US ports demand $2 million demurrage from textile exporters

ISLAMABAD (May 13 2008): The US port authorities have claimed $2 million demurrage, to be paid by Pakistan textile exporters, before release of the export consignments of any company, except 'Dean River' who have been released foreign exchange for clearance of the consignments paying $20,000 for each design, sources told Business Recorder here on Saturday.

The textile exports worth $30 million have not been released by the importing company in the USA because it has been declared 'bankrupt'. These consignments mostly included bed sheets and towels packed in 400 containers. The case has been registered by the port authorities and we have already arranged a lawyer for initiating court proceedings and have paid $50,000 in this regard, sources said. After the second hearing of the case, the court issued an order to the Pakistani exporters to pay $2 million as demurrage charges.

On the other hand, the State Bank of Pakistan (SBP) is also demanding of the exporters the bank payments. SBP gives a time period of 180 days to the exporters after the shipments of their consignments. After 180 days, according to the SBP policy, the foreign exchange should reach the country, says.

But most of the exporters have not met the deadline and now SBP is issuing notices to them. SBP should increase time limit for the exporters who are already facing high demurrage charges, they emphasised.

The exporters have been demanding of the government to either solve the problem through Foreign Office or High Commission. We have written a letter to the Textile Ministry about the problem but nothing has been done so far, they said. The commercial counsellor of Pakistan is also not providing any assistance, they remarked.

We have talked to the port authorities to reduce demurrage charges, indicating that the importing company has become 'defaulter or bankrupt' but they are still demanding payment of demurrage charges that have increased to $2 million.

Source: Business Recorder