Importers may face storage charges after 3 days, even when Cargo clearance is delayed

Airport cargo charges have come under fresh scrutiny after the government told the Senate that the Pakistan Airports Authority (PAA)

Islamabad:  Airport cargo charges have come under fresh scrutiny after the government told the Senate that the Pakistan Airports Authority (PAA) sets and approves its own cargo throughput charges, while ground handling agents are allowed to determine their storage and handling rates according to market conditions. The government also stated that the audit of individual storage charges collected by these agents is outside the current licensing system, raising questions about how these charges are checked and whether importers are being treated fairly.

The issue was raised by Senator Samina Mumtaz Zehri through Senate Question No. 11, which sought details of charges collected from imported courier and cargo shipments at airports, the authorities approving those charges, the reasons for storage charges caused by delays beyond an importer’s control, and the total money collected by airport and company.

In its written reply, the Ministry of Defence explained that two main types of organisations are involved in cargo handling. The Pakistan Airports Authority collects Cargo Throughput Charges (CTC), while Ground Handling Agents (GHAs) collect charges for cargo storage, handling, documentation and other services.

The ministry said PAA charges are approved under Section 25 of the Pakistan Airports Authority Act, 2023. However, charges collected by ground handling agents are governed by market conditions and their business arrangements.

This difference is important because the government has confirmed that the rates charged by ground handling agents are not fixed through the same approval process used for PAA charges. The agents determine their rates according to their business models, while the government says these charges are governed by market conditions.

The reply also stated that the PAA approved a revised schedule of Cargo Throughput Charges, effective from July 1, 2025. The revised rates show increases in several cargo categories. Charges for live domestic birds increased from Rs200 to Rs300 per kilogram. Rates for perishable cargo also increased from Rs200 to Rs300 per kilogram, while dangerous goods charges rose from Rs200 to Rs300 per kilogram.

The rate for general cargo under the ICG category increased from Rs100 to Rs125 per kilogram, while AFU general cargo charges rose from Rs50 to Rs65 per kilogram. Charges for paan and betel leaves increased from Rs35 to Rs50 per kilogram. Unaccompanied baggage and transshipment charges also increased from Rs10 to Rs15 per kilogram.

The revised schedule was circulated by PAA headquarters to cargo managers and airport managers, directing them to inform airlines, cargo agents, government agencies and other stakeholders about the new rates.

Another major concern raised in the Senate question was the collection of storage charges when cargo clearance is delayed because of Customs, courier companies, ground handling agents or other parties rather than the importer.

The ministry replied that storage charges become applicable when imported cargo remains in storage beyond the free storage period of three days. The free period is calculated from the date of arrival or import general manifest.

However, the government also described situations in which the importer should not be held responsible for delays. If a delay is caused by a ground handling agent or an agency other than the importer, Pakistan Customs can issue a delay and detention certificate under Section 14A(2) of the Customs Act, 1969. The ministry said this certificate directs the concerned agent or storage charge collector to waive the charges caused by the delay.

In cases where the delay is the airline’s responsibility, the ministry referred to Rule 19 of the Schedule to the Carriage by Air Act, 2012. Under this provision, the airline may be liable for damage caused by delay in carrying passengers, baggage or cargo.

Despite these explanations, the Senate reply did not provide a complete airport wise and company wise breakdown of the total storage and handling charges collected, as requested by the senator.

The ministry said ground handling agents maintain their own financial records and accounts. It added that these companies are required to submit audited financial statements to the Federal Board of Revenue, Pakistan, and the relevant provincial revenue authorities under the Companies Act, 2017, the Income Tax Act, 1990, and the Sales Tax Act, 1990.

However, when asked whether the charges were audited to ensure they were fair, transparent and justified, the ministry said the existing provisions of the Ground Handling Agent Licence focus on operational and licensing requirements. It added that an audit of individual storage charges collected by ground handling agents remains outside the current scope of the licensing system.

This response leaves an important accountability question unanswered: although the companies are required to submit financial statements to tax authorities, the ministry has not confirmed that individual storage and handling charges are independently checked to ensure that importers are not overcharged.

The documents attached to the Senate reply include cargo rate schedules from different ground handling companies and airport operators, including Gerry’s dnata and Shaheen Airport Services, as well as schedules relating to Pakistan International Airlines. These documents show separate rates for general cargo, dangerous goods, cold storage, valuable cargo, detained cargo and other services. They also show that charges can vary according to the type of cargo, weight and number of days it remains in storage.

The documents further show that some charges are listed separately from taxes, meaning the final amount payable may be higher after applicable taxes are added.

The Pakistan Airports Authority Act, 2023, included in the documents, gives the authority the power to impose and collect charges for services at airports. The Customs Act, 1969, also contains provisions relating to the licensing and regulation of customs stations and cargo facilities.

The Senate question sought information that could help establish how much money is collected from importers and whether the charges imposed by different companies are properly monitored. However, the ministry’s response mainly explains the legal framework and the responsibilities of PAA and ground handling agents, without providing the requested total collections by airport and company.