Customs rules ‘choke’ cargo transport

KARACHI: The transportation of custom-bonded cargo from the country’s ports has nearly come to a halt following the Customs Department’s introduction of new regulations for escorting transit and transshipment cargo.

Since the implementation of these regulations on January 1, 2025, bonded carriers have transshipped only minimal quantities of cargo. This slowdown occurred after transport operators refused to send vehicles in convoys escorted by customs sepoys, citing the process as time-consuming and economically unviable.

According to a customs department notification, the new standard operating procedures (SOPs) specify designated routes and deployment plans for en-route escorts of transit and transshipment cargo.

“These SOPs aim to streamline the escorting process, ensuring the safety and timely delivery of transit and TP cargo across various routes. The deployment of sepoys is carefully planned to accommodate rest periods, ensuring their readiness for subsequent duties,” the notification stated.

However, industry stakeholders, including bonded carriers, transporters and importers, told The News that the new SOPs were introduced without considering the practical challenges they would create.

For example, a vehicle typically takes 24 hours to reach Sukkur after departing from Karachi. Under the new regulations, a convoy of 14-15 vehicles accompanied by three sepoys would require 48 hours to complete the same journey. “This process is not only time-consuming but also impractical. Vehicles have different rest points, such as hotels and fuel stations. Forcing them to stop at a single location disrupts operations,” they said.

Bonded carrier representatives revealed that cargo movement has stagnated, with only a few consignments transshipped in recent days. The problem intensified after the licence of the tracking company TPL Trakker was revoked on December 31, 2024. TPL Trakker had been responsible for installing trackers on transit and transshipment containers to ensure their security.

The customs department has now assigned two companies to install trackers temporarily for three months, during which time bids will be invited for a long-term contract. The movement of custom-bonded cargo in convoys escorted by customs personnel has also been made mandatory.

Industry insiders noted that the cost of trackers has increased as transporters are now required to install devices from the two new companies. These costs are expected to rise further once a new contract is awarded. Ultimately, the additional expenses will be passed on to consumers.

The customs department did not respond to The News’s requests for comment.

Malik Sher Khan, chief executive of Shaheen Freight Services, told The News that 90 per cent of trade would be adversely affected if custom-bonded cargo continues to be transported through convoys. He explained that most vehicles listed with bonded carriers are not suited for convoy operations on motorways.

He urged the Federal Board of Revenue (FBR) to facilitate trade by ensuring the swift clearance and transportation of custom-bonded cargo, expressing that timely deliveries are critical for promoting trade. “The transport sector employs a significant workforce, and delays can disrupt livelihoods,” he added.