Customs agents threaten nationwide halt in trade clearance over license suspensions

Association accuses customs officials of corruption and bribery, calling for probe into suspended licenses; authorities dismiss claims

The Pakistan Customs Agents Association has issued a stern warning that it will suspend import and export clearance services across the country within 15 days, a move that could severely disrupt trade operations at ports and border crossings.

The threat comes in response to what the association claims is the “illegal suspension” of 45 customs agents’ licenses and widespread corruption among customs officials. If implemented, the suspension could paralyze Pakistan’s international trade, delaying shipments, increasing costs, and affecting supply chains for industries reliant on imported raw materials.

In letters addressed to the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and major business chambers across Karachi, Hyderabad, Islamabad, Lahore, and Rawalpindi, the Association’s Chairman, Saifullah Khan, cited bribery demands by customs officers and unprofessional behaviour towards agents as the primary grievances.

He alleged that certain customs officers have been directly contacting agents, coercing them into making illegal payments to clear cargo. The association has urged business organizations, including the All Pakistan Textile Mills Association (APTMA) and the Pakistan Chemical Dyes Merchants Association, to prepare for potential trade disruptions and seek alternative solutions for customs clearance.

Additionally, the Association has called for a thorough investigation into the mass license suspensions, asserting that customs authorities have acted arbitrarily. It has appealed to the government and trade bodies to intervene, warning that continued harassment of customs agents will harm Pakistan’s trade and investment climate.

On the other hand, Pakistan Customs has firmly rejected the allegations, dismissing the association’s claims as “blackmail and pressure tactics” aimed at shielding certain agents from legal action.

Customs officials argue that the suspended licenses belong to agents found in violation of customs regulations and that reinstatement will only occur if they are cleared through due process. The authorities maintain that their actions are part of broader efforts to curb smuggling, misdeclaration, and under-invoicing—practices that contribute to revenue losses for the national exchequer.

With both sides standing firm, the situation threatens to escalate into a major standoff between customs authorities and trade intermediaries. If unresolved, it could not only disrupt Pakistan’s import-export operations but also damage investor confidence in the country’s regulatory environment.

Customs agents, also known as customs clearing agents or customs brokers, are private market players licensed by the government to facilitate the import and export of goods. They act as intermediaries between businesses and customs authorities, ensuring that shipments comply with all legal and regulatory requirements. Their responsibilities include preparing and submitting documentation, ensuring compliance with trade regulations, and facilitating the smooth movement of cargo through ports, airports, and land border crossings.

They work closely with customs officers, who are responsible for inspecting goods, enforcing tariff laws, and preventing smuggling. Any breakdown in this system—such as a mass suspension of customs agents’ services—could lead to cargo backlogs, higher demurrage charges, and financial losses for importers and exporters.

A potential fallout between these two entities, could end up in massive losses in the form of trade halt or delays.

Monitoring Desk
Monitoring Desk
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