Shipping agents, freight forwarders told to refund illegal charges

KARACHI: The Customs Collectorate (HQ) Exports & IOCO has issued strict directives to shipping agents and freight forwarders to refund all illegally recovered charges within seven days or face revocation of their operating licenses.

According to the details, the directive follows a high-level Shipping Committee meeting held on February 11, 2026, at the Custom House, Karachi, chaired by Irfan Javed, Collector of Customs (Exports-PMBQ) and Head of the Shipping Committee, along with Salman Afzal, Collector of Customs HQrs (Exports & IOCO).

The meeting was convened in response to a surge of complaints filed by multiple traders who alleged that shipping lines, shipping agents, and freight forwarders had been imposing excessive container detention and ancillary charges without any contractual basis, published tariff, or regulatory authorisation.

Traders further reported that container security deposits — in some cases exceeding Rs. 10 million — were being withheld beyond the statutory period permissible under law.

After a thorough examination of submissions, documentary evidence, and applicable legal provisions, the Shipping Committee declared the traders’ complaints “legitimate” and found multiple violations of the Customs Rules, 2001, issued under S.R.O. 450(I)/ 2001.

The committee specifically observed that recovery of detention and ancillary charges without contractual disclosure or lawful authority constitutes a direct violation of Rules 665 (p), 665 (q), and 665 (r) of the Customs Rules, 2001. The retention of security deposits beyond the prescribed statutory period was also found to be without legal jurisdiction. Following deliberations, the Chair issued clear directions to all concerned shipping agents and freight forwarders to immediately refund all illegally recovered detention charges, ancillary charges, and container security deposits, and resolve all pending claims within seven days.

The Shipping Committee warned that failure to comply will result in enforcement action, including the issuance of show cause notices and the suspension or revocation of licenses under applicable Customs laws.

Shipping agents and freight forwarders present at the meeting agreed to comply with the committee’s directions.

Meanwhile, the trade representatives used the forum to press for broader systemic reform, requesting a review and rectification of S.R.O. 450(I)/ 2001 to prevent unauthorised charges and bring Pakistan’s domestic regulatory framework in line with internationally recognised maritime conventions.

The Chair acknowledged these concerns and advised trade bodies to submit formal recommendations for onward transmission to the Federal Board of Revenue (FBR) and relevant stakeholders for regulatory review and corrective action.

The Shipping Committee reaffirmed that violations of Customs Rules will not be tolerated and that strict enforcement measures will be pursued to ensure transparency, legal compliance, and the protection of lawful trade.

Copyright Business Recorder, 2026