CCP passes order in matter of filing indemnity bonds with airlines by mango exporters.

ISLAMABAD -- The Competition Commission of Pakistan (CCP) has passed an order addressing the issue of mandatory filing of indemnity bonds by the mango exporters with the international airlines, thus removing a major hurdle in mango export from Pakistan.

The All Pakistan Fruit and Vegetable Exports, Importers and Merchants Association (ACAAP), Vegetable Exporters, Importers and Merchants Association, and Air Cargo Agents Association of Pakistan (PFVA) filed complaint with the CCP against foreign airlines operating in Pakistan, inter alia, Emirates Airline, Qatar Airways, Oman Air, Turkish Airways, Gulf Air, Saudi Arabian Airlines and Etihad Airways, for alleged violation of Section 3 of the Act,,said a statement issued by CCP here on Thursday.

The complainants accused the airlines of charging higher rates on the export of mangoes from Pakistan in comparison to the charges levied for exports from India for the same destinations. Furthermore, exporters had to give undertaking of no claim or indemnity bond which exempts the exporters from the loss incurred due to delay or damage caused during transit and handling. This condition was a major hurdle in mango export to the United Arab Emirates, Europe, and other countries.

The CCP's enquiry noted that contrary to international conventions and prevalent practice in other jurisdictions, Pakistani mango exporters were required to furnish an indemnity bond by all airlines...