Customs warns KICT of legal action as container backlog crosses 38,000

Karachi International Containers Terminal has come under pressure from customs authorities after more than 38,000 containers remained undelivered, prompting warnings of legal action over operational failures and infrastructure constraints.

As per reports, the Collectorate of Customs Appraisement West has issued a written notice to Karachi International Containers Terminal chief executive Naveed Qureshi, citing possible prosecution under the Customs Act, 1969. The notice points to persistent shortcomings in cargo handling capacity, manpower and examination facilities that have disrupted port operations and trade facilitation.

Official documents show that more than 10,000 containers accumulated in January 2026 alone. Import data indicates cargo volumes at the terminal rose 13.54% during July–December 2025 compared to the same period last year, while customs examinations increased 31.25%, without corresponding upgrades in space, equipment or staffing.

Customs officials said congestion has worsened clearance times, with containers being grounded eight to ten days after being marked for examination. The designated examination area can handle about 190 to 200 containers, but daily grounding figures reported by the terminal average around 300, adding to bottlenecks.

The documents also flag staffing shortages, noting that only around 90 labourers are deployed during the day shift and about 15 at night. With container arrangement for examination carried out manually, the shortfall has led to delays and improper sequencing. Customs further alleged that the first-in-first-out principle is not being followed, resulting in complaints from traders over transparency.

Authorities have also accused the terminal of not honouring delay and detention certificates issued under Section 14A(2) of the Customs Act, despite Supreme Court directions. Several cases related to unpaid demurrage, referred by forums including the Federal Tax Ombudsman, remain unresolved, customs officials said, warning that continued non-compliance could lead to contempt proceedings.

An express lane initiative announced in January 2026 to fast-track examination of select consignments has yet to be implemented at the terminal, according to the documents.

Industry sources, however, said delays are not limited to terminal operations. Customs collectorates in Karachi are operating with reduced staff after suspensions linked to corruption inquiries. Data from other terminals shows similar examination backlogs, though operations at QICT were reported to be relatively normal.

A senior customs official acknowledged staffing constraints and said the Federal Board of Revenue plans to shift appraisement functions to Islamabad with newly inducted officers, though no timeline was provided.

Meanwhile, the All Pakistan Customs Agents Association said containers marked for examination are being grounded after six to nine days, causing losses through higher rents and missed commitments. The association has called for grounding within 24 hours of marking and sought waivers on demurrage, wharfage and terminal charges for consignments delayed beyond three days.