCCI for addressing its concerns professionally and precisely, stating that resolving genuine issues promptly benefits individual businesses, clearance times, revenue collection, and overall trade facilitation. He further agreed that Customs processes should have clear timelines and measurable performance benchmarks, aligning with international best practices.

Acknowledging the current situation where statutory deadlines are often strictly enforced on businesses, Ali recognized the lack of corresponding timelines for Customs processes, calling for consideration at the policy level. Regarding the Alternative Dispute Resolution mechanism, Ali mentioned that the relevant law had been amended, and a broader committee headed by a retired judge, including Customs and business representatives, had been constituted.

He stressed the need for this mechanism to become fully operational to reduce litigation and provide faster dispute resolution.

Former KCCI President Zubair Motiwala called for modernizing the duty-calculation process, advocating for an automated system that would handle routine duty calculations without repetitive approvals or unnecessary human intervention. KCCI President Rehan Hanif stated that while KCCI had no major complaints regarding Customs operations, the chamber was putting forward several proposals to further strengthen the system.

Hanif urged Customs to increase the number of Additional Collectors of Customs (ADCs), as the current shortage placed an excessive workload on existing officers and forced businesses to seek assistance from senior officials for matters that could be resolved at the ADC level. He also emphasized the need for a mechanism to ensure that examination assignments were completed without unnecessary delays during officer rotations.