KARACHI, March 12: Cargo clearance at the air freight unit (AFU) of the Jinnah International Airport came to a standstill on Monday after a strike call given by the Karachi Customs Agents Association (KCAA) to protest an increase in godown rent by baggage handlers.

Customs agents complained that a sudden jump of 40 per cent in rent by baggage handlers, known as "custodians" at the AFU of the Jinnah terminal, had left them with no option but to go on strike.

According to customs officials, around 350 goods declarations (GDs) are filed daily by KCAA members for clearance of cargo at the AFU.

The strike will deprive the national exchequer of Rs60 million per day in duty and taxes, they added.

Imports at the air freight unit largely consist of medicines, industrial raw material, spares for plants and machinery, and aircraft parts. In addition, the AFU handles courier cargo.

Faisal Mushtaq, general secretary of the Karachi Customs Agents Association (KCAA), alleged that the increase in godown rent violated an understanding reached last month between baggage handlers and customs gents.

Mr Mushtaq said that a few years ago the godown rent was raised by the handlers at the AFU on the plea that customs authorities had asked them to operate round the clock. "In order to meet increased operational cost, they were allowed to raise their charges."

However, Mr Mushtaq added, due to poor law and order situation the KCAA members requested authorities to stop 24-hour operations because it was difficult for them to operate at night. Hence the KCAA called for a cut in rates, but the baggage handlers refused to do so and kept their operations open at night.

The general secretary of Karachi Customs Agents Association (KCAA) said that the Customs agents would continue the strike till acceptance of their demands. Air freight units at Islamabad, Lahore and Rawalpindi will also stop work on Tuesday.