M. M. KHAN
Karachi
I RECENTLY entered into an import transaction on C&IF price, but my bank refused to open the LC on C&IF price, saying that either of the two, ie. FOB or C&F, prices were acceptable to them under directives of the State Bank of Pakistan, which requires the insurance business to remain in Pakistan.
Therefore, I was required to arrange a marine insurance cover from a local insurance company.
The inspection part of the goods before shipment was not covered by the local insurance company which had charged a very nominal premium.
My request to them to arrange inspection from professional inspectors at the point of origin was also turned down by the insurance company.
I tried to arrange professional inspection of the goods before shipment at my own cost and expense, that too did not work out as the professional inspectors were used to dealing with local insurance companies in that country.
As a result, my shipment had to leave there uninspected and I am wondering who will indemnify me if there are excessive damage or breakage upon arrival of the shipment in Karachi.
I am, therefore, asking authorities what use is a marine insurance cover if it cannot indemnify damage.
The SBP governor, therefore, is requested to allow C&IF pricing for opening LCs, and banks should be directed accordingly to secure facility of inspection at point of origin before shipment. And any damage occurring in transit and discovered upon arrival of shipment can be claimed from the foreign insurance company involved in C&IF price.
I wonder why other importers have not raised this issue with the authorities earlier.
Karachi
I RECENTLY entered into an import transaction on C&IF price, but my bank refused to open the LC on C&IF price, saying that either of the two, ie. FOB or C&F, prices were acceptable to them under directives of the State Bank of Pakistan, which requires the insurance business to remain in Pakistan.
Therefore, I was required to arrange a marine insurance cover from a local insurance company.
The inspection part of the goods before shipment was not covered by the local insurance company which had charged a very nominal premium.
My request to them to arrange inspection from professional inspectors at the point of origin was also turned down by the insurance company.
I tried to arrange professional inspection of the goods before shipment at my own cost and expense, that too did not work out as the professional inspectors were used to dealing with local insurance companies in that country.
As a result, my shipment had to leave there uninspected and I am wondering who will indemnify me if there are excessive damage or breakage upon arrival of the shipment in Karachi.
I am, therefore, asking authorities what use is a marine insurance cover if it cannot indemnify damage.
The SBP governor, therefore, is requested to allow C&IF pricing for opening LCs, and banks should be directed accordingly to secure facility of inspection at point of origin before shipment. And any damage occurring in transit and discovered upon arrival of shipment can be claimed from the foreign insurance company involved in C&IF price.
I wonder why other importers have not raised this issue with the authorities earlier.
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