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ISLAMABAD, Nov 06 (APP): The Supreme Court of Pakistan, in a significant judgment, has ruled that all port and airport operators — including terminal operators — are legally bound to honor Delay and Detention Certificates and refund demurrage charges to the concerned importers or exporters.
According to the written judgment approved for reporting, the decision was authored by Justice Muhammad Shafi Siddiqui in an appeal filed by Shaheen Airport Services (SAPS) against M/s Yasir Traders, Arms and Ammunition Dealers & Importers, Peshawar.
The court held that under Section 14A(2) of the Customs Act, 1969, if a Customs officer — not below the rank of Assistant Collector — issues a Delay and Detention Certificate confirming that the delay did not occur due to any fault of the importer, the terminal operators are mandatorily required to “entertain” and act upon such certificates.
The judgment clarified that the term “entertain” does not merely mean to receive the certificate but to process it and provide an effective outcome, ensuring that demurrage or detention charges are refunded accordingly.
Justice Siddiqui further observed that any refusal by a port or terminal operator to comply with such certificates constitutes a violation of law and may attract penalties or punishment under Section 156(1)(7A) of the Customs Act.
The Supreme Court emphasized that compliance with Delay and Detention Certificates is a mandatory obligation for all port and terminal authorities, leaving no room for discretion or leniency.
The apex court dismissed the appeal filed by Shaheen Airport Services (SAPS) and upheld the judgment of the Peshawar High Court, which had ruled in favor of M/s Yasir Traders, directing that no demurrage charges be recovered from them for the delay certified by Customs authorities.