Customs Department's Green Channel Changes Disrupt Trade in Pakistan

KARACHI: The recent changes in the Green Channel rules by the Customs Department have created a significant crisis for importers in Pakistan. The Green Channel is a system designed to facilitate the quick clearance of goods, allowing for smoother trade operations. However, the sudden alterations to the parameters have resulted in thousands of containers being stuck at the port, leading to heavy financial losses for importers. Meanwhile, shipping companies and terminal operators are profiting from this unfortunate situation.

If these delays in the clearance of consignments persist, the repercussions will be severe. Essential supplies, including medicines, medical devices, steel, and pulses, are at risk of being disrupted. This situation has not only caused significant delays but has also highlighted inefficiencies in the import clearance process.

One of the main issues stems from the changes made to the Risk Management System (RMS) criteria. These changes have led to a dramatic drop in Green Channel clearance rates, plummeting from over 47 percent to below 26 percent. As a result, there has been an unprecedented increase in the number of containers that require examination and assessment. This surge has overwhelmed terminal operators and assessment officers, causing further delays.

Importers are now facing delays of up to four days just to ground their containers, followed by an additional two to three days for the examination and assessment process. Khurram Ejaz, a former vice president of the Federation of Pakistan Chambers of Commerce and Industry, pointed out that assessment officers are already burdened with litigation matters. This leaves them with little time to conduct proper assessments, exacerbating the situation. The lack of a separate litigation department only adds to the complications.

This enforcement-heavy approach inadvertently impacts most importers, who play a crucial role in the economic growth of the country. The current scenario raises concerns about the long-term implications for trade and commerce in Pakistan. Importers are essential for maintaining the flow of goods and services, and any disruption can have a ripple effect throughout the economy.

The changes in the Green Channel rules have created a challenging environment for importers, leading to delays and financial losses. It is imperative for the Customs Department to reconsider these changes and work towards a more efficient system that supports trade while ensuring compliance. A balanced approach is necessary to foster economic growth and stability in the import sector, which is vital for the overall health of the economy.