UNISAME raises alarm over thousands of containers stuck at customs

February 05, 2024 (MLN): The Union of Small and Medium Enterprises (UNISAME) has brought to the State Bank of Pakistan's (SBP) attention the issue of thousands of containers containing solar panels, second-hand clothing, plastic granules, and general merchandise remaining uncleared at customs.

This is attributed to commercial banks' delay in releasing import documents for goods imported on deferred payments and documents against acceptance (DA).

President UNISAME Zulfikar Thaver said there is an acute shortage in the market and due to that the traders have increased prices so much that the prices have become unaffordable.

To overcome this situation the Union chief has suggested to SBP that it may allow the commercial banks to release the documents provided the suppliers, who are the drawers of the bill of exchange send a firm commitment to the negotiating bank.

This commitment will ensure that they will not hold them liable for the payment on the due dates and that their job is merely to seek acceptance to pay on due dates from the drawees.

Thaver said the commercial banks are not releasing the DA documents due to discomfort in apprehending the fact that the drawees may delay or not be in a position to pay and simply decline and in such a case the bank's liability necessitates the banks to honor the bills drawn on their customer.

Therefore, the undertaking could suffice and also promote good risk management skills of the bank.

Secondly, he said the banks could also ask the importer to deposit 100% of the invoice value in dollars to enable them to release the documents and pay to the shipper on the due date.

Hussain Ali convener of the UNISAME Logistics committee said now that the foreign exchange situation has improved.

Since SBP has wisely allowed up to 100% advance payment to facilitate imports it would also be wise to facilitate the release of documents of imported goods lying in customs incurring demurrage for months.

The UNISAME Council members elaborated on the fact that it is a question of boosting the economy and saving national wealth by releasing much-needed imported goods stuck up in customs.

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