Pakistan orders shipping lines to stop retroactive war risk surcharges on cargo shipped before Feb 28

Pakistan Customs authorities have directed shipping lines and their local agents to stop imposing war risk and emergency conflict surcharges on cargo that had already departed or entered transit before February 28, after traders raised complaints about retroactive charges, according to a news report. 

The issue surfaced when members of the business community reported that shipping companies were collecting War Risk and Emergency Conflict Surcharges (ECS) even on consignments that had sailed or were already in transit before the recent escalation of regional hostilities.

Traders told authorities that the additional charges were being applied despite shipments leaving ports before the conflict intensified, describing the move as an unjustified financial burden on importers and exporters.

Following the complaints, the customs collectorate issued a directive instructing all shipping lines and their agents to immediately stop levying, demanding or recovering such surcharges on consignments that had departed, entered transit or arrived at ports prior to February 28.

Authorities stated that retroactive billing for cargo already in transit before the escalation of tensions was not justified and would not be permitted.

The collectorate also asked traders to submit documentary evidence in cases where such charges had already been demanded or collected, assuring that action would be taken against companies found violating the instructions.

In a separate circular, customs authorities acknowledged receiving multiple representations from the business community about what they described as non-transparent pricing practices by shipping lines and their agents.

According to traders, several logistics charges were being introduced without adequate disclosure, increasing transaction costs for exporters and importers amid the ongoing regional crisis.

Customs authorities instructed shipping companies, carriers and agents to ensure that all applicable charges are clearly communicated in advance to importers, exporters and the customs office.

The collectorate warned that any violation of these directions would be dealt with under applicable rules, stating that authorities would monitor the situation to prevent undue financial pressure on the trading community during the current period of regional instability.