Law: Customs Act, 1969

Section: 195

Law: Constitution of Pakistan, 1973

Section: 199

Law: Customs Rules, 2001

Section: 556

(a) Words and phrases--- ----"'Demurrage"-Import, object and scope-Demurrage' refers to the amount payable to port authorities by importer or consignee for any delay in removing imported goods from port after expiry of initial period of "free days" i.e. the period for which no demurrage is charged-Rationale for charge and reason why essentially punitive rates are charged is that space at the port is at a premium---Cargo is constantly being moved and space is required as goods are continuously off-loaded and on-loaded ships. (b) Customs Act (IV of 1969)--S. 195---Customs Rules, 2001, R. 556---Constitution of Pakistan Art. 199---Constitutional petition---Demurrage, charging of---Delay due to official proceeding---Goods imported by petitioner were not allowed to be released as the authorities alleged the same contaminated with certain prohibited items---After retesting the goods by two separate laboratories, High Court directed the authorities to release the goods---During the entire period, the goods remained at container terminal of the Port and demurrage charges continued to accumulate in respect thereof---Plea raised by petitioner was that as action taken by Customs authorities was withdrawn, therefore, it was entitled to complete waiver of demurrage charges---Validity---Firstly the terminal operator must determine the amount of concession to which importer/consignee was entitled, so as to remove any "hardship" caused on account of demurrage or port charges, which must be reduced to no more than the value of goods---Once amount of concession was determined, imported goods were to be released forthwith without payment by importer/ consignee of reduced amount---Terminal operator must then refer the mutter to Collector of Customs concerned, who must satisfy himself that Terminal operator had correctly given concession---Once the amount was certified by Collector, the Terminal operator would be entitled to its payment by Federal Government or its adjustment against any fiscal demand upon Terminal operator under any federal law---If Terminal operator was dissatisfied with the amount certified by Collector, it could seek appropriate relief from Federal Board of.…

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