Faiza Tehseen

A leading organisation of business owners has urged the Pakistani government to amend shipment consolidation rules to better support exporters. Under the existing arrangements, many foreign  customers get their shipments ready from more than one exporter. A few export units are situated inside the export processing zones (EPZs), while others are outside. To get freight relief, foreign customers prioritise receiving their shipments in one container.

“We request the government to review the EPZ rules and introduce necessary amendments for ease of doing business,” said Tajamul Hussain Sachal, Public Relations Officer (PRO) of the Sialkot Chamber of Commerce and Industry (SCCI). Emphasizing the importance, value, and need of the export consolidation, Tajamul said that in the consolidation process, a carrier or a shipping company combines multiple smaller shipments into one full container. It favours both the carrier and the shipper. It also helps reduce the shipment cost and enable the faster and efficient delivery of export goods.

Tajamul said the existing law is creating problems for exporters. He said many foreign orders are fulfilled by contracting with different export production units in Pakistan to ensure the quality of the exported goods. To maintain the quality and to make the production cost-effective, different producers are hired to complete an order. This practice is followed to manage multiple shipments of the same or different kinds,” he explained.

Another main cause for using different channels by exporters is to keep their shipment flow smoothly. “After the completion of an export order, the most challenging phase is shipment consolidation. Now, the law is different for the processing units inside the EPZs and those situated outside of the EPZs,” Tajamul pointed out.

“Our international clients have no concern with the shipment consolidation problems. Their core issue is to receive the complete order in one container because they get freight relief in this way. But it is not possible under the current law,” he said. Tajamul said that rules must be reviewed and proper amendments must be introduced to keep the export cycle balanced and smooth in the country.

Credit: Independent News Pakistan-WealthPk